Spot Silver Prices Surpass $57 per Ounce
The metal rises as physical inventories shift from New York to London markets.
Updated on Oct. 25, 2026 in Stock Markets
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Spot silver prices exceeded $57 per ounce during the week of October 25, 2026, amid a notable drain on New York COMEX silver inventories. Approximately 75 million ounces of silver have been moved to London to satisfy market demand.
Why it matters
A physical shortage of deliverable silver bars in London is driving the price action as market participants prepare for an anticipated Federal Reserve interest rate cut in December 2026. Higher premiums in London have incentivized the physical transport of metal to settle unallocated, paper-promise claims.
Since early October 2026, 75 million ounces of silver have been transferred from COMEX vaults to London. This follows a period where the Silver Institute identified a sixth consecutive year of market deficit.
The players
Silver Institute
This international association represents the global silver industry and provides data on market trends and deficits.
Abaxx Exchange
This commodity exchange platform launched new financial derivatives for silver to diversify trading venues.
Federal Reserve
The central banking system of the United States influences global commodity prices through its monetary and interest rate policies.
The details
Entities in London pay higher premiums for physical silver compared to Shanghai or New York, causing banks to move bars across the Atlantic to settle claims. The London clearing system relies on unallocated, paper-promise models which face pressure as available metal floats decline.
Timeline
19th century: London began its historical role as a global clearing house for silver.
October 2025: Banks airlifted 48 million ounces of silver to bolster London reserves.
January 29, 2026: Silver reached a nominal high of $121.64 before dropping 33%.
May 22, 2026: The Abaxx Exchange launched its new Silver Singapore futures contract.
Week of October 25, 2026: Spot silver prices crossed the $57 per ounce threshold.
Market Dynamics
The current volatility follows the Federal Reserve's December 2026 anticipated interest rate cut, a central driver for precious metal valuation. This shift reflects historical patterns where monetary policy expectations directly alter the appetite for physical store-of-value assets.
Retail investors tracking precious metals should note that high premiums in London suggest underlying tightness in physical supply that may impact volatility. Changes in central bank policy trajectories often lead to rapid reallocations in personal savings strategies for those holding commodities.
The takeaway
The move of 75 million ounces from COMEX to London underscores the fragility of paper-based metal clearing systems when physical demand intensifies. Investors should monitor physical inventory levels as the primary indicator of whether current price trends represent a structural shift or a temporary squeeze.
Further reading
Learn more about the factors impacting global commodity trading in the Stock Markets section.
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