India is witnessing an extraordinary rise in silver premiums, trading at unparalleled rates compared to global prices. The surge in demand from investors has created a shortfall that has sent ripples across the market as premium levels reach as high as 10% over international rates.

This spike in premiums has reached a breaking point, forcing physically backed exchange-traded funds (ETFs) to halt new subscriptions. Silver, a traditional favorite during the Diwali festival, is also seeing heightened demand, leading to concerns about the ability of jewelers to meet this seasonal surge.

The Indian silver market, dependent on imports to satisfy over 80% of its needs, finds itself caught in a catch-22. Despite the attractive cash premium, logistical constraints and limited supplies from key pr

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