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[ConferredDiligence]

Accounting errors causes LBMA to overstate silver holding by 3,300 tonnes during March Silver Squeeze

Accounting error, my ass!

Rajan Dhall
Tuesday May 11, 2021 09:00

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?

By Rajan Dhall
For Kitco News

Comments:

Silverhug
1 hour ago
No there is not enough silver at all. Allisdair Macleod at Goldmoney has been saying for many months now that the LBMA has misrepresented total unallocated silver init's vaults by being as un-transparent as they possibly can. Most of the gold and silver is already spoken for or allocated to major players such as countries, CB's, Family offices and PSLV ETF. The LBMA is counting other people's silver in their total unallocated figures. This is serious corruption and criminal action and needs to be policed!!

Kenneth Knutson
5 hours ago
Caught lying. The rest of the silver world is the same lying criminal organization.

ghost cat
4 hours ago
Exactly, banksters rigging the silver markets for decades making the price go up, down and sideways while reaping billions of profits on the backs on serfs!
Buy physical and keep on stacking,
If you don't hold it then you don't own it!

Bill Sundling
6 hours ago
It's a joke to say "accounting errors".

DCAMARILLO
6 hours ago
Accounting errors? You mean criminal fraud! Keep stacking chips to expose these liars. My contempt for these criminals grows by the day.

mightymouse
2 hours ago
My contempt has bloomed ...

Siren
7 hours ago
Actually - I just found an error too - I have 3,300 tons of silver in my big basement. I would like a loan against that collateral. I can close on that as soon as tomorrow morning.

Bill Sundling
6 hours ago
You should take 50 loans out on it too. Just like how SLV sells 50 shares for every ounce of silver they have.

OldFatGuy
7 hours ago
How on earth silver isnt $100 or more per ounce NOW, is beyond me. 100mm oz ISN'T THERE.

Bill Daley
8 hours ago
Too big to jail .

mightymouse
8 hours ago
33 the masonic signature ... yea rigged markets ... rigged financial news ... stock market is a ponzi scheme ...

kepler22B
9 hours ago
BTW those are PAMP Suisse kilo bars; I'd recognize them anywhere... but I only hold 4 x 9's purity, otherwise I'd buy PAMP silver too.

Ian M
7 hours ago
I don't like the look of the extruded bars. I'd rather have the pour lines. I keep a 10oz tombstone on my desk to fiddle with, along with a 5 stack of old morgans just to remind me silver really is money.

DumbGuy
9 hours ago
A data submission error= We reported fake #s.
Sorta like saying "The algorithm was incorrectly doing EXACTLY WHAT WE TOLD IT TO..."

OldFatGuy
10 hours ago
Is there enough physical silver out there to back the current paper being sold?

Its like God asking Adam "Where are you". God knew, he just wanted Adam to admit "where" he was.

LBMA: its time to admit "where" you are. Let the markets actually function. Its best for all of us in the long run

OldFatGuy
10 hours ago
3300 tonnes? "go big, or go home" i suppose

Minedpopcorn7
10 hours ago
Oh yeah surrrrrrreeeee nod nod wink wink buahahahhhahaha

MarshallLucky
10 hours ago
Missed it by that much.

Dave
11 hours ago
Is anybody surprised? It will continue until somebody big enough holds for delivery and breaks them. Until then, it's just another day at the "market".

CyanProcessor
8 hours ago
Errors? There were no errors, just liars and more lies. God said "Thou shalt not bear false witness", do these people not fear the afterlife?

DeezNutz44
11 hours ago
Just an honest mistake , wink wink nudge nudge.

Ian M
11 hours ago
LOL! I'm trying to sleep and I read this. Now I'm WIDE awake and grinning from ear to ear. Gotta love Chris Marcus!

Garth kbikes
11 hours ago
Lol shock horror LBMA states they have made a mistake by over counting 3300 tonnes of silver, give me a break they are on the same scam as Comex. If auditors can't count get a few 14 year old school boys in on a weekend to count the bars. They'll be more accurate & way cheaper lol.

mightymouse
2 hours ago
3300=33 masonic signature= devils ...

ghost cat
4 hours ago
I hope Basel three breaks them this summer! I know it's gold as a tier 1 asset but every bit helps!

goldcrap
11 hours ago
I think they missed a zero

https://www.kitco.com/news/2021-05-11/Accounting-errors-causes-LBMA-to-overstate-silver-holding-by-3-300-tonnes-during-March-Silver-Squeeze.html