Silver inventories on the Shanghai Futures Exchange (SHFE) edged up marginally after plunging to their lowest level in nearly a decade, underscoring persistent tightness in the global physical silver market.
Stockpiles of the white metal fell to a 10-year low of 318.546 tonnes on February 9. Latest data from CEIC shows that silver available for delivery on SHFE rose to 342.102 tonnes on February 11, up from 323.368 tonnes on February 10.
Despite the recent uptick, SHFE inventories remain deeply depressed compared with historical levels. Current silver inventories are nearly 89% lower than the all-time high of 3,091.112 tonnes recorded on January 12, 2021, highlighting the sharp erosion in exchange-monitored supplies over the past four years.
Inventories near decade-lows have intensified concerns around global silver supply chains, particularly at a time when physical availability in key markets such as London remains tight.
Silver prices have experienced extreme volatility over the past year, more than doubling amid a surge in investor inflows. However, the rally stalled abruptly in late January, when prices suffered the largest single-day decline on record. While silver prices have since staged a partial recovery, volatility remains elevated, prompting some market participants to describe silver as “untradeable” in the near term.
The metal scaled multiple record highs in January, breaching the psychologically important $100 per ounce mark for the first time. This pushed the gold-to-silver ratio below 50, a level last seen in 2012. Silver rate later corrected below $80 but have since shown resilience, with technical indicators suggesting the formation of a support base.
Sixth consecutive year of deficit
The global silver market is expected to be in deficit for a sixth consecutive year, a report published by the Silver Institute said, as surging investment demand continues to outweigh weakening consumption across several end-use segments.
The report noted that the underlying drivers that supported silver throughout much of 2025 have remained firmly in place so far this year. These include tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty, and concerns over the Federal Reserve’s independence, said the report.
“Silver’s underlying supply-demand fundamentals remain supportive. The silver market is expected to remain in deficit for a sixth consecutive year in 2026,” the Silver Institute said.
Global silver demand is projected to remain largely unchanged in 2026, as healthy gains in retail investment are expected to offset most of the losses across other key demand segments, notably in jewelry, silverware, and industrial demand.
Industrial consumption is forecast to ease modestly despite continued expansion in solar photovoltaic installations, as ongoing thrifting and substitution away from silver curb PV-related demand.
Physical investment demand is expected to jump 20% to a three-year high of 227 million ounces (Moz). In contrast, silverware demand is forecast to decline 17% due to elevated prices, while jewelry demand is projected to fall 9%.
On the supply side, total global silver output is forecast to rise 1.5% in 2026 to a decade-high 1.05 billion ounces. Even so, the market is expected to post a sizeable deficit of around 67 Moz.
“As a result, the silver market is expected to remain in deficit in 2026 for the sixth consecutive year, at a noteworthy 67 Moz. Of note, the global silver market will continue to rely on the release of bullion from above-ground inventories, adding pressure to an already tight physical market,” said the report.
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