Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Weeks

Tyler Durden's picture

When we first started paying attention to the physical ("Registered") silver held in COMEX warehouses on April 20 following the explosion in the silver price, the total amounted to just over 41 million ounces. As of today, a short 6 weeks later, the total physical silver held throughout the entire Comex complex, has dropped by 30% over that period. As of close today, the total amount of Registered silver is now 28,773,375 ounces, a decline of 2.9% overnight from 29,636,513. This is due to a withdrawal of physical from both Brinks and Scotia Mocatta, as well as the ongoing reclassification of 438,708 ounces of Registered into Eligible silver over at HSBC (but wait, it will revert back to Registered any moment... we promise). At this rate of withdrawal and "adjustment", there will be no physical silver left in the entire Comex in about 5 months. At that point, even one delivery intention will send the price of silver to previously unseen levels.

Source: COMEX

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redpill's picture


Xibalba's picture

Ah man,......!  That really tied the room together, man.

GottaBKiddn's picture


Hey, Tex, the silver that is traded on the Comex is silver that is being traded, in other words, bought and sold. All the other tons of silver have already been bought. Try getting those people who bought it to sell now that the price has skyrocketed. You'd be lucky. Most of that silver is slated for industrial purposes or has been purchased to store wealth, which it has done very well. There are more industrial uses being developed every day, and more and more governments and individuals are exchanging worthless fiat currency for the shiny. If the Comex runs out at this low cheeseball price, only an idiot would sell or loan it to the crooks at the company store. Sorry, no hysteria here.



Texas Gunslinger's picture


Well, I've just returned from dinner to see my post junked over 40 times.  I've never seen such an aversion for the truth in all my life. 

There is no shortage of silver, period.  If there was a shortage, you'd see the price of SLV go up, while inventories go down as investors cash in for the real thing. In effect, the SLV has become another exchange just like the Comex, and until one sees a significant "raid" on SLV's inventory, there simply is no shortage.  Just because 5% of the silver market has 30% moves over a month's time means absolutely nothing with regard to true aggregate silver supply.  You want the truth?  Follow the money.  Money has poured OUT of silver during this same period.  If the 30% reduction in Comex inventory was indicative of the larger market, price would NOT HAVE COLLAPSED!  

<napoleon dynamite voice> IDIOTS! GOD!

Furthermore, you may want to familiarize yourself with the 1997 silver manipulation scheme involving Warren Buffet, PhiBro and the Comex, by reading:

Creating the appearance of a shortage has been done numerous times in the past.  The end result is always the same: crash and burn. 

Lastly, just because a bunch of doomer goons have burying skills that rival Marmaduke doesn't mean that the real players in the silver market wouldn't crush the market with supply at the right price.  Your maple leafs buried under your back porch next to your 45 canned hams mean nothing.





akak's picture

Who are you, and what have you done with the formerly semi-literate Texas Gunslinger who couldn't even find the "Caps Lock" key on his keyboard, and whose biggest concerns were condemning blasphemy and fretting over the rising price of dog food at Wal-Mart?

EscapeKey's picture

That was during his "introduction" period. Now, according to his schedule, he is supposed to have gained some credibility, so he can get on with the script, delivering the message he's paid to do.

>Shill interpreter 1.0, copyright Shill Corporation, All Rights Reserved 2009, 2010, 2011.

>Shill_script 1.0 executed.

>Introduction... done.

>Build character... done.

>Sow seeds of disinformation... done.

>Go full retard...

tmosley's picture

The worst part is that this isn't even a joke.  He "caught" an edit of mine that I made less than five seconds after posting a reply in a reply he made an hour later.  This can only mean that he is running some sort of script that catches edits.

What the fuck kind of "regular guy" has such software?

Long-John-Silver's picture

What the fuck kind of "regular guy" has such software?

Linux lets you copy key strokes and mouse selections into a script file and then re-run everything you did before. It's simple once you learn all the little Linux tricks available. If you use Windows or Apple you are not "allowed" to do these sorts of tricks.

Free yourself! Use Linux.


angela03's picture

Given that this poster is advertising either being from, or identifying with, the state of Texas, that should have been enough of a red flag.

TwoShortPlanks's picture

"<napoleon dynamite voice> IDIOTS! GOD!"

........What did Mom make you for dinner Teenager Tex?

AgShaman's picture

Beta...or VHS?

Wait don't answer...your statistics have already told me enough

Poule Mouillee's picture

Be sure you line the room with plastic before you return those videotapes.

Richard Head's picture

So are you still using that naive hick gambit or only sometimes?  ASSHOLE.

dehdhed's picture

For instance, a month ago, at price over $40, there was over 7 years worth of silver supply exchanging hands within 5 days.  No shortage whatsoever. 

yup, no shortage of demand for sure.  if there's that much demand for paper silver, imagine when the music stops and above ground supply couldn't even cover 3 days demand of the fake stuff.



Urban Redneck's picture

"For instance, a month ago, at price over $40, there was over 7 years worth of silver supply exchanging hands within 5 days."

Calling this mindless drivel would be polite.  Think about this, what is seven years of oil production, what is seven years of corn or wheat production?  When seven years or even seven months of supply changes hands in one day, it is not a physical material that is being transferred between parties it is paper.  Five years ago and five years into the commodities bull market, the LBMA was issuing press releases about the bars coming out of "deep storage" to settle the predominantly paper settled trading that occurs at the LBMA.  There isn't seven years of physical production available now in the marketplace, much less trading hands on a daily basis. 

By the way, since the 2 billion ounces includes includes all the coinage, private rounds and bars, as well as GDBs, the 2B ozs isn't Comex eligible, yet, same as your fine tableware and tooth fillings.

Finally, assuming a low figure of 500m oz per year production, a seven year supply is 120,000  tons, which would be 12,000 fully loaded brinks trucks worth of silver moving from vault A to vault B.  Perhaps you haven't spent much time in London or New York recently, but there hasn't been 1/10 of 1% (0.083%) of that volume being moved between vaults on a daily basis. 

Texas Gunslinger's picture

ummmm.....  perhaps I wasn't as clear as I could have been.  Never once did I think that 12,000 trucks loaded with 7 or 8 years of silver supply were driving through the streets.  

At the end of April, SLV trading volume actually surpassed the SPY - a total washout of historic proportions.  Yet there was absolutely no threat that physical silver would be undeliverable. None. The panic was the exact opposite: too much latent supply from the etf's rushing into the market. A fund manager could have bought warrants for as much silver supply as he wanted.  

Even with that crushing amount of turnover, did the paper ever decouple from the physical? No. In a Keiser interview from mid May, Sprott admitted that he was still able to buy physical at (or close to) spot price.   

My point is a simple one:  If there was any shortage of silver supply, those derivatives representing millions and millions of ounces of silver would not have churned from investor to investor at continually lower and lower prices; they would have been held and redeemed for the real thing. But at $40+, no one wanted them and there was an avalanche of supply available. You cannot speak of supply without the context of price. Furthermore, if there was a shortage, Sprott would not have been able to buy physical at spot prices. The reality is that physical and paper did not decouple and there was never a threat of physical shortage, even during one of the most monstrous turnovers in the history of the market.  



JonNadler's picture

Texas, nobody believes your crap here, so maybe you should get a nice blonde to "interview" you like I did at Kitco. Who knows it may work.


MadeOfQuarks's picture

Most of the run up from ~$35 to $50 would have been speculative paper trades, those people were buying on margin and were never interested in taking delivery. Obvoiusly no ounces churned anywhere, paper changed accounts was all, and those people could not afford to redeem for the real thing once the party was over, since that would mean coughing up cash they didn't have.

Since silver is being produced constantly a dip in supply won't be of the kind where people are told "there ain't no silver and won't ever be, so go home and forget about silver", it'll show up as a delay to get the real thing.

Urban Redneck's picture

My point is is that sinking the silver price prevented a decoupling of the paper and physical prices, because there isn't anywhere near enough inventory of 5,000 oz bars to meet demand, if a bank run does develop, and when that day comes, the hourly rate for a Brinks truck will go through the roof.  Years of volume trading hands each day in both the futures and SLV markets is a HFT game of hot-potato among institutional holders.  JPM as one of largest SLV shareholders, as well SLV custodian, and member vault of both the LBMA and Comex can shuffle huge amounts of paper.  Of course we could also wake tomorrow and learn of something akin to a Chinese reverse merger fraud at a Chinese LBMA refiner, then all bets are off.

The best one page summary of the Silver supply and demand picture I have found is at:

The gold market is useful for understanding the silver market, because the quantities are more precisely known and reported.  Per the Comex COT reports- as of 12/31/10 when gold was $1405.50/oz Commercial Traders had 193-194,000 long contracts and 446-448,000 short contracts, or were net short about 253,500 contracts.  However, they simultaneously reported to the BIS that they had a market value $47 billion position in gold worth a notional value of $396 billion.  Therefore there is significant portion of the Commercial Banks derivatives exposure that is outside of Comex Futures e.g. swaps & options (much like the Greek debt problem, where it's the swaps that will kill the banks, not the primary instrument).  The same way an avalanche can be started by a single footstep and cascade into a catastrophe, a bank-run (in silver) can be started by a single bank hanging a "no withdrawals sign."

The SLV prospectus is an example of the fine art of legal bullshit, as are the frequent press releases from the fund management talking about what SLV's assets ARE NOT.  The SLV prospectus clearly does not rule out paper silver being one of the assets.  Furthermore, if an authorized participant engages in a swap transaction for physical silver, the silver itself can be deposited in SLV unencumbered, as long as the swap contract is properly drafted.

Until SLV and JPM provide a detailed breakdown of the allocated and unallocated inventory of the contents of JPMs vault, as well as a breakdown of both parties' open derivative positions (futures, options, and swaps) the exact break point in the market cannot be calculated, other than the Comex running dry.   

There are approximately 120,000 contracts open interest for Comex Silver, and 250,000 contracts of open interest in Comex Silver Options, plus an unknown number of swap agreements.  370,000 contracts is potentially 58,000 tons of silver to be delivered, against 899t registered and 2242t eligible in Comex vaults.  58,000 tons compares to the 33,000 tons of 2010 global supply & demand in the first link (1,056.80 X 1M ozs = 1.75 years).  There the is a lot more paper than actual silver product floating around, and unlike oil, you need a VLCC to take delivery and store the product.  The trend is not the Comex's friend.  What will take small market participants a year to accomplish could be done by any one of a thousands of large market participants.   

YTD LBMA clearing 2672 transactions 18,281t

LBMA London Vaults (Allocated & Unallocated Inventories not disclosed to non-members)
HSBC (Allocated Storage for SIVR 544t)
JP Morgan Chase Bank (Allocated Storage for SLV 9885t)
Scotia Mocatta
Via Mat International Limited (Allocated Storage for Bullion Vault 182.6t)
Deutsche Bank
The Bank of England (Gold Only)

Comex US Vaults (899t registered, 2242t eligible)
HSBC (Allocated Storage for SIVR)
JP Morgan Chase Bank
Scotia Mocatta
Delaware Depository Service Co

1 ton = 32 bars or 6.4 Comex contracts

nmewn's picture

Break them bitchez.

JW n FL's picture

Break them.. then hang them for Treason!

CPL's picture

Sad thing is most of us own more silver collectively than a multi billion dollar "clearing" house.  Anyone want to fuck with them?


Seriously...not Anonymously either. 


I have around 60 pounds of silver.  960 ounces.  Let's do a raised price action directly on Comex.  We offer sells around 50000% higher than market, lock them in on a good until sold call, when they get bled to death from the repo action, we remove a bishop from the board because the only ones with silver forsale is the "little people".  If anything, it's easy to fuck with the world an inch at a time.  After we watch a useless bunch of tits burn in their own IOU's, watch the dingleberries scramble around to recreate a sloppy, piss poor semblance of a shadow bank.  Then open our own.


Then allow the market to float as it should naturally.


Anyone down for that?  Like busting any short open for raping.

TheDriver's picture

I kind of love you. [man hug]

Transformer's picture


  We are so big, Nelson Bunker Hunt was small potatoes compared to the big, global WE, who own physical silver.  What WE have done, and keep doing, is the most anti elite action possible.  Do you realize that they are powerless against us?  They got Hunt, because he was playing the Comex.  They could change the rules at will, and so did him in.  WE have made our own rules.

1. WE little guys buy as much silver as we can, usually for cash, untraceable, like a siphon on the market.

2. WE hide it away, where they don't know where it is, and we don't sell it as a result of market action.  WE wait.

3. WE are silent and just watch, the problem for the elites about silver has just begun.

4. Don't fuck with us, because you can't fuck with us.

The Comex is about to fail.  All hell breaks loose after that.  Better buy while you still can.  See Harvey tonite:

Oppressed In California's picture

I agree.  But the control freaks running various governments will use this as an excuse to throw all of us "WE's" into a concentration camp.  After all, we're threatening to ruin their source of privilege - the fiat money system.  Hey, at least we'll all get to know each other better.

tickhound's picture

I'd be into any counter manipulation that we could collectively muster.  Got plenty-o-silver and gold (inventory available upon request).

GoinFawr's picture

Is it just me or are you guys breaking the first rule of FC?

CPL's picture

Not really, we don't get to hang out at men's lounges and drink cocktails with each each...or allow ourselves the physical limitations of FC.  Some of the promise notes of FC is to allow mayhem and chaos to allow itself to manifest.   Besides it's not the same aspects of anonymous.  The MSM opened its mouth on silver, time to allow people that understand that the value of a limited commodity used for 4000 years  to be reused.  Those that fall on the cocks of fiat retards to enjoy every inch of it.


Not entirely sure how to organise it though.  It would have to happen fast.  Like PM dealers wake up, look at the ask price, shit their pants, have a stroke then figure out how to panic.  While they panic and kill one another; we sit back, eat popcorn, watch it burn and the panic "BUYING" and price jumps.  Play the nonsense like an HFT.


Ratchet the trade.  Up a buck collectively every hour, from multiple sellers but in a 1/100th split, and keep raising the price.  Humans can move like a flock of birds when motivated.


Our motivation isn't profit.


It's for the LULZ.  The trick is for the flock of us NOT to sell at all, just offer and retract, constantly.  Just to train the HFT's to learn a new price.  HAL9000 might be a fun loving piece of equipment, but like a dog, it learns when feeding time is.  Show that dog the bone and never feed it.

Captain Benny's picture

There is a reason fight club grows.  "You don't talk about FC."  If you don't understand that breaking the rules is part of the fundamental concepts, then you don't belong in the project.

Captain Benny's picture

My silver will never leave my possession for that of a COMEX vault.  Never.

CPL's picture

as it never should...ever.  Those bozos get ahold of physical silver again and we are in the same crab bucket.  The goal is to smoke them once and for all.  Force the IOU's to claim ownership of anything they have left in their vaults.  30 years those dirty bags have use silver to fuck with copper, oil, gold and silver itself.


Let's empty their coffers and watch them burn in a beautiful effigy of lawyers and rackettering charges.

flacon's picture

I have 273 pounds of silver. 

AgShaman's picture

Almost 4000 ounces....not bad

flacon's picture

I'd make two pairs of shoes - 1,000 ounces each shoe. Two for Blythe, and two for Dimon. Tie their hands bahind their backs and toss them into the warm tropical waters of the Caribbean and throw some chum in to attract the sharks. It would be worth it. 


Just put a tracking device on the shoes please. 

AgShaman's picture

Perhaps you should find a less polluted section of ocean (good luck)....for a safer retrieval process following your adventures in charitable service to the rest of the world.

I do like the idea though

+777....for effort and taking one for the team

Temporalist's picture

Easy enough to retrieve if you mount eyebolts on the anchors and tie some cord to them.

Clay Hill's picture

If you insist on salt water:

Rented 6" Gorman-Rupp pump with one thousand of feet of hose.

Choose a swimming pool close enough to seaside, and no need for tracking devices.

If you need help with the equipment rental, or ticket sales, lemme know. :)

JW n FL's picture


you do not post enough.

sincerely, jw

CPL's picture

I rant...posting is too polite and there are lots of other things to do.  CD is still my favorite poster here btw.  Philosopher and elegance in prose.

Rynak's picture

Seems that similiar minds think alike. My favorite posts also tend to be those of CD, Bob and you.

Winston Were Wolf's picture

Really?  Yesterday's article is old news, when there's no front page reporting on it anywhere?

Xibalba's picture

welcome to the 'information age'...where day-old news is old news.

qqqqtrader's picture

...and still amazing many peeps I talk to at work don't know important news that happened even a week ago.