Silver Physical Market Brief: August 28, 2026

Executive summary

The August delivery cycle for Silver (SI) is concluding with relatively low volume, but attention is now shifting to a much stronger start for the active September contract. Initial delivery intentions for September have been posted at 3,830 contracts, a significant increase over the total volume for August. This uptick in physical settlement demand aligns with the net long positioning held by Managed Money, suggesting a potential convergence between speculative sentiment and physical market activity.

Delivery intentions (today + MTD context)

Delivery activity for the expiring August 2026 contracts has wound down, with only 7 new contracts issued and stopped today.

• August 2026 COMEX 5000 Silver Futures: 2 contracts issued/stopped. This brings the final month-to-date (MTD) total for this contract to 1,761.
• August 2026 Micro Silver Futures: 5 contracts issued/stopped, for a final MTD of 735.

The key development is the first notice day for the active September 2026 contract. * September 2026 COMEX 5000 Silver Futures: Initial delivery intentions stand at a substantial 3,830 contracts. This is more than double the entire delivery volume seen for the August standard contract, indicating a significant increase in demand for physical settlement heading into the next delivery cycle.

Warehouse stocks

CME does not publish detailed, daily warehouse stock levels for COMEX Silver futures in this data format. For a complete view of inventory, please refer to the exchange's official daily stocks reports.

COT cross-check

The latest positioning data shows a clear divergence between speculative and commercial traders, which is now being tested by the physical market.

• Managed Money (Speculators): Net long by 14,073 contracts (21,421 long vs. 7,348 short).
• Producer/Merchant (Commercials): Net short by 17,153 contracts (5,717 long vs. 22,870 short).

The bullish posture of Managed Money, which might have seemed at odds with the quiet August delivery period, is now supported by the strong initial demand for physical delivery in the September contract. The 3,830 contracts standing for delivery suggest that speculative length is being backed by a tangible demand for metal.

Risks and watchpoints

• September Delivery Flow: The primary watchpoint is whether this strong initial delivery demand for September is met with new metal flowing into warehouses or if shorts are forced to cover in the open market. Sustained high delivery volume could signal physical market tightness.
• Positioning vs. Physical Alignment: The current alignment between net long speculative positioning and robust physical delivery demand warrants close attention. If this trend continues, it could reinforce the current price structure. Conversely, a failure for deliveries to follow through could undermine speculative confidence.
• Open Interest: Total open interest stands at 113,801 contracts. How this figure changes as the September delivery period unfolds will be a key indicator of whether positions are being rolled or closed via physical settlement.