UnderSpot Special Market Update

Physical Silver Liquidity Continues to Deteriorate

At this point, traditional bid sheets have become largely irrelevant. The physical silver market is no longer being governed by transparent pricing mechanisms, but by ad-hoc, discretionary transactions driven by liquidity constraints and counterparty risk.

The largest distributor still actively operating in the market has ceased publishing a bid sheet entirely. They continue to trade, but strictly on a case-by-case, phone-only basis. This alone represents a meaningful structural break from normal market function.

Spot Snapshot (Jan 29, 2026 — 9:45am EST)

• Gold: $5,510.30 bid / $5,512.30 ask (+1.78%)
• Silver: $119.55 bid / $119.80 ask (+2.57%)
• Platinum: $2,796.00 bid / $2,806.00 ask (+3.40%)

Spot prices continue to move decisively higher across the complex. Under normal conditions, this would be accompanied by firming physical premiums and aggressive dealer buying.

That is not what is happening.

Despite the strength in spot, physical silver premiums are collapsing:

• 90% U.S. silver has traded dealer-to-dealer as low as –$17
• 100 oz silver bars have been observed as low as –$9
• Other .999 fine material has traded as low as –$8, with much of the market clustering closer to –$6

This is not price discovery….it is liquidity avoidance.

On the retail side, seller flow remains heavy. In response, many shops, including our ow, have been forced to extend settlement timelines. A 7 business day payment window is now required, not as a preference, but as a necessity to manage counterparty exposure.

More concerning, multiple dealers in Chicago and surrounding areas have reportedly stopped buying silver altogether, with at least one shop rumored to be on a full silver buying pause for a month or longer. Within dealer trading groups, a growing number of participants have confirmed the same behavior. Even among active buyers, 90% silver is increasingly being rejected outright.

This is the defining feature of the current market:

Silver is still trading but fewer and fewer participants are willing or able to be the buyer.

That distinction matters. While I’m not an alarmist, this dear reader is where I think the market will fail. Time will tell. My advice is be cautious and keep your powder dry.