Silver hit the highest in decades as a historic short squeeze in London intensified, with a fresh surge in prices adding urgency to a worldwide hunt for bullion that could alleviate a demand and supply mismatch.

Spot silver climbed as much as 3.1 per cent to near $52 an ounce, exceeding last week’s peak, while gold surpassed $4,080 an ounce, building on a record-breaking run of eight weekly gains.

India, the world’s largest consumer of silver, relies on imports to meet more than 80 per cent of its demand. In the first eight months of 2025, silver imports fell 42 per cent to 3,302 tonnes, while investment demand, especially from ETFs, soared to record levels — creating a shortage that now needs to be met through additional overseas shipments.

In India, the hefty premium at which silver is trading over futures prices, combined with limited supplies from major producing countries, strong industrial and investment demand and logistical bottlenecks, has tightened the physical market in key trading hubs.