COMEX Silver Withdrawals Spike, Raising Squeeze Fears

A recent surge in physical silver withdrawals from COMEX vaults has raised questions about the metal's availability and potential for another squeeze. According to CME data, approximately 7.1 million ounces of silver left COMEX vaults between September 10th and 17th, representing about 2.1% of total inventory.

This outflow was roughly 25% larger than a similar drawdown in October 2025, but unlike that episode, registered inventories actually increased during this period. While one week of withdrawals does not necessarily indicate an imminent shortage, sustained physical silver demand could become significant and potentially set the stage for another squeeze.

The COMEX silver market has already experienced two meaningful squeezes in the past 12 months, with prices reaching $120 per ounce in January before a correction. The underlying supply-and-demand problem remains unresolved, as silver is on track to experience its sixth straight annual supply deficit due to high demand and insufficient new supply.

Industrial users, jewelry makers, and other consumers must meet shortfalls by drawing on above-ground stockpiles, which have declined by approximately 473 million ounces over the past 15 years. The world is not about to run out of silver, but tighter physical availability creates upward pressure on prices.