Shanghai Futures Exchange starts a silver futures trade

pmbug

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
... 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

:silver:
 

ancona

Praying Mantis
Messages
3,370
Reaction score
0
Points
0
Location
Waaay south
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.
 

pmbug

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
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:

<img>

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

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas

pmbug

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
...
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.
...
https://www.bullionstar.com/article...1094 mt ytd silver premiums make record highs

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

rblong2us

Yellow Jacket
Messages
2,087
Reaction score
8
Points
153
Location
off world
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

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
I'm not selling any gold to buy silver, but I'm currently buying silver (instead of other things) at the moment.
 

pmbug

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
Top