Rumors and speculation of a COMEX default in silver have swirled for the past 5 years.
We detailed Tuesday how COMEX silver supplies are down to 33.2 million ounces, declining 54 million ounces since 2009. Will July delivery in silver bring the long expected fireworks, and prove to be the cartel’s final demise?
The possibility certainly exists- for a clue lets examine silver’s July open interest provided by the CME group.
The CME Group lists July silver open interest at 77,140 contracts. As each contract is 5,000 ounces of silver, this means open interest is currently 385,700,000 ounces. 385 Million ounces!
So July open interest is currently 385.7 million ounces. If longs would decide to stand for delivery (instead of rolling forward to September, or settling for cash) all 385.7 million ounces would be competing for this remaining COMEX inventory. Can you picture the Hoover Dam attempting to be forced through a garden house?
COMEX inventories are down to 33.2 million ounces. Open interest is currently 385.7 million ounces. So if only 8.6% of current open interest stands for delivery in July, Blythe and the COMEX are f*#@*’d. Cleaned out.
At some point in the future a large long interest will decide to forgo the cash settlement premium, and will stand for delivery. Rumors will quickly swirl, and we will see a STAMPEDE of the longs to acquire their piece of the remaining 33 million physical ounces remaining at the COMEX.
Will this happen in July?
It will only take 8.6% of longs deciding to take their physical.
Obtain all the physical silver you can right now (especially with the huge current discount), the Grand Finale will soon begin!