Silver prices concluded the trading session with a notable increase of 2.13%, finishing at Rs 212,872 after reaching a new record high. This upward movement was bolstered by anticipations of additional rate cuts from the Federal Reserve and escalating geopolitical tensions. The metal has experienced a remarkable increase of over 140%, driven by a structurally constrained supply landscape, vigorous industrial consumption, and significant investment demand. ETF inflows and ongoing retail purchasing bolster the outlook for a continued market deficit, with projections indicating a fifth straight year of shortfalls estimated at approximately 125 million ounces in 2025, bringing total deficits since 2021 to nearly 800 million ounces.
Industrial demand continues to be a significant factor, propelled by the swift expansion of solar energy, electric vehicles, and data center infrastructure. Supply-side constraints continue to be a significant issue, with global mine production and recycling experiencing little change for more than ten years. Rising lease rates and borrowing costs in London reflect tight physical conditions, signaling authentic delivery stress.
China’s declaration of stringent silver export controls set to commence in 2026 has intensified immediate demand, as Chinese stockpiles have dwindled to levels not seen in a decade, following unprecedented exports surpassing 660 tonnes in October. Despite the LBMA data indicating a 3.5% increase in silver holdings within London vaults for November, concerns regarding liquidity persist at heightened levels.
From a technical perspective, the market is experiencing renewed buying interest, evidenced by a 4.54% increase in open interest to 12,688, alongside a price advancement to Rs 4,433. Silver exhibits support at Rs 210,035; a breach beneath this level may challenge Rs 207,200. Resistance is established at Rs 215,145, and a sustained movement above this level could pave the way toward Rs 217,420.