Silver Prices Hit Record Monthly High as China’s Inventories Plunge and India’s Demand Soars
- Silver’s Record Month: Silver wrapped up October 2025 with its highest nominal monthly close ever, up an impressive 64% year-to-date, signaling growing investor momentum.
- Gold Holds Strong: Gold prices stayed resilient, closing the week just above $4,000 per ounce, while the gold-silver ratio slipped to 82, underscoring silver’s relative strength.
- China’s Silver Stocks Draining Fast: Inventories at the Shanghai Gold Exchange and Shanghai Futures Exchange have plunged by 193 million ounces since their 2020 peak — a major structural shift.
- India’s Expanding Role: India imported nearly 1,000 tons of silver in September alone and is ramping up solar projects that could lift silver demand by 10–13% globally by 2030.
- Silver as Collateral: The Reserve Bank of India will allow silver as loan collateral (up to 85% loan-to-value) starting April 2026 — a historic move elevating silver alongside gold in the financial system.
- Global Supply Deficit: The world silver market remains deep in deficit — about 800 million ounces short over the last five years — a trend fueling upward price pressure.
- ETF & Lease Rate Turmoil: Surging Indian ETF inflows and tightening London silver lease rates show how physical demand is reshaping short-term market dynamics.
- Analyst Targets: Industry forecasters like Metals Focus and LBMA attendees see silver potentially hitting $60/oz and gold $5,000/oz in 2026 — a bullish outlook rooted in supply constraints.
- Macro Risks Brewing: Rising U.S. M2 money supply, banking losses on long-term bonds, and renewed repo market stress point to cracks in the fiat system that could favor hard assets.
- Retail & Institutional Divergence: While central banks and private investors (notably in Russia and Asia) keep stacking gold, U.S. institutions remain underexposed — suggesting the bull run may still be early.
Fueled by collapsing inventories in China, soaring imports from India, and renewed central bank interest, silver closes October up 64% year-to-date — setting the stage for what could be its most explosive rally yet.
Silver finished October 2025 with its highest nominal monthly close ever, up +64% year to date.
But the fundamental drivers of the world's silver market—now and in the future —are what matter most.
The gold and silver markets traded flat, slightly down on the week.
The spot silver price ended the week at $48.58 oz bid.
The spot gold price closed the week just above the key round number at $4,003 oz bid.
The spot gold-silver ratio fell a few ticks, given silver's relative strength versus gold, ending the week at 82.
