Large Decline Of Shanghai & Comex Silver Stocks

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.

Comex silver Total Stocks March 10 2014

In just one month after the Comex inventories peaked (March 11th), 6.1 million oz of silver were withdrawn.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:

Shanghai Silver Stocks March 10 2014

Shanghai Silver Stocks April 10 2014

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.

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3 Comments on "Large Decline Of Shanghai & Comex Silver Stocks"

  1. Interesting. Incidentally Steve, did you see this shockingly bad article posted on ZH:

    I did comment on behalf of “Our Team”!!

  2. last year, around this time, shanghai silver inventory was above 1000 tons.

    shanghai silver futures trading runs anywhere from 1-10 times comex volume!

  3. I’ve been reading several articles about the ongoing platinum mine strikes in south africa. The workers cant make a decent living and the mining companies cant afford the salary increases they are demanding. Platinum is in a supply deficit yet the price is staying low. Then there is russia who can put the world in a severe palladium shortage if the west keeps pushing for a new cold war. Then with gold, india and china are currently buying so much you have to wonder how long this can keep up before the warehouses are completely emptied. Silver doesnt appear to be in a supply deficit presently, but at the current price few mines are showing profits and it is hurting the base metal miners as well.
    I’m wondering if we are entering a future where continuous mine strikes becomes the norm as inflation sets in and wages cant keep up especially in poorer countries where a good portion of resources are extracted. I could almost see a day in the not too distant future where exporting nations of oil, nat. gas and all mined metals start stockpiling and demanding higher prices from importing nations as they struggle to keep their own economies from collapsing. I know oil and mining companies wont hold back supply because they are too worried about paying off their own loans and showing the shareholders a profit in each quarter. But resource nationalization could be a worldwide phenomenon before this fully plays out.

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