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Money Metals News Alert
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November 10, 2025
– Gold and silver prices ended last week largely flat and then rallied
strongly today.
President Trump announced over the
weekend that most American families can expect a $2,000 ???tariff dividend.??? Markets
will be digesting the news of that stimulus this week.
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The announcement is
further indication that neither side of the political divide is serious about
spending restraint or controlling deficits.
Activity in the bullion
markets has slowed from the frenetic pace during mid-October. The pullback in
prices gave pause to buyers who were attracted by surging prices and slowed down
sellers who were hoping for prices to recover.
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Gold : Silver Ratio (as of
Friday's closing prices) – 82.6 to
1
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Not Enough Silver... or Just in the Wrong
Location?
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Early this year, high premiums
developed for COMEX bars in the U.S. thanks to fears of tariffs on importing
silver (and gold). In response, traders shipped an estimated 300 tons of silver
from London to New York to alleviate that squeeze.
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Last month, the London
Bullion Market ran into some issues of its own with respect to silver – with
huge premiums, high financing costs, and far more requests for delivery of actual
bars than the market could handle.
The catalyst for the
shortage in London was driven by demand from India – and this came on the
heels of a partial drain of silver sent to the U.S. combined with new silver ETF
investment inflows.
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This year???s Diwali holiday saw many
Indians shift from buying gold to silver because the yellow metal has become so
expensive.
During the peak of buying in
mid-October, premiums for silver there reached as high as $5/oz. Major Exchange
Traded Funds (ETFs) for silver were unable to procure silver fast enough and
suspended new subscriptions.
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The holiday rush has
passed and demand has lessened. The surge in silver imports alleviated the supply
crunch.
Indian silver premiums
have fallen back to a more normal range of 25 to 40 cents an ounce.
The London silver market
has also returned to a more even keel. However, the current equilibrium in the
markets may be short-lived.
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This year???s spike in demand from India
likely isn???t a one-time phenomenon.
Silver ETFs in India now hold triple
the amount of metal versus a year ago. That metal is stored in local vaults and
odds are most of it will remain there. In other words, it won???t be returning to
London.
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At the very least, unless
gold prices fall substantially, we can expect another surge in silver demand from
the huge population of India when Diwali rolls around next year.
The small shift in
interest from gold to silver in India could be signaling a bigger trend. Given the
dramatic rise in gold prices, it is fair to say Indians probably aren???t the only
investors and consumers around the world who will increasingly turn to silver.
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For its part, the Chinese government
just made a change which could reduce the amount of silver coming to market.
Silver was added to a list of supervised commodities effective November 1. Exports
will be managed with an eye toward prioritizing domestic needs...
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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