On February 13, the global silver market is undergoing an unprecedented structural transformation, as surging physical demand progressively weakens the influence of traditional paper-based pricing mechanisms. It has been observed that major Western inventory hubs have recently experienced significant outflows of silver. This shift in focus from "financial attributes" towards "scarce physical metal" signals a fundamental challenge to the established pricing logic of silver, emerging from the ground up.
According to the latest official data from the Commodity Exchange (COMEX) as of February 11, 2026, silver inventories in the registered category plummeted by 3,256,882 ounces in a single day. This movement pushed the total registered inventory down to 98,138,005 ounces, decisively breaching the psychologically significant 100-million-ounce threshold. Furthermore, the system recorded a total net withdrawal of 4.7 million ounces within a 24-hour period. This pattern of high-frequency, large-scale physical withdrawals is seen as reflecting extreme sensitivity among global physical buyers to current spot premiums and deep-seated concerns about future supply tightness.
David Morgan, publisher of The Morgan Report, asserts that the physical market is reclaiming pricing dominance. This premium is particularly pronounced in Eastern markets. While arbitrage mechanisms should theoretically narrow the price gap, logistical bottlenecks and capital constraints are hindering seamless market integration. Concurrently, the CME Group has adjusted margin rules, causing the cost of holding positions to increase incrementally as gold and silver prices rise. This mechanism is effectively squeezing out highly leveraged speculators and accelerating the evolution of silver trading towards a "cash-only" structure.
On the demand side, the global capacity for physical absorption remains astonishing. Data indicates that India added 40 million ounces of silver to its ETFs within just two months. Regarding silver's high volatility, it is suggested that investors should not overlook the allocation value of related assets like platinum. The platinum-to-silver price ratio has recently fallen to a 25-year low, indicating exceptionally high historical value.
Morgan predicts the peak of this gold and silver bull market could arrive within the next year or two. Against a backdrop of frequent systemic volatility, it is advised that investors consider physical assets or fully collateralized positions as a form of financial insurance. As the market enters what Morgan describes as the "final 10%" explosive phase, price fluctuation ranges are expected to widen further. For participants seeking asset stability amidst turbulence, closely monitoring inventory changes and basis movements is recommended as a core factor for judging silver's future trajectory.