Silver Vault Withdrawals Spike to 7.1 Million Ounces Amid Physical Demand Surge

Physical demand for silver has been building in recent weeks, as evident from the latest COMEX vault withdrawals data. According to CME reports, around 7.1 million ounces of silver left COMEX vaults between September 10 and 17, representing about 2.1% of total COMEX silver inventory.

This withdrawal is roughly 25% larger than the drawdown seen during the October 2025 silver squeeze, but unlike that episode, registered inventories increased last week rather than falling. The recent outflow signals strong physical withdrawals, but not the same immediate pressure on deliverable COMEX supplies.

The underlying supply-and-demand problem in the silver market has not disappeared, despite the easing of the previous squeezes partly due to metal shifting between London and New York. Silver is on track for its sixth straight annual supply deficit, meaning demand is exceeding newly mined and recycled supply.