Since my last update on Aug 11th, silver stocks at the Shanghai Exchange continue to decline. Furthermore, JP Morgan made a huge transfer of silver on Thursday, Sept 5th from its Registered to its Eligible inventories.
Ever since the April 12th take-down of the precious metals, the silver stocks at the Shanghai Exchange have fallen considerably. On April 12th, there were 1,123 tonnes of silver at the Shanghai Exchange. By Aug. 9th, this had fallen to only 509 tonnes — a 55% decline in less than four months:
Furthermore, we can see that in less than one month, an additional 50 tonnes have been removed from the exchange:
So, in less than five months, nearly 60% of the silver has been drained from the Shanghai Exchange. Some analysts have stated that during declining silver prices, its normal for silver to be drained from the metals exchange. However, since Aug. 9th, the price of silver has risen from the $19 range to over $24 presently… but the silver inventory continues to decline.
As I have mentioned before, it seems quite odd that the silver inventories in the East are falling while those at the Comex in the West have remained virtually the same.
That being said, while the overall Comex silver inventories are still at the same level they were five months ago, there has been an interesting transfer and build of silver at JP Morgan’s Eligible (customer) inventories.
Here we can see that JP Morgan transferred 1,437,887 ounces of silver from its Registered (dealer) to its Eligible (customer) inventory. Including this last transfer as well as 3-4 others from Scotia Mocatta during the week of July 22nd, JP Morgan increased its Eligible Silver inventories (50%) from 20.2 mil. oz to 30.2 in six weeks.
One of the members of the blog stated that part of JP Morgan’s Eligible inventories is storing some of the different Silver ETF’s bullion. I don’t know how much of the ETF silver they are storing, but we can see that there has been a motivated effort by the part of JP Morgan to increase its Eligible silver inventories.
Lastly, there are some very interesting trends taking place in the U.S. Silver Import-Export market that I will be writing about in the next several weeks at the SRSrocco Report.
ADDITIONAL NOTE: If you have not checked out the new Feature at the SRSrocco Report, I have included an “IMPORTANT HEADLINES” area on the right-hand side of the site which has links to articles that I recommend reading: