Silver prices have surged over 170% this year, with no end in sight, as industrial uses and economic uncertainty create more demand than supply. PLUS, major banks have been caught in a ‘short squeeze’ with no way out, cuz the the inventory they were counting on doesn’t exist.

 

  • Persistent Supply Deficits: The global silver market has been in a structural deficit for five consecutive years, with demand consistently outstripping mine supply. This is largely because most silver is a byproduct of mining other metals (gold, lead, zinc), making supply unresponsive to surging demand.
  • Dwindling Inventories: Major exchange inventories, such as those at the London Bullion Market Association (LBMA) and COMEX, have reached "critically low levels," with COMEX inventories down 70% from their 2020 peak.
  • Explosive Industrial Demand: About 60% of silver demand comes from industrial uses, which have surged due to growth in solar panels, electric vehicles, AI data centers, and other advanced electronics. 
  • Strong Investor Demand: Geopolitical uncertainty, inflation concerns, and expectations of U.S. Federal Reserve interest rate cuts have driven significant investment in silver as a safe-haven asset.
  • Market Backwardation: The physical market is in backwardation, where the spot (immediate) price is higher than the futures price. This is a strong signal of immediate supply shortages.
  • Record Prices: Silver prices have shattered decade-long ceilings, surging over 120% in 2025 to reach record highs above $76 per ounce (as of December 2025). This massive rally is described by analysts as a long-overdue repricing.
  • Physical Shortages: Dealers in major markets like India and China report near-zero physical availability, with investors paying premiums above exchange prices.
  •  
  • Multi-Year Deficits: 
    Global demand has exceeded supply for years, with major shortfalls estimated for 2024 and projected for 2025, totaling hundreds of millions of ounces. 
  • Rising Demand: 
    Industrial demand is booming for solar panels, EVs, AI, and electronics, alongside investment demand for physical metal is only going to increase.

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