Silver Report As On 26th Feb 2026 by Kedia Advisory
Highlights
* Silver rebounds 27% from $64.10 to $91 on safe-haven demand.
* Tariff uncertainty and geopolitical risks boost silver investment flows.
* COMEX registered silver stocks plunge below 90 million ounces.
* China restricts silver exports under strategic industrial protection policy.
* Silver ETFs record $2.44 billion weekly inflows amid volatility.
* Global silver market posts sixth consecutive annual supply deficit.
* Solar manufacturers reduce silver usage through aggressive copper substitution.
* Indian silver jewelry demand drops 9% on record prices.
* Shanghai silver premiums surge $10 above Western spot rates.
* Global mine production rises marginally, supply growth constrained.
* Silver lease rates spike to record 8% delivery stress.
* Shanghai exchange inventories hit decade lows amid shortages.
* Investment demand climbs 11% year-to-date on uncertainty.
Global Silver Market Faces Sixth Consecutive Annual Deficit of 67 Million Ounces in 2026:
The Silver Institute forecasts that total supply will reach 1.05 billion ounces, failing to meet demand for the sixth straight year. This structural shortfall has exhausted over 800 million ounces of global reserves since 2021.
Global Mine Production Expected to Grow Only 1% to 820 Million Ounces in 2026:
New output from Morocco (Zgounder mine) and Chile (Salares Norte) is barely offsetting declines in Peru. Primary silver mines now account for only 28% of total supply, leaving the market reliant on base-metal byproducts.
The Silver Institute Forecasts 2% Decline in 2026 Industrial Fabrication Due to PV Thrifting:
Despite a 130% YoY price rally, the Silver Institute reports that solar manufacturers are cutting silver load-per-cell by 7-10%. Total industrial demand is expected to hover around 650 million ounces for the fiscal year.
COMEX Silver Registered Inventories Hit Record Lows Below 90 Million Ounces Amid Squeeze Fears:
Readily deliverable silver stocks at COMEX plunged to 88.2 million ounces in late February, a 75% drop from 2020 levels. With March open interest exceeding 230 million ounces, analysts warn of a 5:1 paper-to-physical imbalance.
Shanghai Silver Exchange Stocks Plunge to Decade Low of 318 Tonnes:
Inventories in China have dropped by nearly 10% in a single week, down from 349 tonnes. The acute shortage in the East has kept Shanghai premiums $10 per ounce above London spot, effectively sucking metal out of Western vaults.
LBMA Silver Stocks Face Mounting Pressure as February Deliveries Surpass $2 Billion:
Major institutional withdrawals from London vaults continue. Almost $2 billion worth of silver was delivered in February alone, indicating a significant rotation of metal from Western exchanges to private Asian holdings.
Lease Rates for Physical Silver Spike to Record 8% Indicating Desperation for Immediate Delivery:
Institutional lease rates have hit unprecedented levels this week. When silver you can "load onto a truck today" carries such a premium, it signals a complete fracture in the futures-to-physical pricing mechanism.
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