Increasing Global Silver Shortage Drives Silver Price Surge While Financial Press Cries 'Bubble!'
Bullion Banks Start To Whimper
A shortage of silver in all markets globally is driving silver’s price higher. Voracious metal demand in China and India, but also in the West, underpins silver’s price at these record levels.
Overnight, silver’s p.m. price on Shanghai exchanges saw a surge to a record 15% above the London cash silver price.
Figure 1 - China Silver Price Premium/Discount to London Silver Price; source: x.com @InProved_Metals
Keep in mind that Shanghai prices are quoted before a 13% VAT tax is applied upon silver withdrawal from exchange vaults lifting the price for wholesale silver in China to 30% above Western prices.
Similarly, the price premium in India is quoted at 16% above Western prices.
Given the Asian price premia, metal is going to flow from Western vaults.
Shanghai’s quoted silver price overnight was $128.45:
Figure 2 - Shanghai Silver Price vs. Western Cash Price; source: goldsilver.ai
Silver’s In A Bubble!
Uninformed (perhaps) sources in the financial media continue to proclaim that silver’s price is in a bubble even as vault stocks of silver are steeply drawn-down driving the price surge. Shanghai and New York vaults are showing the same pattern.
That’s not a bubble - that’s metal shortage and it’s getting worse.
Figure 3 - Shanghai Vault Stocks Of Silver; source: GoldChartsRUs.com
Strong US retail demand continues for silver with Costco today showing 1 of 430 warehouses with silver bullion available for sale.
As the price of silver has risen due to increasing shortage and market shorts are undoubtedly feeling varying degrees of intense pain, bullion bank HSBC, part owner of the confidential Aurum trading software used to operate the world’s largest physical silver market in the City of London, is planting seeds that it’s time to sell.
“(Y)ou may wonder if it’s time to sell the family silver!”
As the global silver shortage intensifies, sell! Sell!
Silver shorts are in an increasingly difficult spot.
Our thoughts are with them, as we observe their pain.
They’ve earned every bit of it.
Best regards,
David Jensen
Theyll have to pry Grannie's silver teapot outta my cold dead hands!☹️
“Our thoughts are with them, as we observe their pain.”
BRUH!