Silver Squeeze! MFs Halt Investments Amid Shortage, Prices Skyrocket Before Diwali

This special report focuses on the unprecedented surge in silver prices in India, which are outpacing gold, and the resulting supply crisis. Key financial institutions like Kotak Mutual Fund, UTI Asset Management, and SBI Mutual Fund have been forced to suspend new lump-sum investments in their Silver ETFs due to a severe shortage of physical silver and soaring domestic premiums. An expert notes, 'this is supply tightness in silver and this is the war between buying between physical silver and digital silver.' The report examines the causes, including surging industrial demand and silver's new status as a 'critical material' in the US, and the impact on consumers and investors ahead of the festive season. With Diwali around the corner, the squeeze presents a tricky situation for buyers, as demand continues to outstrip supply, creating long waiting periods and high premiums in local markets.