Shangahai Futures Exchange Silver Inventories April 18 2014In the past week, the Shanghai Futures Exchange suffered another large withdrawal of silver from its warehouse stocks. 
The Shanghai Futures Exchange has had another 41 metric tons (1.3 million oz) of silver withdrawn since April 10th. 
Silver inventories have declined to their lowest levels since the exchange started building its silver stocks in August, 2012.



From The SRSRocco Report:

In my article, Large Decline Of Shanghai & Comex Silver Stocks, I reported that inventories at both exchanges fell significantly since the beginning of March.  According to the most recent data, the Shanghai Futures Exchange had another 41 metric tons (1.3 million oz) of silver withdrawn as well as a million oz removed from the Comex since April 10th.

Shanghai Silver Stocks April 10 2014

Shanghai Silver Stocks April 18 2014

(Note: figures are in Kilograms)

Here we can see that the silver stocks at the Shanghai Futures Exchange declined from 372 metric tons on April 10th, to 331 metric tons of Friday, April 18th.  This was an 11% decline in total stocks in just 8 days.

Moreover, the Comex saw its silver inventories fall from 177.7 million oz to 176.7 million oz during the same time period.

Comex Silver Inventories 41814


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I took the weekly data from the Shanghai Futures Exchange (SHFE) and made the graph below.  Silver inventories at the SHFE peaked at 575 metric tons at the beginning of March (same time as the Comex), and declined 224 metric tons (42%) to reach an all-time low of 331 metric tons on Friday, April 18th.

Shangahai Futures Exchange Silver Inventories April 18 2014

The total withdrawal of silver from both exchanges since the beginning of March:

Shanghai Futures Exchange = -7.8 million oz (244 metric tons)

Comes Inventories = -6.7 million oz (208 metric tons)

In less than two months, a total of 14.5 million oz (452 metric tons) of silver were removed from both exchanges.  The interesting thing to focus on here, is the difference in percentage of withdrawals at the two warehouses.  While the Comex experienced a 4% decline of its inventories, the SHFE lost 42% of its total warehouse stocks.

Even more interesting… SHFE silver warehouse stocks are down a stunning 70% since their Peak of 1,123 metric tons, one year ago.

shanghai Silver Stocks 41213

You see, after the big take-down in the precious metals last year, the SHFE silver stocks fell to a low of 385 metric tons by mid November.  Over the past 4 months, the SHFE continued to build its silver inventories reaching 575 metric tons on Feb 28th (shown above).

For some reason, silver continues to be drained from both exchanges….coincidentally this is taking place at the same time the top banks are exiting the commodity trading business.  On March 19th, JP Morgan announced:

JPMorgan sells physical commodities unit to Mercuria for $3.5 billion

and just out today:

Barclays to wind down commodities trading

Of course, these two banks are going to hold onto their precious metals trading activity… because how would the Fed continue to manipulate the paper price of gold and silver without the aid of these fine institutions.

Furthermore, ever since Deutsche Bank announced that it was exiting its participation in price-fixing of gold and silver on Jan 17th, there have been a rash of mysterious banker deaths and suicides.

Something very fishy and foul is taking place at the top banking institutions.  Unfortunately all we can do is speculate, but I would imagine things are about to get a great deal more interesting as time goes by.

Got your gold and silver?

    • Hold Tight, People’s Storm… 
      It will rebound eventually! But these gurus know next to nothing. 
      It is always darkest before the dawn, but is it really that dark yet? 

    • 4oz…I checked out Elijah Johnson’s guest’s YouTube channel and it’s excellent, light years ahead of Greg “Did you read my book on losing poker strategies” Mannarino 

    • @UglyDog
      I can WELL believe that, UD.  Fact is, many of the articles on SD draw better comments from the members here than I have seen in GM’s articles.  After reading them for a while, I have given up on them and spend my time on the other authors and the comments.  This is as it should be with each of us choosing which articles appeal to us.  Some like reading GM’s articles and I have no problem with that.  If they get something from them, that’s all to the good.  We don’t all like the same things.

    • :)

      That’s the only reason that I am willing to bet against silver!

      “One of these days Alice, to the moon” but probably not tomorrow :(

      And it is still the boyz best moneymaker so be careful, the high OI mentioned in another article is begging for a midnight waterfall…with OPEX coming Thursday, I am thinking it is either tonight or tomorrow, but it is the only metal up right now at 19.40 = +.05

  1. Bank depositors take up arms to protect their savings




    On April 21, the Bank of Russia revoked the license for banking operations from the Moscow-based bank Zapadny (“Western”). 

    The reason for the revocation was the failure of the bank to execute the federal laws regulating bank activities and regulations of the Bank of Russia.

    According to the Bank of Russia, it was found that within the scope of supervision over the activity of the bank, it was revealed that the bank was providing inaccurate activity reports. The credit organization was conducting high-risk lending policies associated with the investment of funds in low-quality assets. Adequate assessment of the risks taken and accurate reflection of the value of the bank’s assets leads to complete loss of its own funds (capital).

    The “Western” bank has not fulfilled the requirement of the supervisory authority about the creation of necessary reserves for possible losses. The management and owners of the bank did not take measures to financially ameliorate the organization, the report says.


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    Following the news about the revocation of the license from “Western” bank, a dramatic story unfolded in the city of Belgorod, where a man, a client of the bank, came to the bank office with a gun demanding the bank should return his deposit to him. The man thus tried to return his savings worth 23 million rubles ($639,000). 

    The chief of the Interior Ministry in the Belgorod region, Viktor Pesterev, said that the man was going to close his account at the bank last week (he was saving the money in securities), but due to technical problems he could not receive anything. On Monday morning, the Central Bank published the news saying that the license from the bank had been withdrawn. 

    Against the background of such a development of the situation, the man lost control over himself and went to retrieve his savings with a gun in his hands. However, he did not use violence against anyone and agreed to lay down his weapon under the guarantee of return of the savings.

    The official noted that the man did not hold anyone hostage in the bank office. However, law-enforcement authorities opened a criminal case of hostage-taking.

    The desperate “invader” was keeping his savings in bills, which, unlike deposits, do not fall under the protection of the deposit insurance system. “A claim from a creditor, a natural person, based on securities (including bills), is satisfied in the third place,” an official with the Deposit Insurance Agency said.

    The bank promised that the man would receive his savings. It was also reported that the man could be relieved from criminal responsibility for his act. 

    Meanwhile, the Central Bank of the Russian Federation continues to clean the banking sphere from dysfunctional players. The regulator withdraws licenses from banks nearly every other week. Such measures are justified, but the question is that the measures hit bank clients in the first place. 

    The Central Bank of Russia started the “cleansing process” in the autumn of 2013. Dozens of banks have lost their licensed since that time. Today, the situation on the banking market is so unstable that the head of the Central Bank, Elvira Nabiullina, decided to toughen control over major banks, such as Gazprombank, Raiffeisenbank and Promsvyazbank to protect them from “sudden and unjustified movements.”

    As a result of the “cleansing,” many bank clients turned to big players, such as Sberbank. Some other depositors, for the safety of their funds, decided to share the savings between several banks. In Russia, the state insures deposits of up to 700,000 rubles ($19,500). 

    The largest players that lost their licenses last year, in addition to Master-Bank, were Invest Bank and Pushkino Bank. The Deposit Insurance Agency thus had to pay to depositors 30.6 billion and 20.2 billion respectively. The clients of Master-Bank received 31.2 billion rubles from the agency.

  2. Imagine how that would have gone in an American bank. Withdrawing your deposits with the help of a gun. Not with a hostage situation investigation. Maybe a super slow car chase and media trial, but more likely justice my lead bullion on the spot. If you don’t hold it, it’s less liekly it will be used against you.

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