Something interesting took place at the Comex and Shanghai silver warehouses over the past month. Silver stocks at both these warehouses peaked at about the same time, March 10th. However, for the past month, a substantial amount of silver was removed from both warehouses.
In the chart below, we can see that total silver inventories at the Comex grew from 160 million ounces in September of 2013, to 183.3 million ounces on March 11th. This was a 23 million oz build in seven months.
In just one month after the Comex inventories peaked (March 11th), 6.1 million oz of silver were withdrawn. This is the largest one month decline in over a year.
Now, if we look Shanghai Silver Stocks, we see the same trend:
During the same time period the Comex saw its inventories decline 6.1 million oz, the Shanghai silver stocks declined from 566 metric tons (March 10th) to 373 metric tons today. Thus, their was a net withdrawal of 193 metric tons of silver from the Shanghai inventories.
Interestingly, 193 metric tons of silver equates to 6.2 million oz. This is a substantial amount removed from the Shanghai inventories as it represents 34% of total stocks, whereas the Comex only suffered a 3% decline. So, we have 6+ million oz withdrawals from both warehouses at the same time period.
Today, the Comex just updated their figures and added 1.1 million oz of silver to its warehouse inventories. Current silver inventories at the Comex stand at 178.3 million oz.
It will be interesting to see how events in the world unfold in 2014 as Russia and China develop their financial markets around the U.S. Dollar. I imagine silver at $20 an ounce will seem like a steal a few years down the road.