I just posted this on your previous article but will repost again here. We might have a clue about what has been happening with silver.
Alasdair Macleod is telling a story from a mining conference he attended recently. All the silver miners were saying they are selling doré bars to JPM. They suspect that these bars are going to China for refining - which makes sense because the refineries in the West have no capacity at the moment - too busy with gold. So buying low grade silver at the mines becomes your "alternative venue".
At the same time, China is dumping silver on COMEX, to keep the price down. So that is HSBC's "Customer".
If China buys more doré bars than the silver it sells on COMEX, it is adding to its reserves with 'even cheaper' silver.
Regarding your statement ... "China is dumping silver on COMEX, to keep the price down" ... is that your comment or Macleod. If Macleod, do you have a link? Thanks for the comments.
China dumping on COMEX comes from someone who, until recently, was a director of one of the major precious metal trading companies. I think the information is reliable, which was why, a few weeks ago, I speculated about China seeking to make Shanghai the 'global price setting venue'.
Think you'd have to look at China's industrial levels of silver consumption. When it has so many years worth stockpiled is when it can stop playing the game?
Alasdair says he thinks that China is using its strategic reserves to control the market.
I am not going to name any names but I have heard from several people that China is suspected of being the 'whale seller'. All the banks are believed to be long for their own book. China is not 'shorting' silver, it is selling it... to control the price.
Or they are just getting a fat refining spread by buying all the dore bars, since the western refiners are booked solid. So they keep selling into Comex because they are getting a higher refining premium than they've seen in years and years.
The profit incentive is a powerful one. It doesn't require a conspiracy.
Hi Michael, Thanks for another great update!
I just posted this on your previous article but will repost again here. We might have a clue about what has been happening with silver.
Alasdair Macleod is telling a story from a mining conference he attended recently. All the silver miners were saying they are selling doré bars to JPM. They suspect that these bars are going to China for refining - which makes sense because the refineries in the West have no capacity at the moment - too busy with gold. So buying low grade silver at the mines becomes your "alternative venue".
At the same time, China is dumping silver on COMEX, to keep the price down. So that is HSBC's "Customer".
If China buys more doré bars than the silver it sells on COMEX, it is adding to its reserves with 'even cheaper' silver.
When China decides to stop playing this game...
Regarding your statement ... "China is dumping silver on COMEX, to keep the price down" ... is that your comment or Macleod. If Macleod, do you have a link? Thanks for the comments.
I haven't viewed the whole thing yet, but he and Andy .M were talking about China buying dore in about the middle. https://youtu.be/EJ0_lLww32Q?si=C5J-0X85Ng3xNEpp
This is Macleod's interview. Start at 3 mins and watch for about 10 mins. The rest is worth watching, if you have time for it:
https://www.youtube.com/watch?v=EJ0_lLww32Q
China dumping on COMEX comes from someone who, until recently, was a director of one of the major precious metal trading companies. I think the information is reliable, which was why, a few weeks ago, I speculated about China seeking to make Shanghai the 'global price setting venue'.
Think you'd have to look at China's industrial levels of silver consumption. When it has so many years worth stockpiled is when it can stop playing the game?
Michael, Here is a new interview with Alasdair Macleod.
https://www.youtube.com/watch?v=ombzJqF6EK4
Start at 5:20 for just 1 minute.
Alasdair says he thinks that China is using its strategic reserves to control the market.
I am not going to name any names but I have heard from several people that China is suspected of being the 'whale seller'. All the banks are believed to be long for their own book. China is not 'shorting' silver, it is selling it... to control the price.
Or they are just getting a fat refining spread by buying all the dore bars, since the western refiners are booked solid. So they keep selling into Comex because they are getting a higher refining premium than they've seen in years and years.
The profit incentive is a powerful one. It doesn't require a conspiracy.
Mmm mmm, pass the dutchie on the left hand side... and that popcorn! 🥂
Popcorn - Yes!