Massive Silver Withdrawals from the COMEX

Posted: January 9, 2011 in Current Events, Precious Metals, Silver

There is big news from the COMEX and shorts will soon pay a hefty price.  We are seeing massive withdrawals of physical silver in totaling well over 1 million ounces.

From Harvey Organ’s Blog

We witnessed a massive withdrawal of silver unprecedented in the history of the comex.  First there was a smallish  6507 oz of silver deposited to two customers, one being  497 oz and the other 6010 oz).  But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults.  This is real silver leaving from 4 registered vaults.  The individual withdrawals are:  579,081, 30,380, 399,994 and 9855 oz.

The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz  (there were 2 dealers involved removing 102,866 and 667,875 ozs).  When you see this massive drain of silver, the fire is raging.  The total silver withdrawal

by both dealer and customer totalled an astronomical 1,789,251.  The Brink’s trucks must have been very busy yesterday.

The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver.  The total number of silver notices sent down so far total 323 or  1,615,000 oz.  To obtain what is left to be served, I take the open interest for January at  153 and subtract 85 deliveries leaving a total of 68 notices or  340,000 oz left to be serviced.

Thus the total number of silver ounces standing in this non delivery month of January is as follows:

1,615,000 oz +  340,000  =   1,955,000 oz (Thursday total =  1,625,000).  As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal.

Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

There is nowhere for silver shorts to hide.  Shorts can try to push prices down utilizing paper but this strategy will simply not work as people continue to demand delivery.  You must continue to use pullbacks as buying opportunities.  I would expect a bounce back next week, but I hope the pullback continues another week so we can buy at a discount.

Full Article Here

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