Rapid Draw-down of Shanghai Futures Exchange Silver Vaults Resumes
Silver Buyers Show China's CCP Acting as King Canute in the Silver Market
After China’s CCP helped increase the Shanghai Futures Exchange (SFE) silver vault holdings on June 25, 2024 with an injection of 8.95M oz. from state-owned Chengtong PM, the SFE has seen a resumption of the rapid draw-down of its silver vault stocks.
During the week from August 2 to August 9, 2024 the SFE silver vault stock dropped by 8.8% to end the week at 933 tonnes or 30M oz.
SFE silver vault stock at August 9, 2024; data source: SFE
The market appears to be happy to take CCP silver off of its hands at the current digital price.
However, the quick draw-down, if continued, indicates further silver bar injections to SFE vaults will be required to maintain the appearance of silver market liquidity.
Best regards,
David Jensen
I wonder who the Market is for this current Shanghai drawdown? Is it the Chinese citizens who are searching for an alternative to their real estate, and encouraged by their government? Or overseas interests who need to ship this silver out of China for their own purposes??
Hhmmm, 8.95 million - why that exact amount vs say 9 million?