Shanghai Futures Exchange Sees Continued Pressure on Silver Vault Holdings

While Bullion Bankers Become Fidgety

On Tuesday June 11, 2024, the Shanghai Futures Exchange (SFE) reported vault stocks of silver standing at 722 tonnes (721,977 kg. or 23.2M oz.) down 1.6% from the prior day and down 4.4% from the 755 tonne (755,473 kg.) level on Thursday June 6, two trading days prior. The Chinese markets were closed on Monday June 10.

Shanghai Silver Vault holdings at June 11, 2024.

Compare these holdings to the 816 tonnes of silver held in SFE vaults on May 9, 2024.

This is a decline of 11.5% in the month through to June 11 and a total decline of 77% since the vault holding peak in January 2021.

The SFE silver vault holdings decline to the 816 tonne level on May 9, 2024 can be seen below for reference.

Shanghai SFE Silver Vault holdings From January 2020 to May 9, 2024.

The 23M oz. remaining in the highly liquid SFE’s warehouses compare to an annual silver market demand estimated at 1.26B oz. in 2024.

The SFE vault holdings will not have to go to zero for the market to react.

As global vault stocks available to market are drawn-down, the problem of bullion banks having sold numerous claims for each oz. of silver held in London and NY vaults will become increasingly visible.

Best regards,

David Jensen