“You can run on for a long time, but sooner or later God will cut you down.” -Johnny Cash
We have all been a little deflated by the price suppression in the paper silver market lately, but the drop in inventory has been extremely bullish. Today we not only dropped 777,018 ounces in the all important Registered inventory. We dropped 1.2 million additional ounces in the Eligible category.
This is the first time ever have been under 100 million ounces.
You have to wonder at what point will people wake up to what is going on here?
Do we really have to wait until there is 0 ounces left?
You also have to wonder why the Elite ALWAYS try price controls either explicit or secretive like they are doing now?
I also thing that it is foolish to think JP Morgue is going to fall on the sword and not at some point go really long in physical knowing how much they have suppressed this market. The only question that remains will someone beat them to the punch?
The CRIMEX has lost on average 1.6 million ounces a month for the past 3 years. At that pace there will be nothing left in about a year and a half.
The CRIMEX has lost 13 million ounces since April 19th. At that pace there will be nothing left in 4 months.
The CRIMEX lost 2 million ounces today. At that pace there will be nothing left by July.
My gut is telling me July is going to be very tumultuous. It is a delivery month and there are hundreds of millions of paper contracts all playing musical chairs to this 28 million ounces. There does not have to be physical default because the CRIMEX will either settle for FRN’s, SLV shares or change the rules. No matter what they do they will only make the final judgement that much worse. Keep stacking.