COMEX warehouses have experienced a significant reduction in silver inventories, reflecting increased demand. Silver stocks have decreased by 34 million ounces to 415 million ounces, marking the lowest level since March 2025. This decline has tightened the silver market and driven prices upward. Compared to its peak in September, when inventories were 117 million ounces higher, the current supply is down by 22 percent. The shortage indicates strong physical demand for silver, causing short sellers to struggle in securing actual silver to fulfill their future contracts. When traders face insufficient silver availability, they must pay higher prices set by sellers. This situation leads to rising silver prices, prompting more traders to buy to avoid losses, intensifying market shortages and price volatility—a phenomenon known as the “silver short squeeze.” COMEX, a leading global commodity exchange trading silver and other precious metals, reports that increased demand stems from investors and industrial usage, particularly in electronics, photography, and medical equipment. If silver supply does not increase soon, further price hikes are expected, posing significant challenges for both investors and consumers.
Source: binance
