For First Time Total Comex Silver Drops Below 100 Million Ounces; Physical Deliverable Silver Under 28 Million Oz

Tyler Durden's picture

The slow, steady, very predetermined and methodical depletion of Comex silver, which recently entered 6-sigma range for a perfectly random event, or is the preparation for a Hunt Bros squeeze, now that there is 32% less silver (27.9MM vs 41MM on April 19) than there was 2 months ago, is starting to become disturbing to anyone who can identify a flat line pointing northeast at -45 degrees. Contrary to promises from virtually everyone that the ongoing decline in registered silver is something very temporary, the perfectly diagonal chart below begs to differ with this naive and now disproven hypothesis. The culprit for today's decline to a new record low is Brink's warehouse, where there was a 9% draw down in both registered and eligible silver. In the meantime, registered silver has not posted an uptick in over 3 months. Amusingly this is happening even as the price of spot and futures silver continues to trend lower. We wonder at what point will the general public wake up to what is happening (hint: here): 25MM oz? 20MM oz? 10MM oz? 0? When Bloomberg writes an article how physical silver is the equivalent of Japanese off the charts safe purchases? Never?

Daily change from the Comex:

A longer-term chart:

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Cheesy Bastard's picture

Yeah, but there's plenty of printable silver, right?

Slewburger's picture

"Printable = editable"

-The Bernak

Libertarians for Prosperity's picture


First of all, the Comex and the bankers mutually masturbate each other on a daily basis, so one can be assured that any threat of default will be quickly resolved with no repercussions. Think about it...  if the entire Wall Street complex can go insolvent and nothing major changes from it, do you actually think a blow-up in one small corner of the commodities market will lead to anything meaningful?

A potential COMEX default won't be the apocalyptic blow-up that all the doomers pray for. Price will temporarily surge, but then it'll fall back to earth.

The LME defaulted on nickel in 2006.  And what happened?  The price shot up, then quickly collapsed by over 50% in months. About 2 years later, nickel price had fallen by over 75%, and the LME is still the exchange it always was. 

If a default were to occur, many cash settlements will be arranged at a price agreeable to the buyers, and interest will be charged daily on the short contracts until those shorts can deliver. Those shorts who still need to deliver will simply buy shares of SLV, take delivery, and pay off their Comex contracts. The SLV is so massive, it is a new depository, of sorts. 

The only time to get concerned is if the price of SLV shoots to the moon, while its inventory get raided. Then I'll change my opinion.

Until then, all this garbage about a default at the Comex is just more doomer, conspiracy rhetoric, much like the "Crash JP Morgue" lunacy that was proven to be TOTAL BULLSHIT.

It's nothing more than a great story to get the doomer goons riled up.  You guys may want to spend some time reading about Buffet, Phibro and the great silver scheme of 1997. Creating the illusion of inadequate supply in the silver market has been replayed many, many times.'s picture

You sound a bit riled. What kind of goon are you?

hack3434's picture

Writng style is very similar to Kid Dynamite. Perhaps the poster is KD posting from Hawaii angered by the misinformantion about silver. lol...

flacon's picture

> "pointing northeast at -45 degrees"



SuperRay's picture

no, it is definitely SE

Bay of Pigs's picture

Nice new handle you got there. What's your old name?

HamyWanger's picture

He's Red Neck Repugnicant, alias Texas Gunslinger. 

He has a particular grudge against libertarians. 

Selah's picture


Hamy... Don't break character.

BTW, "Texas Gunslinger" can't write that well. He writes like the "News Unit" that got banned from SGS's blog. That's tough to do in that band of idiots!

PS: Nothing bad to say about you SGS, just your followers. Oh, are you still selling commercially after unloading:


cossack55's picture

" one small corner of the commodities market will lead to anything meaningful?"

Does Sarajevo 1914 ring any bells?  What a buffoon.

suckerfishzilla's picture

There is an inadequate supply of Silver at the comex to deliver to the traders that have long positions.  That is the plot being played out on the comex.  No gloom and doom just fraud. 

traderjoe's picture

That's some of the best trolling I've seen in awhile. 

IQ 145's picture

 The SLV is a new depository; good observation. Comes under the general heading of keeping up with the times. I just love these experts who have never traded or owned a Comex contract in their lives who are just certain that this time something really important will happen during delivery week. The Comex has been having delivery weeks since most of these blog educated loonies were in junior high school.

tmosley's picture

SLV is not a depository, you fucking moron.  It's an ETF.

The fact that you don't know the difference shows YOUR ignorance, not ours.

lol, delivery WEEKS.  Christ, it's like you're fucking five!

Downtoolong's picture

do you actually think a blow-up in one small corner of the commodities market will lead to anything meaningful?

Only if you are a producer or consumer of physical silver.

By the way, aren't those the people these futures markets supposedly exist to serve?

VegasRage's picture

You haven't thought your way through this. Silver is used in every computer electronic made from CD-ROMS to the circuitry on a motherboard, so it's one of the most important precious metals known to man. Silver is also presently more rare than gold, there are very limited stockpiles above ground now. For 60 years the US government sold its huge stock piles of silver on the market for less than it could be profitably mined for; that ran out in 2007. China's industrialization has increased silver demand by 4 fold in the last decade.


Then there is the monetary aspect of silver, both gold and silver are the mortal enemy of fiat currency, their rise casts doubt on the efficacy of an ever increasingly debased dollar. Silver's rise may well shake the world's faith in the dollars soundness, why do you think JPM and HSBC have taken huge short positions on it to keep it down? For the hell of it?


Utah just returned both gold and silver as legal tender within the state, 13 other states have similar legislation on the table presently to do the same thing. Then there is the rest of the world, many countries peoples who could not buy silver when the Hunt brothers rushed to silver in the late 70's can now. China only recently has allowed it's people to invest in silver, 1/3rd of the earth now has ability to invest in silver. Their attitude about silver isn't like peoples in the US. Gold and silver are considered favorable in China, both are deeply ingrained in their culture, and China use to have a silver standard until the 1940's. So where do you come up with this bovine you speak of?    

tarsubil's picture

Is it possible that silver's industrial use makes it a poor metal for use as a currency?

VegasRage's picture

It was the first coined money and has been money for 5000 years. Utah's new implementation of gold and silver as legal tender has even worked out a method to let people use a debit card for purchases. I see no reason why we can't use silver; if the country got smart we could revalue both gold and silver, issue serial numbers for every microgram, and let people use their debit cards. The transaction would pass serial numbers and there you have it, real money with intrinsic value built in.

tarsubil's picture

My question is do you want something that is essentially consumed by industry to be used as a currency? I understand it worked great in the previous 5000 years before it started to be put in computers. The great thing about gold is that the pool of gold bullion doesn't change much (no significant consumption) at least as far as I know. Maybe that's wrong. If the pool of silver does change significantly due to industry use/consumption, doesn't that make it less useful as currency? Or is it not consumed at a significant rate by industry considering the pool of silver?

VegasRage's picture

For the long term you may be right, but for now and at least next few years it would be wise to hold at least some the metal in your coffers. Gold however has few industrail uses and wouls still make a good form of sound money folowing the same path I mention above. 

tmosley's picture

It just makes it more volatile.  Some people might like that in a currency, some might not.  It certainly doesn't make it less valuable, any more than it does for platinum.

Confucious 222's picture

"It's one of the most important precious metals known to man. Silver is also presently more rare than gold"

Silver is also simultaneously the best conductor of both heat and electricity, and the best reflector of light, known to man. Wonder what that could mean in the world of electronics or solar energy???

Almost as an afterthought, it can PROTECT you from bacteriological and germicidal harm, do a little due diligence, idjits.

When the "It-only-costs-$5-to-pull-it-out-of- the-ground" crowd sees silver trading at parity to gold; I hope they SHORT THE SHIT out of it en-route to it trading at MULTIPLES to gold.

The best method to preserve and eventually MULTIPLY your wealth: own physical silver NOW.

Or just short it like JPMorgue, and ask for your Fed Reserve backstop dollars like they do.

tmosley's picture

Best METALLIC conductor.  Graphene is a better conductor, and of course there are superconductors.  Both are exotic expensive, in, at least for the moment, impractical.

But yes, physical silver is the "next big thing", and I am fairly certain it will trade at parity with gold, and beyond, but keep in mind that that will be a blow off top.

doggings's picture

First of all, the Comex and the bankers mutually masturbate each other on a daily basis, so one can be assured that any threat of default will be quickly resolved with no repercussions. Think about it.

take your cut and paste shit somewhere else you moron.

Libertarians for Prosperity's picture


You idiot, that guy did a copy/paste of ME!  Perhaps you should read the entire link that you, yourself, provided....  in the last paragraph, the guy even admitted that he copied it from "elsewhere."

Furthermore, look at the time/date stamp of that post.  It was posted over 24 hours AFTER my post.

If you want to call me out, get your shit together first.



Oh regional Indian's picture


"Printable = Edible"


Slewburger's picture


Spellcheck + Slewburger= bad.

bankrupt JPM buy silver's picture

Its okay, Kid Dynamite says they are fine, nothign to worry about.  LOL

jeff montanye's picture

that line looks like it points northwest (or southeast).

Weisbrot's picture


its the JPM-Comex Going Out of Business Sale.



Long-John-Silver's picture

Silver has been clearance priced sense that infamous Sunday evening take-down. A few more weeks at these prices and they can sell the (empty) vaults and retire to the Cayman Islands.

ihedgemyhedges's picture

" what point will the general public wake up............"

ROFLMAO!!!!!!  Maybe when Elvis or Michael Jackson come out with another hit.......

dedicatedhostingservices's picture

They'll wake up when it's just a little bit too late.  Of course some of the more aware and alert have already been awakening, and a few more will, but the general public are in dreamland.dedicated hosting

sullymandias's picture

"Wake up! Time to die." -Leon

rich_maverick's picture

The key question will be: "when will I have more physical silver then the CRIMEX"?

SWRichmond's picture

If you rephrased the question to be "when will I have more physical silver than SLV?" the answer is probably "you already do."

rich_maverick's picture

I already know I have more silver than SLV.  It just would be funny if the day came when I had more than the CRIMEX.  I personally think that KITCO fiasco was more of an attempt of raiding their physical pools of gold/silver than a tax issue.  It seems to me that the PTB are getting desperate and are attempting at killing off anyone who is not part of their core group before letting the system implode on itself.  I can see the day come when the government will make it illegal to buy physical silver, for our own good of course.  Followed by physical gold...  as you know, this stuff is way to speculative.  But, paper gold aand silver will always be for sale of course.  As that is not speculative...  no... no... 

Mediocritas's picture

ROFL. Not long now and we all will.

StychoKiller's picture

Darn it, guess I'm gonna have to break out the shovel and head to the back yard -- ya got $5 to pay me? :>D

Glasgow Gary's picture

Let's see. As of today's CME Report, there are 42,810 open contracts for July's contract.

That amount of open interest represents 214,050,000 ounces. (42,810*5000). Set against, what, 27,000,000 Comex ounces?

Hey, this could become very entertaining.


AUD's picture

The question is how many of those deliverable contracts will be delivered. Open interest in the September contract is rising rapidly, as it usually does, suggesting contracts are being rolled over.

shortus cynicus's picture

The funny thing is that increased margins, lover price, falling inventory  encourage strongly for taking delivery.

There is no way that this situation may last forever. What can't go must stop.


Sean7k's picture

In May, most of the contracts took cash payoffs, so the numbers are not as important as how many actually stand for delivery.

Of more interest to me, is the removal of silver from customer vaults. The withdrawls have been greater than the silver needed to satisfy contracts. Thus, the drawdown in comex inventory.

Between the Chinese taking delivery on SLV and these drawdowns, the Crimex could become an anachonism. Couldn't happen to a nicer group of Demons, opps Dimons.

JR's picture

Treasury whines about cost of Ron Paul’s proposed Fort Knox audit | W.C. Varones | 6/14/2011


The Treasury document says it would cost about $15 million to conduct an audit. The process would take about 30 minutes to verify the gold content of each bar, or 350,000 man hours, to do that would take 400 people working for six months, according to the document.

$15 million??? The Fed is printing $140 million a day. That’s less than nine minutes of Fed printing.  The Federal government spends $3.5 trillion a year.  $15 million is less than a minute and a half of government spending. Obama’s Porkulus was $800 billion.  $15 million is less than 0.002% of Porkulus.

And 400 people working for six months sounds like shovel-ready jobs to me. Wasn’t the Obama Administration for stimulus before they were against it?

Hansel's picture

Treasury is full of shit.  First, $15 mil/350,000 hrs = $43 per hour.  I bet people will do it for less.  Second, that 30 minutes per bar sounds like a full assay i.e. drilling each bar.  I bet a good first estimate could be made by weighing the bars and using ultrasound.  Would take maybe 2 minutes per bar.

See Ultrasound Gold Bar Testing - Youtube.

Using an estimate of 5 minutes per bar, it would take 58,000 hrs and $2.5 million.  For a 70,000,000 oz investment worth $107 billion, it would be worth it.

RockyRacoon's picture

You omitted the onerous task of filling out all the forms with serial numbers and all that.  You'd have to add maybe 2 more minutes!

Selah's picture



This entire process is done every year:

The Mint is audited annually by the Treasury's Office of the Inspector General.