Silver Default !?

Bill,
Been a subscriber since 1998 and am fully invested in PM`s :- 70% physical, 30% shares. I greatly admire and respect the work and GATA have accomplished and the sheer bloody perseverance that you and Gata have displayed over the last decade and more !!

During the March silver delivery approx 21 million ozs stood for delivery. Adrian tracked approx 3 million oz exiting Comex dealers, however their was a strange reduction of approx 18 million ozs from SLV inventory in the period late Feb thru end March that seemed to make up the difference.

During the May silver delivery Adrian calculated 21 million ozs stood ford elivery, yet only a small amount was tracked by Adrian as exiting Comex and the SLV inventory has shown no marked decline. How has Comex met the Silver May deliveries - or have they not been delivered yet ? The Comex`s stated inventories are very probably a gross exaggeration !!
Adrian`s current comments only cover the June delivery notices, but surely there is a big untold story regarding the non delivery of the May silver, and how, if at all, those demands are being met !! It would be truly interesting if Adrian could address that aspect in his daily comments.

As you, Adrian, Sinclair and Butler have all pointed out - the Cartel`s Achilles heel is the demand for physical delivery. How did they duck the silver May
delivery demands ?

CEF recently purchased another chunk of physical gold/silver, but it is reported that it may take up to 6 months to receive full delivery of the silver !!

I know that recently the Cartel probably received an infusion of gold bullion from the IMF. But where on earth are they getting the silver, cos it seems to me that Comex and probably LBMA are already in silver default and yet the bullion markets just seem to sail serenely along with silver prices in the doldrums, as if their was plenty of silver to meet delivery demands, which does not appear to be the case. WHY is this apparent non delivery of silver not making the headlines ? HOW do the Cartel continue to get away with avoiding the mother of all silver short squeezes ?

Surely something must break soon ?

Any feedback in this regard will be most appreciative.

Personally, I am in for the long haul, but the current silver situation has me puzzled !!
With best regards.
James G

Adrian…

RE: Silver Default !?

James,

As I have been reporting the silver market is explosive. The silver that was called for delivery in March certainly could not be detected as leaving the Comex or being credited to the eligible inventory. It is a curious coincidence that what left the SLV and the Comex together adds up to the 21 Mozs that was standing for delivery. I believe there are NO coincidences in the PM markets! As for May it could be that they have not been delivered or cash settlements have been offered or they are just delaying; it is difficult to say. I do know that people with even small orders are waiting months for deliveries. The US mint has declared a shortage of silver for its operations. Many outlets in Europe are not taking orders due to shortages. The dealer inventory at the Comex has been declining for years now and 53 Mozs is a very low inventory level as is the overall inventory of 118 Mozs. This is not temporary but a trend that goes back a long way.

What should be noted about defaults is that they happen almost without warning. One minute there is still some inventory to meet demand then as the last ounces are taken there is suddenly none available. The smoke that I see coming out of the market is probably about all the warning we will get.
Cheers
Adrian…