For months, Vipin Raina had been bracing for a stampede of buying from Indian customers loading up on silver to honor the Hindu goddess of wealth.

But when it came, he was still blown away. At the start of last week, his company, India’s largest precious metals refinery, ran out of silver stock for the first time in its history.

“Most people who are dealing silver and silver coins, they’re literally out of stock because silver is not there,” said Raina, who is head of trading at MMTC-Pamp India Pvt. “This kind of crazy market — where people are buying at these levels — I have not seen in my 27-year career.”

Within days, the shortages were being felt not just in India, but around the world. India’s festival buyers were joined by international investors and hedge funds piling into preciou

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