Silver Physical Market Brief: September 1, 2026

Executive summary

Physical delivery intentions for the September Silver (SI) contract continue to show strength at the start of the delivery period. A further 666 contracts were issued for delivery today, bringing the month-to-date total to a robust 4,904 contracts. This strong physical offtake coincides with recent CFTC data showing money managers holding a significant net long position, suggesting speculative sentiment is currently aligned with physical market demand.

Delivery intentions (today + MTD context)

• Today's Activity: For September 1, a total of 666 contracts were issued for delivery against the SEPTEMBER 2026 COMEX 5000 Silver Futures contract. This is a notable increase from the 408 contracts issued on the prior day.
• Month-to-Date (MTD) Volume: The delivery cycle for the active September contract has started strongly, with a cumulative 4,904 contracts posted for delivery so far.
• Context: The September contract began its delivery period with a substantial volume, indicating firm demand for physical metal as the contract cycle rolls. This level of activity early in the month is a key indicator of physical market tightness.

Warehouse stocks

CME does not provide an aggregated daily change in warehouse stocks for COMEX Silver in this data format. For detailed vault-level inventory, traders should consult the full exchange reports.

COT cross-check

• The latest COT positioning data, as of August 28, 2026, shows Managed Money traders holding a net long position of +14,073 contracts (21,421 long vs. 7,348 short).
• This net bullish positioning from speculative funds aligns with the strong physical demand seen at the start of the September delivery cycle.
• Conversely, Producer/Merchant (Commercial) accounts held a significant net short position of -17,153 contracts, which is typical as these participants often use futures to hedge physical production and inventories.

Risks and watchpoints

• Delivery Follow-Through: The key watchpoint is whether this strong initial pace of deliveries continues throughout the September window. A sustained high volume of stopped contracts would reinforce the view of a tight physical market.
• Positioning vs. Price: A potential divergence to watch for would be if speculative (Managed Money) length begins to unwind even as physical delivery demand remains strong. This could signal a disconnect between paper market sentiment and physical fundamentals.
• Open Interest: As the September contract moves through its delivery cycle, a sharp drop in open interest is expected. The pace and nature of this decline will provide clues about how many contracts are being closed out versus settled for physical delivery.