by Niko Moretti
When the Multi Commodity Exchange (MCX) suffered a massive outage and trading in paper silver contracts abruptly crashed, many headlines screamed about falling prices. Yet on the ground in India’s key markets—Mumbai and Ahmedabad—jewelers and dealers saw the opposite: physical silver premiums actually rose, as buyers scrambled to secure real metal despite what was happening on screen.
This divergence between plummeting “paper” prices and climbing physical demand is a classic lesson in how futures markets can become detached from real-world supply and demand, especially in times of technical disruption or trading panic.
India: Monetizes Silver for First Time since 1800s
All eyes are now on India, not just because of its huge appetite for precious metals, but due to a historic shift set for April 2026. For the first time since the 1800s, silver will once again be recognized as a monetary metal.
Jon Forrest Little states, “Under new Reserve Bank of India regulations, silver will be eligible as collateral for loans at all Indian banks and major financial institutions—putting it on level footing with gold after more than a century. This game-changing move means families, farmers, and entrepreneurs who have inherited silver ornaments, bars, or jewelry can use these assets to unlock formal credit, transforming silver’s role from stored savings to an active financial tool.”
The impact goes far beyond India. By monetizing silver again and creating a mainstream path for its use as loan collateral, India is setting the stage for a major increase in long-term, locked-away physical demand. With global supplies already under pressure, this new policy will drive a significant revaluation of silver, reminding the world of its essential monetary and industrial value—just as it did generations ago.
Physical Silver Shortage
India is the Next China for Solar
Solar power’s explosive growth is rewriting energy history. It took only eight years for global solar generation to soar from 100 to 1,000 terawatt-hours—and just three more years to double again to 2,000 TWh. No other energy source has ever expanded this fast. Each gigawatt of solar capacity requires about 700,000 ounces of silver, meaning the industry’s rapid rise is driving immense industrial demand. As solar adoption accelerates, silver’s role as a critical energy metal becomes impossible to ignore.
Electric Vehicles using Silver Solid State Battery
Global electric vehicle production is projected to reach approximately 21.3 million units in 2026, reflecting continued strong demand and expansion in key markets. In 2027, production is expected to grow further, likely surpassing 22 million units as more manufacturers ramp up output and new EV models enter the market. By 2028, this upward trend is anticipated to continue, with global EV production approaching or exceeding 25 million vehicles driven by advancing technology and supportive policy measures worldwide.
Let’s Look at Silver Demand for Silver Solid State Batteries for next three years
This shows that nearly three full years of global silver mining output would be needed from 2026 to 2028 just for electric vehicle production, assuming 1 kg of silver per car and a steady mining output of 820 million ounces per year
How to Profit from the Silver Shortage.
Invest in silver miners that are pure silver plays, not mines where silver is produced as a byproduct.
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Aya Gold and Silver (OTC: AYASF) is a rapidly growing pure silver producer focused on its flagship Zgounder Mine in Morocco. The company has consistently increased resources and is recognized for its exceptional silver recovery rates. Aya is one of the few TSX-listed companies with silver as its primary metal.
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Andean Precious Metals (OTC: ANPMF) operates the large-scale San Bartolomé Mine in Bolivia, positioning itself as a major player in primary silver production. The company has achieved record quarterly revenues and maintains strong financial discipline, making it a standout among global silver miners.
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Kuya Silver (OTC: KUYAF) is focused on developing high-grade silver projects, notably the Bethania Mine in Peru and the Silver Kings project in Canada. Kuya boasts premier exploration potential and is committed to advancing primary silver assets with seasoned leadership and a clear growth strategy
end of segment
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