Making Sense of the "Silver Glitch" - Rubino

 

The “China Drain” is Real

While Western traders were staring at blank screens in Chicago, the real alarm bells were ringing in Shanghai well before that.

For the last year, we have tracked a massive migration of physical metal from West to East. But that flow reached a critical breaking point.

• Shanghai silver inventories have just collapsed to decade lows.

Look at this chart. It is arguably the most important graphic in the commodities market right now:

The supply squeeze in China keeps tightening. This is critical because China is the epicenter of industrial demand.

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