In the silver comex change in inventory we saw multiple transactions.

We only got one deposit and that was a 2,114 oz deposit into the eligible or customer inventory.

The fun begins in the withdrawal department.

The customer or (eligible) withdrew two amouts of silver:

a) 354,799 oz

b) 7204 oz

total withdrawal for the customer thus equates at 362,003 oz of silver..quite a removal for a customer.

what on earth frightened these guys?

To boot, there was a massive withdrawal of 629345 oz from the dealer and leaving the comex altogether.

And guess what, we got another of those famous adjustments in silver..another lease.

This time 512,602 oz was leased from a customer to a dealer.

No silver found its way as a deposit to settle our patient longs.

If you include both dealer and customer we thus got a total of 991,348 oz of silver leave the comex vaults whether it was a customer or dealer.

and then we got a lease of 512,602 oz from a customer and that was deposited to the dealer.

I sure hope you understand what happened today.

It gets better!!

In silver the comex gave notices to deliver to the tune of 167 contracts or 835,000 oz of silver.

The total number of silver notices sent out so far total 2491 or 12.455 million oz

The total OI or notices that remain to be served mysteriously rose back to 228 or 1.140 million oz

The total number of silver oz standing in this delivery month is as follows:

12.455 million oz (already served) + 1.14 million oz (to be served) + 115,000 (options exercised prev month) = 13.71 million oz.

It is very strange that we got close to 1 million oz of silver that we lost on Friday. (Friday's reading was 12.89 million oz)

You can see from the numbers the huge volatility of silver and gold moving into and out of the vaults.

The huge number of silver movements seem to suggest that comex is being settled with paper SLV. The SLV will have documents stating bar numbers and weights.

However it is our bet that this silver is encumbered elsewhere.

There is no question that GLD is also entering the settling process. We have witnessed GLD inventory leave London and land in many places such as the

ETF, IAU which is a strict allocated account. We suspect that GLD paper is also settling upon our patient longs at the comex. You can imagine the problem that the world will face when the London

Bullion Exchange blows up for lack of metal!!

First off, the Bank of England will demand its gold back from the GLD folk. The Bank of England will return the paper dollars it received in a swap.

However the GLD folk also sent the comex delivery slips to settle upon unsuspecting longs who think that they have metal at the comex.

This blows up the GLD shareholders who will then launch multiple lawsuits against the regulators over at London and the NYSE.(SEC)

The good ol' boys at the Bank of England will also have problems as all the gold that they swapped will not come back. The gold at the Bank of England

is not England's gold but Arab gold as the B. of E is only a foreign depository. The Bank of England has already sold most of its gold and leased what they had left.

I hope you now see the massive problem facing these banking institutions.