Silver prices fell 0.2% to settle at ₹100,536 on rising tariff tensions and expectations that the Federal Reserve will cut interest rates following poor US inflation figures. US retail sales rebounded after falling less than expected in February, indicating a slower economic expansion. As of February 27, Comex silver inventories hit a record high of 403.2 million ounces, indicating a surplus despite price volatility.
In terms of production, Hecla Mining has reported a significant 13% increase in silver production in 2024 to 16.2 million ounces, although global supply is expected to remain tight. Despite a 6% decline in jewelry demand due to high local pricing, especially in India, demand for silver is expected to remain stable at 1.2 billion ounces in 2025. With the help of green energy projects, industrial silver production is expected to increase by 3% to reach 700 million ounces for the first time.
