Tokenized Silver Options as COMEX October Delivery Tightens
The physical silver market entered October with the same tension it carried all year. First Day Notice for the October delivery month showed that an eye-watering 10,247 gold, plus 1,957 silver contracts were posted for delivery within COMEX-approved depositories on the U.S. coast. That notice, logged by Ed Steer on September 30, frames the backdrop for anyone weighing tokenized silver as an allocated holding rather than a paper claim.
RWTS does not forecast the silver price. We rate the tokenized products that let you hold the metal on-chain, and we read the physical tape to explain why the structure matters.
The physical reality: a tight deliverable pool
Registered silver (the portion of COMEX inventory actually deliverable against futures) is sitting near its lowest sustained levels in years. As of October 1, 2026, COMEX silver vaults hold 337.6 million troy ounces, of which 101.4 million ounces are registered and 236.2 million ounces are eligible. Total stocks rose by 2.3 million ounces from the prior report. The vaults are full on paper, but the deliverable slice is thin relative to the open interest standing for metal.
Spot silver reflects the same demand. The current price of silver is $60.98 per troy ounce as of October 5, 2026, up $0.71 on the day. That holds firm even as the macro backdrop turned less supportive, with a weak September payrolls print cooling October Fed rate-hike odds.
The structural signal to watch is backwardation. When futures trade below spot, it signals unusually strong demand for immediate physical delivery. Silver has repeatedly dipped into backwardation through 2026, a rare state for a metal whose supply chains are normally deep enough to keep futures above spot. If registered stocks hold above 100M oz, the squeeze stays contained. If they keep draining into delivery, the deliverable pool tightens and the backwardation signal sharpens. The humility variable here is refinery and logistics throughput, which no one can see in real time.
The tokenized silver angle: what the Trust Score shows
For holders who want allocated silver without running their own vault logistics, tokenization is the on-chain route. Among tokenized silver products, the Kinesis token leads the ratings.
KAG (Kinesis Silver) carries an RWTS Trust Score of T1 (90/100), the highest-rated tokenized silver we cover. Each KAG represents one gram of allocated, audited, redeemable silver, with circulation published on the Kinesis explorer at explorer.kinesis.money. Verify the live figure and date it before you treat the token as a metal claim.
KAG is highest-rated, not biggest. The tokenized silver category remains a fraction of the tokenized gold market by circulation. For allocators who want both metals under one roof, KAU (Kinesis Gold) also rates T1 (90/100), and the larger gold alternative PAXG holds T1 (90/100) as well. On the gold side the choice is between the highest-rated and the largest by market cap; on the silver side, KAG is both the highest-rated and the most credible redeemable option we track.
A tokenized gram does not resolve COMEX scarcity. What it does is swap a paper futures exposure for an audited, redeemable allocated holding with faster settlement. That is a structural trade-off, not a price call.
How to read this if you hold silver
If you already stack physical, tokenization augments (it never replaces) the bars in your own hands. If you hold a silver ETF or a futures position, the live backwardation is a reminder that paper and metal can diverge when the deliverable pool tightens. The honest comparison: an ETF gives you price tracking with fund-level custody; tokenized silver such as KAG gives you a direct claim on allocated grams redeemable for delivery. Both are rated on the same framework described in our Trust Score methodology.
For the full category breakdown, see our tokenized silver hub. For the deeper read on how KAG is scored, see our related research, KAG Trust Score Guide.
The October delivery cycle will tell us whether registered stocks hold the line or keep draining. Either way, our job is unchanged. We rate. You decide.
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