Shanghai Silver Stocks Continue To Fall As Silver Eagle Sales Explode Higher

As the manipulated paper price of silver heads lower, so are the silver inventories as the Shanghai Futures Exchange.  The silver stocks hit an all-time low today as the price of silver trades in the $17 range.  At the peak, the Shanghai Futures Exchange held 1,143 metric tons of silver.  However, today only 7% of that record amount remains.

As we can see from the chart below, silver inventories declined from a high of 575 mt (metric tons) in February, to a low of 81 mt today.

Shanghai Silver Stocks 2013-2014 SEP

Unless the Shanghai Futures Exchange starts depositing silver, warehouse stocks maybe totally wiped out within the next several months.

U.S. Silver Eagles Sales Explode On Tuesday

When the U.S. Mint updated its figures on Monday, sales of Silver Eagles increased 700,000 to over 2.4 million.  Then yesterday, another 350,000 were sold for a total of 2,765,000 for the month.  That is a BIG NUMBER and probably one of the highest single day sales this year.

Silver Eagle Update Sep 23 2014

Total sales of Silver Eagles so far this year are 30,911,000.  This figure is different from the one in the table above because the U.S. Mint just updated their website to show another 35,000 sold this morning.

In addition, Gold Eagle sales in September are 45,800 oz and are tied with the second highest month (June) and will probably surpass 50,000 before the end of the week.

Buying Gold & Silver Are Long Term Investments

With the current precious metal sentiment lower than the bearish level in 2008, investors need to realize gold and silver are long-term investments.  Even though the Fed & Central Banks have been successful propping up the Stock and Bond markets, this is not a sustainable business model.

Buying Gold & Silver will protect investors wealth when the POPPING of the greatest Ponzi Scheme in history finally arrives.

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30 Comments on "Shanghai Silver Stocks Continue To Fall As Silver Eagle Sales Explode Higher"

  1. Looks like this Chinese exchange is absorbing roughly 30 to 40 tons per month since May 14/2014 ….. so at 81 tons remaining, they have 2 to 3 months supply remaining unless the Chinese exchange has tons of secret Silver warehoused somewhere that they aren’t telling anyone about.

    • Does anyone know if the silver leaving the SFE is permitted to be exported out of China?

      It seems like China wouldn’t allow this if it knows the silver price has been manipulated with printed paper silver contracts.

      What do you think?

      • in China exporting Gold and silver are illegal. if you bring some gold coin or silver bar to airport you will be put into jail even if you don’t know such laws.

  2. So what happens after they run out of Silver on the exchange?

  3. I would be interested to see if Eagle and Maple production is interupted. This would be a major signal of shortage.

  4. Peterdivine—I presume the comex would be asked to supply instead of settlement in cash—-IF the have it

  5. Someone start a Christmas campaign coin and get everyone to give silver this Christmas and we can find out who,s lieing.

  6. I would suspect the exchange would need to go into the market place and buy it. With these amounts leaving I would think the jig is up on the multi decade silver price suppression in the West,once they ask for delivery.

  7. No point in anyone forcing a default on the comex as they would then be stopped out for cash at a significant loss (with prices so low). Far better for China and others to keep playing the game for as long as possible and benefit from the “on sale” prices of G and S. The crunch question is how much G and S will ever become available at such low price. Will any capitulate in large numbers? And sell out?
    Silver sold from China is subject to VAT at 17% so that is quite a hit (even at these low prices) to take if you are interested in taking delivery outside of China.

    • “No point in anyone forcing a default on the comex as they would then be stopped out for cash at a significant loss (with prices so low).”

      I guess this depends on the position one has taken; short or long.

      Steve,

      My guess is TPTB can effectively “coerce” entities into taking cash settlements, at least entities in the West. China for one isn’t under as much control of the Fed Reserve.

      So who would actually be eligible for physical delivery and demand it??

  8. shanghai premium is around 10%, still below 17% VAT. so according to experts, this 17% VAT prevents importer from arbitraging the shanghai premium.

    so the premium will go even higher. at 2008 bottom, premium was 20%.

  9. Do you really think that there is any effect when the eagle is sold in such amounts.
    We have a Production/Year from 27000 tonnen in silver.

    Greetings from Germany.

  10. Gold and Silver are to be shorted till it reach 850++ for gold and 13++ for silver.
    Then you can use the shorted fund to buy the real gold and silver.

  11. Heard in the market that Paulson also abandon the ship…..take care all gold bug and silver bug as the pesticide from Fed is very strong

  12. Just checked the currency exchange on expedia and for the first time I have noticed gold, silver and platinum on these exchanges. Is this a recent development? I find it ironic that the west will also waste precious silver in it’s weaponary with it’s new wave of bombings on Isis and increasing war mongering to protect the petrodollar. Has anyone crunched any numbers on this?

  13. These numbers are much too to have any influence on the paper prices.

    Investment demand should be 1 billion once a year to put a real pressure on the paper price.

  14. Can you give us a link of the SHFE where it shows the silver inventories? I would like to be able to follow this as opposed to being in the dark for a month waiting for your next update.

    Thanks for your great work!

  15. The question is whether China will maintain it’s NO NAKED Shorting in their Silver market or convert to the Franctional Reserve method used to manipulate markets.

    I hope Harvery is right about China holding the Silver Longs in Comex.

    Time is short…….

  16. Why is everyone worried that SHFE silver stock will go down to zero? This is not a problem. If the demand exists for the metal, and there is none ON HAND, the ones who need can just make an BID/OFFER. How about USD50 per ounce, for 1 million ounces (31 tons)? Don’t you think they will be flooded by sellers?

    • I pretty much see it the way you do. This should be a physical price-discovery market.

      If they want to pay refiners $30 per ounce [arbitrary number higher than what they get in the West] they will get sellers

    • There is still big demand. Just think about silver in batteries etc and how each Tomahawk missile contains around 15Kg or 480 ozs of it. That makes Ratheon a big purchaser as the military seems to get through quite a few, like 49 a couple of nights ago. One suspects that that silver, plus any gold as well, is now gone for good.

  17. The real question is : WHO’S BUYING ?
    One thing i’m abosutely sure, is the longer the price stay low, the more explosive it will be when real physical shortage come, the industrials will bid the price up like crazy and it will last many years…

  18. Buyer unlikely to be China as Comex is very poor re providing actual metal. China/India, etc focusing on accumulating metal and all happy with low prices (the longer they stay low the better for them). Comex always been a paper oriented market for speculators. The big problem is that it sets the price generally. This may change in time, but it is very early days for Shanghai. Comex really a market for speculators, if it crashes and settles in cash the longs will get burnt (settled in cash for $ and no actual metal available at low prices), unlikely that China would let itself get into such a position. China could use Comex for small off takes of metal but would be mad to be exposed to such a paper market in a large way.

    • Don’t think so. Not if China can reprice Gold and Silver due to a Comex and or LBMA default. I think it’s that what is going go happen the day the Paper Ponzi Crimex cannot deliver, but yes, until that day China is going to benefit from the bargain prices.

  19. Arbitrage is the word!!!!
    If Shanghai is running out of Silver, they should fix there own Silver price!!
    And let the real market set the price, whatever that is!!
    They can set an advice price of $30 Dollar, if it sell’s that’s the price!
    All they have to do is set there market free!!!
    I favour traders on the floor, open bids and offers!
    And for Gold, Platinum, Palladium, the same!
    Then they can say to the New York and London paper pushers if you have any real metal ARBITRAGE us!

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