Bullion market silver prices remain at top levels but scrap silver continues to be unwanted and near impossible to sell.

Liquidity is returning to the London market following the squeeze of recent weeks but leasing charges remain high. Leasing is a necessary cost to cover the time lag between scrap silver entering the refining process as a raw material and it being turned in to a saleable commodity – currently about ten weeks.

A bottleneck is building as refineries refuse to take in scrap silverware and jewellery to avoid leasing charges and instead concentrate their efforts on quick wins which include processing gold and turning redundant 999 silver in to 1000oz bars for use by the LBMA.

We at UKSE are continuing to buy scrap silver and are offering flat rate prices whilst the banks, bullion market traders and refineries get their acts together...