Global silver market is facing growing tensions due to trade barriers

Bloomberg reports that the global silver market is experiencing serious shocks due to trade tensions. According to the agency, investors are rapidly reallocating precious metal stocks between commodity exchanges amid concerns over new tariff measures. Rising silver prices are putting further pressure on the market, which adds to the concern among traders.

Silver is being massively relocated from London to New York, which creates a shortage in the British capital. London stockpile continues to decrease after reaching a record low, raising fears of a prolonged crisis. At the same time, New York storage facilities are overflowing with the metal from other countries.

Analysts cited by Bloomberg warn about a possible silver squeeze. The experts also consider the likelihood of retaliatory measures from Canada and Mexico, which are the main suppliers of silver to the United States. The situation is aggravated by slower transfer of silver compared to gold.