Silver Report: Increasing Risks of a Short-Squeeze in London
Low inventory levels at LBMA are raising concerns of falling ‘free floating’ silver stocks.
Furthermore, there are increasing risks of a short-squeeze, as swap-dealer positions are net short at the highest since 2020. We believe these developments will keep silver vulnerable to a price spike if these shorts are covered.- ANZ Bank
As mentioned in this morning’s preview: ANZ is unique in that they have a foot in both parts of the world. Being linguistically western and geographically eastern they can provide more current charts and comments on Eastern demand since their clientele is largely based in the region. We especially like the section labeled CB and Regional Physical Demand to that effect.
More importantly for, they are somewhat less constricted in their ability to make frank statements about the supply/demand situation as it pertains to LBMA without sounding like doomers. See the main body of this report for ample evidence of that. Finally, their iconic “Scorecard” of market determinants is always good to look at, even to disagree with from time to time.
Their report is rounded out with macro charts and technical comments.
Contents: (1900 words)
Summary/ ANZ’s View
The LBMA/Comex Historic Supply Dislocation
US Silver Importers Will Struggle with Tariffs
The Supply Deficit Continues
Investment Demand Holds the Key
Precious Metals Scorecard/ Technical Commentary
Chart Pack
Macro Charts/ Recent Price Performance
Investor Positioning
Central Bank and Regional Physical Demand
Forecasts