Silver’s Dramatic Downfall-COMEX’s Short Squeeze Spills Out Gold Standard!

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It appears the silver depository door at COMEX is now a modern ruin, as inventories sputter away, whispering of a tightening supply that makes a foxhole seem spacious. The short squeeze has morphed from a minor dysphemia into a full‑blown pantomime, slangingly raising delivery risks, inflating volatility, and reminding everyone that the global silver market is living in a perpetual Dickensian nightmare.

COMEX Silver Inventories Tighten With Short Squeeze in Full Swing

In the grand theatre of global silver commerce, the previously placid backstage has turned into a stage of desperate improvisation. The previously languid stockpile, once the bemused jester of the market, now shrivels as if the theatre itself had been trimmed for a tighter set. When the shelves that once stacked silver like a polite gentleman’s shoe collection are found practically empty, the market cannot help but roar.

Trendforce, that venerable chronicler of silver’s pilgrimage, offers a long view: in 2025 the inventory peaked at a jaunty 500 million ounces. The final act of this scurrilous play, however, arrived late that same year when the wholesaling registered piles were transferred to the rogue “eligible” category, or more dramatically, brushed out of the system entirely. Since September, a monstrous 117 million ounces (22%) have vanished. Yet nothing is more soul‑crushing than the collapse of the Registered reserves to levels unseen for a decade. The drain, waged like a covert operation, showcases silver’s new identity – not merely a tradeable commodity, but a strategic instrument commandeered by AI and solar enterprises from the vaults of mortified traders for the actual utility it possesses over paper.

Today’s inventories hover near a dwarfish 415 million ounces, the lowest since the mars‑dusted March of 2025, and a whopping 34 million ounces below the cycle apex. A biting observation came from The Kobeissi Letter on the pontifical X platform yesterday: “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 gallantly asserts.

When traders can no longer cough up the silver necessary to honour their contracts, they spill over the price faucet, forcing other traders to pay a higher premium to acquire. The result is a self‑reinforcing squeeze, the siren call of which has lured an army of short sellers into a sympathetic trap. The Letter concludes, as if in a cheery public announcement: “The silver short‑squeeze is in full swing.”

Such sustained withdrawals from regulatory vaults, often examined alongside futures open interest, industrial consumption, and global mine output, tend to thin the immediate supply, thereby amplifying volatility and exacerbating delivery risk in global silver markets.

FAQ ⏰

  • Why are COMEX silver inventories falling sharply?
    Long‑term, madly man‑handled physical demand and a delivery squeeze have coerced a continuous exodus from the custodial warehouses.
  • How much silver has been drawn down since the peak?
    The vaults have burrowed roughly 117 million ounces-some 22%-since the July-September crescendo.
  • What risks does low COMEX silver inventory create?
    It heightens delivery peril, magnifies volatility, and introduces a sharper sensitivity across all futures‑linked silver markets.
  • Is a silver short squeeze forming?
    Analysts giddily gossip that the tightening physical supply is tightening the grip on short sellers, compelling them to secure metal at perilously inflated prices.

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2026-01-30 04:57