Commodity Trade Mantra

Posts Tagged ‘Shanghai Futures Exchange’

Will The Chinese Stockpiling Trigger A Big Move In Silver Prices?

While Comex silver inventories have been declining from a peak of 184 million oz (Moz) in July 2015 to 154 Moz today, silver stocks at the Shanghai Futures Exchange have been doing the exact opposite – from 233 metric tons, or 7.5 Moz on August 20th 2015 to a staggering 1,706 mt today (54.7 Moz). For whatever reason, the SHFE is accumulating a lot of silver.

Shanghai Silver Stocks Fall & Silver Eagle Sales Rise Continue

Silver Eagles sales by the US Mint increased 700,000 to over 2.4 million this Monday. Yesterday another 350,000 were sold for a total of 2,765,000 for the month. Total sales of Silver Eagles so far this year are 30,911,000. Silver Stocks at the Shanghai Futures Exchange hit an all-time low today as the price of silver trades in the $17 range.

Shanghai Silver Warehouse Stocks Fall 24% In One Week

Since July, 131 tons, or 56% of total silver stocks were removed from the Shanghai Futures Exchange. At the beginning of Aug, there were 148 tons of silver on warrant at SFE. In just 3 weeks, 29% of the total inventory was removed. The majority of this decline took place last week when 22 tons were withdrawn on Friday alone.

Why Silver Prices Could Easily Double or Triple

To understand the explosive fundamentals in Silver, first ignore short-term factors such as net short/long positions, weekly ETF holdings, or latest open interest. Data like these fluctuate regularly & rarely have long-term bearing on prices. Here are the big-picture that tells what could impact silver over the next several years.

Silver Inventories Nearly 90% Depleted At Shanghai Futures Exchange

Chinese silver inventories grow increasingly tight as stocks at the Shanghai Futures Exchange continue to fall to record low levels. The Shanghai Futures Exchanged experienced a net decline of 995 mt in silver inventories, a nearly 90% from their record peak in March, 2013 to end of July 2014.

Silver Continues To Drain From The Shanghai Futures Exchange

In the past week, the Shanghai Futures Exchange suffered another large withdrawal of silver from its warehouse stocks. Actually, this is the lowest level of silver inventories since the exchange started building its silver stocks in August, 2012. – An 11% decline in total stocks in just 8 days.

follow us

markets snapshot

Market Quotes are powered by India

live commodity prices

Commodities are powered by India

our latest tweets

follow us on facebook