Monday, April 28, 2014

The Decline In Shanghai Silver Stocks Picks Up Speed

Someone is taking delivery of silver from the Shanghai Futures Exchange in a big way. The amount of silver withdrawn from the exchange increased substantially this week. Matter-a-fact, more silver was removed this week than in the past three weeks combined.

Earlier this week, I posted a chart on the change in silver warehouse stocks at the Shanghai Futures Exchange. In less than two months, silver inventories at the exchange declined 244 metric tons.

Here is the chart from my prior article:

As we can see the silver inventories declined from 575 metric tons (mt) at the end of February, to a low of 331 on April 18th. This was a 42% decline in seven weeks.

According to the most recent data put out by the Shanghai Futures Exchange, silver withdrawals picked up significantly this week. There were 15 mt removed on Monday, 9 mt on Tuesday, 22 mt on Wednesday, 18 mt on Thursday and 9 mt on Friday.

Since my last update, total silver inventories at the Shanghai Futures Exchange fell 73 mt, from 331 mt on April 18th to 258 mt this Friday, April 25th. In less than two months, 317 mt of silver or 55% of total inventories were removed from the exchange.

Furthermore, the Comex shed another 1 million ounces of silver today:

Over the past two months, gold inventories at the Comex have risen slowly, while silver warehouse stocks continue to decline. A total of 17.2 million ounces of silver were removed from the Shanghai (10.2 million oz) and Comex (7 million oz) exchanges since the end of February.

For some reason, a great deal more silver is being withdrawn from the Shanghai Futures Exchange. In just one year, inventories at the exchange declined from 1,123 mt to current level of 258 mt.

It will be interesting to see how things unfold in the next several weeks at the Shanghai Exchange. If the current high rate of silver withdrawals continues.. there won’t be much silver left at the exchange at the end of next month.

- Source, SRSrocco Report: