Posted on 09/20/2022 5:19:32 AM PDT by EBH
The London Bullion Market Association (LBMA) is the world’s largest silver exchange. For the last nine consecutive months, the quantity of silver held in LBMA vaults have declined. The August 2022 report states that the vaults now hold only 916.5 million ounces of silver, the lowest total since July 2016.
In November 2021, the LBMA vaults held 1.170.6 billion ounces of silver. Since then, inventories have fallen 21.7 percent. As dramatic a drop as that is, it becomes even more extreme when you consider only the LBMA inventories not owned by 13 silver exchange traded funds (ETFs) and the private client investors who are customers of Bullion Vault and GoldMoney.
As of Sept. 8, a total of 592.8 million ounces of silver in LBMA vaults were owned by these 15 entities. That means that around 320-325 million ounces of LBMA silver were available to other parties. That is an even larger percentage drop from the approximate 470 million ounces that were available to other parties in November 2021.
This silver is not showing up in the vaults of the New York COMEX. Silver in COMEX vaults is held in two different categories. Registered inventories are available to deliver in fulfillment of maturing commodity and options contracts called for delivery of the physical metal. Eligible inventories are NOT available to deliver against maturing COMEX contracts unless the owners specifically elect to reclassify such holdings to registered status.
Over the past nine months, eligible inventories at the COMEX have mostly ranged from 250-280 million ounces. On Sept. 8, there were only 45.99 million ounces of registered silver in the COMEX vaults, down from about 80 million ounces at the end of 2021 and from about 150 million ounces at the end of 2020. Current COMEX registered silver inventories are at their lowest level since July 2020.
Where is the physical silver going that is leaving the LBMA and COMEX? Metals Focus India reports that silver demand in that country, perhaps the world’s top silver consuming nation, is now so strong that the silver price in India is trading at a premium to the world silver spot price. In July 2022, almost 58 million ounces of physical silver was imported into India. This was at least 50 percent higher than in any month in the previous four years and may be an all-time high record amount of imports into India in any month.
Over the past year, the bullion banks that facilitate trades in the silver market have reversed their previous net short positions to now be in a net long position. Obviously, their shift from an overall short position to long position has also absorbed tens of millions of ounces of silver.
Worldwide silver mining output now averages about 70 million ounces a month. Silver recycling operations produce about 15 million ounces monthly. With industrial and investment monthly demand for physical silver now about 95 million ounces, demand is again outstripping supply. Now that information on how much the silver inventories at the LBMA and COMEX are declining is becoming more widespread, the prospects for higher prices over the next year are looking more attractive.
.... and yet the COMEX Silver price is less than $20 an ounce ....
Still less than $20/oz..
Can’t find physical for anything close to that of course
The lowest I see in physical premiums is $4, with an occasional $3 until it quickly gets snarfed up.
Dollar to silver ratio on usdebtclock is now $1221/ounce.
Happy Stacking!
😉
Still waiting for that $600 silver. That would certainly take the edge off. Of course, when it hits that price a gallon of gas will be $65.
100% Physical silver held. It's still cheap folks.
Silver doesn’t go up, the Dollar goes down...
Is PSLV physical?
A quicky check shows a share is .361 ounce, held at the Royal Canadian mint.
If/when it hits $600, forgeddabout the dollar - by then, it is time for a new currency.
In 1913 it was $2.66/ounce.
Twenty years of hearing this crap.
Yes PSLV is physical. Buy enough and you can actually go to Toronto and convert to the metal. A share is .361 oz, but a share sells for $7 or there about. Silver is $19.xx per ounce or something.
Interesting side-note...
Doing a barter deal... item was $75 cash. Offered the guy 4 silver dollar coins. He said yes. OK...handed him $4 in silver. He looked at me funny. I said those coins are worth about $80. What you are giving me was only worth that much in real money.
How much has the dollar degraded again?
LOL.
Careful not to confuse PSLV with SLV. SLV is mostly derivatives.
The silver price is still far far short of the 1:15 historic price.
Silver should be $66 or gold should be $80 to be inline with history
I can’t actually confirm or hold it, its not physical.
If you look at any supply and demand analysis, "recycling" and "unknown" category are consistently about 20% of supply. Is this industrial recycling? Is it people selling grandma's silverware to pay the rent? Is this a normal amount for historical silver supply?
I have read that the best mines in the world produce silver at about $15/oz. It would seem at $20/oz on COMEX, we are in territory where marginal mines are uneconomic.
It would seem supply will have trouble in the future, but the silver market is so opaque its difficult to know for sure.
I read that PSLV is Royal Canadian Mint, while SLV is JP Morgan. Seems to me different vaults, but same Deep State Cabal control.
I have no delusions what my silver will be worth in dollars.
But, I have enough metals to get me through a couple months of hyper inflation. I guess I could sell an ounce of gold at that point and buy another home!
I barely look at this stuff because there are so many “wacky” folks in there.
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