COMEX Silver

[Copper Catcher]

CME Group Silver Inventory: http://www.cmegroup.com/delivery_report ... stocks.xls

I look at the COMEX inventory and I can’t help but wonder how much of what is shown on paper is actually just that paper? In my opinion, no one is willing to tell the truth on this one! Everyone is lying and saying it is all physical or at least pretending it is all stacked up nice in neat in big piles on pallets.

With the recent price jump you are hearing more and more chatter about the COMEX or LBMA “running out of silver”. So, can this be true or is this more speculation and wishful thinking?

I may be incorrect, but as I understand neither exchange is required to deliver actual physical metal to traders!

So literally the COMEX or LBMA can never run out of silver! It is like saying the government is out of money. If they control the printing presses or electronic transfers then you can always create more money. Talk about a Ponzi scheme! Good grief…

As long as people can print up paper contracts and people are willing to buy them I can only guess this will continue.

I think Eric Sprott has this scheme figured out. By him buying all the physical silver he can, and seeing the demand continue to increase with the actual physical supply dwindling he is willing to wait it out. I’m sure he smiles every time the government tries to drive the prices down, he simply buys a little more.

If you have the patience and think in years versus months then you will be definitely be rewarded in the long run, there is no doubt about that!

If anyone feels different or sees that I have gone wrong in my logic, feel free to chime in!

[AGgressive Metal]

I think there is probably corruption at some level with the COMEX silver due to all the fishy things I've read about it from Ted Butler, David Morgan, and other. However, the silver for all those iphones, ipads, imacs, ASEs, Maple Leafs, medical equipment, cruise missles, Sprott's stockpile, and everything else that uses silver has to be coming from somewhere. This leads me to think the truth is somewhere in between. I don't see anything wrong in your logic, but if the game goes against the government's or big banks' interests, they will simply change the rules like in the case of the Hunt Brothers. I think Sprott is playing his cards a lot more cautiously and patiently than the Hunts, so I hope it works out for him and his investors.

[Copper Catcher]

...It is now estimated that 54% of the annual global silver supply is used for industrial purposes. At present most of this silver is lost with very little recovered. Current global silver inventories are at low levels, estimated to be around 600 million ounces. Whereas just 22 years ago, in 1989, the global silver inventory stood at about 2.3 billion ounces. As a comparison of supply versus ever increasing demand, above ground silver bullion in 1950 was over 9 years worth of demand. At present this global silver supply now sits at a little over 10 months of demand. See: http://www.edrsilver.com/i/pdf/SilverFu ... ls2008.pdf

Read more: http://www.thegoldeconomy.com/2011/02/s ... z24bFflerv