The Silver Institute's latest forecast points to a fifth consecutive structural deficit in the silver market, driven by relentless growth in solar-cell production. Asian manufacturers, particularly those in China and India, are expanding capacity faster than mine output can respond.
The gold-silver ratio fell below 84 this week, the lowest level in over a decade, suggesting silver is catching up after years of underperformance. Refiners report extended delivery times for 1,000-oz industrial bars, and exchange inventories at COMEX have declined to multi-year lows.
Hedge funds increased net-long positions to a 14-month high, according to the latest CFTC Commitments of Traders report. Technical resistance is now seen at USD 35, with USD 32 acting as near-term support.