Silver Price $80 oz, World Silver Refinery Breakdown by Country

Precious Metals Market Update: Record Demand, Supply Concerns & China's Dominance

Key Concepts:

• Silver Bullion Demand: Unprecedented retail and industrial demand for physical silver, leading to supply shortages and price increases.
• Silver Premiums: Increasing costs above spot price due to limited availability and high demand.
• US Mint 250: Upcoming commemorative coin program by the US Mint for the 250th anniversary of the United States.
• China's Silver Refining Dominance: China’s overwhelming control over global silver refining capacity and its implications for global supply chains.
• Silver Industrial Demand: The significant role of silver in key industries like electric vehicles, solar panels, and chip production.
• Gold/Silver Ratio: A metric used to compare the prices of gold and silver, currently indicating gold is a dominant reserve asset.
• OBMA (Organisation for Economic Co-operation and Development): London Bullion Market Association – a key organization in the precious metals industry.
• Lease Rates: The cost of borrowing precious metals, indicating market tightness.

I. Unprecedented Demand & Price Action

The coin show attended by Hayden from SD Bowling experienced record-breaking attendance, with lines exceeding those seen at major international events like the Berlin World Money Fair. This surge in interest is driven by rising silver and gold prices, with SD Bullion reporting record sales numbers. Premiums on silver bars, rounds, and eagles are increasing due to high demand. In Japan, Asahi Refining’s silver bullion bar inventory sold out in 30 minutes on January 9, 2026, fueled by a yen devaluation and a silver price lagging behind gold.

II. Global Phenomenon & Asian Demand

This increased demand isn’t limited to the US; it’s a global trend. Singapore’s CNA broadcast a four-minute segment focusing on silver bullion, highlighting a six-fold increase in sales from November to December. The buyer demographic is shifting, with younger buyers and foreigners entering the market. Dealers are facing waitlists stretching months, with some orders taking until March 2026 to fulfill. Despite rising prices, economists believe the immediate impact on consumers will be limited, as silver constitutes a small portion of the cost of goods like electric vehicles and solar panels. China and Korea’s higher silver costs will eventually be passed on to consumers, but the impact is expected to be moderate.

III. Industrial Demand & Supply Concerns

Industrial demand accounts for approximately 60% of global silver usage, particularly in electric vehicles, solar panels, and chip production. Industry experts emphasize that industrial demand is unlikely to be affected by price increases, as manufacturers will continue to secure silver supplies regardless of cost to maintain production. The closing silver prices in China this week were multiple dollars above the spot price, demonstrating continued physical demand and premiums paid for industrial-sized silver bars.

IV. China's Dominance in Silver Refining

A key concern highlighted is China’s overwhelming dominance in silver refining. According to the London Bullion Market Association, China hosts 27 accredited silver refineries, compared to 13 in Japan and only four each in Germany, Canada, India, and Switzerland. China imports silver ore and base metal concentrates, refines them domestically, and exports the finished product. In October 2025, China’s silver exports were valued at $887 million, compared to imports of $50 million. This disparity is linked to India’s silver demand and China’s position as a major refiner of base metal concentrates.

V. Implications for India & the US

The article "How China's silver export controls could turn into a strategic concerns for India" underscores the potential geopolitical implications of China’s export controls on silver, tungsten, and indium, implemented on January 1st, 2026. India, heavily reliant on Chinese silver imports (40% of imports from Hong Kong and China between April and November 2025), is seeking to enhance domestic processing, recycling, and diversified sourcing. The US faces similar challenges with a hollowed-out silver refining capacity, requiring significant investment and time to rebuild.

VI. Market Data & Technical Analysis

• Spot Silver Price: Closed at $79.92 an ounce bid.
• Spot Gold Price: Nearing new nominal highs, closing at $4,10 an ounce bid.
• Gold/Silver Ratio: Decreased to 56 ounces of silver to one ounce of gold, indicating gold’s increasing role as a reserve asset.
• US Dollar vs. Gold: A chart illustrating the declining share of the US dollar and the increasing share of gold in global reserves.
• OBMA Silver Inventory: Registered silver inventories are declining, with approximately 75 million ounces pulled from warehouses. Asahi Refining, a major Japanese refiner, has seen its retail website sell out of products quickly.
• Proven Silver Reserves: Approximately one-third of global proven silver reserves are located in South America, particularly Peru.

VII. SD Bullion & Market Outlook

SD Bullion is offering deals on silver, gold, and platinum bullion products. The market is expected to remain tight and volatile, with continued focus on physical silver availability and China’s refining capacity. The speaker suggests considering long-term storage options for precious metals.

Notable Quotes:

• “For industrialists, they don't care. They need the silver. They'll pay more because otherwise their factories will be short of silver and and stop running.” – Industry Expert (from CNA broadcast)
• “Every time we've broken below 1.54 [S&P 500 divided by gold], it's been a solid setup for gold bulls.” – Ronnie Stofley, in gold we trust report.

Conclusion:

The precious metals market is experiencing unprecedented demand, particularly for physical silver, driven by both investment and industrial needs. China’s dominance in silver refining presents a significant strategic concern for countries like India and the US, highlighting the need for diversified sourcing and increased domestic refining capacity. The current market conditions suggest a continued bullish outlook for silver and gold, with potential for further price increases and volatility. Investors are advised to consider securing physical silver and gold through reputable dealers like SD Bullion and explore secure storage options.