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Silver will soon face selling pressure from the rebalancing of this index
Or will investment houses and sovereigns buy the futures contracts being dumped, convert them to "exchange for physicals," and take delivery of real metal?
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By Andrew Bary
Barron's, New York
via MSN News, Redmond, Washington
Saturday, January 3, 2026
The run-up in silver prices could face a near-term test from selling driven by the rebalancing of the Bloomberg Commodity Index.
The rebalancing, set to take place from Jan. 8-14, could lead to selling about $3.8 billion worth of silver via futures contracts, according to a Dec. 11 report from a team of J.P. Morgan analysts led by Gregory Shearer.
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J.P. Morgan also predicts selling of about $4.7 billion of gold keyed off the Bloomberg index rebalancing, following the metal’s gain during 2025.
The Bloomberg Commodity Index, which has about $109 billion of funds tracking it, is a leading commodity index. It gets new target weights annually and gets rebalanced each January. The J.P. Morgan analysts predicted a much smaller amount of silver sales from the coming rebalancing of the S&P GSCI commodity index.
Silver has more than doubled over the past year to $72 an ounce, while gold is up 60% in the same span to $4,318 per ounce.
"Gold and silver are set for a third consecutive year of rebalance-driven selling. Amidst very sharp further outperformance this year, current weights and prices imply that around 11k lots (3% of total open interest) of Comex Gold and around 13k lots (9% of total open interest) of Comex Silver are likely to be sold to reach 2026 target weights," the J.P. Morgan team wrote. ...
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