42% Of Available London Silver Vault Holdings Withdrawn Over Last 3 Month

London Silver Squeeze Continues To Develop

The London Bullion Market Association released their latest London silver vault data today that show 128.5 million (M) oz. of silver were withdrawn from London silver vaults over 3 months through February 2025.

Of the 722M oz. of silver remaining at the end of February 2025, London vaults hold approximately 525M oz. owned by ETFs.

The 128.5M oz. withdrawal of silver over these 3 months represents a removal of approximately 42% of London silver vault holdings not owned by ETFs during this period.

It is thus not surprising that the implied 2-month lease rate for silver jumped to 5.5% two days ago on March 5, 2025 with the actual London silver lease rate potentially being much higher.

Figure 1 - London Vault Holdings Of Silver And Gold; source: LBMA

Market signals of silver price backwardation and very high lease rates for silver are indicating that there is very little physical silver currently held in London vaults that is available to market and the onset of a physical silver squeeze in London.

Given the estimated 5 billion (B) oz. of silver spot/cash contracts standing in the London silver market at the beginning of January 2025, this London silver shortage can see a market price excursion develop very quickly if sufficient metal cannot be imported quickly as silver withdrawals continue.

Keep in mind that of the remaining ~200M oz. of silver in London vaults that is not owned by ETFS, some of this metals is simply held in these vaults and is not available to market.

Note also in Figure 1 above that during this 3 month period, a net 7.75M oz. of (heavy) gold were withdrawn from London vaults.

Best regards,

David Jensen