Silver’s Sharp Pullback Raises Bigger Questions About the Global Economy

David Morgan (The Morgan Report) flags an unusually sharp weekly downdraft in silver into the March 13 week-end, describing a ~$10 selloff (from “around $90” to “below $80”) that he attributes largely to a single, large sell order that appeared to trip the market lower. He argues the move looks more like a short-term liquidation/air-pocket than a definitive change in the longer-term bull case, though he notes the precise source of the sell program is unconfirmed. On market structure, Morgan pushes back on recurring narratives that COMEX/LBMA are imminently “running out” of silver. Citing historical patterns and data compilations referenced from Nick Laird (GoldChartsRUs) and commentary from Bob Coleman, he says exchange inventories and metal flows have tended to remain broadly stable over long periods, with metal frequently shifting between venues when arbitrage incentives open. His framing: COMEX is predominantly a paper-derivatives venue, and most activity stays within the system rather than resulting in large, persistent physical withdrawals. Desk implications: treat the week’s drop as positioning/flow-driven until corroborating evidence shows a sustained physical tightness signal (e.g., persistent inventory draws, lease-rate spikes, widening backwardation, or repeated delivery stress). Near-term catalysts to watch are follow-through selling vs. quick mean reversion, plus any verifiable data on the size/origin of the sell order and cross-venue inventory moves. He also highlights a regulatory/tax development: a Maryland Senate committee advancing legislation to remove sales tax on gold and silver purchases, which (if enacted) could marginally improve local retail bullion demand conditions and aligns with broader “sound money” policy efforts.