Silver Squeeze Unwinds but Sixth Annual Shortage Persists
The speculative squeeze on silver that built up in late 2025 has eased, but underlying supply deficits continue for the sixth straight year, complicating the bearish outlook.
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The silver market experienced a speculative squeeze in late 2025 that has now quietly unwound, according to analysts tracking vault inventories. The unwinding suggests the bull case that drove prices higher is losing momentum.
However, beneath the surface, silver faces a persistent shortage—now in its sixth consecutive year. This structural deficit may limit downside pressure even as speculative froth dissipates.
Traders are weighing two competing narratives: the immediate technical unwind versus the enduring supply-demand imbalance.
Source: FXStreet Forex News