Shanghai Futures Exchange starts a silver futures trade

[pmbug]

... this coming Thursday, the Shanghai Futures Exchange begins trading silver contracts. China Daily noted there had been an absence of silver trading ability in China and -- significantly -- it would make the market more liquid.
...

http://www.theaustralian.com.au/bus...er-futures-trade/story-fnciihm9-1226348107367

...
The China Daily newspaper on April 26th reported that China had received approval to start trading silver futures on the Shanghai Futures Exchange. "There has been an absence of a means of trading in silver in China," Wang Ruilei, an analyst with precious metal trader CGS Co Ltd, told China Daily. "The market will be bigger and more liquid with the advent of these futures contracts." Allowing Chinese investors access to the silver market will provide an influx of investment dollars into the commodity, and make it more difficult for American speculators to manipulate the markets in their favor. Also Phillip Klapwijk of GMFS expects fabrication demand for silver, which makes up 80 percent of total demand for the metal, to rise as much as 5% this year.
...

http://finance.yahoo.com/news/shanghai-futures-exchange-receives-approval-122000567.html

 

[ancona]

So.......another paper venue to dilute the market some more. Unless this is 100% backed by real, deliverable metals, it is just another scam to keep people from using their money for physical metal.

 

[swissaustrian]

I'm still waiting for news from Andrew Maguire...

 

[pmbug]

Ever since the take-down of the price of silver in April, silver warehouse stocks have been declining in a large way at the Shanghai Futures Exchange. At the peak on April 12th, the Shanghai Futures Exchange held 1,124 tonnes of silver at its warehouses. However, just six weeks later, 360 tonnes or 32% were removed.

On May 31, 2013 there were 765 tonnes of silver at the exchange:

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Furthermore, in just a little more than five weeks later, an additional 151 tonnes of silver have been removed. Here we can see that the Shanghai Futures Exchange now only has 614 tonnes of silver at its warehouse remaining ...

More: http://srsroccoreport.com/shanghai-...hai-silver-stocks-fall-nearly-50-since-april/

 

[pmbug]

One year later and more metal disappears...

...
When June rolled into July, once gain, the price of silver headed lower right along with the decline in silver warehouse stocks.. Another 86 mt were withdrawn in July as inventories are now the lowest level (148 mt) they have ever been.

In a nutshell, silver inventories declined nearly 90% from their record peak set in March, 2013. ...

http://srsroccoreport.com/chinese-s...rly-90-depleted-at-shanghai-futures-exchange/

 

[pmbug]

...
On the SHFE silver is currently not in backwardation, but the contango is such low that it doesn't pay to cash and carry the metal (in short; the cost of funding spot metal plus the storage costs transcend the future price), hence SHFE silver inventory isn't being supplemented and reached a record low on August 8 of 143 tonnes.
...

Chinese Gold Demand 1094 MT YTD

First let's go through the Chinese SGE report published on August 8, which covers week 31.

www.bullionstar.com

Yeah, so the price of silver is too low. A few more months like this and the SHFE might run dry...

 

[rblong2us]

I know it gets occasional air but is anyone currently considering re-weighting their portfolio to a larger %age of silver ?

Yeah FOFOA will always favour gold in the loooong term and hes probably right but the actual silver consumption, i.e. using up all that is produced, must at some point trigger a real market respnse.

I got a bit of a tip from, eeerrrr, the source that nudged me to go all in gold back in 2008.....

 

[pmbug]

I'm not selling any gold to buy silver, but I'm currently buying silver (instead of other things) at the moment.

 

[pmbug]

Down to 103 metric tons now:

...
At the beginning of August, there were 148 metric tons of silver on warrant at the Shanghai Futures Exchange. In just three weeks, 29% of the total inventory was removed. The majority of this decline took place last week when 22 metric tons were withdrawn on Friday alone.
...

http://srsroccoreport.com/update-sh...i-silver-warehous-stocks-fall-24-in-one-week/