Tight spot silver supply dominates pricing, Asian premiums highlight cracks in the global market.
2026-02-13 11:34:00
As physical demand begins to dominate paper pricing mechanisms, the sharp pullback in Western treasuries indicates a structural shift in global markets.
Official depositary receipts (DIR) data from COMEX on February 11, 2026, showed a negative daily adjustment of 3,256,882 ounces for registered silver. Total registered inventory has now fallen below the 100 million ounce threshold, dropping to 98,138,005 ounces. Furthermore, over 4.7 million ounces were actually withdrawn from eligible categories, representing a net withdrawal of 4.7 million ounces from the system within 24 hours.
David Morgan, publisher of The Morgan Report, believes these trends indicate that the global silver market system is facing a period of severe localized pressure.
He said, " The spot market is controlling paper prices ."
The most obvious manifestation of this difference is the persistent premium of the Shanghai silver benchmark, which is currently about $10 higher than Western spot prices. While typical arbitrage can narrow this gap, Morgan believes that capital controls and shipping logistics are major obstacles to an accessible global market.
Morgan stated, "Clearly, if you're willing to pay above the New York benchmark, it will flow to major Asian countries." "But the spread hasn't narrowed yet...something's definitely wrong."
He attributes this tension to the different roles played by global exchanges. While COMEX is primarily a derivatives market, the Asian market is increasingly dominated by industrial users who need the metal for production.
Morgan stated, "This is certainly a futures market, but not to the extent of London and New York, which means that a large amount of silver in inventory or on the exchange will be used by someone for investment or industrial purposes."
The CME Group recently adjusted margin requirements to a certain percentage of notional value (costs automatically increase as prices rise), further influencing this tightening. Morgan believes this process is a natural breakout from the speculative rally, weeding out highly leveraged participants and shifting the system towards a pure cash structure.
He stated, "The higher the margin requirement, the more we force the market to accept only cash."
Global demand signals from the East remain the primary driver of inventory outflows . The report shows that Indian silver ETFs added 40 million ounces in two months. Furthermore, the Shanghai Futures Exchange will implement stricter hedging quotas starting March 1st, requiring participants to demonstrate the physical business relationship to their positions.
Morgan believes these factors indicate that the market has entered its final stage.
He said, "I think the final peak for gold and silver may occur in the next year or two." He pointed out that historically, 90% of bull market trends occur in the last 10% of their duration.
While silver has attracted current attention, Morgan highlighted the historic value opportunity in platinum, which is currently at a 25-year low relative to silver's cost. He advised that investors seeking stability should focus on physical assets to hedge against broader systemic volatility.
He said, "You don't need to be overly exposed, that's for sure. It's the price you pay for stability and insurance, and you know you'll be protected if something really goes wrong."
Spot silver daily chart source: EasyForex
At 11:23 AM Beijing time on February 13, spot silver was trading at $76.545 per ounce.
Official depositary receipts (DIR) data from COMEX on February 11, 2026, showed a negative daily adjustment of 3,256,882 ounces for registered silver. Total registered inventory has now fallen below the 100 million ounce threshold, dropping to 98,138,005 ounces. Furthermore, over 4.7 million ounces were actually withdrawn from eligible categories, representing a net withdrawal of 4.7 million ounces from the system within 24 hours.
David Morgan, publisher of The Morgan Report, believes these trends indicate that the global silver market system is facing a period of severe localized pressure.
He said, " The spot market is controlling paper prices ."
The most obvious manifestation of this difference is the persistent premium of the Shanghai silver benchmark, which is currently about $10 higher than Western spot prices. While typical arbitrage can narrow this gap, Morgan believes that capital controls and shipping logistics are major obstacles to an accessible global market.
Morgan stated, "Clearly, if you're willing to pay above the New York benchmark, it will flow to major Asian countries." "But the spread hasn't narrowed yet...something's definitely wrong."
He attributes this tension to the different roles played by global exchanges. While COMEX is primarily a derivatives market, the Asian market is increasingly dominated by industrial users who need the metal for production.
Morgan stated, "This is certainly a futures market, but not to the extent of London and New York, which means that a large amount of silver in inventory or on the exchange will be used by someone for investment or industrial purposes."
The CME Group recently adjusted margin requirements to a certain percentage of notional value (costs automatically increase as prices rise), further influencing this tightening. Morgan believes this process is a natural breakout from the speculative rally, weeding out highly leveraged participants and shifting the system towards a pure cash structure.
He stated, "The higher the margin requirement, the more we force the market to accept only cash."
Global demand signals from the East remain the primary driver of inventory outflows . The report shows that Indian silver ETFs added 40 million ounces in two months. Furthermore, the Shanghai Futures Exchange will implement stricter hedging quotas starting March 1st, requiring participants to demonstrate the physical business relationship to their positions.
Morgan believes these factors indicate that the market has entered its final stage.
He said, "I think the final peak for gold and silver may occur in the next year or two." He pointed out that historically, 90% of bull market trends occur in the last 10% of their duration.
While silver has attracted current attention, Morgan highlighted the historic value opportunity in platinum, which is currently at a 25-year low relative to silver's cost. He advised that investors seeking stability should focus on physical assets to hedge against broader systemic volatility.
He said, "You don't need to be overly exposed, that's for sure. It's the price you pay for stability and insurance, and you know you'll be protected if something really goes wrong."
Spot silver daily chart source: EasyForex
At 11:23 AM Beijing time on February 13, spot silver was trading at $76.545 per ounce.
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