COMEX Silver Inventories Hit Lowest Level Since Last March, Potentially Triggering Silver Short Squeeze

BlockBeats News, January 29th, according to The Kobeissi Letter, COMEX silver inventories have dropped from their peak by 34 million ounces to 415 million ounces, the lowest level since March 2025, as the silver short squeeze battle is in full swing.

Analysis indicates that the decline in silver inventory reflects strong physical demand, as short sellers struggle to find physical silver to settle their futures contracts. When these traders cannot find enough physical silver to purchase, they are forced to pay a higher price demanded by the sellers. This will further drive up the silver price, forcing more traders to buy to avoid losses, thus tightening the market conditions even more.