The COMEX silver market is under severe strain as BRICS-related demand draws metal from Western exchanges. Registered inventories fell by over 33 million ounces in one week, while a huge price gap with Shanghai is accelerating physical withdrawals. Analysts note JP Morgan is significantly increasing its silver holdings and J.P. Morgan Global Research has dramatically revised its 2026 price forecast upward.
A significant price disparity is pulling physical silver from Western markets to the East. The premium for silver in Shanghai over COMEX has reached approximately $10 per ounce.
Registered silver inventory at COMEX warehouses fell by 33.45 million ounces in just seven days. The March 2026 futures contract has 528 million ounces of exposure against only 113 million ounces of registered metal.
Andy Shechman, CEO of Miles Franklin Precious Metals, commented on the market stress. “The market stays calm until it doesn’t. If even 20% of that silver stands for delivery, that’s 50 million ounces with a 90 million ounce registered category,” he stated.
Physical accumulation by large institutions has continued for about 16 months. Refiners reportedly face margin calls before processing metal they have purchased.
Shechman explained the mechanics of the East-West silver flow. “If JP Morgan sends 50 million ounces of silver at a $10 premium and makes all $500 million, they’re not paying the VAT tax,” he noted.
Updated projections from J.P. Morgan show a sharp increase in price forecasts. The firm now sees silver averaging $81 per ounce for all of 2026, a 44% increase from its November 2025 estimate.
This revision cites amplified Chinese investment demand as a key catalyst. JP Morgan‘s growing silver holdings and delivery posture remain central to the market dynamics.
