As the price of silver continues to bump along this sideways action until the options expiry date on the 27th, the physical inventory of silver has only gone down. This trend is undeniable proof that this game is coming to an end. They day that the CRIMEX cannot deliver on one single ounce on the billions of ounces they trade, the game will be up. I do not believe this will happen without major manipulations of either rules changes or some other tricks, but sooner or later this game is going to end.
The usually busy July delivery period is coming fast and furious upon us. As I wrote in early May any short term victories in the paper silver market will only lead to long term physical losses. You can plainly see that despite the massive paper selling (8 billion ounces in the first couple of days of May) the physical Registered inventory has dropped from 42 million ounces to now 27 million ounces. With only about 3% of all paper contracts are settled in physical metal and the new regulations that are effecting the FOREX trading in precious metals, July could be the month the deception ends. Just yesterday alone 1.4 million ounces was taken from the CRIMEX. At that pace we may not make it to the end of July. The ramifications of a physical default to the real price of silver boggles my mind. In the mean time, get out of all paper assets and get physical.