Silver climbed to near $59/oz this week as Fed rate-cut expectations, persistent supply deficits and heavy ETF inflows combined with rising industrial demand—especially for solar—to squeeze inventories and drive backwardation in futures. Short-term liquidity events and retail interest amplified the rally, creating a rare period of pronounced physical tightness.

A sudden surge in silver imports lowered physical premia and relieved immediate price pressure, but a persistent structural supply deficit, record lease rates and elevated ETF inflows continue to keep silver prices volatile. Policy moves — including a U.S. 'critical mineral' designation — add a new supply-security dimension for investors.

This week’s sharp fall in silver premiums—driven by a surge of imports—has eased immediate price pressure, but persistent structural deficits, processing bottlenecks and growing institutional demand (including recent central-bank silver accumulation) keep longer-term upside intact. Investors should view the dip as a tactical opportunity while monitoring physical flows and refining capacity.

A wave of large physical withdrawals from Comex and ETFs, skyrocketing London lease rates and continued structural supply deficits pushed silver sharply higher this week. Tight inventories and macro cues (Fed expectations, safe-haven flows) underpinned the rally despite a short-lived profit-taking pullback.

Silver has rallied to roughly $49/oz after the Fed's 25-basis-point cut and an announced end to balance-sheet runoff. A tightening physical market—driven by falling mine output, robust industrial demand from solar and EVs, and strong ETF flows—has created a supply squeeze. While fundamentals support further upside, stretched sentiment and potential industrial substitution present correction risks.

Silver has jumped into the low $50s/oz on rate-cut hopes, tight supply and speculative flows. This summary explains the drivers, near-term risks, and what to watch next, based on reporting from Yahoo Finance and Reuters.