London's Silver Is Running Out of Room

The article explains that London’s physical silver market has become structurally thinner, increasing the risk of volatile price moves. World Silver Survey 2026 shows the London “free float” fell to ~136 Moz (4,234 tonnes) by end‑Sept 2025, driven by five years of deficits, ETP inflows that locked up inventory, and a London→New York arbitrage tied to tariff fears. That squeeze pushed lease rates to ~39% in Oct 2025 and helped silver hit a $121.67 ATH in Jan 2026. Although flows and lease rates have since normalized and London holdings rose to 27,065 tonnes (870 Moz) by Feb 2026, persistent deficits, high ETP allocation and a July 13, 2026 tariff deadline keep liquidity fragile — implying larger upside/downside price swings than historically expected.