➡ The price of silver has risen above $80 due to high demand, especially in China and India. This is largely because of a shortage in the physical market, with companies in these countries willing to pay extra for silver. This demand is particularly high among solar panel manufacturers. A few months ago, India also experienced a silver shortage, which further increased the demand.

All right, so we have the spot silver price back above $80 on a Friday, and if you’re wondering why this has popped up a couple times, we’ve seen the price go down yet it continues to pop back up over the 80 level. Well, fortunately there are a lot of reasons, although one particular primary reason in my opinion goes back to the continued indications of tightness in the physical market, particularly in China, where two weeks ago they were calling junior miners in Latin America trying to pay an eight to ten dollar premium to the COMEX, and then just a few days later we heard similar calls from groups in India with groups from both countries representing solar panel manufacturers, and here’s a quick recap from one of the miners who actually got those phone calls.

One of the Chinese companies was in fact a solar panel manufacturer that was that we’re talking to, and then yesterday we were approached by an Indian firm this time. Again, similar premium they were offering in the low 80s for silver when silver was in the low to mid 70s, so probably another eight to ten dollar premium there. So ever since then, the question that leaves us with is given that India had their own silver shortage just a couple months ago in October, which is what knocked London offline, which is what sent metal from China over to London and has left China with a supply gap that is now impacting the manufacturers.

So when you see groups from India making the same phone call, I was wondering are they just seeing what’s happening in China and trying to be proactive, or on the ground in India are we seeing potentially that they are concerned about another shortage there as well, and I just got an update from a source on the ground in India that said that China is soaking up all the silver and making it difficult for India to get the raw materials they need for manufacturing. So we won’t call that another shortage in India just yet, but also clear indications that there is tightness there as well.

The full write-up and coverage of that is now on goldandsilverdaily.substack.com. That’s today’s article. Silver breaks $80 again on another Volatile Friday, and at the Arcadia Economics Gold and Silver Daily. We are covering the precious metals markets each day, which we’ve also been doing for years and helping to put into context the events that have led to the point that we’re at now. So if you want to stay posted on the gold and silver markets in the midst of this historic run, just go on over to goldandsilverdaily.substack.com. [tr:trw].

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