{"id":10237,"date":"2023-01-16T12:05:01","date_gmt":"2023-01-16T17:05:01","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=10237"},"modified":"2023-01-16T12:25:48","modified_gmt":"2023-01-16T17:25:48","slug":"why-is-silver-leaving-london-vaults-and-is-gold-joining-in","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/why-is-silver-leaving-london-vaults-and-is-gold-joining-in\/","title":{"rendered":"Why is silver leaving London Vaults? And is gold joining in?"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.youtube.com\/@rixtrema\"><\/a><\/p>\n\n\n\n<p><iframe loading=\"lazy\" title=\"Why is silver leaving London Vaults? And is gold joining in?\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/NUtiuDwo4nY?start=62&#038;feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/rixtrema.com\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n\n\n\n<script src=\"https:\/\/apis.google.com\/js\/platform.js\"><\/script>\n<div class=\"g-ytsubscribe\" data-channel=\"rixtrema\" data-layout=\"default\" data-count=\"default\"><\/div>\n\n\n\n<p><span style=\"font-weight: 400;\">The London silver vaults are looking increasingly depleted, and it is not immediately clear why. When we covered this story last year so much precious metal was leaving, it looked like some kind of heist. The world of precious metals, like almost everything, has its own tribes, the battlegrounds are drawn between <\/span><a href=\"https:\/\/debsproject.org\/2017\/06\/10\/goldbugs-and-silverites-17-17\/\"><span style=\"font-weight: 400;\">goldbugs on one side, and silverites <\/span><\/a><span style=\"font-weight: 400;\">on the other.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course we are serious, non-ideological, people at RiXtrema so our loyalties do not lie in any one camp. Instead we look to the data to guide us.<\/span><\/p>\n<p><br \/><br \/><\/p>\n<h2><b>Where did it all go?\u00a0<\/b><\/h2>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1.jpg\" data-rel=\"lightbox-image-0\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10240 alignnone\" src=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1.jpg\" alt=\"\" width=\"619\" height=\"422\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1.jpg 804w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1-300x204.jpg 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1-768x523.jpg 768w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1-500x341.jpg 500w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img1-800x545.jpg 800w\" sizes=\"auto, (max-width: 619px) 100vw, 619px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Over the last year around 10,000 tonnes of silver was removed from the London vaults. And if you look at the usual places it might end up, namely Comex the <\/span><span style=\"font-weight: 400;\">primary <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/f\/futures.asp\"><span style=\"font-weight: 400;\">futures<\/span><\/a><span style=\"font-weight: 400;\"> and options market for trading metals, it hasn\u2019t appeared there or any of the other usual places. Furthermore recent reports have stated that a lot less is actually available now than previously thought, given the fact that so much silver is already spoken for in<\/span><a href=\"https:\/\/seekingalpha.com\/article\/4565585-silver-on-steroids-with-the-agq-etf\"><span style=\"font-weight: 400;\"> ETFs<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So where does it go and why?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizarrely there is no major news story in silver. So the answer is perhaps troubling when you consider not simply the destination, but who exactly is taking the precious metals out. It is not your average 401(k) or IRA investors; rather what is known as \u2018smart money\u2019. This means institutional investors and financial professionals know something that we don\u2019t.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing that could be happening is that we are starting to see the decoupling of \u2018paper\u2019 precious metals from actual precious metals. But we are not quite there yet.<\/span><\/p>\n<p><br \/><br \/><\/p>\n<h2><b>Is There a Canary in the Silver Mine?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Around 10% of silver is used for renewable industrial purposes like solar panels. However solar panels get more advanced every year and will require less and less silver. Miners did have a tough time in 2020 due to the pandemic when production ground to a halt. But in 2022 and going into this year, there are no obvious impediments for miners.\u00a0<\/span><\/p>\n<p><br \/><br \/><\/p>\n<h2><b>Precious Metal Inflation Hedge<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A big indicator that something is happening in the precious metals market is the fact that<\/span><a href=\"https:\/\/www.gold.org\/goldhub\/research\/gold-market-commentary-december-2022\"><span style=\"font-weight: 400;\"> central banks are buying up a lot of gold<\/span><\/a><span style=\"font-weight: 400;\">. From a risk standpoint, this looks like a classic inflation hedge. However inflation is clearly slowing down, to the point that we are now looking down the barrel of a deflationary period for financial assets.\u00a0<\/span><\/p>\n<p><br \/><br \/><\/p>\n<h2><b>Gold To Silver Ratio<\/b><\/h2>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2.jpg\" data-rel=\"lightbox-image-1\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10239 alignnone\" src=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2.jpg\" alt=\"\" width=\"697\" height=\"259\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2.jpg 1293w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-300x111.jpg 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-1024x380.jpg 1024w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-768x285.jpg 768w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-500x186.jpg 500w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-800x297.jpg 800w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/img2-1280x475.jpg 1280w\" sizes=\"auto, (max-width: 697px) 100vw, 697px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">In order to decode what the precious metals market is trying to tell us, we can look to historic peaks. Significant peaks occurred in 1914, 1940, 1991 and 2020. These years mark the start of two world wars, the fall of the Soviet Union and Covid. Every time there\u2019s a peak in the ratio there\u2019s a rebalancing, where silver rose much faster than gold, and there was a period of turmoil. So going forward silver looks more likely to maintain value over gold. Investors might be more likely to short gold and go long on silver.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the real story here is that if past trends reemerge, and gold and silver stocks remain unreplenished for the foreseeable future, it indicates that we are entering a very unusual period of history.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To get more in depth analysis watch the<\/span><a href=\"https:\/\/www.youtube.com\/watch?v=NUtiuDwo4nY&amp;t=125s\"><span style=\"font-weight: 400;\"> Investing Counterpoint<\/span><\/a><span style=\"font-weight: 400;\"> show now.<\/span><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<iframe loading=\"lazy\" width=\"100%\" height=\"166\" scrolling=\"no\" frameborder=\"no\" allow=\"autoplay\" src=\"https:\/\/w.soundcloud.com\/player\/?url=https%3A\/\/api.soundcloud.com\/tracks\/1425583393&#038;color=%23ff5500&#038;auto_play=false&#038;hide_related=true&#038;show_comments=false&#038;show_user=true&#038;show_reposts=false&#038;show_teaser=false\"><\/iframe><div style=\"font-size: 10px; color: #cccccc;line-break: anywhere;word-break: normal;overflow: hidden;white-space: nowrap;text-overflow: ellipsis; font-family: Interstate,Lucida Grande,Lucida Sans Unicode,Lucida Sans,Garuda,Verdana,Tahoma,sans-serif;font-weight: 100;\"><a href=\"https:\/\/soundcloud.com\/rixtrema\" title=\"Investing Counterpoint\" target=\"_blank\" style=\"color: #cccccc; text-decoration: none;\" rel=\"noopener\">Investing Counterpoint<\/a> \u00b7 <a href=\"https:\/\/soundcloud.com\/rixtrema\/why-is-silver-leaving-london-vaults-and-is-gold-joining-in\" title=\"Why is silver leaving London Vaults? And is gold joining in?\" target=\"_blank\" style=\"color: #cccccc; text-decoration: none;\" rel=\"noopener\">Why is silver leaving London Vaults? And is gold joining in?<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<iframe allow=\"autoplay *; encrypted-media *; fullscreen *; clipboard-write\" frameborder=\"0\" height=\"175\" style=\"width:100%;max-width:660px;overflow:hidden;background:transparent;\" sandbox=\"allow-forms allow-popups allow-same-origin allow-scripts allow-storage-access-by-user-activation allow-top-navigation-by-user-activation\" src=\"https:\/\/embed.podcasts.apple.com\/us\/podcast\/why-is-silver-leaving-london-vaults-and-is-gold-joining-in\/id1466695263?i=1000594742992\"><\/iframe>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p>Follow us on <strong>LinkedIn<\/strong><\/p>\n\n\n\n<script src=\"https:\/\/platform.linkedin.com\/in.js\" type=\"text\/javascript\"> lang: en_US<\/script>\n<script type=\"IN\/FollowCompany\" data-id=\"1334326\" data-counter=\"bottom\"><\/script>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The London silver vaults are looking increasingly depleted, and it is not immediately clear why. When we covered this story last year so much precious metal was leaving, it looked like some kind of heist. The world of precious metals, like almost everything, has its own tribes, the battlegrounds are drawn between goldbugs on one&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/why-is-silver-leaving-london-vaults-and-is-gold-joining-in\/\" class=\"excerpt-read-more newsstand-button\">Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":10238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[168,169,201],"tags":[7,12,2321,2320],"class_list":["post-10237","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-news","category-podcasts","category-video","tag-financial-advisor","tag-financial-advisors","tag-london-silver-vaults","tag-silver","post_format-post-format-video"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2023\/01\/Why-is-silver-leaving-London-Vaults-.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why is silver leaving London Vaults? And is gold joining in?<\/title>\n<link rel=\"canonical\" href=\"https:\/\/rixtrema.com\/blog\/why-is-silver-leaving-london-vaults-and-is-gold-joining-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why is silver leaving London Vaults? And is gold joining in?\" \/>\n<meta property=\"og:description\" content=\"The London silver vaults are looking increasingly depleted, and it is not immediately clear why. When we covered this story last year so much precious metal was leaving, it looked like some kind of heist. The world of precious metals, like almost everything, has its own tribes, the battlegrounds are drawn between goldbugs on one... 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