Silver continues to attract the attention of traders globally, following exceptional inflows from the United States and China to the London spot market, which helped alleviate supply shortages at the largest global center for trading precious metals over-the-counter. This comes at a time when markets are experiencing disruptions between supply and demand, along with a historic rise in the price of the white metal.
Traders estimate that about 15 to 20 million troy ounces of American silver recently reached London, relieving pressure on a market that has witnessed record premiums in recent weeks. Tai Wong, an independent metals trader, stated that "the main pressures have ended for the time being," indicating a new equilibrium is beginning in the market.
In contrast, sources revealed that more than a thousand tons of silver have been shipped to London from the United States and China at a time when supply shortages coincide with rising gold prices and increasing demand from India. Silver prices in London hit a record high of $54.47 per ounce on Friday before stabilizing around $52 on Monday, while short-term borrowing rates dropped from their historic peaks.
According to the London Bullion Market Association, silver stocks at the end of September stood at approximately 24,581 tons, valued at $36.5 billion, most of which is managed by exchange-traded funds. Metals Focus reported that 83% of these quantities are allocated to those funds, reflecting strong investment demand.
On another note, Britain and India are currently competing for the remaining supplies of silver, especially during the holiday season in India and the rising air freight costs. One trader noted that about 150 tons of the metal are leaving China for abroad, while stocks at the Shanghai Exchange have dropped to their lowest levels since May, with a decrease of 249 tons over a week.
Analysts believe that continued inflows to London could reshape the global silver trade map, especially with rising concerns about potential U.S. tariffs on metal imports. Current trading shows that spot silver contracts have increased by 1.16% close to $52.5 per ounce, amid questions about whether silver is preparing for a new phase of historic highs in global markets.
