Physical silver supplies held on the CME Group’s COMEX exchange are drawing down at a pace that has caught the attention of traders, industrial buyers, and precious metals investors alike. Recent data show a sustained outflow of deliverable silver from COMEX vaults which is a trend that reflects strong demand for physical metal and heightened stress in the futures markets.
In recent months, registered silver inventory which is the portion of metal that can be delivered against futures contracts has seen a pronounced decline. Rather than merely shifting into the eligible category (metal meeting standards but not under delivery warrant), much of this silver has left COMEX vaults altogether! As of late February 2026, total COMEX silver holdings had fallen significantly compared with the previous several months, with registered stocks crossing below key psychological levels. This reduction is not a short lived blip as inventories have been trending downward since late 2025, signaling that more silver is being withdrawn than deposited.
The shrinking pool of deliverable silver raises concerns about the ability of COMEX to satisfy physical delivery demands especially as major contract expiration dates, such as March, approach. Although not yet at crisis levels, some analysts warn that if registered inventories dip too low (below critical thresholds), the exchange could face delivery strains, which typically push prices higher and widen the gap between physical and paper markets.
The strong spot price indicates real physical demand and scarcity not just speculative interest which reinforces diminishing COMEX supply. Spot silver trading near $90/oz reflects significant upward pressure from supply constraints which is making for some fun trading.
What are your thoughts on the recent silver prices?
