The good news is that physical take off from LBMA and crimex are increasing. That will do morre than 100 unenforced regulations and exemptions from the CFTC.

From last night's midas:

MASSIVE SILVER DRAIN FROM THE DEALER INVENTORY OF 4.3 MILLION OZS!!
COMEX Warehouse Stocks April 12, 2010
SILVER
326,988 ozs withdrawn from the dealer’s (registered) inventory
1,066 ozs deposited in the customer (eligible) inventory
Total dealer inventory 49.50 Mozs
Total customer inventory 65.57 Mozs
Combined Total 115.39 Mozs GOLD
17,700 ozs deposited in the dealers (registered) category
257 ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.37 Mozs
Total customer inventory 7.70 Mozs
Combined Total 10.07 Mozs There was an absolutely gobsmacking internal transfer from the dealer inventory (registered) to the customer inventory (eligible) of 4.24 Mozs. This is simply stunning. What prompted this huge transfer. It certainly is not related to the delivery notices issued this month. There were over 21 Mozs issued in delivery notices last month; is this related to those deliveries? What ever the reason this has made a massive hole in the dealer inventory which is under 50 million ozs which is only 10,000 contracts. It should be noted that there was a large internal transfer on Friday of 0.6 Mozs but that was from the customer inventory to the dealers. It looks to me that there is a lot of stress building in silver physical supplies. To add more intrigue the SLV ETF has shed almost 300 tonnes of silver from its inventory while silver prices have been rising!
There were only paltry movements in gold.
There were 461 delivery notices issued in the APR gold contract. The APR gold contract total for the month is 12,388 notices or 1,238,800 ozs.
There were 11 delivery notices issued in the APR silver contract. The total delivery notices for the month in silver stand at 405 or 2.03 Mozs.
Silver contango is 1.1 cents APR/MAY while for APR/JUN contracts it is 2.6 cents. The contango in gold dropped dramatically. There is $0.0 of contango in gold APR/MAY and $0.6 of contango for APR/JUN.
The Open Interest in the APR gold contract is 1,630 or 0.16 Million ozs. Along with the already issued delivery notices the gold demand in April could be 1.4 Mozs or 60% of the dealer inventory! There is no indication of any sizeable movement out of the inventory yet.

Cheers
Adrian