The precious metals market is witnessing significant movements in the storage vaults of major financial institutions as entrusted silver volumes show signs of tightening circulating supply.
🔸 Data this week records that silver holdings in the SLV trust increased by 475 tons currently held in Jpm vaults in London and New York.
🔸 In reality this is not necessarily new physical silver added to the vaults but rather an increase in paper claims against the physical silver already held by JPM.
🔸 This development is considered a positive signal for silver prices as it directly reduces the LBMA free float silver available in the trading market.
🔸 This shift should be viewed in the context of the sharp decline seen last week suggesting that bullion banks may have been using SLV as a tool for physical silver conversion.
Will the reduction in LBMA free float $XAG create a supply shock if industrial and investment demand continues to surge in the near future?
News is for reference, not investment advice. Please read carefully before making a decision.