Perspective on Silver 23rd July 2025 by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services Ltd
Below the Perspective on Silver 23rd July 2025 by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services Ltd
“Silver prices, trading above $38.25/oz after reaching above $39.12 earlier in the past week, as strength in the US dollar dampened foreign investment demand for the dollar-denominated metal. The greenback gained following fresh tariff threats by the US administration, which targeted the European Union and Mexico, the latter being the world’s top silver producer. Market concerns grew over the potential for these levies, scheduled to take effect on August 1, to spill into broader trade relations, even though silver remains exempt under the current US-Mexico-Canada Agreement. Earlier gains in silver had been fuelled by tightening physical supply and soaring lease rates in London, where a surge in ETF holdings, up by around 2,570 tonnes since February, has reduced the pool of available metal. The one-month annualized lease rate exceeded 6%, a stark deviation from the near-zero norm, signaling deepening physical market strain. Despite the retreat, silver is still up 32% year-to-date, outperforming gold’s 27% rise, and the gold-silver ratio has dropped to 86 from its 10-year average of 80, indicating silver remains relatively undervalued. Demand fundamentals remain robust, driven by both its safe-haven status and strong industrial applications, particularly in solar technology. On the speculative front, the latest CFTC Commitment of Traders data revealed hedge funds increased their net bullish positions by 322 contracts to 43,927, with long-only positions climbing to a four-week high of 60,072, while shorts also rose to a 15-week high of 16,145, pointing to growing positioning on both sides as volatility rises.”
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