Shanghai Futures Exchange Silver Vault Holdings Drop Another 3.3% Overnight
Silver Vault Stock Continues its Intense Secular Drop in Total Holdings
On Wednesday June 12, 2024, the Shanghai Futures Exchange (SFE) reported vault stocks of silver standing at 697.5 tonnes (697,522 kg. or 22.4M oz.) down 3.4% from the prior day and down 7.7% from the 755 tonne (755,473 kg.) level on Thursday June 6, three trading days prior. The Chinese markets were closed on Monday June 10.
Keep in mind the short position of spot / cash traders of silver in The City of London’s silver market is estimated to be between 5B and 8B oz. of physical silver.
SFE Vault Stocks Highlighted (source: twitter.com/oriental_ghost)
As the vault stock continues to drop, there is the potential for very large Chinese premia to develop well beyond the $3+ /oz. premia seen to date that will draw physical silver into China from the global market.
Watch also these bullion banks who have popped up in Shanghai seeking ‘cooperation’ - they may be the holders of the massive silver short positions in the London spot / cash market:
Best regards,
David Jensen
What are the odds of the SGE becoming just another LBMA/COMEX? Too many western banks turning up to have very quiet "talks" behind closed doors. If the SGE is now the price setter of the metals, how come we are still seeing the "manipulators" at play
Getting interesting, I wonder how they will deal with all the conflicting paper representations/claims of the physical silver. A very large bonfire?