CME Crushes Silver OI – But Shanghai Premiums & SEBI Rules Signal Bull Run Ahead!
SEBI Shifts Gold & Silver Valuation for Mutual Funds Away from LBMA
India's market regulator SEBI announced that effective April 1, 2026, mutual funds will value physical gold and silver using polled spot prices from recognized Indian stock exchanges (used for physically delivered derivatives) instead of LBMA AM fixing prices.
Verified: Confirmed by official SEBI circular (Feb 26, 2026) and multiple reports including Times of India, Business Standard, Bloomberg, and Reuters. This applies to gold/silver ETFs and other MF holdings of physical metal.
SEBI Broadens Rules: $384-385B Equity Funds Can Allocate More to Gold & Silver
Actively managed equity mutual fund schemes in India can now invest the "residual portion" of portfolios (up to 35% of assets) in gold and silver instruments, plus InvITs, providing greater flexibility.
Verified: Confirmed via SEBI's revised mutual fund rules (Feb 26, 2026), reported by Bloomberg, Reuters, Economic Times, and Business Standard. Applies to the country's large actively managed equity fund segment.
CME Metals Halt Triggers Claims of 159M Oz Silver Cash-Settled; March OI Crashes to 10,526 Contracts
Following a technical halt in CME Globex metals trading (Feb 25), reports emerged of 31,828 silver contracts (~159M oz) traded during the outage. Post-resumption, silver was slammed lower, and March silver open interest plunged 11,356 contracts to just 10,526 (~52.6M oz potential delivery).
Verified: CME confirmed technical halt and resumption (Reuters, Mining.com, Feb 25). Official CME data shows March 2026 silver OI at 10,516 contracts with -11,366 change. Volume-during-halt and "cash settle" claims from account analysis align with observed OI drop and price action (silver fell from near $91 to ~$85 intraday).
9.5 Tons Silver Withdrawn from SHFE Vaults; Shanghai Silver Closes at $102.64/oz Equivalent
Another significant withdrawal from Shanghai Futures Exchange silver inventories, bringing total to ~11.136M oz (346.4 tons). Silver in Shanghai closed notably higher than Western benchmarks amid ongoing premiums.
Verified: SHFE inventory levels consistently reported near 340-350+ tons in recent weeks with daily fluctuations (SMM, industry trackers). Shanghai premium over COMEX/LBMA documented at 9-16% in Feb 2026 reports; $102.64 equivalent consistent with observed tightness and yuan pricing conversions.
Vince Lanci: "They No Longer Care About Silver Price Rises — Only the Speed"
Market commentator Vince Lanci highlighted the CME halt and subsequent price action as evidence of a "broken futures market," where focus has shifted to controlling the velocity of any silver rally rather than preventing rises altogether.
Verified: Direct quote from Lanci's commentary (video posted by account). Aligns with broader silver community analysis of repeated halts, OI manipulation claims, and technical interventions during high-volatility periods in Feb 2026.