Shanghai Futures Exchange Silver Warehouse Holdings Drop 8.7% in the Last 3 Days
Silver Bars are Disappearing From the Exchanges - It's Not Paper Futures Speculators Driving the Silver Price in China
On April 23, 2024, the Shanghai Futures Exchange (SFE) warehouse vault silver holdings stood at 929.25 tonnes. On April 26, these same warehouses held 848.44 tonnes.
That’s an 80.81 tonne (8.7%) decline in the silver available to market from the SFE over 3 subsequent days.
The claims that paper speculators on the SFE have been driving the price of silver in recent months is not backed by these data from the Shanghai vaults - we can see in the following graph (through April 25, 2024) the secular, and now increasingly intense, draw-down of physical silver from SFE vaults.
Since January 2021, SFE silver warehouse vaults have been drawn-down 71.7%.
What we can see are signs of an increasing shortage of physical silver and not paper speculators driving silver’s price higher.
The solution is materially higher prices that will draw more silver to refineries to meet increasing market demand. But that will take time.
In the meantime, the silver bull stomps on.
Best regards,
David Jensen
