Silver Prices Rebound as Physical Buyers Anticipate Fed Hold
On Thursday, oil prices surged 7% and silver fell roughly 3%, but by Friday morning, Brent had pulled back below $100, and silver price today is up nearly 2%. This divergence between paper futures markets and physical buyers is not random.
Paper futures markets sold silver on a rate-hike probability that sits 56 days in the future. Physical buyers, however, are positioning for a Federal Reserve meeting that lands in five days, on July 28 and 29, where a hold is the near-certain outcome.
The silver market has recorded a supply deficit for five consecutive years, with the 2025 shortfall reaching 46.3 million ounces according to the Silver Institute's World Silver Survey 2026. Industrial demand accounts for roughly 58% of total silver consumption, predominantly solar panels, electronics, and electric vehicles.