Bloomberg reported on October 18 that the surge in silver purchases during the Diwali festival became a significant trigger for the historic short squeeze in London's silver market. Diwali is an important festival for Hindus, Sikhs, and Jains, with hundreds of millions of followers buying jewelry worth billions of rupees during the holiday to honor the goddess of wealth, Lakshmi, celebrating "light driving away darkness, and good triumphing over evil." It is reported that before Diwali, a urban legend circulated online in India claiming that "silver would be the best purchase at a ratio of 100:1 against gold," leading many people to abandon their traditional preference for gold products and invest in the silver market instead. The price of silver per ounce in India usually only exceeds the global price by a few cents, but due to a shortage of supply, the premium surged above $6. India's shift to the London market coincided with a sharp increase in buying activity in the London market, resulting in an unprecedented premium for London spot silver compared to New York futures, with market liquidity almost exhausted. However, analysts pointed out that the more important reason for the turmoil in the silver market is the booming development of industries such as solar energy, which has increased the demand for silver, as well as the uncertainty of Trump's tariff policies, which have prompted the early shipment of precious metals out of the US market. In summary, it is unlikely that external silver supplies will be found in the Indian domestic market before November.
Original: www.toutiao.com/article/1846486811901964/
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