COMEX silver extends loss to 7%, currently at $82.69 per ounce.

COMEX silver extends loss to 7%, currently at $82.69 per ounce.

COMEX Silver Extends 7% Loss Amid Inventory Pressures and Market Volatility

COMEX silver prices fell to $82.69 per ounce on March 3, 2026, marking a 7% decline from recent highs, driven by a confluence of industrial demand weakness, a stronger U.S. dollar, and shifting investor sentiment. The drop follows weeks of volatility, with COMEX silver inventory levels dwindling to 88 million ounces—a fraction of historical averages—as concerns over potential delivery shortfalls persist.

The price correction reflects broader macroeconomic pressures. Weaker industrial demand, particularly from China—a major consumer of silver for solar and electronics sectors—has dampened market optimism. Additionally, rising U.S. bond yields and expectations of prolonged higher interest rates under a potential hawkish Federal Reserve have reduced the appeal of non-yielding assets like silver. A stronger dollar also weighs on demand, as it increases costs for holders of other currencies.

Market participants remain divided on the implications of COMEX's shrinking inventory. While some argue the exchange could face delivery challenges, others note that COMEX still holds 350 million ounces in reserve, albeit with a portion in unregistered bullion requiring refinement. The disconnect between physical and paper markets has also drawn attention, with arbitrage pressures between COMEX and Shanghai silver prices highlighting liquidity imbalances.

Analysts caution that volatility will likely persist. Manoj Kumar Jain of Prithvi Finmart notes that silver could test support levels near $84 per ounce, with further declines possible if industrial demand fails to rebound. Meanwhile, structural factors—including BRICS nations' growing reliance on precious metals as a hedge against fiat instability—suggest long-term price discovery remains uncertain.

For now, COMEX silver faces near-term headwinds, with investors balancing short-term macro risks against longer-term supply-demand dynamics. The coming weeks will likely test the exchange's ability to manage delivery obligations while navigating a rapidly shifting global commodities landscape.