Why Is India Facing a Historic Silver Shortage and London on Edge? Explained
Story by Times Now Digital
India’s silver market ran out of stock for the first time in history last week as festival demand and global investment pressure sent prices soaring, creating panic in London, where the world’s largest bullion banks struggled to meet orders.
About two weeks ago, JPMorgan Chase & Co., one of the world’s largest precious metals traders and a key supplier to the Indian market, informed at least one client that it had exhausted its silver allocations for October shipments to India, with the next availability only in November, reports Bloomberg.
Vipin Raina, head of trading at MMTC-Pamp India Pvt., said he was unprepared for the surge. “Most people who are dealing silver and silver coins, they’re literally out of stock because silver is not there,” he said, as quoted by Bloomberg. “This kind of crazy market — where people are buying at these levels — I have not seen in my 27-year career," Raina added.
The frenzy began as hundreds of millions of Indians bought silver to celebrate the goddess Lakshmi during the Diwali season, fueled by social media hype. Investment banker and content creator Sarthak Ahuja told his nearly 3 million followers that silver’s 100-to-1 ratio to gold made it a smart buy. His video went viral during Akshaya Tritiya, an auspicious day for precious metal purchases.
Amit Mittal, general manager at M.D. Overseas Bullion in New Delhi, said, “It’s never been like this before. The demand this time for silver has been humongous.” Premiums above global silver prices surged from $0.50 to over $5 an ounce, sparking bidding wars among buyers.
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Why Is India Facing a Historic Silver Shortage and London on Edge? Explained |
