Mine Outages Tighten Silver Supply as COMEX Vaults Thin Out

COMEX silver stocks slipped to 333.1 million ounces as First Majestic and Endeavour Silver flagged mine disruptions, yet futures settled lower at $60.05.

Silver's physical plumbing is showing fresh signs of strain. Inventories tracked by the CME at the COMEX in New York slipped to 333.1 million fine ounces as of Thursday, down 2.5 million ounces from the prior reading — a drawdown that lands just as two mid-tier producers disclose operational setbacks on the supply side.

Deliverable Stock Holds Above 100 Million Ounces

Of that total, 102.2 million ounces sat in the directly deliverable category, with the remaining 230.9 million ounces held as pledged stock in the vaults. The decline marks a visible step down from October 5, when total inventories stood at 337.94 million ounces.

The contraction on the exchange coincides with a quarter in which unplanned interruptions at key mines curtailed fresh supply. First Majestic Silver reported attributable silver production of 3,440,447 ounces for the third quarter of 2026, an 11 percent slide from the same period a year earlier. A twelve-day labor dispute at the San Dimas mine was cited as the principal drag, prompting the company to draw down existing stockpiles to fill out its quarterly sales.

Endeavour Silver ran into a different set of problems. The company lifted silver output 19 percent year over year to 2,096,545 ounces, yet operational incidents at two sites took the edge off that gain. At Guanaceví, a mill outage forced reduced capacity from September 21 onward while core components are swapped out, with repairs slated to wrap in the first half of October. Disruptions at the Terronera project added to the strain — enough that management now guides full-year production to the low end of its prior range, or slightly beneath it.

Futures Market Shrugs Off the Squeeze

None of this translated into higher prices at the COMEX on Wednesday. The front-month contract settled at USD 60.05 per fine ounce, a daily loss of 2.7 percent, and the metal has given back 1.1 percent over the past seven days. The quote also sits 8.2 percent below its 50-day moving average of USD 65.39.

The persistent headwind traces back to the rates picture. Reuters reported that divisions within the Federal Reserve over the path of future hikes weighed on precious metals, with higher yields on fixed-income assets routinely sapping appetite for non-yielding holdings like silver. Minutes from the Fed's latest meeting showed policymakers taking note of rising bond market yields alongside stubborn inflation. According to media accounts, a majority of committee members expect another tightening step before year-end, with the next regular rate decision calendared for October 27–28, 2026.

Weaker U.S. employment data on October 5 — just 29,000 new jobs — briefly gave doves an argument against further tightening. Even so, caution still colors the broader market mood. A fresh read on how large investors are positioned is due Friday, when the CFTC releases its commitments of traders report.

For now, the standoff between a mine supply constrained by operational mishaps and a monetary backdrop tilted toward restraint continues to define the silver market's direction.