Silver Market Explosion: PMEX Suspends Trading as Prices Breach $113 Globally and Rs 11,000 in Pakistan.

The global commodities market is witnessing a historic “Black Swan” event as silver prices have exploded, leading the

The global commodities market is witnessing a historic “Black Swan” event as silver prices have exploded, leading the Pakistan Mercantile Exchange (PMEX) to suspend all silver trading contracts as of Tuesday, January 27, 2026. This defensive move follows a similar trend in international exchanges, including those in India, Turkey, and Baku, as the metal’s price reached an unprecedented $113 per ounce globally and crossed Rs 11,000 per tola in Pakistan.

Why is the Silver Market Exploding?

The Physical Squeeze: Global inventories in major hubs like London and New York plummeted by nearly 26% in just one week. Reports suggest institutional short-sellers were caught in a brutal “margin call” cycle as physical bullion simply vanished from the open market.
Strategic Asset Status: Beyond its role as a “safe-haven,” silver has become a critical strategic asset for the AI and Green Energy sectors. Its irreplaceable conductivity in high-performance chips is driving an insatiable demand from tech giants like Nvidia and AMD.
Supply Chokehold: Major producer China implemented strict new export licensing on January 1, 2026, effectively cutting off Western supply lines by 60-70%.
Geopolitical Tensions: New US tariff threats and a weakening dollar have pushed gold past $5,000 and silver to record highs.

What Happens Next? PMEX has stated that trading will only resume once market conditions stabilize. Meanwhile, all open positions are being settled at prevailing prices, and pending orders have been canceled under Regulation 6.1.4(B) to prevent a systemic collapse. Analysts warn that the “era of cheap silver” is over, with the metal being structurally repriced as a core macro trading asset.