Silver Market Faces 46.3 Million-Ounce Deficit as Available Supply Tightens
Key Takeaways
- •Silver remains available through normal channels, but the market is becoming more constrained in terms of freely deliverable supply.
- •The article stresses that deliverable silver and reported silver inventories are not the same thing.
- •COMEX registered and eligible inventories can create a gap between headline stock figures and metal that can be physically delivered.
- •Nearly three-quarters of newly mined silver comes as a byproduct of copper, lead, zinc, and gold mining.
- •Higher silver prices do not necessarily produce a matching increase in silver output because supply depends partly on activity in other metals markets.
Silver Market Faces 46.3 Million-Ounce Deficit as Available Supply Tightens
David Russell
Despite headlines warning of a looming silver shortage, the reality is more nuanced and arguably more important for investors.
Silver is still available. It can be purchased online, by phone, or stored in secure vaults around the world.
But beneath the surface, the market is becoming increasingly constrained.
In the latest GoldCore TV episode, the article examines the structural forces reshaping the silver market. It explains why deliverable silver is very different from reported silver, how paper markets can mask physical tightness, and why investors should understand the difference between COMEX registered and eligible inventories.
The gap between those inventory categories matters because reported holdings can suggest more metal is readily available than can actually be delivered, a distinction that becomes more relevant when market participants focus on immediate physical settlement rather than headline stock figures.
The piece also looks at a lesser-known supply-side issue. Nearly three-quarters of newly mined silver is produced as a byproduct of copper, lead, zinc, and gold mining, which means higher silver prices do not necessarily lead to higher silver production.
That means supply growth is tied in part to mining activity in other metals markets, not just silver demand alone, which helps explain why available bullion can remain tight even when silver is still being mined.
The result is not an imminent shortage of silver. Rather, it is a market in which freely available supply is becoming increasingly limited.
About the author
David Russell
David is the CEO of GoldCore.
Until Summer 2023, he was the Director of Marketing and Communications, responsible for all marketing and communications strategies and branding.
David joined GoldCore in 2008 as Director of Business Development and later became Director of Marketing and Communications in 2020.
Before that, Dave managed and operated his own marketing agency and completed multiple coaching qualifications.
“Working for GoldCore gives you a fantastic lens through which to view global financial and geopolitical developments. I am very proud to be part of a company that contributes to increasing investors understanding of these developments.”
When he is not at work, David is passionate about sailing and has completed the ‘Round Ireland Yacht Race’ twice.
