Close to 20 million ounces have been removed from the “customer” accounts since February, held in vaults operated by banks like JP Morgan, Scotia and HSBC. Yet, at the same time, the paper silver futures open interest has soared to near all-time highs. At the beginning of January, there were approximately 132k contracts of silver open interest. As of yesterday, the amount was over 173,000 – close to an all-time high.
To put this in perspective, 173k contracts represents 865 million ounces of silver. Compare this to the 66.7 million ounces reported by the banks to be in their “registered” vault account (registered = the silver available to be delivered).
In other words, there’s 7.65x more paper silver that has been sold to investors/speculators than there is physical silver available to be delivered.
This is a Ponzi scheme that only the upper managements at Enron, JP Morgan and Madoff & Co. + the Secretary of the U.S. Treasury could appreciate.
No wonder investors holding their silver at the Comex are taking it OUT of the Comex.