The Chinese precious metals market is flashing red hot signals as physical supply plunges while domestic demand drives price premiums to record levels.
🔸 Latest data reveals that the Shanghai Futures Exchange (SHFE) silver vault dropped by another 47 metric tons this week bringing total inventory to 307 metric tons, a new all time record low.
🔸 In the Chinese spot market (SHFE) silver is trading 2.96 USD higher than the futures market (SGE) reflecting an intense scramble for physical delivery.
🔸 Notably silver is trading at an extreme premium of 12.5 percent over the London benchmark price indicating overwhelming buying pressure in China despite global macroeconomic fluctuations.
🔸 For the Shanghai Gold Exchange (SGE) investors must wait until early next week for updated figures as the recent Chinese holiday has caused a delay in data reporting.
With Shanghai $XAG inventories constantly evaporating and price premiums reaching double digits do trader friends evaluate this as a signal for a global silver price explosion or just a localized supply crunch in the Chinese market?
News is for reference, not investment advice. Please read carefully before making a decision.