Insights 
VT 
Silver Continues Its Upward Trajectory
Silver continues its upward trajectory, driven by a shortage in London’s physical market, with spot prices surpassing $52.50, showing a daily increase of over 2.5%. After reaching a peak of $53.77, the previous day’s slight decline marked a temporary pause in its four-day winning streak.
The market’s tightness is exacerbated by depleted inventories in London, triggering a short squeeze as demand surpasses supply. Rising borrowing costs reflect efforts by refiners and custodians to secure silver, creating a gap between London spot and US Comex futures prices.
Forecasts suggest a continued rise in Silver’s price, with Bank of America projecting $65 by 2026, and HSBC predicting an average of $38.56 for 2025. The price uptrend is evident from consistent higher highs and lows, with the RSI cooling to 64, indicating a brief momentum pause.
Silver Logistics Forecast
The immediate price resistance remains near $53.77, with a potential upward breakout opening paths to $55. Silver is often chosen for investment due to its value storage attributes and as a hedge against inflation. Factors affecting Silver prices include geopolitical conditions, interest rates, US Dollar movements, and industrial demand, especially in electronics and solar sectors, with its price trends often mirroring Gold.
The current market structure for silver is overwhelmingly bullish, and our focus should remain on long positions. The severe physical shortage in the London market is the primary driver, creating a powerful short squeeze that makes initiating short trades exceptionally risky. Traders should view any pullback towards the $51.50 support level as a prime opportunity to initiate or add to long call options.
Recent data from the London Bullion Market Association reinforces this view, with their October 2025 report showing registered silver inventories have fallen below 250 million ounces, a level not seen in over a decade. This supply crisis is colliding with relentless industrial demand, as confirmed by the International Energy Agency’s latest update highlighting that solar panel installations are running 30% ahead of 2024’s record pace. These fundamentals strongly support using options strategies like bull call spreads to target a move toward the $55 level.
The broader economic environment is also favorable, as the September 2025 US Consumer Price Index data came in hotter than expected at 3.8%, reducing the likelihood of any Federal Reserve interest rate hikes before 2026. We saw a similar, though less fundamentally driven, situation during the retail-led squeeze back in early 2021, but that event lacked the profound physical deficit we are witnessing today. This makes the current uptrend far more sustainable and powerful.
The Relative Strength Index cooling from overbought territory is not a signal of a top, but rather a healthy consolidation before the next potential move higher. This brief pause offers a window to position for a breakout above the all-time high near $53.77. Selling out-of-the-money put options with strikes near the $50.00 psychological support could be an effective way to collect premium while waiting for the next advance.
