Silver Supply Tightens in Shanghai as Global Markets Cool

By Olumide Adesina –  FXLeaders

Global silver prices have stabilized after an incredible period of volatility, but China’s supply is constrained as investment and industrial demand deplete stockpiles.

A backlog of orders is making it difficult for domestic producers and traders to fulfill, which is driving up short-term prices and severely backwardating the market.

The market’s overwhelming preference for timely delivery of the metal is evident in the front-month contract on the Shanghai Futures Exchange, which has reached a record premium.