Silver market hits stress point: India demand surges, London liquidity tightens

Global silver market under stress: India demand soars ahead of Diwali and London inventories tighten with borrowing rates spiking.

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Silver market hits stress point: India demand surges, London liquidity tightens

On October 19, 2025, the global silver market showed signs of strain as Indian investor demand surged ahead of Diwali and supply tightened in London vaults. Indian retail demand for silver coins and bars outpaced availability, while the cost of borrowing silver overnight rose significantly — in some cases to annualised rates of 200%. Traders and analysts say the “debasement trade” (hedging dollar risk via precious metals) is driving this rush. The shortage may pressure industrial users and affect silver-ETF flows in the near term.
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