EDITOR NOTE: The Wallstreetbets-driven silver squeeze last January, dismissed in mainstream media as a misguided bet, turned out to be a ‘doubly’ misguided bet (and retreat) as most of the swarm weren’t aware just how close they were to forcing the banks and funds to submission. Recently-disclosed data confirms that the London Bullion Market Association (LBMA) overstated silver holdings by 3,300 tonnes in March due to an accounting error. It turns out, the LBMA had even less silver than it thought it had. The question has always been--and it remains so--whether there’s enough actual silver supply to back all of the paper silver in circulation. Although bullion banks have been hiring their own shills to counter this suspicion, the sheer number of experts weighing in against such propaganda is overwhelming. There is simply not enough supply to cover the paper silver being issued to investors. Given the increasing demand for the white metal from both the monetary and industrial side, silver is going to skyrocket far above its current price levels. And the only ‘reliable’ way to own it is to purchase non-CUSIP physical silver coins or bars right now, and with the utmost urgency--for supplies are in rapid decline.
An accounting error in the silver market, made by the London Bullion Market Association (LBMA), comes at a difficult time for the precious metal as investors are trying to gauge how much supply is actually in the marketplace.
Tuesday, the LBMA confirmed it made a reporting error in the amount of physical silver held in the London vaults. According to the recent report, the LBMA overstated London vault silver holdings by 3,300 tonnes in March when the market saw unprecedented demand for the physical precious metal.
"A data submission error led to the publication of an incorrect aggregate figure for the total silver held in London vaults in March. The corrected figure is 1,143,194 Troy ounces ('000s)," the LBMA said in a statement.
It was previously reported that at the end of April 2021, there were 1,153,154 Troy ounces ('000s) of silver held in London vaults representing a +0.9% increase on the previous month.
Bullion Star on Twitter commented stating "In early April, LBMA claimed that total silver held in LBMA London vaults had risen by a massive 11% during March from 1.125 bn ozs (34,996 tonnes) to 1.249 bn ozs (38,859 tonnes). This, it turns out, was not true, as the real end of March figure was 1.143 bn (35,557 tonnes)."
Looking at the numbers in detail, 3,300 tons is 96,251,100 troy oz which is a pretty significant 'data submission error.' According to some analysts, with tens of thousands of tonnes of fractionally-held gold and silver cleared every year in the London market, transparency is vital.
Chris Marcus, the founder of Arcadia Economics, has previously said that the U.S. Mint has been unable to meet physical demand.
Marcus often states there has been a lack of backing behind the sales of certain silver contracts.
In regards to this latest incident, Marcus tweeted: "I feel like I almost have to sleep on this one before commenting further… Because unless I'm missing something, did they basically just say that they didn't add the 118 million ounces they claimed during silver squeeze weekend?"
On a more cynical side, many traders and investors in the bullion markets have been talking about the "silver squeeze." This has been caused by a band of traders organizing through social media and piling into the silver-backed ETF SLV.
The monthly chart below shows just how big the volume spike has been over the last year compared to when the price was trading at higher levels in the past.
Is there enough physical silver out there to back the current paper being sold?
Originally posted on Kitco