Silver Faces Volatility as Industrial Supply Deficits Clash with Paper Liquidation

image-alt-text

Physical Squeeze in Asia

Physical premiums in Asian hubs remain near record levels, reflecting a severe shortage of investment-grade bars. The implementation of new export controls in major producing regions has restricted the flow of metal, forcing industrial users to pay significant spot premiums.

Technical Support Levels

Technically, silver is finding strong support at the $75 mark. Analysts suggest that the current consolidation is healthy, allowing the RSI to cool before a potential attempt at the psychological $85 resistance level in late Q1.