DAVID’S COMMENTARY
6 MARCH 2026
COMEX Silver Open Interest Collapses to 13-Year Lows — Paper Flees as Physical Tightens
I have not posted since my last update because the Middle East situation and broader geopolitical landscape are moving so fast that by the time I finish writing, the facts on the ground have already shifted.
However, stepping back to the much larger cycle into the end of this decade, the direction remains clear: global monetary debasement and a major asset-class rotation into hard assets, led squarely by precious metals.
COMEX Silver Open Interest Crashed
Preliminary data out for 4th March 2026 shows total COMEX silver open interest at the close of approximately 112,874 contracts, the lowest level in over a decade.
This matters.
Open interest collapsing to these levels tells us the obvious:
• weak paper hands have been cleared out
• leveraged longs have been flushed
• overall participation is fast draining from the paper market
Paper is thinning out.
At the same time, physical demand signals, particularly across Asia, remain firm, with premiums widening and availability tightening. The disconnect between paper flows and physical reality is becoming increasingly loud.
CME Cuts Margins — After Months of Hikes
And now we have yet another major development:
CME (Chicago Mercantile Exchange) has lowered margin requirements for gold and silver.
Let that sink in.
After months of margin increases that helped force liquidations during price volatility, they are now easing conditions, precisely as open interest hits multi-year lows and participation has collapsed.
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So what is the real intent here?
• Encouraging fresh paper participation back into a market that has been hollowed out?
• Allowing liquidity to return as positioning resets?
• Or quietly preparing the runway for the next major move, now that weak hands have been removed?
I cannot pretend to know their internal motives — but the sequence is telling.
The Bottom Line
Open interest has collapsed because confidence in paper participation has been shaken to the core.
Whether you call it “policy,” “structure,” or “game mechanics,” the outcome is the same: market participants have been scared away.
And when paper participation collapses while physical tightness persists, the risk profile changes.
Paper is weak. Physical is strong.
That is NOT how bear markets are built.
That is how squeezes begin.
More to follow as this develops.
Physical Market vs. Paper Market
Friday Price Update — 6th March (SGT 10:51 PM)
The divergence between physical and paper pricing is still extremely wide.
• Shanghai Exchange (physical silver): USD 96.32 (Before Tax is Applied)
• Western COMEX (paper silver): USD 83.54
That is a USD 12.78 premium, or roughly 15.3%, between a delivery-based physical exchange and a paper-dominated Western market.
This bull market is NOT finished yet!
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