Registered Silver Inventory Drops 70% Since 2020 Ahead of Delivery Deadline
Open interest in COMEX silver contracts fell from 110,000 in December to 76,000 in March while registered silver inventory plunged 70% since 2020 to just 103 million ounces. With February 27 first notice day looming, even modest delivery demand could exhaust available metal and pressure iShares Silver Trust valuations.
1. COMEX Open Interest Trends
Open interest in COMEX silver contracts declined from roughly 110,000 in December to about 76,000 by March, signaling growing stress if traders opt for physical delivery rather than cash settlement.
2. Inventory Available for Delivery
Total COMEX silver stocks stand near 400 million ounces, but only 103 million ounces are registered for delivery, representing a 70% drop in deliverable metal since 2020 and leaving a thin buffer for contract fulfillment.
3. Implications for iShares Silver Trust
With the first notice day on February 27 approaching, even a modest surge in delivery requests could deplete registered stocks, potentially driving premiums, increasing volatility and affecting the valuation of the iShares Silver Trust.