Silver’s Structural Deficit Reshapes Derivatives Market as Industrial Demand Soars
The silver market has entered a structural deficit phase unseen in modern commodity history. Five consecutive years of supply shortfalls—projected through 2026—are rewriting trading playbooks as the metal transitions from monetary relic to green-energy essential.
U.S. critical mineral designation and photovoltaic demand create asymmetric opportunities in futures and options. Volatility compression strategies that worked pre-2021 now risk catastrophic failure against 30% annual industrial demand growth.
Smart money tracks the physical inventory squeeze through COMEX warehouse withdrawals and Shanghai Futures Exchange delivery patterns. The 2025 forward curve shows unprecedented backwardation beyond 12 months—a regime demanding recalibrated roll yield models.
