Reuters: Global Markets: Comex silver stocks hit highest in at least 28 months

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Comex silver stocks hit highest in at least 28 months Apr 16th 2012, 20:11 LONDON | Mon Apr 16, 2012 4:11pm EDT LONDON (Reuters) - Silver stockpiles in Comex-monitored warehouses are at their highest level since at least December 2009, showing near-term supply of the metal is plentiful as mine output holds at record levels and the global economic recovery struggles for traction. The rise is not reflected in silver prices, however, suggesting a fluid relationship between stocks and spot prices. Silver prices have risen 13 percent so far in 2012, while inventories have increased by more than 20 percent. The U.S.-based silver stockpiles stood at 141.59 million ounces on Friday, up from 140.6 million ounces the previous day and 102.65 million ounces a year ago. That figure reflects both registered stocks - material covered by an ownership title - and eligible stocks at warehouses monitored by Comex. "When you are seeing people delivering into Comex, it is typically because they have nothing better to do with the metal," Mitsui Precious Metals analyst David Jollie said. "Generally if you are seeing Comex stocks building, you would say that means that premiums are not particularly high anywhere, and that means that (global) demand is low." Stocks fell to their lowest in nearly a decade at 97.86 million ounces last June, shortly after prices crashed spectacularly from record highs near $50 an ounce, shedding a third of their value in just six sessions. They have since ground steadily higher. Stocks are currently 28 percent above their levels last April when silver prices hit record highs. HSBC analyst James Steel said the rise is partly symptomatic of increased mine output, which metals consultancy GFMS estimates will have reached another record high last year near 770 million ounces. "Industrial demand is not poor by any means, particularly for electronics, but it has been matched by an increase in production," Steel said. "It is more natural for that to go into Comex, because most (silver) is produced in the Americas." (This had been corrected to change headline, first paragraph to show silver stocks at highest level since at least December 2009, not record highs) (Reporting by Jan Harvey; Editing by Veronica Brown, Jane Baird and Alden Bentley) Link this Share this Digg this Email Reprints

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