UPDATE: 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  The amount of silver withdrawn from the exchange increased substantially this week.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:

Shangahai Futures Exchange Silver Inventories April 18 2014

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.

Shanghai Future Exchange Silver Stocks April 2014.jpg new

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:

Comex Silver Inventories 42514

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For some reason, a great deal more silver is being withdrawn from the Shanghai Futures Exchange.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.

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33 Comments on "UPDATE: The Decline In Shanghai Silver Stocks Picks Up Speed"

  1. “For some reason, a great deal more silver is being withdrawn from the Shanghai Futures Exchange.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’s probably because the silver in Shanghai shines in the sunlight whereas most of the “silver” at the Comex would combust over a low flame. ie paper silver.

  2. Silver prices hit 16 week lows (new lows for 2014 & 44 month lows…which happen to be previous resistance…now support)…inventory’s are withdrawn…supply continues to dwindle.

    This has turned into a battle of faith…those who believe in physical vs. those who believe in the power of printing. The battle rages but those of the church of physical know their reward is a matter of time and magnitude. Amen.

    • “This has turned into a battle of faith…those who believe in physical vs. those who believe in the power of printing.”

      If that were indeed true, then the hopes of silver holders to find ‘redemption’ at the end of these “times of tribulation” will indeed be dashed…

      on the rocky shores of “reality” …of the POST-REALITY kind! Framing the argument in terms of “hard money vs soft money” – “honest money vs fiat” etc. etc./// is a mug’s game. Those who are determined to end up as something other than BAGHOLDERS have long ago left these silly eschatological categorizations behind, in favor of a secular approach to viewing markets – and their manipulations – as something free of imposed HIGHER ENTITIES like “invisible hands/invisible friends” ….

      and rife with lower life forms like PRESIDENTS WORKING GROUP[aka plunge protection team] tasked with keeping any semblance of market-driven factors out of the western economies of which they are the controllers and determiners.

      From this wider angle viewpoint, we can easily fathom that the perpetrators of this new IR-REAL REALITY have a strategy to control both believers in paper and believers in metals… it’s really of no consequence now which of the two ‘religions’ you choose to believe in! Delusion is now ‘tailor-made’ to suit the preference of the Deludee…

      at the end of the day… the same wash n wear orange jumpsuit(and optional head garb) will be made to suit all sizes and descriptions of formerly free denizens of ‘the first world.”

      WE ARE ALL “ABU GHRAIB” NOW!

      err, can we talk about withdrawals from the SFE without reference to META-physical factors sometime soon? The Chinese, by tradition, actually have a rather different take on spiritual matters, and the concept of “SHEN”. Very holistic, indeed.

  3. @ Rogue. How do you intend to successfully navigate your way though the next 10 years? Don’t you think holding physical will be of some value? BTW would it be possible to reply in a direct way, and not with some orgy of adjectives? I respect what you say and your points, but sometimes it reminds me of reading that shite book ‘Shantaram’. You could condense what you say to a paragraph… or two!

    • “BTW would it be possible to reply in a direct way, and not with some orgy of adjectives?”

      Sorry Roo, ol sock…

      all of the numerous efforts to restrict, modify, suppress or otherwise censor – in subtle, overt, or actually – any form a’tal will be met will the same stock response from my end…

      which I thoughtfully and presciently laid out here some months past to serve as a catchall declaration to ALL efforts such as yours… can’t remember which post it resides at right at this moment… but you’re not new here, so I’d be surprised if you were not already well advised –

      IF it proves necessary to recreate now… to the best of my knowledge it read something like

      I LIKE TO WRITE. IF YOU DON’T LIKE TO READ…. I HAVE NO PROBLEM WITH THAT AT ALL. HOW BOUT I JUST KEEP DOING WHAT I LIKE TO DO… WHILE YOU DO THE SAME! CLASSIC WIN WIN SITUATION!

      Until and unless the site owner decides to shut me up or shut me down… you have zero chance of doing so my friend. Apply all complaints to his direction.

      I’ve been at this long enough to have seen pretty much every spin on the basic effort to get around having no ammunition to rebut my message… by trying instead to get at the messenger. Yours is not a lot different that the usual gambit, but I don’t really know anything about your chosen references so I can’t really say to what degree you’ve plowed new ground chum.

      “How do you intend to successfully navigate your way though the next 10 years? Don’t you think holding physical will be of some value”///????

      err, Roo? I suspect I hold more shiny than the great majority of those who find the time to try to truncate my efforts to discuss the subject of owning them here. A GREAT DEAL MORE.

      btw….”Orgy of adjectives.”..+1 – I like it! Gotta ask tho….
      is there something you may have missed in your brief attempt to read my comment(s) here before critiquing them? The term cognitive dissonance mean anything to you?

      l o l!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

      • Ha! There was no offence meant, I’m just straight to the point! (And I like to stir the pot). I like what you have to say, and I like to check my facts.

        “is there something you may have missed in your brief attempt to read my comment(s)” There’s a good chance if it wasn’t in the first, middle or end paragraph!

        So your only game plan for the next 10 years is to hold metals?

        • Touche! A pot stirrer after my own heart!

          Yes, Roo – admittedly… I like to test the skill set of my interlocutors prior to unleashing my main thrust. But, as with foreplay and all the rest of the once well regarded regime of the caballero/troubadour civilities going the way of the dodo…

          can you blame me? Even in the furthest reaches of the Outback… gentlemen of the darkest hue still remember and understand that speech – and the ability to use it well – is the one gift of the gods that separates our species from all the rest Too many simians, and not enough brethren of the breath anymore!

          And since you have seen fit to lob a soft pitch… ok, I’ll bat it.

          “So your only game plan for the next 10 years is to hold metals?”

          As a strategy in isolation from a complete uprooting of one’s acquired cultural knowledge base… and reorientation towards accepting and adapting to an entirely new epoch in our human adventure… holding the metals is akin to tying a large block of concrete around one’s ankle… and then daring the rest of the world to move you.

          However…

          as part of a fluid tactical approach to re-aligning oneself to changing geopolitical conditions and shifts in global power…. holding gold/silver is an integral…perhaps even essential part of surviving the coming storm.

          Along with several other equally essential elements… to which I have devoted my complete attention for the past 5 or so years. Including, but not limited to:

          Moving out of Gulagistan. Moving off-grid. Developing non-hydrocarbon-based means of mobility. Taking measures to put oneself in direct control of the food source. Limiting contact with zombies. Living outside the grid of electro-magnetic based mind-control methods now pervasively employed by BIG BRO/SIS satanist governments world wide… most important of all: finding something to laugh about every day, and be thankful about. For we are truly blessed creatures, now under deadly attack by those who envy us that status.

          As Stever here appears to believe that I am not worthy of the same ‘guest poster’ status accorded to my good bud “Chas,” I am being forced to gradually lumber along to getting the details of these thoughts posted to the web under my own flag. Stay tuned for details as I fight to overcome the incredible torpor of my native character. In the meanwhiles, I truly appreciate the opportunity to keep my English, and my mental faculties, sharp via this board.

  4. @rogue

    To point,I feel that parabolic solar panel increase will need an awful lot of stock ag to complete,just that feeling.
    Maybe large pointy ballistics at 15 kg a time for WW3 , hope not though.US is playing with fire,first Russki,then China.

    MODERATION–[yuan abet] while I appreciate your attempt of defending my site… I had to moderate your comment. I am not picking on you, but it just started with you first. Let’s keep the name calling out of the comments and reply in a more professional matter. Again… let’s focus on the issues rather than the person.

    This also applies to my comments as well.

    thank you… steve

  5. there are a few chinese futures speculators who have amassed personal wealth well exceeding 1 billion dollars. they will become the new soros!

    most of them are taking advantage of their inside knowledge of chinese govt actions in the commodities market.

    but i sincerely wish they pick up the forgotten tradition of amassing silver bullions and set up the old-style silver bank to return china to land of silver.

    • Excellent point!

      Altho hidden to our eyes of the moment, exactly what you are suggesting is indeed happening in the Forbidden Kingdom. The implications are huge, but of MUCH DIFFERENT IMPORT than the gang of schlitizies trying to control the dialogue here would like to have us believe!

      I’ve been hopeful of getting to the point of where we can put this important development into discussion here… but as should be painfully obvious to all here by this point… instead

      the slow and necessary work of cleaning up all pockets of resistance to free and open debate goes on apace! It has apparently not yet dawned upon people that lobbing corroded cannonballs of personal spite has a way of ‘blowing up real good’!

      I’m in no hurry myself… however long it takes is what it takes. Much like “EL GUAPO”, EL TEMPRANCITO, and other luminaries of the guerrilla campaign in the Pennisular War… I am happy to sit waiting for the straggling Hussars of the once mighty Grand Armee of Silver Orthodoxy to ride unawares into my mountain eyries… suggested reading for all such troopers… John Tone’s The Fatal Knot: The Guerrilla War in Navarre.

      Ever since the days of Don Pelayo, we rude and backward mountaineers have always had a WARM WELCOME for visitors in our midst. Best wrap up your goolies tight boys!

  6. I would be quite surprised if manufacturers across many different industries were not stockpiling silver at the moment, I would. If this particular element were not available, they would be out of business almost instantly. In addition, if they are constantly raising prices to account for the rising costs of many(if not most) of their inputs, why would you not buy the one that is at or below the cost of production? No way can they be that clueless. This is not like Ford and palladium. This can only go so low, for so long. Any knowledge of industry stocking up Steve? Thanks in advance, BTW.

    • I’ve often thought the same thing so I believe the manufacturers ARE stocking up. I also believe the miners are running full out to sell every ounce they can. These prices are killing them, but they need the cash. The massive shorting of silver is already having unintended consequences. Price is too low. Miners are selling what they can but NOT able to replace reserves. Manufacturers ARE stocking up. They are buying in size. The silver from the SFE is going somewhere. It’s going to the manufacturers.

      All this continues on, unnoticed if you believe in manipulated markets, until it ends. It WILL end. But this game can and will be played until there’s nothing left for the manufacturers to buy. This could take years…….

  7. I am somewhat new to the whole silver and gold lingo and what all the numbers, charts and metric tons mean. I just would like some opinions the silver outlook in our future. I have begun to buy silver it just seems smart since it is so cheap and well the dollar ( I just don’t know about). It seems to me that silver is being held down especially with all the more staff companies have to use to produce the same amount of silver. With the demand to seem to be high the price I think should be higher. It doesn’t seem to complicated. I hope the continue to drive the price down so I can continue to purchase even more is that a fair assessment on my part.

  8. the explanation for this is India…India recently made it against the law to import gold without government permission. No longer are Indians allowed to purchase god overseas. The Indian thirst for real money continues and the Indians are now buying all the silver they can get their hands on…

  9. my indian neighbor told me indians don’t buy silver. silver is imported for industrial consumption.

    • Yes, well that is true – in a very limited sense.

      Limited by time frame -last 80 years or so… and limited by technical definition. Which, if we broaden to include it’s use as a ‘monetary metal’ as well as jewelery stock, means that Indians don’t buy -.your favorite idol – silver as CURRENCY!

      But for centuries, while the West was busy trying to dig itself out an insular post-collapse state of development, the Indians used silver as the primary currency for transactions in an economic network stretching from al-Andalus to the Yellow Sea. It was in fact, the major export of the west to the east, right through to the collapse of American mining in the wake of Imperial Spain’s collapse and the colonial independence movement of the 1820s.

      The silver will flow…again.

      Re-institution of the use of the ‘other’ monetary metal – outside of the benighted west – is the biggest single piece of the puzzle not yet visible in the development of the forthcoming post-western world which we are witness to right now without even knowing it. That silver ruble with Putins’ mug on it might serve as your first clue.

      Maybe by, say sometime in 2015, we might even be able to discuss the topic here in a rational and dispassionate manner!>: !???

      • NotCreativeMoment | April 27, 2014 at 4:29 pm | Reply

        Hello,

        all what you say is in harmony with my limited knowledge about this topic. I usually dont discuss anything online anymore, but your responses made me really curious about what else you might know.

        When in the future do you think some major currency will be covered by precious metals? Who will be first? Isnt that actually too big event to collapse everything?? Or do you see any reason why such event will happen only after collapse?

        Im well aware of anglo-american empire(AEE) from many perspectives(mainly relations between elite and mass), but i lack enough information to have an opinion about Russia-China-etc and their relationships with AAE in such complex questions which include many fields. Im really curious what you might say about it, because theres really a lot i dont know and im not even sure where should i start to look.

        Thanks!

        • Hello Compadre…

          excuse delay – time zone differences cause me to lose contact with threads that often go stale before I can reply.

          “Or do you see any reason why such event will happen only after collapse?”

          Yes indeed, your familiarity with the hegemony of the Gringo Empire will have led you to intimate understanding of this question – it is their style never to accept defeat with courage and grace, but only to have the pillars of our earthly mansion pulled down pon everyone – in the manner of a blinded Samson[option].

          Where the toreador loves to dance with Death… playing the seducer of Death’s charming dance of veils… the Gringo Blockhead can only attack his tormentor like the enraged bull now well stuck with banderillas…

          as we see developing now in Ukrania… site of much previous madness where the slavers have plied their trade for millenium. Russkies and Hans are the picadores riding long side the blood-trailing victim now.

          The Monetary-Industrial Complex can only stave off their demise with this developing diversion into WW3 that we are seeing now come to pass. When it is over, the East will have returned to it’s roots… while the west will have been sacrificed in the cause of an overarching hubris and hatred of humanity.

          Since you are familiar with the elite/mass interaction which characterizes the Empire’s relations with the rest of the world, you will appreciate this summation of Michael Hudson as prelude to applying that model to the question of developing currency regime change:

          “Misinterpretation of the West’s financial problem and its corollary untaxing of finance,
          insurance and real estate—and of China’s success in avoiding this takeover—reflects the
          success of rentiers in rejecting classical political economy’s doctrine of value and price, andits corollary distinction between earned and unearned income, and productive and
          unproductive labor. These concepts are no longer taught. Censorial neoliberal ideology has succeeded in expunging the history of economic thought from the curriculum and popular discussion.”

          Those few of us unwilling to accept this attempted “expunging” of history of economic thought have now now realized that the neo-rentier economy of the west is already dead… the stink of it’s corpse only masked by the perfumed propaganda of the mendacious media and it’s mind-controlled minions who operate the so-called ‘alternative’ press.

          Too much to compress into one comment. Please be so kind as to catch me up on a subsequent thread where we can go into this discussion in more specific detail!

  10. Humm. I see this scenario progressing the way of the copper thieves. Thing is, you can’t eat silver, and if there is nothing to buy to sustain your needs, what’s the point for 90% of the population?

    • OIs in China’s markets are double-counting the short side and the long side. so it has to be divided by 2 to the get the real OIs that you are used to.

  11. @Roguefaction V Nobody

    It is rather imperious to downplay what Nobody has said.

    The relentless mind-numbing propaganda that spews forth from the dragon really is a test of faith. I have experienced this in many walks of life: if people repeat something endlessly, it will challenge your belief system eventually.

    So it very much is, at one level, a matter of faith. A matter of holding steadfast to the principles of what you belief, when the MSM deluges you with a different version of reality, which is enforced of course through multiple channels of control.

    Of course, there are multiple strategies for dealing with this onslaught, but that does not negate what Nobody says.

    • Marcus, ol buddy…

      I’d rather believe that instead of ‘downplaying’ the contribution of Mr N…

      I chose to offer a differing perspective on the topic of holding the metals… what I referred to as a “secular” as opposed to faith-based approach. I certainly believe that there is a role for faith… in the general sense. However, it’s my strong suspicion that many holders have been induced to rely increasingly upon faith alone – instead of seeking out corroborating evidence from the wider world – and are caught in a grinding vice between what you correctly call ‘channels of control’ belonging to the “MSM… and an equally dissimulative counter narrative from pumpers who take little or no responsibility for the effects of their cheerleading on the easily-influenced and naive

      This leaves the less discerning increasing isolated from the tide of world developments, and therefore stranded on a desert shore of little sustainable value. I can’t help but feel beholden to send in a lifeboat now and again, when I gaze at the huddled and desolate figures of formerly boisterously bullish bullion holders now bereft of all but bombast.

      However, if your opinion is that I somehow managed to ‘negate’ our colleagues contribution in the course of that mission…

      I shall have to give that due consideration in the future when choosing my line of approach.

      Imperious…+1

      cheers!

  12. in one post, roguefraction is suggesting silver money is slowing coming back. in another, he is suggesting that silver bugs are poor souls stranded on lonely island.

    his messages are confusing and hard to digest. but who cares? very few ppl can understand what he says.

    lol

    • ” very few ppl can understand what he says”….

      tru dat! Where we may choose to differ is as the whether that is MY problem…

      or not!

      Distilling gold out of the dross material of your commentary here is an art analogous to the work of the alchemist of medieval fame. The final result of such an exacting process will take time to appear in the dimension of the physical… in the Secretum Secretorum of Pseudo-Aristotle as translated by Roger Bacon we read: “Thou knowest that the womb is for the embryo as the pot is for the food. Therefore whiteness, or blueness, or extreme redness (of the face) indicates imperfect coction in the matrix. . ..Therefore beware”… a studied reminder of the difficulties of your position.

      As you may be more comfortable with an reference closer to your own cultural tradition… this corresponds to the ‘ Five Elements Jade Casing’ (wu-hsing yü kuei) …in which the ambiance of white material are applied to the matrix out of which large cinnabar crystals grow”…

      in short, a model of the creation or evolution of Cosmos from Chaos. Yours being the lateral role here.

      Do you find dialogue outside the confines of dialectical, this or that shell games difficult Judejin? If so, might I suggest repeated viewings of an opus like THE GOOD, BAD, AND UGLY??? Now that you’ve successfully identified the source of your discomfort… focus in on Eli Wallach: “When you have to shoot, shoot, don’t talk.”

      • “very few ppl can understand what he says.”

        Verbosity in full grandeur for all to marvel at, lavishly filled with metaphorically couched quotes of indistinct and obscure pedigree. If you are going to shoot? Shoot! Indeed. The sublimity and assemblage of pleonastic, grandiloquently magniloquent words, shows you to be a pedagogue of the first order. My sincerest compliments.

        • Pleonastic….
          coupon good for one One Duff Beer for you. Redeemable only @ Moe’s…
          see ya there!

          Pedagogue. ” A slave who led the master’s children to school, and had the charge of them generally.” παιδαγωγέω (paidagōgeō) …err, not so much.

          I simply like to play with my prey prior to eating them.

          “You see in this world there’s two kinds of people my friend – those with loaded guns, and those who dig. You dig[?]”

          kudos y saludos, campanero

  13. Hi Steve,
    Would value your expert thoughts on the concept of the Seneca Cliff in relation to peak oil, which is brilliantly described by Dmitry Orlov here:

    http://cluborlov.blogspot.co.uk/2010/11/peak-oil-is-history.html

    He makes the point that world oil production is unlikely to undulate smoothly and predictably post peak, as would be expected under geological constraints alone. Factors such as civil unrest, credit market collapse, energy shortages, export land effects and and the inability of the world to import oil (as individual countries past their peak can) are likely to cause a dramatic fall in production.

    What do you think of this concept?

    • Tang,

      Dmirty is SPOT ON.

      steve

      • Dmirty’s blog is one of the most sobering writings I have read. When it happens is uncertain and new technologies may mitigate or delay some of the effects, but I am glad that, at 68, I am unlikely to see this future.

        I know that most politicians cannot see further than the next election but surely deep in some governments there is at least one team playing or building the Beyond Peak Oil strategy game?

  14. I agree. Many of the issues we face in energy, are hard to conceptualize for people not directly involved with it. For one thing, most think that one barrel is the same as any other, regardless of how untrue that may be. In the US, since so few are really involved with food production, they also have little understanding and appreciation for the amount of hydrocarbons involved. During a crunch, I have a idea that many of these peripheral uses of energy will(including mining for PMs) may be shunted aside so that energy can be used to produce and distribute food. Based on ethanol production, and its unintended consequences, I doubt we will be proactive about it. Likely one of the real problems with a society accustomed to ‘apps’ and a sort of virtual understanding of physical reality. Bread and circuses!

  15. Supply & Demand.

    “Gold is the money of kings; silver is the money of gentlemen; barter is the money peasants; but debt is the money of slaves,” so wrote Norm Franz in his book “Money and Wealth in the New Millenium.”

    It would be wise in these days to refresh ones self with ‘Gresham’s Law’ (bad money drives out good) the concept of which can be traced back to “The Frogs” c.386 B.C. Written by ‘Aristophanes’ born c.446 B.C. died c.386 B.C.

    “The course our city runs is the same towards men and money.
    She has true and worthy sons.
    She has fine new gold and ancient silver,
    Coins untouched with alloys, gold and silver,
    Each well minted, tested each and ringing clear.
    Yet we never use them!
    Others pass from hand to hand,
    Sorry brass just struck last week and branded with a wretched brand.
    So with men we know for upright, blameless lives and noble names.
    These we spurn for men of brass…”

    Gold has always been hoarded and well guarded throughout history. Silver not so much, considering its modern industrial uses. With monetary faith in paper assets waning, this has been changing and gaining momentum, as evidenced by recent draw downs of physical supplies. This may be attributed to ‘Gresham’s Law’.

  16. YesELPCrimson | April 30, 2014 at 8:40 am | Reply

    Slightly different topic: Wasn’t China suppose to announce their Gold holdings in April (I believe that was the “talking Head” talk for the past several months. Did that annoucement ever happen?

    Been lurking for many months now, this is my frst post.

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