China Silver Whale Is Stockpiling Silver At SHFE

Jan. 10, 2020 3:39 AM ETiShares Silver Trust ETF (SLV)
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Contrarian, Arbitrage, Commodities, Gold & Precious Metals

Contributor Since 2011

Albert Sung is the author of Correlation Economics, monitoring breaking economic news on a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at Ashland, a competitor of Dow Chemical. Today, he works as a regulatory compliance consultant at J&J, but his real passion will stay in macro-economics. His experience in the chemical and pharmaceutical industry allows him to monitor the economy from a process engineering standpoint, analyzing macro-economic charts, correlations and trends.

Since a month ago, China's SHFE warehouse at Zhongchu Wusong has seen a relentless increase in silver stock. We are getting new all time highs every week. This could be due to a lot of reasons that I don't know of: Chinese stockpiling, oversupply of silver, etc...

One thing that I do know is that this is historically correlated to the silver price. So I expect a huge rise in silver price to close this gap.


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