Gold Drops 5% as Silver Shortage Exposes Physical Metal Crisis
Gold experienced a 5% drop following trade news, while a severe physical silver shortage exposed fundamental supply chain issues in traditional precious metals markets.Summary
Gold reached a high of $4,379 in October 2025 before crashing 5.57% in one day due to easing U.S.-China trade tensions, highlighting the volatility of physical metals based on sentiment.
Simultaneously, the physical silver market faced a genuine crisis, with the Royal Mint warning of 4-8 week delivery delays as retail demand overwhelmed capacity, causing institutional inventories in London to hit critically low levels and lease rates to spike above 33%. This shortage is structural, driven by years of industrial demand outpacing mine production.
The article argues that these events—gold's volatility and silver's supply failure—expose the limitations of traditional physical markets, where paper trading ratios are high and delivery is slow. Tokenized alternatives like XAUT and PAXG are presented as the solution, offering instant settlement, 24/7 liquidity, and elimination of delivery risk, attracting increasing institutional adoption in the growing Real World Asset (RWA) market.
(Source：Brave New Coin)