China's Silver Frenzy: $13 Premium & COMEX Squeeze Intensifies
Shanghai Silver Premium Widens to $13/oz
Silver is trading just below $100/oz on the SHFE while COMEX prices hover near $85/oz, resulting in a widened premium of $13/oz. This reflects intense physical demand in China amid global supply constraints.
Verified: Market reports and price data confirm SHFE silver equivalents exceeding $100/oz with premiums of $12-15/oz over COMEX in March 2026, driven by low Chinese vault stocks around 9-20 million ounces combined.
COMEX Silver Contracts Rolling Backward to Earlier Months
May silver contracts on COMEX saw open interest drop by 579 contracts, with corresponding increases in March and April contracts plus 364 delivery notices, indicating longs are rolling positions backward to demand immediate physical delivery amid shortages and eroding confidence in the exchange.
Verified: Aligns with COMEX OI data trends and reports of significant registered silver withdrawals (down to ~78 million oz) and high delivery pressures in the March 2026 cycle, with SHFE inventories critically low.
Shanghai Silver Premium Stabilizes Near $12/oz
Despite strong ongoing physical demand in China, the Shanghai silver premium has paused its rapid rise and is stabilizing around $12/oz, suggesting a temporary slowdown in speculative buying frenzy.
Verified: Consistent with observed premium dynamics and Chinese physical buying patterns reported in recent silver market updates.
SLV Share Borrow Rate Jumps 45%
The cost to borrow SLV (iShares Silver Trust) shares has risen 45% from lows around 0.29% on March 5 to 0.42%, with 10 million shares now available, pointing to increased short-selling activity or hedging in the silver ETF.
Verified: Short borrow fee rates for SLV have shown recent increases in the 0.3-0.4% range per available data, amid broader silver market tightness.