Silver prices rose 1.73% to ₹98,132 on trade tensions and expected US inflation figures, which could affect the Federal Reserve’s policy choices. Strong jobs data in the US, as job losses hit a six-month high and vacancies rose to 7.74 million in January, bolstered prospects for a strong labour market, possibly delaying a rate cut by the Federal Reserve. Meanwhile, silver supplies continue to rise, with Comex stocks hitting a record high of 403.2 million ounces in late February. Hecla Mining, the largest US silver producer, said it would increase production by 13% to 16.2 million ounces in 2024.
In January, US silver coin sales fell 27% year-on-year to 3.5 million ounces, the lowest level since 2018. Despite this, industrial demand is expected to reach an all-time high in 2025, and the global silver market is expected to continue to be in a supply deficit for the fifth consecutive year. Recycling is expected to increase by 5% to over 200 million ounces, while silver mine production is expected to increase by 2% to 844 million ounces. At 149 million ounces, the silver market deficit in 2025 is still historically significant despite the forecast 19% decline.
