FLASH

Article from 15th September http://www.reuters.com/article/2014/09/15/silver-etf-holdings-idUSL1N0RG1L520140915 Silver ETF holdings set record high as price drop sparks interest(Reuters) - Holdings at the world's largest silver-backed exchange-traded funds (ETFs) rose to a record high as a pullback in prices prompted long-term retail investors to increase purchases of the precious metal. The tonnage of silver bullion held by the world's six largest silver ETFs increased by 104 tonnes, or 0.6 percent, to a record 17,135.04 tonnes on Friday, the latest Reuters data shows. To put this into perspective the graph Dr Bubb posted shows that China Silver inventory for July was 148 tonnes where as the inflow into the ETF is 104 tonnes last Friday alone so equivalent to over two thirds of the total Chinese inventory. Silver is sharply down again this week so it will be interesting to see if the ETF inflows keep increasing as the prices decline which could then trigger a turning point in the price.

http://www.bloomberg.com/news/2014-09-18/silver-s-etf-demand-outpaces-gold-by-most-ever-chart-of-the-day.html Silver’s ETF Demand Outpaces Gold by Most Ever: Chart of the Day By Luzi Ann Javier Sep 19, 2014 12:00 AM GMT 6 Comments Email Print Facebook Twitter Google+ LinkedIn Save Investors in exchange-traded funds backed by silver have stayed loyal to the metal longer than those who bought gold. The CHART OF THE DAY shows shares outstanding for the biggest U.S. silver ETF surpassing those for the nation’s largest gold fund by the most since 2006, when the iShares Silver Trust was created. Retail buyers are sticking with silver even as prices fell 4.4 percent this year, the most of any precious metal. Gold’s 2 percent gain wasn’t enough to halt declines in selling, and assets in the SPDR Gold Trust are set for a second annual loss. “The perception is that silver will do well, and should outperform gold as the economic recovery strengthens,” Tom Kendall, the head of commodities research at Credit Suisse in London, said in a telephone interview. “Belief in silver’s dual properties, as a financial asset and also as an industrial metal, appears to remain strong.” While money managers hold the least bullish bets on silver since they were net short on June 10, demand for the metal from solar panel makers is seen rising to a record this year by CPM Group, a New York-based researcher. Demand from jewelry and silverware makers will climb 4.3 percent, according to CPM. U.S. economic growth will accelerate to 3 percent in 2015, from 2.1 percent forecast for this year, according to a Bloomberg survey of 89 analysts. Signs of stronger growth helped push the Standard & Poor’s 500 Index of shares to a record yesterday, while the Bloomberg Dollar Spot Index reached the highest since 2010, reducing the appeal of precious metals as alternative investments. Buyers of silver are less swayed by price movements, because unlike gold, the metal is a “buy and hold and forget about it kind of investment,” said Kendall, the third-most accurate precious-metals forecaster tracked by Bloomberg in the eight quarters ended June 30. “It’s not so actively managed by the retail crowd. It’s tucked away as a retirement store of value or hedge against disaster.

I bought a rather large chunk of silver yesterday, its not looking like good timing so far but as I am in the UK I was worried a Scotland Yes vote would hit sterling so went in for a larger amount rather than average my position down like I would normally do.

Standard bank have released a report today and it talks about the Silver demand in China, it is slightly bearish but does mention there is a report coming out of China towards the end of next week with the Silver import data for August so I will look out for that and hopefully it will give us more information. http://www.kitco.com/reports/CommsDaily_Sept122014.pdf It looks like Chinese imports have been low and they have been depleting their own stockpiles rather than importing more Silver. The turning point in the Silver price is likely to come from the Chinese starting to import more Silver so I think these reports could be important. It does mention historically in September and October Silver imports to China are usually low but I am not sure if this has as much relevance as it used to as their stockpiles were much higher previous years but if this is still the case maybe the rally is another month away.

Is there anywhere we can regularly check the Shanghai Silver inventory levels? Is the info reported to the general public or is it only certain people who have access to this information?

I have just looked this up on the silver institute website and by the looks of this it is only $1.52 per ounce. I wish i had looked this up before loading up at $17. I have pasted the quote below. Silver Production Global silver mine production rose by 4 percent in 2007, with particularly solid gains from Chile, China and Mexico. Total silver mine production reached 670.6 Moz last year. Peru was the world�s biggest silver mining country in 2007, followed in the rankings by Mexico, China, Chile and Australia. Last year, silver generated at primary mines drove global totals higher, increasing by 11 percent to account for 30 percent of all silver mined. Cash costs at primary silver mines rose to a weighted average of US$1.52 per ounce, driven by a combination of labor, consumables and energy cost rises.

Considering the big jump in the Euro I would have expected a decent jump in Silver in Asian trading especially after Fridays unjustified drop.

Intresting Bloomberg Article and very strange imo the fact that it is so bearsh. One guy says he would not touch Gold with a 10 foot pole. Another says it oversold yet would not buy. If any asset class is oversold why would you not want to buy? this applies to anything from housing to stocks to Gold. Gold Falls on Reduced Demand for Inflation Hedge; Silver Drops By Pham-Duy Nguyen Sept. 10 (Bloomberg) -- Gold tumbled to the lowest price since October on speculation a drop in commodity costs and a stronger dollar will reduce demand for the metal as a hedge against inflation. Silver plunged to the lowest since 2006. The Reuters/Jefferies CRB Index of 19 raw materials dropped for a ninth straight session and is down as much as 24 percent from a record reached in July. Gold has declined 26 percent from an all-time high in March and the euro is trading 13 percent below its July peak against the dollar. ``Gold's diseased,'' said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. ``A lot of the inflationary fear has eased because we've seen energy and commodity prices come spiraling down. The dollar has not given up a lot of its gains. That's leaving traders up in the air about what to do with gold. I wouldn't want to touch it with a 10-foot pole.'' Gold futures for December delivery plunged $29.50, or 3.7 percent, to $762.50 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price touched $761.50, the lowest for a most-active contract since Oct. 24. Silver futures for December delivery plummeted 82.5 cents, or 7 percent, to $10.89 an ounce. Earlier, the price touched $10.81, the lowest since Oct. 5, 2006. Silver has fallen 27 percent this year, while gold has dropped 9 percent. The declines today were the biggest since Aug. 15. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, has fallen 11 percent to 631.2 metric tons from a record 705.6 tons on July 11. Oil Skid From mid-July to Sept. 2, commodity index investors sold $39 billion of oil futures, said Michael Masters, president of Capital Management hedge fund. Ospraie Management LLC, the hedge-fund firm run by Dwight Anderson, last month said it will shut down its commodities fund after losing 39 percent this year on wrong-way bets on energy and mining stocks. Lehman Brothers Holdings Inc., which today reported the biggest loss in its 158-year history, bought a 20 percent stake in Ospraie in 2005. ``Commodity funds are getting out,'' said Joel Crane, a metals strategist at Deutsche Bank AG. ``Ospraie is indicative of what's happening across these markets.'' Funds are unwinding bets on a gain in raw materials and so- called commodity currencies, along with wagers on a falling dollar, Crane said. Gold, which often climbs in times of financial turmoil, hasn't benefited from a plunge in U.S. equities and the credit crisis, analysts said. Not Normal ``Surprisingly, people have not flocked to gold as a flight to quality,'' Zeman of LaSalle said. ``Gold is not acting like it normally would. People's risk appetite is very low. No one is willing to step in and buy at this moment.'' Any rebound in metal prices will be fleeting, said Dennis Gartman, economist and editor of the Suffolk, Virginia-based Gartman Letter. ``Gold is egregiously oversold,'' Gartman said. ``It is due for a rally, but it will be short-lived and it will be technical in orientation. The trend is down. Weakness is not to be bought.'' To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

You should suggest this offer to the central banks im sure they would be more than happy to bail us out on the condition we never purchase PM's again

Not quite the jump I was expecting I would like to buy the silver etf tomorrow so i will be please if it stays fairly low.

Thanks i'm keeping an eye out see if I can get in quick enough before it goes up.

What time does asian trading start it might be worth getting a spreadbet going to until tomorrow morning I was hoping to buy some $12.32 Silver but may not get the opportunity tomorrow.

Just read this on Bloomberg,Not a good sign. Gold Bulls `Running for Cover' Signal Price Drop: Chart of Day By Millie Munshi Aug. 20 (Bloomberg) -- Gold, down 21 percent from a record $1,033.90 an ounce in March, may be headed down after open interest in New York futures contracts for the precious metal plunged to the lowest level in 11 months. The CHART OF THE DAY shows open interest, or the total number of contracts yet to be closed, liquidated or delivered. This reached 365,611 on Aug. 12, down 26 percent from a four- month high on July 18 and the lowest since Sept. 10. Open interest on the Comex division of the New York Mercantile Exchange reached 593,953 on Jan. 15 -- the highest since at least 1994 -- before gold rallied another 15 percent to a record on March 17. ``Open interest in gold is down sharply and it just shows you people are running for cover from this market right now,'' said Ron Goodis, the futures-trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``No one wants to get into gold now.'' Gold plunged 8.4 percent last week, the biggest drop in 25 years. Gold for December closed yesterday at $816.80 an ounce. Commercial users of the metal, including investors or mining companies, also have reduced their bets on price gains to the lowest since September. Net-long positions fell by 20 percent from a week earlier to 130,660 contracts on Aug. 15, the biggest drop and the lowest level since September. ``An outflow of passive and active investment money'' means ``it is hard to be positive about the out for precious metals over the next month or so,'' John Reade, the head of UB AG metals strategy in London, said in a report on Aug. 18

silver back up to $13 lets hope it stay there.

Its a bit concrening that Gold seems to be falling faster than Oil due to the fact that it is possible Oil could bottom in the $80-$100 range although I suspect $100 is probably the floor but it means Gold probably still has further to fall.