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Maddog

Posted by goldielocks @ 9:09 on November 28, 2025  

Well that explains more about India competing with London for silver other than their wedding seasons. Now the Arabs bought silver for industrial purposes. Europe apparently doesn’t have anything China needs so had to trade with silver.

This supply shortage isn’t getting better but looks like it’s just getting started.

More trouble in Europe..

Conversely, the Europeans did not have any goods or commodities which China desired, so they traded their newly mined silver from the Americas which was badly needed in China at the time due to long running silver shortages, in order to make up for their trade deficit. 
 
Silver demand is growing and the silver sent from US and China to London were only a temporary fix. actually spreading shortages to China. Perhaps why there was talk about them halting exports. 
 

+9

Silver price update record silver rally today: REAL silver ...

Yes, the physical silver market in London experienced a severe liquidity squeeze in October 2025, meaning the amount of readily available “free float” silver was critically low. This was driven by a long-term global silver deficit, a surge in demand from both industrial and investment sources, and a recent outflow of metal to the U.S. due to tariff fears. While large inflows of silver from the U.S. and China have since helped to ease the immediate crisis, the underlying structural deficit remains.

Causes of the silver shortage
  • Long-term supply deficit:
    Global demand for silver has outstripped supply for several years, leading to a total shortfall of hundreds of millions of ounces.

  • ETF holdings:
    A large portion of the silver in London’s vaults is held by exchange-traded funds (ETFs) and is not available to the physical market, significantly reducing the “free float”.

  • Recent outflows:
    Before the squeeze, many traders moved silver out of London to U.S. vaults in anticipation of potential tariffs.

  • Increased demand:
    A recent surge in demand from India, coupled with investment buying, hit the market when the physical supply was already low.

Impact of the shortage
  • Historic price surge:
    The shortage and subsequent scramble for metal caused the price of silver in London to spike dramatically, temporarily trading at a significant premium to U.S. prices.

  • Market stress:
    Traders described the market as “all but broken,” with banks struggling to quote prices due to a lack of available physical metal for lease or delivery.

  • Reversal of flows:
    The high premium in London made it profitable to ship silver from the U.S. and China to London, and significant inflows have since occurred, easing the immediate tightness.

Current situation
  • Liquidity improved:
    The large inflows of physical silver have alleviated the immediate, acute shortage and the market has stabilized from its panic state.

  • Underlying issue persists:
    Despite the recent improvement, the long-term supply deficit remains, and the structural problem of a low “free float” in London has not been resolved.
Other problems. India is competing with London for silver and silver is allocated to ETFs not selling.
Consultancy Metals Focus estimates that 83% of silver held in London vaults had been allocated to ETFs as of end-September.
About 697 tons of silver has left Comex warehouses in the U.S. since stocks there hit a record high of 16,543 tons (531.9 million troy ounces) on October 3.
Comex inventories surged earlier this year due to uncertainty over U.S. import tariffs. Further appetite for U.S. stocks outflows depends on the results of a U.S. probe into potential import tariffs on critical minerals, which the market expects this month.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.