Silver Supply Tightness Persists as BMO Flags Weaker Chinese Solar Demand

On June 1, 2026, fresh warnings emerged that traditional paper-market supply bailouts for silver are fading amid surging physical deliveries, while BMO Capital Markets simultaneously cautioned that slowing Chinese solar additions could cap industrial demand. COMEX deliveries have already reached 165 million oz in Q1 2026 alone, up sharply from 203 million oz in 2024 and 474 million oz in 2025, creating an 11% COMEX–SFE arbitrage and persistent backwardation. Although renewed interest in alternative energy tied to the Iran conflict offers partial support, analysts now see conflicting signals that may limit silver’s upside this year and heighten short-squeeze risks.