Dubai a global precious-metals hub is experiencing a physical silver shortage, with buyers paying up to 15% premiums over spot prices. This shows a clear disconnect between paper silver prices and real-world supply. This premium spike highlights a growing disconnect between paper silver pricing and actual physical availability, a classic sign of market stress.
Rising industrial demand (solar, EVs, electronics), tightening inventories, and declining trust in paper silver are pushing investors toward physical bars and coins. Supply can’t adjust quickly, creating stress in the market.
Strong industrial demand from solar energy, EVs, semiconductors, and electronics continues to absorb large amounts of silver, while above-ground inventories are tightening. At the same time, confidence in paper silver instruments (futures, ETFs, synthetic exposure) is weakening, pushing investors and institutions toward physical bars and coins. Because mine supply and refining capacity cannot scale quickly, this imbalance is intensifying pressure on the physical market.
Historically, silver follows a familiar sequence: premiums rise → regional shortages appear → inventories drain → spot prices are forced to re-price sharply. Dubai experiencing scarcity at this stage suggests the issue is not local, but systemic and global.
Silver is no longer being accumulated for speculation alone it is being removed from circulation as a strategic hard asset. Markets that ignore physical signals often react late.
Silver isn’t being chased for hype it’s being pulled out of circulation.
$XAG 🚀
