After months of intensified demand and supply issues due to the global pandemic and economic uncertainty, the silver market is finally poised for a respite. An industry analyst suggests that the silver squeeze may finally be coming to an end. Experts have noted several tell-tale signs for the slowdown. First, the bullish investor sentiment driving the silver market seems to be recalibrating. Going forward they expect more strategic and less panic-driven purchasing decisions which should help stabilize the market. Secondly, production levels are gradually returning to pre-pandemic levels. The resumption of normal mining operations should resolve the supply challenges that had exacerbated the squeeze. Finally, the strengthening global economy is reducing the attractiveness of silver as a ‘fear asset’, potentially leading to a deflation of its price. While it is still uncertain when exactly the silver squeeze will end, the market changes suggest that the pressure will soon decrease substantially.
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