The silver market faces geopolitical reconfiguration as BRICS reduces its reserves on COMEX

CountdownToBroke · 2026-02-28T11:02:55+00:00

The BRICS nations' strategy of diversifying silver reserves is reshaping the silver market dynamics. Their progressive physical silver extractions from COMEX are tightening supply, widening price gaps with Asian markets, and creating volatility. JP Morgan's growing silver holdings further amplify these pressures, with projections indicating silver could average $19.28 per ounce by 2026, driven by increased demand and limited availability.

CountdownToBroke

2026-02-28 11:02:55

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The BRICS nations’ reserve diversification strategy is transforming the silver market dynamics. With progressive physical silver withdrawals from COMEX, these countries are exerting upward pressure on available inventories and creating an increasingly wide price gap with Asian markets, particularly with Shanghai quotations.

Extraction Dynamics: BRICS and Physical Silver Withdrawals

The mobilization of silver from certified COMEX deposits responds to a broader geopolitical repositioning. According to NS3.AI analysis, these withdrawals are not isolated events but part of a coordinated strategy to consolidate precious metals. The availability of refined silver in established markets is gradually becoming more limited, causing friction in traditional global supply mechanisms.

Inventory Pressure and Price Disparities Between Markets

The price gap between COMEX and Shanghai reflects the impact of these withdrawals on market structure. As certified stocks in New York decline, volatility and arbitrage opportunities increase. Analysts indicate that imminent delivery demand could further intensify this pressure, forcing more significant price adjustments in the coming quarters.

Institutional Positioning: JP Morgan Consolidates Silver Holdings

According to specialized analysts, JP Morgan is steadily increasing its silver positions, strategically positioning itself for an expected price appreciation. This institutional accumulation of physical silver occurs simultaneously with BRICS governments’ hoarding, amplifying pressure on available supplies and accelerating market tightening.

Future Outlook: Bullish Projections for Silver in 2026

Updated forecasts from JP Morgan suggest that silver could reach an average of $81 per ounce in 2026, more than doubling the previous year’s quotations. This projection reflects expectations of sustained demand, reduced availability, and ongoing pressure on a silver market facing geopolitical and operational reconfiguration. Coordinated extraction and accumulation movements point toward significant volatility in the coming months.

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