Shanghai Silver Squeeze Alert: Physical Prices Hit $95 as Vaults Drain

Silver is flashing warning signs out of China. WallStreetBulls with over 29k followers on X reported that Shenzhen’s Rongtong Gold is showing a physical buyback price near $95.40 per ounce.

That is well above recent exchange prices and suggests tight supply in the physical market. The tweet calls it a squeeze building beneath the surface. The key issue is inventory.

However, Shanghai Futures Exchange (SHFE) silver stocks have dropped to around 353 tons, which is a 10-year low. That is not a small dip, it shows steady drawdowns over time.

At the same time, the Shanghai Gold Exchange (SGE) reportedly saw 43 tons leave in just one week, leaving only about 450 tons in vaults.

Even more concerning is the claim that little fresh metal is arriving to replace what is being consumed. Industrial demand from solar manufacturing and AI-related production is being pointed to as a major driver.

When metal leaves vaults faster than it enters, pressure builds quietly, until price reacts.

Why the $95 Silver Price Matters

Physical buyback prices near $95 are far above where silver (XAG) has traded on global paper markets. That gap raises questions.

If buyers are willing to pay that much for real metal, it signals urgency. Physical supply cannot be printed like futures contracts. As the inventory becomes tighter, the buyers will compete more.

The Shanghai exchanges are expected to reopen on February 24, 2026. If the physical prices are already close to $95, the reopening may cause sharp volatility.

The tweet implies that if the silver price stays above $92, the next action may be rapid, possibly to $100 or even higher if the squeeze continues.

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Meanwhile, this situation highlights the difference between paper silver and physical silver. Futures markets can trade large volumes without metal moving. Physical shortages, however, are harder to ignore.

If vault levels remain low and industrial demand stays strong, pricing pressure could continue.

Still, squeeze narratives can move quickly in both directions. If supply improves or demand cools, price spikes can fade just as fast.

For now, all eyes are on Shanghai. If the vault data holds and physical premiums stay elevated, the silver (XAG) market may be entering a new phase where tight supply leads the move.