COMEX Warehouse Stocks Sep 23, 2010

MASSIVE COMEX SILVER INVENTORY DRAIN RESUMES

SILVER

518,191 ozs withdrawn from the dealer’s (registered) inventory
674,774 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 53.89 Mozs
Total customer inventory 56.95Mozs
Combined Total 110.84 Mozs

GOLD

3,000 ozs withdrawn from the dealers (registered) category
354 ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.50 Mozs
Total customer inventory 8.31 Mozs
Combined Total 10.81 Mozs

In gold 3,000 ozs were withdrawn from the dealer inventory while 354 ozs were withdrawn from the customer inventory. In silver there were stunning movements. 0.52 Mozs were withdrawn from the dealer inventory. 0.67 Mozs were withdrawn from the customer inventory while 0.73 Mozs were transferred from the customer inventory to the dealer inventory by way of an internal “adjustment”. A total of 1.2Mozs of silver left the warehouses. This is more evidence of high physical demand.

There were 30 delivery notices issued in the SEP gold contract. The SEP gold delivery notice total for the month is 548 notices or 54,800 ozs. BNS issued 0 and stopped 20, Prudential issued 30 and stopped 0, while JPM issued 0 and stopped 8.

There were 6 delivery notices issued in the SEP silver contract. The total delivery notices for the month in silver stand at 2,314 or 11.6 Mozs. Prudential issued 4 and sopped 0, GS issued 0 and stopped 1, while JPM issued 0 and stopped 5. After the large delivery notice issue yesterday the issuance has dropped to a trickle once again but with only 231 contracts left to issue against it looks like the shorts will scrape by this month. But the physical market is clearly very tight.

The SEP silver contract Open Interest declined to 231 contracts. The OI together with the issued delivery notices indicate the potential amount standing for delivery could be 12.7 Mozs or 24% of the dealer inventory. Cheers
Adrian