Will London Silver Bullion Supplies Run Out?

Silver bullion in London's underground vaults is running low.

Derivative powers that be are on full defense.

Going on various fiat bubble vision shows, trying to belittle growing interest and physical bullion buying.

It is not going to work. Indeed along the way, they will win day-to-day derivative battles. Ultimately, they will lose the physical bullion war.

Ronan Manly reported this past week about shrinking London silver bullion float inventories here on ZeroHedge.

According to Ronan's best estimates of this convoluted, almost entirely opaque market. Just over 100 to 125 million troy ounces of silver remain unallocated in London.

As we have seen thus far, in 2021, investors can buy out one hundred to one hundred twenty-five million troy ounces of silver in a mere matter of a few heavy buying and silver betting days.

Earlier this week, I sat and listened through many #SilverSquealer interviews scoffing at the influence of new silver bullion and $PSLV share buyers. This week we will focus on the head of commodities research at Goldman Sachs, Jeff Currie.

In the video above, we cover some of Jeff Currie's February 2nd, 2021 interviews, where he tries to shrink how badly the silver bullion squeeze is going to alter the price discovery landscape.

Only but a handful of days before Jeff Currie went on TV and lied to everyone, the CME Group COMEX silver futures contract size limits doubled from 1,500 to now 3,000 contracts. So Comex traders can soon legally hold sway over a 15 million leveraged price discovery derivative position. Of course, read too that these position limit doublings are merely effective in April 2021, not to be held under compliance until 2022.

But since JP Morgan has such an outsized position underlying over half the fraction silver bullion COMEX pile, it will be through their COMEX warehouse-size that they will likely continue trading exempt from these new 3,000 contract position limits. They are working for alleged clients like perhaps the People's Bank of China, for instance. 

While the media continually wants to spin this ongoing #SilverSqueeze, playing it off as mere retail bullion buying populism. The underlying truth is that we will likely continue to see larger financial players, commercial users, and perhaps even sovereign nations enter into the fray.

Some merely make momentum trade profits, but some perhaps even, to better secure strategic silver bullion stockpiles for their future.

Chinese Silver Imports | China Silver Imports

IMAGE - Chinese Silver Imports China Silver Imports SD Bullion

Last few years, China's silver import demand has plateaued around 3,500 metric tonnes per yr, a little over 110 million ounces per yr.

That is nowhere enough silver for the future production needs and ambitions of the Chinese 2049 agenda.

I am showing this to you because the silver squeeze will likely become more extensive than the mere retail level.

Like Russia, China has been gearing up and stockpiling for this 21st Century cold war.

Of course, everyone paying attention already knows about the massive tonnage of gold both those nations stockpiled in the 2010s.

What we do not know is just how much silver bullion do the Chinese authorities have stockpiled?

How are they going to bid silver away from growing western silver store of value buyers?

Silver Price Outside New York Trading Hours Now $225.76 oz

IMAGE - silver price outside COMEX trading hours is now valued at $225.76 oz SD Bullion

We let Jeff Currie finish this week's update as we go back to a presentation he made at his Alma Mater, the University of Chicago, in late May of 2017

Listen to the contradictions he makes about (#1) how comparatively tiny the global commodity price discovery markets are.

And point #2, concerning the excessive commodity demand from China.

And what that nation can do to commodity prices if and when it enters a market in size.

Do you remember paying $5 a gallon for gasoline in late 2007 and early 2008?

I do, and it was not enjoyable. Next time crude ramps get ready for double digits per gallon gasoline, perhaps later this decade.


Silver Bullion 1,000 oz Bar Premiums Now 8Xs Normal | SD Bullion

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...