Critical Industrial Shortage
The silver market is facing one of its most severe supply deficits in decades. Demand from the photovoltaic (solar) sector has grown exponentially this year, and with mine production largely flat, industrial users are competing fiercely for available physical metal. This industrial scarcity is the fundamental engine behind the current price explosion.
ETF and Retail Participation
Retail and institutional investors have flooded back into silver ETFs, viewing the metal as undervalued relative to gold. The current Gold-to-Silver ratio is narrowing as silver captures the attention of momentum traders. Technical analysts point to the breakout above $65 as a significant psychological milestone that could invite further speculative inflows in the coming weeks.