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Silver has vaulted to fresh all-time highs on COMEX at $62 and to 191000 on MCX, driven by a powerful combination of physical scarcity, renewed ETF inflows, and expectations of an imminent 25-bp Federal Reserve rate cut. Tighter global inventories, decade-low Chinese stockpiles, and elevated borrowing costs in London have intensified the supply squeeze, amplifying price momentum. Industrial consumption from solar, EVs, and electronics continues to outstrip mine output, sustaining a structural deficit. While RSI indicators suggest short-term overbought conditions, dips toward support zones are likely to attract buyers, keeping the broader trend firmly bullish.

Key Highlights

* Silver hits new all-time highs on COMEX and MCX amid tightening supply.

* ETF inflows, low visible inventories, and structural deficit reinforce the rally.

* China’s decade-low stockpiles and record exports accelerate global market tightness.

* Technical setup favours upside despite temporary overbought conditions.

* London liquidity stress persists even with record inflows into vaults.

Silver prices surged to fresh all-time highs, with COMEX touching $62 and MCX climbing to 191000, as a potent combination of macro and physical market forces drove an aggressive rally. The initial catalyst came from building expectations of a 25-bp Federal Reserve rate cut, which pushed real yields lower and boosted demand for precious metals. This coincided with a pronounced physical squeeze, intensifying bullish momentum across global exchanges.

Supporting the price performance, visible inventories remain extremely tight. Exchange-linked stocks have fallen sharply, with Chinese silver inventories dropping to their lowest level since 2015. A record 660-ton outflow from China in October further drained domestic supply and redirected material to London in an attempt to ease liquidity stress. Even so, borrowing costs in London remain elevated, underscoring persistent scarcity despite a 3.5 percent rise in LBMA vault holdings. ETF accumulation also strengthened materially, indicating strong institutional participation and rising fears of another market deficit this year.

Industrial demand continues to be a major structural pillar. Consumption from solar panel manufacturing, electric vehicles, green energy infrastructure, and electronics has risen sharply, while mine production struggles to keep pace. This sustained mismatch between supply and demand has created a multi-year deficit, magnifying every incremental tightening in the physical market.

On the technical front, silver is consolidating near its record peak. While RSI readings signal overbought conditions, dips toward $60.60–$60.00 are expected to find strong buying interest. A breakout above $62.50 could open the door to $64.00 and $65.50, reinforcing the broader bullish trend while below $60.00 comes at $58.20 followed by $56.40.

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