March Silver futures experienced extreme volatility, hitting a new all-time high of 93.70 overnight before dropping over 5% early in the session. Despite the sharp intraday correction, prices staged a significant recovery to finish near positive territory. The resilience in pricing highlights a disconnect between paper market volatility and physical market realities. The underlying support is largely driven by a continued reduction in registered silver inventories, a trend that has accelerated since October 2025. Data indicates a tightening of available physical silver for delivery, creating a scarcity premium in the market. This was evidenced by an unusual uptick in physical withdrawals, including 3.25 million ounces removed on January 7 with no offsetting inflows.