- Silver Report Uncut
The London Bullion Market Association just published a new report titled “Silver Investment 2021: Report” which looks at recent developments in silver. The report begins by commenting that “the past 12-18 months have witnessed some incredible developments in the silver investment market, including a dramatic improvement in investor activity”, and that the combined demand from silver bars, coins, ETPs and futures positioning rose by about 20% in 2020, with the growth in this trend carrying over into the first quarter of 2021.
“Early 2021 saw an unprecedented 110Moz added in just three days. Although some liquidations emerged, there were concerns that London would run out of silver if ETP demand remained at a high level.” they warned of a silver shortage “As the social media frenzy gathered pace in late January, demand for coins, bars and ETPs all jumped. For the latter, global holdings surged by 119 mn ozs in just three days. This was concentrated in the iShares fund (SLV), where holdings rose by 110 mn ozs. Given that most of this metal was allocated in London, fears emerged as to whether there was enough silver should demand continue at this pace.” concerns about a lack of silver in London were so great that the iShares Silver Trust (SLV) actually changed its prospectus in early February, adding the wording that:
“The demand for silver may temporarily exceed available supply that is acceptable for delivery to the Trust, which may adversely affect an investment in the Shares. … It is possible that Authorized Participants may be unable to acquire sufficient silver that is acceptable for delivery to the Trust”