Thursday, August 14, 2014

CHINESE SILVER INVENTORIES NEARLY 90% DEPLETED AT SHANGHAI FUTURES EXCHANGE

Chinese silver inventories are growing increasingly tight as stocks at the SFE continue to fall to record low levels.

After the PAPER SMASH in the price of silver in April 2013, we can see just how fast inventories declined. 

By August, 2013, silver inventories at the Shanghai Futures Exchange fell 610 mt to 533… a staggering 53% decline. Inventories continued to fall, but a slower pace until they reached a low in November at 418 mt.

Then over the next three months, there was a build of silver stocks to a high of 575 mt in February, 2014.

Once the price of silver started correcting lower, inventories declined in March to 417 mt, and then a huge fall to 246 mt by the end of April. In May and June, silver inventories remained relatively flat as spot price bottomed then headed higher in June.

When June rolled into July 2014, once gain, the price of silver headed lower right along with the decline in silver warehouse stocks.. Another 86 mt were withdrawn in July as inventories are now the lowest level (148 mt) they have ever been.

In a nutshell, silver inventories declined nearly 90% from their record peak set in March, 2013. 

The Shanghai Futures Exchanged experienced a net decline of 995 mt from March, 2013 to the end of July this year


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