Silver spot prices on COMEX fell 6.34% to $69.10/oz in Monday trading, continuing the pullback from the January 2026 spike near $120/oz. The correction has erased approximately 42% from the peak, but prices remain well above pre-2024 norms and are still up significantly year-over-year.
COMEX registered silver inventories stood at approximately 84.8 million oz as of June 4, 2026, according to exchange data. This represents a dramatic tightening from the 300M+ oz levels seen earlier in the year after massive March delivery draws. The low registered float leaves the market vulnerable to short-squeeze dynamics.
The Silver Institute's World Silver Survey 2026 confirms that 2025 ran a substantial supply deficit, with estimates ranging from 67 million oz to 182 million oz depending on methodology. Cumulative above-ground draws since 2021 total approximately 762 million oz — equivalent to roughly 9 months of global mine output.
The deficit is structural rather than cyclical. Global mine supply is relatively inelastic at 820-840 million oz per year, and approximately 70% of output is by-product from base metal mines, meaning higher silver prices do not quickly translate into higher supply. Industrial demand continues to grow across solar PV, EVs, electronics, and AI infrastructure.
The correction from January highs offers a valuable entry point for procurement teams. Current prices near $69/oz are well below JP Morgan's 2026 average forecast of $81/oz and Goldman Sachs' $85-100/oz range. Consider locking 60-70% of H2 requirement at current levels, with remaining exposure hedged via options to capture potential upside from the inventory-constrained market.