Severe strain is emerging in global silver supply as exchange-held inventories drain rapidly. Industry data shows a sharp and sustained reduction in silver stored in COMEX-approved warehouses, underscoring mounting scarcity in readily available physical metal.
“COMEX silver inventories are falling: Silver inventories in COMEX warehouses have fallen -34 million ounces from their high, to 415 million ounces, the lowest since March 2025.”
“The stockpile has dropped -117 million ounces, or -22%, since September’s peak. Falling silver inventories indicate strong physical demand as short sellers struggle to find actual metal to deliver against their futures contracts,” the post adds.
“When these traders cannot find enough physical silver to buy, they have to pay higher prices demanded by sellers,” the Letter expanded on the market mechanics behind the drawdown. “This pushes silver prices even higher, which then forces more traders to buy to avoid losses, tightening market conditions even further.” It concluded:
“The silver short-squeeze is in full-swing.”
FAQ ⏰ Why are COMEX silver inventories falling sharply? Strong physical demand and delivery pressure are driving sustained withdrawals from Comex-approved warehouses. How much silver has been drawn down since the peak? COMEX stockpiles have fallen by roughly 117 million ounces, or about 22%, since September. What risks does low COMEX silver inventory create? Lower inventories heighten delivery risk, volatility, and sensitivity across futures-linked silver markets. Is a silver short squeeze forming? Market analysts say tightening physical supply is intensifying pressure on short sellers to secure metal.
