Silver Holdings Explained: Where It Is Stored and How Much Exists

Weekly Perspective - February 13, 2026 - David Morgan

Key Concepts:

Free Float: The amount of a commodity (specifically silver in this context) readily available for trading, excluding metal held in reserves or committed to specific contracts.
Comex: The Commodity Exchange, a major futures and options market for metals.
LBMA: London Bullion Market Association, a wholesale over-the-counter market for gold and silver.
SGE: Shanghai Gold Exchange, a major exchange for gold and silver trading in China.
Registered vs. Eligible Silver: Registered silver is readily deliverable against futures contracts; eligible silver is held in vaults but may not be immediately deliverable.
Paper Paradigm vs. Physical Market: The tension between trading based on financial instruments (paper) and actual physical demand for the metal.
Price Discovery: The process by which the market determines the true price of an asset.

Physical Silver & Exchange Dynamics

David Morgan discusses the current state of the physical silver market, focusing on exchange inventories and demand. He highlights the interplay between Chinese demand, Comex depletion, and the LBMA free float.

Shanghai Gold Exchange (SGE): Silver withdrawals in 2025 were near the highest on record, and the current rate in 2026 (six weeks in) is consistent with 2025 levels, suggesting continued strong demand. The SGE holds approximately 16 million ounces, with the Shanghai Futures Exchange holding around 11 million ounces, totaling roughly 27 million ounces.
Comex: Silver inventories peaked around 400 million ounces in 2020/2021, bottomed around 280 million in 2024, and rose significantly in 2025 due to tariff-related arbitrage (metal flowing from London to Comex). However, much of this metal has since been shipped back, leading to a depletion of roughly 100 million ounces in a short period, bringing the current inventory to around 400 million ounces or below. Despite the depletion, Comex currently holds about 100 million ounces above the 2025 starting level.
LBMA: The LBMA reports approximately 900 million ounces of silver, but the free float (readily available silver) is around 140 million ounces. Notably, the free float in January 2026 was slightly above levels seen in October, November, and December 2025.
Total Inventory: Combining estimates, total silver inventory across SGE, LBMA, and Comex is roughly 380 million ounces, with Comex holding approximately 100 million ounces in the registered (deliverable) category.

Global Demand & Supply Analysis

Morgan emphasizes the imbalance between available silver and annual physical demand.

Annual Offtake: Global physical demand for silver averages around 200 million ounces per year.
Depletion Rate: The current rate of silver leaving exchanges, particularly Comex, is substantial and primarily flowing towards China. This suggests that, at the current rate, available supply could be significantly reduced within a year.
India's Demand: India has recently experienced a significant increase in silver demand.
Critical Mineral Status: Silver’s inclusion on the critical minerals list raises the possibility of US government purchases for a strategic stockpile.

Market Dynamics & Future Outlook

Morgan discusses the interplay between physical demand, paper trading, and potential future market movements.

Exchange Transparency: The LBMA’s reporting of the free float is considered an estimate rather than a precise statistic. Comex provides more transparent data, but a small registered pool relative to total inventory signals potential supply tightness.
Paper vs. Physical: Morgan argues that the physical market briefly “took over” silver pricing in recent months, leading to genuine price discovery. However, high-frequency trading algorithms and the “paper paradigm” have since regained control.
Future Expectations: He anticipates a continued struggle between physical demand and paper trading, ultimately believing that physical silver will prevail. He expects a consolidation trading range for silver, with gold potentially experiencing more significant gains in the near term (within one to two years).
Rebalancing: Investors who have profited from recent silver price increases may consider rebalancing their portfolios. A 10-15% allocation to precious metals is suggested as sufficient for most investors.

Notable Quotes:

“Ultimately, physical silver trumps the paper paradigm, and it always will.” – David Morgan
“The physical market definitely took over this price of silver and we’re in true price discovery for a few months. However, the paper paradigm with the high frequency trading algorithms took command.” – David Morgan

Silver Sunrise & Philosophical Perspective

Morgan promotes his film, Silver Sunrise, describing it as a philosophical exploration of money, control, and personal power.

Film Focus: The film examines the stress, fear, and control exerted by money, and emphasizes the individual’s power to determine its influence in their lives.
Personal Empowerment: Morgan stresses the importance of developing personal power and recognizing that true value lies within oneself, rather than external possessions.

Macroeconomic Context (Advertisment Segment)

The advertisement segment highlights broader economic concerns:

US Debt: The US national debt is approaching $37 trillion.
Global Shifts: Tariffs are being implemented, and global supply chains are undergoing significant changes.
Inflation: Inflation remains a persistent concern.
Dollar Devaluation: The value of the US dollar is quietly eroding.
Financial Reset: These factors collectively point towards the early stages of a financial reset.

Synthesis/Conclusion:

David Morgan presents a detailed analysis of the silver market, emphasizing the tightening supply of physical silver and the ongoing tension between physical demand and paper trading. He anticipates continued volatility but ultimately believes that physical demand will drive prices higher. He encourages investors to be prepared for a potential financial reset and to consider a strategic allocation to precious metals as a hedge against economic uncertainty. His film, Silver Sunrise, offers a broader philosophical perspective on the role of money and the importance of personal empowerment.