Silver inventories on the COMEX have decreased to 79,968,749.314 ounces as of May 12, marking a 41% drop from 532 million ounces in October 2025. This decline raises the risk of a physical delivery squeeze, as the current coverage ratio of 15.4% indicates a tightening supply. Analysts, including Vandana Bharti from SMC Global Securities, suggest that the drop in registered silver inventories transforms silver from a surplus commodity into one characterized by a chronic shortage. The tightening supply could push silver prices towards $95-$100 per ounce if delivery requests exceed 10% of the registered inventory in a month. Additionally, the Indian market may see prices reach ₹3.20 lakh per kg due to robust global demand and ongoing physical tightness. Historical patterns show that similar inventory reductions have led to sharp price increases, reinforcing a bullish outlook for silver amid strong industrial demand.