Silver Squeeze Intensifies: SHFE Limits, Price Swings, Deliveries Soar
SHFE Sets Zero Hedging Limits for Non-Qualified Participants
SHFE announced that starting from the last trading day of February 2026, non-qualified participants in silver futures will have their near-delivery month hedging open interest limits set to zero contracts.
Verified: The Shanghai Futures Exchange adjusted silver futures hedging limits for non-members from February 2026, setting open interest to zero for non-qualified hedgers, as per official SHFE notices and SMM reports.
Silver Prices Drop Sharply After Strong US Jobs Data
Silver prices fell sharply following a robust US jobs report showing 130,000 jobs added in January 2026, beating expectations, but recovered most losses as prior data was revised down by 1.029 million for 2025.
Verified: Nonfarm payrolls rose 130K, unemployment at 4.3%, with 2025 job growth revised from 584K to 181K; silver settled around $83.75, up 4.41% after initial drop, per CNBC, BLS, and Morningstar.
SHFE Silver Inventories Rise, Backwardation Persists
SHFE silver inventories increased by 18.7 tons to 342.1 tons on February 11, ending a drawdown, while the market remains in backwardation with front-month premiums signaling tightness.
Verified: SHFE silver stocks rose to 342.102 tons from 323.368 tons; China silver market shows rare backwardation amid tight supplies, confirmed by SHFE data and Bloomberg.
Gold Confirms Breakout Above $5,100, Silver to Follow
Gold is trading above its all-time record weekly close, confirming a breakout over $5,100, with potential to reach $5,600, propelling silver higher amid China’s restrictions on short positions.
Verified: Gold rose to around $5,081 on February 11, up 1.15%, confirming momentum; speculative view on silver surge due to structural factors, supported by Trading Economics and Reuters data.
COMEX Silver Deliveries Surge
February COMEX silver deliveries reached 4,490 contracts or 22.45 million ounces in the first six days, nearly matching the entire February 2025 total.
Verified: High physical deliveries in February 2026, with 4,490 contracts delivered, signaling scarcity, per SilverTrade, Binance Square, and Investing.com.
US Bankruptcies Hit Highest Rate Since COVID
Nine large US companies filed for bankruptcy in the last week, pushing the three-week rolling average above six per week, amid commodity breakouts and stagflation concerns.
Verified: Bankruptcy filings rose 11% in 2025; notable 2026 filings include Eddie Bauer and Saks, indicating rising trend since COVID, per US Courts and CNN.