(Kitco News) - Silver is moving out of the United States and into tighter overseas markets, even as futures prices react to geopolitical headlines, according to Josh Phair, CEO of Scottsdale Mint and The Wyoming Reserve.
Speaking with Kitco News on May 27 as gold traded near $4,400 an ounce and silver fell more than 3%, Phair said the physical market was showing a different picture than the day’s price action.
“We’re definitely seeing a lot of material move and ship out outside the United States right now,” he said.
The shift reflects a broader restructuring of the bullion market, as investors, corporations, and governments reassess where physical metal is held, how it is financed, and whether ownership is direct, allocated, and accessible.
Physical silver flows diverge from price action
Phair said Scottsdale Mint saw record volumes in January and February before physical demand in the United States moderated over the past 30 to 60 days. Overseas markets, however, remain active, especially for silver.
That divergence has created a market where spot prices can weaken while physical metal continues to move toward regions with tighter supply.
Phair said the issue is not a broad shortage of silver in the United States, but a shift in location, certification, and deliverability.
“Raw material supply, we’ve not had a shortage,” he said. “There’s plenty of material in the United States.”
The bottleneck is appearing in specific forms of silver that can move easily into global hubs. Phair said LBMA good delivery material has recently carried a premium of roughly 20 to 40 cents above normal levels, a sign that buyers are paying more for metal that can be delivered into international markets.
That distinction is central to the physical silver story: The pressure is not simply about whether metal exists. It is about where it is located, how it is certified, and how quickly it can be moved.
China and India reshape silver trade
Phair said silver appears to be leaving the United States, moving through Europe or London, and ultimately reaching China. That flow comes as China’s silver imports rose 78% month over month to a record roughly 836 tonnes in March, 173% above the 10-year seasonal average for March, according to a Kitco report citing The Kobeissi Letter.
“I think they’re trying to secure their manufacturing base,” Phair said.
Silver’s role as both a monetary and industrial metal is making the market more complex. Phair pointed to demand tied to solar panels, military applications, computer chips, batteries, and advanced manufacturing.
India’s policy shift is also changing the trade. On May 16, India moved certain silver bar imports, including bars containing 99.9% or more silver by weight, from the “Free” category to “Restricted.” Rather than treating that move as a simple demand loss, Phair said restrictions can redirect physical metal through other channels.
Corporations test physical bullion as treasury asset
The physical market shift is also expanding beyond traditional bullion buyers.
Hyperscale Data announced on April 27, 2026, that its Ault Global Commodities subsidiary completed its first purchase of 10,000 ounces of .999 fine silver through Scottsdale Mint. Phair said corporate buyers are increasingly asking how physical gold and silver can function inside treasury operations, including through allocated storage, serial-numbered bars, audits, and collateralized lending.
“This is not going to stop. This is going to grow,” he said.
For corporate buyers, Phair said the appeal is not limited to price appreciation. Physical metal can also function as a strategic reserve asset at a time of rising distrust in banking systems, currencies, and global supply chains.
He also cited prior examples of companies authorizing or holding physical gold, while noting that authorization does not necessarily mean a company has bought bullion.
States move away from traditional custody centers
The same shift is unfolding at the state level, with Wyoming completing a $10 million gold purchase in December 2025, totaling 2,300 ounces, with the metal held at The Wyoming Reserve in Casper. Wells Fargo selected The Wyoming Reserve as a partner for institutional precious-metals custody and storage on Feb. 24, 2026.
Phair described Wyoming’s custody model as part of a broader “decentralization of physical assets,” comparing it to moves by central banks and institutions to repatriate and diversify where physical metal is held.
Wyoming’s decision is part of a wider reassessment of physical custody, state reserves, and sound-money policy. Phair said the state’s property rights, foreign trade zone status, and location outside the New York-centered custody system make it attractive to certain clients.
He also pointed to Texas, which already operates a state depository, and said the state is expected to issue state-branded gold and silver coins in roughly six weeks.
A similar debate is emerging in market infrastructure. On May 27, the bipartisan SILVER Act was introduced in Congress with the goal of expanding exchange-approved metal depositories across all four U.S. time zones. Phair said the proposal could benefit companies like his, but also expressed caution about the government directing private enterprise.
Gold seen as more than a trade
Phair said analysts who focus only on daily price action are missing the broader shift underway in precious metals.
“Gold is not a trade. It’s a new paradigm,” he said.
He said the breakdown of globalization, rising distrust among nations, banking concerns, and supply-chain risk are pushing governments, corporations, and investors to reassess where value is stored and how it can be accessed.
The physical and financial infrastructure around bullion is changing gradually, Phair said, but the pace could accelerate as the decade progresses.
“I feel like it’s happening slowly and then fast at the same time,” he said.