Silver inventories edge up from 10-year low on Shanghai exchange; deficit seen for sixth year

Silver inventories on SHFE 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.

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.