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Scary Comex Silver Withdrawals: Will They Continue?
Friday's Registered silver was 52,695,755. Eligible silver totaled 60,985,505, Combined total of 113,681,260, the lowest level of stocks since 2006. Silver prices meanwhile hovered in the $16-17 dollar range last week, showing surprising strength in the face of heavy commercial short positions. Small investors are seeing a definite upside, adding 2200 contracts to their weekly position while even the Commercials added slightly more than a 1000 contracts to the Long side. Overall silver under contract fell to 664 Moz from 677 Moz the week prior. Silver continues to follow Gold in terms of price, with Gold taking cues from the recent IMF sale to India as a bullish indicator. If you are not in silver at this point, I would consider adding a small amount at this point, but I still think that at least one more drop is coming below $16 in order to allow the Commercial Shorts to clear their positions. Disclosures Long SLV, GLD, physical metal, retirement accounts |
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It's bad enough that the silver backing the COMEX futures market is only 1/12th of the amount of silver that is under contract, but the day before Halloween dropped a new trick on things. Total Silver withdrawn on October 30th totaled a massive 3,627,012 ounces. More than two thirds of that amount, 2,585,384 ounces came off the Registered Side of the equation. Since the end of July 2009, the Total Registered amount of silver (silver held by depositories to directly offset futures) has fallen by 10 million ounces. The Friday drawdown was one of the largest that I have seen and would indicate that some of the players are in agreement with the thought that if you don't have silver in hand, you don't have silver.