Why 2 major asset managers just suspended investments into silver

Core Insights - The silver market in India is experiencing significant disruptions due to strong seasonal demand and a supply shortage, leading to erratic price behavior and a plunge in imports [1][5] - Investment managers in India have begun suspending silver purchases for clients due to dangerous market conditions, indicating potential ongoing issues in the market [2] - Two major fund houses, Kotak Mutual Fund and UTI Asset Management, have paused new investments in their Silver ETF Funds due to domestic silver premiums trading 8 to 10% above global prices, highlighting severe supply/demand imbalances [3][4] Market Dynamics - The upcoming Diwali holiday is expected to increase demand for silver jewelry and products, while industrial demand is also rising due to the clean energy boom, creating competition for silver [7] - The combination of high demand and limited supply is driving prices higher, with the effect magnified by the current market conditions [8]