Silver inventories in COMEX warehouses have decreased by 34 million ounces, reaching 415 million ounces, the lowest level since March 2025. The Kobeissi Letter posted on X. The stockpile has seen a significant drop of 117 million ounces, or 22%, since its peak in September. This decline in silver inventories suggests a strong physical demand as short sellers face challenges in sourcing actual metal to fulfill their futures contracts. When traders are unable to secure sufficient physical silver, they are compelled to pay higher prices set by sellers. This situation drives silver prices up, prompting more traders to purchase to avoid losses, thereby tightening market conditions further. The silver short-squeeze is currently in full effect.