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The Securities and Exchange Board of India (SEBI) has approved changes to its vault manager regulations, expanding the regulatory framework beyond Electronic Gold Receipts (EGRs) to cover bullion underlying a wider range of SEBI-specified bullion-related instruments, including gold and silver ETFs and bullion derivatives.
The move is aimed at creating a common and harmonised framework for vaulting services as India's bullion market expands. SEBI said the review will strengthen requirements covering the storage, safekeeping, segregation, reconciliation, security, insurance and governance of bullion held by vault managers.
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One of the most significant changes is the increase in the minimum net worth requirement for vault managers. The threshold will rise from ₹50 crore to ₹75 crore.
The regulator is also strengthening security requirements. Vault managers will have to address risks including theft, burglary, fire, fraud, terrorism and cyber-attacks through their security policies and procedures.
The revised framework will expand requirements for segregation of activities and bullion. These provisions will cover vaulting services across all specified bullion-related instruments, with additional requirements for instrument-wise and entity-wise segregation of bullion stored by vault managers.
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Mining dot com said:Silver may be heading from shortage to surplus, according to Deutsche Bank.
Silver trades at $60.99 an ounce, up 26% from a year ago. Deutsche Bank's Daniel Ghali says "peak silver scarcity is clearly in the rear-view mirror," and he sees a glut emerging as soon as 2027.
What changed in the silver market?
London's commercial vaults held more than 914 million ounces of silver at the end of August. More than 300 million of that is freely available, up 70% since October 2025.
Solar demand is shrinking fast. Deutsche expects global silver use in solar to fall more than 20% this year, with Chinese demand down 33%. Manufacturers are using thinner contacts and copper-coated pastes, and silver use per solar cell drops 17% in 2026.
Silver was above $120 an ounce at the start of 2026 during the physical shortage. Deutsche now sees the silver price averaging $70 by the second quarter of 2027.
The China premium is the wild card. Silver there carries a persistent premium despite weak wholesale demand, and Deutsche says the source is unclear.