Silver Breaches $100 as Global Inventory Crisis Deepens

NEW YORK — Silver prices shattered historical records this week, breaching $100 per ounce as a convergence of industrial demand and geopolitical maneuvering stripped global inventories bare. What analysts are calling a "perfect storm" has transformed the metal from a speculative commodity into a scarce strategic asset.

The surge is driven by a breakdown in confidence within "paper" markets. Institutional investors, fearing insolvency at major exchanges, have demanded physical delivery of silver bars, draining vaults in London and New York. Lease rates—the cost to borrow metal—have skyrocketed to 8%, signaling acute scarcity.

Compounding the squeeze is a seismic shift in trade policy. On January 1, China implemented strict export controls, reclassifying silver as a strategic mineral critical for national security. This move effectively severed Western markets from the world’s largest refining hub, fracturing the global supply chain.

Simultaneously, a hidden source of demand has emerged: the AI revolution. As tech giants turn to nuclear power to run massive data centers, demand for silver-heavy control rods has surged. This comes atop relentless consumption from the solar and electric vehicle sectors, creating a market deficit for the sixth consecutive year.

Central banks are also rewriting the rules. Breaking decades of tradition, nations like Russia and India are aggressively stockpiling silver to diversify reserves away from the dollar.

Experts warn this repricing is permanent. No longer just "poor man’s gold," silver has emerged as a triple-threat asset essential for industry, monetary stability, and military strategy. With mine output flat and recycling unable to fill the gap, the era of cheap silver appears to have ended.