Silver
I had seen a blurb about a shortage of silver, particularly in India but throughout the world, so I asked chat GPT, below is the response. This is why I decided to continue to make adds to my holdings. Not going to bother posting on SA, it appears bitcoin, gold and silver comments aren't welcome.
It's all good, just rules of the blog. I think I'll be hanging out here much more and posting less on SA.
Anyways, here was the response.
Yes — there is currently a global silver shortage in 2025, and it’s one of the main reasons silver has surged to record highs above $50/oz.
?? Supply Side - Structural deficit: The silver market has been in a supply deficit for several consecutive years — demand has outpaced mine production and recycling.
- Mining constraints: About 70% of silver is produced as a by-product of mining other metals (like copper, lead, zinc), so output can’t easily ramp up just because silver prices rise.
- Falling inventories: London bullion inventories have plunged by more than 30% this year, signaling tight physical supply.
?? Demand Side - Industrial demand: Silver is critical for solar panels, EVs, semiconductors, and AI-related electronics. The clean energy boom is driving record consumption.
- Investment demand: With gold at all-time highs, investors are piling into silver as a “cheaper” monetary hedge.
- Seasonal demand: In India, silver demand spikes during Diwali for jewelry and gifts. This year, premiums in India have run 8–10% above global prices, forcing some asset managers to suspend new silver ETF purchases2.
?? Market Impact - Record prices: Silver has broken through $50/oz for only the second time in history (the last was 1980 and briefly in 2011).
- Liquidity stress: Analysts describe the London market as being in a “state of seizure,” with Bank of America projecting silver could reach $65/oz in 2026.
- ETF disruptions: In India, multiple fund houses (Kotak, UTI, SBI, ICICI) have paused new lump-sum investments into silver ETFs because of the shortage7.
? Bottom Line Yes — there is a real, global silver shortage right now. It’s being driven by a rare combination of structural supply deficits + surging industrial demand + investor flows, and it’s causing both record prices and market disruptions. |
