Silver inventory change

Philadelphia (Sept 27)  The total silver Comex OpenInterest (OI)  fell slightly by 379 contracts with  silver down sharply yesterday  to the tune of 26 cents.  Last night the silver OI complex was  at 167,968 contracts.  In ounces, this represents 840 million oz or 120% of silver annual production.  In commodity law generally the OI is represented by 3 to 5% of annual production.

These silver contracts are in very strong hands and as I have indicated to you on countless occasions, this will continue to bring nightmares to our bankers. Probably this is as good a reason as ever for the bankers to raid on a continual basis trying to force those longs to puke their interests.   We are now in the next big delivery month of September and here, the  OI  for September  fell by 29 contracts down to 41 contracts.  We had 10 notices filed on yesterday so we  lost another 19 silver contracts or 95,000 additional silver oz  will not stand for the September contract month.

The December silver contract tonight rests at a high 121,210 contracts for a loss of 644 contracts. No doubt the December contract month may provide all the fireworks if our major entity tries to take delivery of much of the comex silver. In ounces, the December contract equates to 606 million oz or 87% of annual global production. This is totally unprecedented. The estimated volume today was fair at 38,515.  The confirmed volume  yesterday was excellent at  56,673 contracts.

Both Bill Holter and I strongly believe that only one entity could possibly behind the majority of these longs -- and that entity is the sovereign Chinese government.

Source: HarveyOrgan