Silver shares gold's glow: Can supply keep up with demand?

Core Insights - The current festive season in India has led to a surge in gold buying, while silver is facing significant shortages, impacting both consumers and retailers [1][2] - The price of silver has increased dramatically, making it difficult for small and middle-class consumers to afford larger purchases [3] - Government restrictions on silver jewelry imports until March 2026 are contributing to the current scarcity of silver in the market [4] Group 1: Market Conditions - There is a notable shortage of silver in India, leading to many ETFs halting their silver purchases [1] - Retailers are unable to fulfill large silver orders, often having to limit customers to smaller quantities [2] - The price of silver has risen by approximately 10,000 rupees, making it increasingly unaffordable for many consumers [3] Group 2: Regulatory Impact - The Indian government's restrictions on silver jewelry imports are a significant factor in the current scarcity of silver [4] - The shift of silver trading from London to New York due to tariffs has exacerbated the supply issues [4] - Central banks are also facing challenges in sourcing silver, further tightening the market [4]