🧠Buffett Once Bought 129.7M Ounces of Silver—Now He’s Holding 30% Cash

Credit: Hat tip to @BravosResearch (on X) for highlighting Buffet’s 30% cash position yesterday and Katusa Research for Warren Buffett’s Silver Signals.

Something deeper is happening beneath the surface. Warren Buffett—who once stunned markets by buying 129.7M ounces of silver—greater than 25% of global yearly production —now holds 30% of Berkshire Hathaway’s assets in cash.

That’s not portfolio management. That’s a warning shot. And as Katusa Research outlines, the exact same conditions that triggered Buffett’s legendary silver play are aligning again—only this time, the stakes are far greater. Because the silver market is flashing red across every fundamental dimension Buffett once used.

Buffett’s Cash Is Not Passive—It’s Strategic Abstention

Buffett is no fool. He knows valuation. He knows balance sheets. And most of all—he knows timing.

When he refuses to deploy capital, it’s not because he can’t find a deal. It’s because the entire deal-making universe is unworthy of belief.

30% cash says:

• “Nothing is priced right.”

• “Forward earnings are fantasy.”

• “Trust is gone—but nobody’s admitted it yet.”

This isn’t a vote for cash. It’s a vote against distortion.

The Three Forces Fueling Silver’s Breakout

1. The Structural Deficit Is Now a Chasm

In the 1990s, Buffett entered silver after identifying a supply/demand shortfall of about 100M ounces per year.

Today? The silver market is in a structural deficit for the 5th year in a row.

And according to Sprott Asset Management, the shortfall will average 200M+ ounces annually through 2030. This isn’t a gap. It’s a structural cliff.

2. Vaults Are Bleeding Metal

Buffett knew above-ground inventories could offset demand—but only if they remained intact. They’re not.

• COMEX: 120M ounces withdrawn 2021-2023

• LBMA: Over 400M ounces drained from it’s high in 2021

• January 2025: LBMA drained by 71M ounces—nearly 10% of total holdings

If the drain rate of the last 3 years continues, LBMA vaults will be functionally depleted around 2028.

3. Silver Supply Is Inelastic

Silver isn’t like copper or gold—it’s rarely mined on its own. As Buffett once noted, “relatively few pure silver mines” exist. As a result, supply is stagnating even as demand accelerates:

• Very few projects are in development

• Mining can’t respond to price like it used to

• 2024 global production was lower than 2014

Why 30% Cash Right Now?

When Buffett builds this kind of war chest, it’s not indecision. It’s anticipation.

He’s waiting for forced selling, synthetic unravelings, and deep mispricings that only appear when the system gets margin-called.

And what’s he waiting to buy? Probably not more promises. Probably something real.

The Illusion of Liquidity Is Cracking

The system runs on faith—faith in endless liquidity, all-powerful central banks, and gravity-defying debt. But trust is cracking.

The 10-Year Swap Spread remains deeply inverted. Japan’s bond market is breaking. Institutions now prefer derivatives over the “safest” collateral on earth.

The foundation of global finance is eroding—yet markets levitate, detached from earnings, fueled by illusion. This is the final chapter of fiat: Debt became the bedrock.

Risk became policy. Truth became volatility. But gravity never disappears—it waits. And when it returns, capital will flee to the only assets that hold their shape when the system doesn’t: gold and silver.

Not a hedge. Not an alternative. The original store of value. The reversions won’t be slow. They will be sudden. Global. Explosive. Biblical. Not if. When.

Why I Use HardAssets Alliance
HardAssets Alliance provides:

• 100% insurance for market value

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• Vault access across 5 global hubs or delivery anytime

When trust dies, liquidity vanishes. The wise exit the simulation before the flood. Step into sovereignty. Move before the masses.

Luke Lovett
📲 Cell: 704.497.7324
🌐 Undervalued Assets | Sovereign Signal
📧 Email: [email protected]

Disclaimer:
This content is for educational purposes only—not financial, legal, tax, or investment advice. I’m not a licensed advisor, and nothing herein should be relied upon to make investment decisions. Markets change fast. While accuracy is the goal, no guarantees are made. Past performance ≠ future results. Some insights paraphrase third-party experts for commentary—without endorsement or affiliation. Always do your own research and consult a licensed professional before investing. I do not sell metals, process transactions, or hold funds. All orders go directly through licensed dealers.