India's silver rush sparks global shortage alarm
Festive demand drains 30% of world supply; London dealers ration bars as premiums hit record highs.
Newsroom, October 19, 2025:
India's voracious appetite for silver, accounting for nearly 30% of global consumption at 3,000 tonnes in 2025, has triggered a physical crunch, forcing London dealers to cap sales and driving premiums to unprecedented levels amid Diwali preparations.
The surge, fueled by jewellery and investment buying, has emptied vaults and disrupted the traditional flow from mines to markets, with spot prices climbing 15% in a month to $32 an ounce.
Experts point to supply chain strains from Mexico and Peru, coupled with India's 20% import levy, as culprits behind the scarcity. "It's a perfect storm: festive hoarding meets lagging production," noted a BullionVault analyst, warning of further volatility if refining delays persist.