GLOSSARY · DIVERGENCE
SSTI
Silver Structural Tension Index
DEFINITION
A composite index measuring silver market structural tension between industrial demand and monetary narratives. Higher scores indicate greater tension — meaning silver's dual identity as both an industrial metal and monetary asset is creating pricing stress.
Components & Weights
Duality Tension
Divergence between silver's industrial demand drivers (solar, electronics) and its monetary/safe-haven pricing behavior.
Supply Deficit Signal
Magnitude of the physical silver supply-demand deficit relative to historical norms. Persistent deficits amplify structural tension.
Forecast Dispersion
Spread between high and low LBMA silver survey forecasts. Wide dispersion = analyst disagreement on silver's direction.
Monetary-Industrial Gap
Gold/silver ratio deviation from its 10-year average. Extreme readings signal mispricing of silver's monetary premium.
Score Interpretation
| Score Range | Signal | Interpretation |
|---|---|---|
| 0–30 | Low Tension | Industrial and monetary narratives aligned |
| 30–60 | Elevated Tension | Structural stress building; watch supply data |
| 60–100 | High Tension | Severe structural mismatch; repricing risk elevated |