Overview
- Spot prices spiked to roughly $84 an ounce early Monday before sliding 5–8% intraday, marking a volatile session after six straight advances and record highs.
- India’s MCX March silver futures hit a lifetime high near Rs 2,54,174 per kg, then slumped about Rs 21,000 within an hour as traders booked profits.
- The surge reflects strong industrial demand, multi‑year supply deficits, hefty ETF inflows and easier U.S. policy, with silver up roughly 160–180% in 2025 and outpacing gold.
- Supply strains are in focus as China’s export licensing begins January 1, 2026, inventories have thinned in key hubs, physical premiums have widened, and a U.S. Commerce review is clouding import flows.
- The CME raised margin requirements for silver futures as analysts split between calls for $100 in 2026 and bubble warnings, with Elon Musk cautioning that manufacturers could be hurt by sustained high prices.