Core Insights - The global silver market is experiencing its most severe supply crisis since 1980, driven by a surge in demand from India and subsequent global repercussions [1][2] Group 1: Demand Surge - The demand for silver in India has skyrocketed due to traditional purchasing during festivals, particularly for worshipping the wealth goddess Lakshmi, leading to a historic sell-out of silver inventory at MMTC-Pamp India [2][4] - International investors and hedge funds are also entering the silver market, viewing it as a hedge against a weakening dollar and following the rising prices [2][3] Group 2: Market Dynamics - The crisis has led to a rapid depletion of available silver in the London market, which is crucial for global silver pricing and trading, causing traders to describe the market as nearly "collapsing" [2][5] - Silver prices surged to a historic high of over $54 per ounce before experiencing a sharp decline of approximately 6.7%, marking one of the most significant market disruptions since the Hunt brothers' manipulation in 1980 [2][5] Group 3: Supply Constraints - The underlying causes of the crisis include a prolonged boom in the solar industry, preemptive shipments to the U.S. to avoid potential tariffs, and a sudden spike in demand from India [3][4] - Since 2021, silver demand has consistently outstripped mine production and recycling supply, resulting in a cumulative shortfall of 678 million ounces, with the solar industry being a major contributor [5]