Large flows of silver from the U.S. and China to London's spot market in the past week are easing a liquidity squeeze in the world's largest over-the-counter precious metals trading hub, traders and analysts said.

A shortage of available metal in the London market helped drive silver prices to a premium over U.S. Comex futures a week ago, making deliveries by airplane - usually reserved for much more expensive gold - profitable for sellers.

"The major pressure is done for now," said Tai Wong, an independent metals trader. He estimated that around 15 million-20 million troy ounces (311-467 metric tons) of U.S.-based metal had arrived in London over the past week.

SILVER PRICES, LONDON BORROWING RATES BOTH HIT RECORD

Another source familiar with the matter said at least 1,000 tons of sil

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