Silver fell to $64.91/oz on COMEX, losing -2.03% on the session as the metal tracks gold's correction with approximately 1.6x beta. The gold-silver ratio widened to 64x, up from 62.5x last week, signaling that silver is underperforming relative to gold on the downside.
COMEX managed money reduced net long silver positions to 18,400 contracts in the latest CFTC reporting week, a 12% decline. The speculative community is reducing exposure to both precious metals, but silver's smaller market amplifies positioning-driven moves.
The Silver Institute's Q1 2026 data shows global silver demand at 325 Moz, up 4% year-over-year, driven by photovoltaic (solar) manufacturing which consumed 198 Moz — a 9% increase. However, industrial electronics demand softened 2% as the semiconductor cycle moderated.
Mine supply reached 172 Moz in Q1, essentially flat year-over-year. Primary silver mines accounted for 28% of production, while 72% came as by-product from copper, lead, and zinc operations. By-product supply is vulnerable to disruptions in base metals mining.
The physical premium for 1,000 oz bars in London has narrowed to $0.15-0.25/oz over spot, down from $0.45-0.60 in Q1, indicating that physical tightness has eased. Shanghai Gold Exchange silver withdrawals — a proxy for Chinese industrial demand — averaged 11.5 Moz per week, below the 12.8 Moz Q1 average.
Monitor the gold-silver ratio for entry timing. Sub-$65/oz silver offers attractive entry for industrial consumers with 6-12 month visibility. The solar PV demand trajectory supports a floor near $60/oz. Use the $0.15-0.25/oz physical premium as a bid reference.