Silver Surges Over $93 In New York, And Up To $106 In Shanghai

The precious metals markets are finishing off a strong week, with silver surging in particular on Friday. The gold futures are back over $5,200 at $5,261, while the silver futures are up $6.34 to $93.34. The silver futures hit a low of $63.90 on February 6, and have now rebounded almost 50% since then.

Does that mean we won’t see more sell-offs? Of course not. Although I do think we’ve set a new trading range, and we’re not about to spend the next five years in the lower to mid-$20s. The silver futures in Shanghai are trading over $106 now, which is perhaps the most important indicator to keep an eye on, as that spread has actually widened, while the silver underpinning the Chinese inventories continues to dwindle. I suppose you could say that it would be premature to say anything has been resolved in the silver supply chain until that spread narrows considerably. Although, rather than seeing any indication that that’s happening so far, we’re now entering month three, and it’s actually widened out further. And when you look at what’s happening with the Chinese inventories, it starts to make sense why.

As the fallout continues from the CME’s latest 'technical issue,' here’s what some significant market participants are saying and doing: The latest glitch "erases confidence over liquidity and price discovery at a time when the market has been contending with a market dysfunctioning given the wild price swings," said Nicky Shiels, head of metals strategy at MKS PAMP SA.

And perhaps it was just a coincidence, but on the same day Shiels said that, Indian market regulators also made an announcement that they were moving towards more reliance on their own domestic market pricing rather than the traditional centers in London and New York. India’s markets regulator on Thursday directed mutual funds to use domestic stock exchange spot prices to value their physical gold and silver holdings from April 1, 2026.

The Securities and Exchange Board of India (SEBI) said mutual funds may now use polled spot prices from recognized stock exchanges that settle physically delivered gold and silver derivatives contracts, ensuring that valuations reflect domestic market conditions. The change moves away from the currently used London Bullion Market Association prices to arrive at the valuation of gold and silver held by exchange traded funds.

Meanwhile, it’s now being reported that even the European Central Bank has been selling dollar assets, which they say is just regular rebalancing, but nonetheless results in more dollar assets being sold. The European Central Bank sold some of its dollar assets early last year and reduced the weight of the dollar in its foreign exchange reserves in what it said was a standard rebalancing of its portfolio. The bank played down the significance of the move, which came before the market turbulence generated by U.S. President Donald Trump’s tariff announcement last April.

Lastly, I’ve been asked to set up a profile on a new website, and I recorded a video where I took a few questions and addressed whether the sell-off is finally over, what’s going to happen with Trump, Warsh, and rates, and also an interesting note about some of the labor shortages in the mining industry. I’ll share that here as well, because it’s a nice brief overview of where things stand, and what to keep an eye on in the weeks and months ahead.