Silver tests new highs

While silver bullion stocks are improving in SGE/SHFE vaults, shortages persist in London and Comex deliveries are soaring. Meanwhile a global bond market crisis will drive gold higher.

With China protecting her own silver supplies, the silver squeeze is set to continue, particularly as India continues to ramp up her demand. Meanwhile, developments in global bond markets increasingly point to a funding crisis for the US government which can only be resolved through massive QE, debasing the dollar in 2026.

In European trade this morning, gold was $4224, barely changed on the week, while silver at $58.20 was up $1.60 from last Friday’s close. Silver spent most days establishing new highs before a brief selloff yesterday (Thursday).

It was definitely silver’s week, despite appearing to cool slightly in China. Metal in the SGE/SHFE vaults increased above the 600-tonne level to 688 tonnes, suggesting panic over. But China is imposing a strict licensing criteria to restrict exports from January to protect domestic supplies. More on this follows.