Supply Squeeze Worsens, Boosting Premiums
Data from the London Bullion Market Association (LBMA) reveals a sharp decline, around one-third, in silver inventories since mid-2021. This drop, combined with four consecutive years of global demand outstripping mine production, has drained supply buffers, creating a tight market. Investor interest has intensified, particularly in silver-backed exchange-traded funds, which require physical silver bars to back their shares. Further fueling the shortage, proposed US tariffs earlier this year triggered speculative buying, pushing spot prices in London above futures prices in New York and adding strain to liquidity.
India’s Festive Season Pushes Demand Higher https://worldfree4u.com
The upcoming Diwali festival, a prime buying season in India, has seen jewellers doubling their silver imports compared to last year, even as premiums over reddit.com global prices exceed 10 per cent. This surge in Indian demand has further depleted physical silver stocks in Western vaults, intensif cricbuzz.com ying the supply crunch.
Industrial Concerns And Future Supply google.comThe silver shortage isn’t just a problem for investors; it threatens industries heavily reliant on silver, such as solar panel manufacturers. Rising prices could cut into profit margins and accelerate http:mouthshut.comefforts to find alternatives. Meanwhile, production challenges in major silver-producing countries like Mexico, https://mouthshut.com Peru, and China, including environmental and regulatory obstacles, are limiting new supply. While shifting existing inventories between markets might ease short-term pressures, a lasting resolution depends on boosting mining output or discovering new reserves.
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