It’s been nearly a decade since the Global Silver ETF and Exchange Inventories increased by such a large amount in one day. The overwhelming…
by Steve St Angelo of SRSrocco Report
Global silver investment inventories jumped by a record one-day increase after the large sell-off and the silver price recovery on Tuesday. It’s been nearly a decade since the Global Silver ETF and Exchange Inventories increased by such a large amount in one day. The overwhelming majority of the increase was due to the iShares SLV ETF.
Here is the Global Silver Inventories from GoldChartsRUs.com. As you can see, the global silver inventories jumped by over 20 million oz on January 19th.
With the record one-day increase, global silver inventories are now at a new all-time high of 1.54 billion oz. If you look at the bottom of the chart that shows the daily inflow-outflow of silver metal in the Global Silver ETF & Exchange inventories, the peak average was about 10 million oz in a day. However, on January 19th, it increased by double that amount to 20 million oz.
As I mentioned, most, if not all, of the increase came from the metal inflows into the SLV ETF. Is it possible for 20 million oz of silver to move into the SLV ETF in one day? I believe it is, but it’s more of an accounting transaction. The silver bars may already be in one of five JP Morgan vaults in London and New York that are storing the metal, and all they do is acquire the Silver Bar Serial numbers and put them in their account.
JP Morgan lists 590,605 silver bars weighing ~1,000 oz. Most bars are less than 1,000 oz. However, if you go to the iShares SLV ETF website and click on the Silver Bar List link, you can look at all individual bars, serial numbers, weight, and the refinery-wholesaler that it came from.
Now, could this list be fabricated to some degree? I suppose so. But, I really don’t care in the end. What matters most to me is that investors purchase and store their own silver metal and use the Silver ETF Demand as a barometer of how much the regular investor is becoming interested in silver. 99% of investors will buy the Silver ETF, but that will change in time. However, if we just get 2-3% of that 99% buying real physical silver… it’s GAME OVER. That time is still in front of us.
When will we see more of the 99% buying physical silver? When the world begins to head over the ENERGY CLIFF, more investors will start to buy physical silver to protect wealth. Also, certain regions of the world will be impacted more by the ENERGY CLIFF than other areas.
Interestingly, the 20 million oz one-day increase in the SLV ETF inventories is that it took place during a large sell-off and recovery of the silver price on January 19th. The silver price fell to $24.04 and then hit a high of nearly $25.50 in just one day. It seems as if JP Morgan’s SLV ETF managers took advantage of the selloff to add more metal to the inventories. This is regardless of whether all the metal is there or not. Again, I could care less. You can spot the price action labeled as #3.
I included #1 & #2 because we provide a more detailed analysis for Silver & Gold Members at the SRSrocco Report. In August & September, I told Silver & Gold Members that the silver price was likely going to experience a selloff once it broke below the SYMMETRICAL TRIANGLE shown in #1. During my interview on Silver Bullion TV, I stated this publicly, Steve St Angelo – This Bull Market Won’t End as Gold is Regaining Its Monetary Role.
When the silver price was forming a RISING WEDGE in #2, I posted several times that it was setting up for another correction lower. While the price drop was large during the #1 & #2 corrections, this typical for most commodities and stocks.
Lastly, I believe the broader markets will still experience a 5-10% correction soon. The technical indicators are still at extreme levels. Once this correction occurs, it will likely take down the metals and miners with it. So, be prepared.
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