Why Silver Trades at $130 in China, $92 in U.S

Silver trades near $92 on COMEX but around $130 in Shanghai, showing a 40% price gap driven by paper futures trading versus physical demand.

Silver is currently trading at sharply different prices across major global markets, raising questions about how prices are formed.

In the United States, futures-linked prices remain far lower than physical prices in China.

The gap has widened to more than 40 percent, with Shanghai prices well above those on COMEX. The difference reflects contrasting market structures rather than changes in the metal itself.

COMEX Pricing Is Driven by Futures Contracts

In the United States, according to Bull Theory silver pricing is largely determined on the COMEX exchange.

Trading volume there is dominated by futures contracts instead of physical delivery. Most contracts are settled financially, and only a small share results in metal changing hands.

🚨THE SILVER MARKET IS BEING HEAVILY MANIPULATED RIGHT NOW.

Silver is trading at two completely different prices at the same time.

In the US (COMEX), silver is around $92. In Shanghai, physical silver is around $130. That’s a 40%+ premium in Shanghai.

Same metal. Two prices.… pic.twitter.com/UCEhxav6ey

— Bull Theory (@BullTheoryio) January 30, 2026

Market data and industry estimates suggest a large gap between paper claims and available physical silver.

Some analysts estimate ratios above 300 paper ounces for every physical ounce. This structure allows prices to change without direct movement of silver inventories.

When large market participants increase futures selling, prices can fall even if physical supply conditions remain tight.

The futures market reacts to contract flows, liquidity, and positioning. Physical availability does not always influence prices in the short term.

Shanghai Prices Reflect Physical Transactions

In contrast, prices in Shanghai are closely tied to physical silver trades. Transactions reflect immediate supply and demand within China.

Buyers often require delivery, and contracts are settled with metal rather than cash.

Shanghai spot prices have recently traded near $130 per ounce. SMM assessments have also remained above $120. These levels indicate buyers are paying more to secure physical supply.

Premiums tend to rise when supply tightens or when delivery speed matters. In these cases, futures contracts are not sufficient.

The Shanghai market reflects availability and logistics, rather than leverage or contract volume.

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Reasons Behind the Price Gap

The difference between COMEX and Shanghai prices reflects how each market operates. One market emphasizes derivatives and liquidity.

The other emphasizes physical settlement and immediate demand.

Price discovery therefore differs across regions. Futures markets respond to trading activity and risk management strategies.

Physical markets respond to inventory levels, transportation, and industrial demand.

As a result, silver trades at two prices at the same time. COMEX prices represent a futures-based benchmark.

Shanghai prices represent the cost of securing metal. The 40 percent gap shows how market structure shapes pricing outcomes.