‘Houston we have a problem’: 85% of the silver in London is already held by ETFs
“And where have we seen investment demand being strong right now? In the physical market of course, all the way from retail to wholesale to mints to refineries. So now is not a time when there will be “refiners off-loading their metal” into vaults because of weak investment demand. In fact the opposite is to be expected. In short, strong investment demand leads to depleted unreported custodian vaulted stocks. And Exchange Traded Products have at all times to compete with the rest of the market for the pool of available silver in the London vaults of the storage providers.”
USAGOLDl note: In short, Manly believes inventories of silver in London are at very low levels. As a result, a persistently high level of demand could ultimately strain an already tight supply situation. As shown in the chart below, long before the Reddit Rebellion’s raid on the silver market became national headlines, ETF stockpiles experienced rapid growth. Over the past two years, silver ETF inventories have grown by almost 65%, and that is by weight, not dollar value.
Chart courtesy of GoldChartsRUs • • • Click to enlarge
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