Here an email that explains it all from Adrian Douglas:

" I always say there are no coincidences in the precious metal markets. I
have been pounding the table about the fraud of paper trading of
"unallocated bullion" on the LBMA. I don't believe it is a coincidence then
that the LBMA July statistics show that paper trading of silver took a
massive decline of 33% in a single month declining to the lowest level
since they published stats in 1996!

QUOTE
Ounces transferred in silver fell 32.7 percent to a daily average of 57.2
million. 'The substantial fall in silver ounces transferred, for the second
month in a row, brought this measure to the lowest level since these
statistics were first produced in 1996,' the LBMA said.

END

With all the smoke billowing out of the physical silver market, a drain
of silver inventory on-going at the Comex , and JPM & HSBC reducing their
shorts as shown by the Bank Participation Report I can only interpret that
this massive drop off in silver paper trading is moving to the physical
market instead. There is also a decline in paper gold trading. Could it be
that the exposure of the LBMA fraud has hit the bull’s eye? Only time will
tell but if this is true we will not have to wait long because there just
isn't enough available bullion to replace paper trading with physical
metal.

QUOTE
http://www.lse.co.uk/FinanceNews.aspArticleCode=3mb1uv0tavljxgw&ArticleHeadline=Daily_gold_transfers_dip_in_July__LBMA

Daily gold transfers dip in July - LBMA

Fri, 13th Aug 2010 17:15

LONDON, Aug 13 (Reuters) - Gold ounces transferred between accounts held
by bullion clearers fell 15.3 percent to a daily average of 17.6 million
ounces in July from a month earlier, the London Bullion Market Association
(LBMA) said on Friday.

The clearing statistics measure how much gold and silver are transferred
on a net basis between the accounts held at the bullion clearers.

Based on an average fixing of $1,193 an ounce, 3.2 percent below the June
average, value fell to a daily average of $21 billion. The number of
transfers declined 3.2 percent to a daily average of 1,684.

Measured year-on-year, gold statistics were mixed. Ounces transferred fell
0.3 percent, but value jumped 27.3 percent and the number of transfers rose
by 27.8 percent.

Ounces transferred in silver fell 32.7 percent to a daily average of 57.2
million. 'The substantial fall in silver ounces transferred, for the second
month in a row, brought this measure to the lowest level since these
statistics were first produced in 1996,' the LBMA said.

Based on a 2.7 percent drop in the average fixing price, the value of
transfers fell to a daily average of $1.03 billion.

The number of transfers fell 12.9 percent to a daily average of 290.
Measured year-on-year, ounces transferred fell 36.8 percent and value
decreased 15.1 percent. The number of transfers fell 6.5 percent.
END

Best regards
Adrian Douglas"