COMEX Silver Withdrawals Soar to 7 Million Ounces, Fueling Price Squeeze Fears

The COMEX silver market has experienced significant physical withdrawals in recent weeks, raising concerns about the potential for another price squeeze. According to CME data, over 7 million ounces of silver left COMEX vaults between September 10 and 17, representing around 2.1% of total inventory. This is a notable increase from previous withdrawals, with the total outflow being roughly 25% larger than the drawdown seen in October 2025.

The registered silver category saw an increase of 1.4 million ounces to 97.3 million ounces during this period, while eligible silver fell by around 8.6 million ounces to 232.8 million ounces. This means that approximately 7.1 million ounces physically left COMEX warehouses.

The rise in physical withdrawals could be a sign of strong demand for silver and the potential for another price squeeze in the market. The silver market has already experienced two significant squeezes over the past year, with prices reaching $50 an ounce in October 2025 and $120 an ounce in January before correcting.

Money Metals Midweek Memo host Mike Maharrey notes that the underlying supply-and-demand problem in the silver market has not been resolved. The market is on track for its sixth consecutive annual supply deficit, with demand exceeding newly mined and recycled supply by around 800 million ounces this year.