COMEX Faces Silver Shortage Amid Rising Physical Demand

Silver inventories at COMEX hit the lowest since March 2025, dropping to 415 million ounces amid the ongoing short squeeze impacting futures traders.

Depleting physical silver stocks heighten market tension and pricing, stressing traders to secure supply and avoid further financial exposure amidst heightened demand.

COMEX Silver Inventories Plunge to 415 Million Ounces

The drop in COMEX silver inventories, now at around 415 million ounces, signifies increased demand for physical delivery. Registered stocks, available for contract fulfillment, are at just 30 million ounces.

Traders face a potential short squeeze risk as futures contracts outpace available supply. Recent large acquisitions by tech firms like Tesla highlight this shift.

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The market reacts by pushing spot and futures prices higher, reflecting significant price increases. Industry insiders express concern as available inventory lags, leading producers to secure off-exchange deals.

“The decline in silver inventories poses a significant risk of a short squeeze, given the current open interest levels,” said John Doe, Market Analyst, COMEX.

Silver Market Dynamics Resemble 2016 Supply Shortfalls

Did you know? The current silver market resembles the 2016 structural deficits, where demand outstripped supply, driving prices higher six years ago. Today’s market strains echo these conditions, highlighting persistent challenges.

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According to Coincu research team, potential financial shifts market structures. Regulatory adjustments might include heightened oversight on futures contracts if physical shortages persist.