Simultaneously, in the rugged mountains of Peru, the mines are running dry. Seventy percent of silver is produced as a byproduct of mining other metals like copper and zinc, meaning supply is inelastic and cannot keep pace with the soaring demand. This structural deficit has persisted for five years, draining above-ground inventories to decade-long lows.
This global imbalance sets the stage for a spectacular rally. In India, a traditional hub for silver jewellery and investment, the festive season of Diwali and Dhanteras sparks a buying frenzy, driving domestic prices on the Multi-Commodity Exchange (MCX) to an unprecedented ₹2,54,174 per kilogram by late December 2025, a jump of over 180% for the year. Silver has suddenly outperformed every major asset class, including gold and even tech giants like Nvidia.
The news desks are in a frenzy. Experts on financial networks discuss the "devil's metal," a nickname for silver's notorious volatility, but agree the rally is rooted in fundamental scarcity, not mere speculation. Geopolitical tensions, U.S. interest rate cuts, and central bank buying from nations like Saudi Arabia and Russia add fuel to the fire, as investors seek safe-haven assets. The market sees a "fear of missing out" (FOMO) rally among retail investors, pushing record inflows into silver ETFs.
For old Mrs. Devi, a quiet woman in Udaipur who had invested in silver coins years ago on her grandson's advice, the news is a quiet revelation. Her modest investment had soared, a testament to the changing world where an old-world precious metal had become an essential component of the future. The silver market, once a quiet corner of finance, was now a dazzling star, its price hike a story of transformation from a traditional adornment to the essential metal of the modern technological age.
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