Silver Inventories Plummet at COMEX, Raising Concerns

Total registered stocks at COMEX have fallen below 90 million ounces, a significant decline of nearly 31% from 532 million ounces in October 2025. As of February 20, 2026, COMEX silver inventories stood at 366.25 million ounces, with registered silver stocks at 88,191,059.264 ounces and eligible inventories at 278,065,980.223 ounces.

Impact on the Market

The decline in registered silver stocks suggests that physical demand is outpacing paper-based pricing mechanisms. This has led to a widening gap between paper exposure and deliverable supply, increasing the risk of a liquidity event if contract holders demand delivery. Open interest exceeds available registered stock by over 400%, creating a significant paper-to-physical imbalance.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Market Analysts Weigh In

• Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that the recent price correction was primarily due to technical factors, including margin hikes and forced unwinding of leveraged positions.
• Harshal Dasani, Business Head at INVasset PMS, attributed the recent price correction to technical factors and highlighted the structural deficit in the silver market due to industrial usage and limited mine expansion.
• Vandana Bharti, Head of Commodity Research at SMC Global Securities, cautioned that although lower registered silver stocks reduce the delivery cushion, COMEX inventories represent only a portion of global supply.

Silver Price Outlook

• Aamir Makda expects MCX silver price to trade in the range of ₹2,50,000 to ₹2,80,000 per kilogram in the near term.
• Ajay Kedia, Director of Kedia Advisory, said that elevated open interest and rising delivery demand may further intensify volatility, with a break above $90 potentially triggering fresh upside for silver.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline