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1. Trade deficit // Current Account deficit —> India has trade deficit particularly due to dependency on crude oil imports.The current account deficit has been higher. —> USA tariffs have further worsened the situation. —> Import dependency on gold and silver : the prices of gold and silver has risen by 50% and more than double respectively. 2. Geopolitical Tensions : Hampers investor sentiments —> USA adventurism - Greenland —> USA - China trade war particularly because of rare earth and critical minerals. 3. Delay in India-USA trade deal —> Concerns over India’s external sector. 4. Role of the RBI —> RBI avoided strong intervention. —> The RBI's actions (purchase sale of $) can influence not just interest rate one earns & rate businesses pay but also the rupee's exchange rate. 5. Investor Sentiment —> Investors think Indian equities are overvalued or Indian companies are unlikely to make profits. 6. Fundamentals of Economy —> Downgrade of sovereign ratings hamper investor sentiments.

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Silver = Investment + industrial metal —> Silver has significant industrial applications : solar panels , batteries , electronics , AI infrastructure. AI-related technologies and grid infrastructure have emerged as new demand drivers. —> REASONS FOR DEMAND-SUPPLY GAP 1. The US added silver to its critical minerals list, triggering large-scale strategic stockpiling. 2. China’s new rare-earth and metals export restrictions (effective January 2025) increased uncertainty. 3. ETF & Investor Behaviour : Gold and silver ETFs saw rising inflows in 2025, indicating strong investor appetite. 4. Indian Market Dynamics : India experienced acute physical silver shortages, pushing domestic prices above global benchmarks. Indian investors paid a premium over fair global value due to local supply constraints. 5. The US–Venezuela conflict is expected to hit the global silver supply further. Peru and Chad are among the world’s biggest silver suppliers, whose export routes include sea passages around Venezuela.

Central Reserve Police Force (CRPF) assistant commandant Simran Bala created history by leading an all-male contingent of the paramilitary force at the ceremonial Republic Day parade along New Delhi’s Kartavya Path #CA2026

1. Great Power Rivalry --> Trumps's assertion is led by intention to control resources of Greenland especially rare earths. --> Background? USA-China tariffs war : USA forced to relax tariffs over China because of Chinese dominance over rare earths minerals. 2. Davos a forum for global cooperation --> This year appeared as a staging ground for resurgent resource mobilization. 3. Trump : NATO against NATO NATO : Principle of collective defence. Denmark is a founding member of NATO. USA is challenging sovereignty of NATO founding member. This is pushing USA allies towards China

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