Silver Warehouse Drawdown Continues at the Shanghai Futures Exchange

The silver warehouse vault stock at the Shanghai Futures Exchange (SFE) stands at 815.7 tonnes on May 10, 2024 down from 848.4 tonnes on April 26, 2024 representing a 3.9% decline in tonnage held over this period.

The current SFE refined silver bar stock has declined 73% from its January 2021 high and continues lower supporting the silver price in Shanghai that currently runs at a 4% premium to the London daily price.

SFE Silver Warehouse Stock [tonnes]

High physical demand leading to shortage is anathema to the current unallocated promissory note pricing system used to establish the price of both silver and gold in London and NY as these promissory notes cannot replace metal bars when they are physically in shortage.

Best regards,

David Jensen