http://srsroccoreport.com/shanghai-...silver-stocks-fall-to-lowest-level-on-record/ What does it really mean? Probably not much...
Something like this is only valuable in context. Is the silver inventories moving down because people are taking silver out because they wish to hold it, or is the silver leaving the futures exchange because of lack of demand for silver futures? Without further information, there is no way of knowing if this is bullish or bearish for the market. It easily could be either.
Isn't that kind of the point? Somebody is taking delivery of the goods, whether it's for business use to make their products or somebody somewhere needs it to fulfill an obligation, it's still some kind of demand. We're all left to wonder who or what entity took deliver and why. While it's not some massive or earth shattering amount, it's still plenty. Then you might want to ask why they took it out of this exchange and not the Comex or LBMA. It may very well be logistics, and it could also be that they weren't offered a good enough deal to not take delivery. Whatever, it still doesn't matter to me, I'll keep buying and trying to increase my physical holdings.
Well, how would you know that Peace? How do you know that people took delivery from this stockpile for use versus it simply being withdrawn from the warehouse? Physical silver usage usually does not go through such warehouses, it goes from the mines and warehouses directly to consumers. The only silver put into such warehouses is done specifically for backing paper silver contracts. We know this since it costs more to get such silver certified for contracts than it does to put it in a normal warehouse. So, as such, I still say declines in this stockpile could be bearish or bullish, and not knowing anything further we do not have any actionable data. I am buying as well, when I get in a mood, at these price levels. I have never been good at catching bottoms, so I feel ok around 20 buying if I feel like it.
It's kind of an odd phenomenon, but as delivery is taken of the physical product of these commodities, the price of that commodity has downward pressure. Start at the 17 minute mark...or if you have the time, watch it all.
