“Wow, What Is That A Chart Of!?”

I try very hard not to keep my work life and personal life separate. What I write about here and in the Sons of Liberty Academy, I very rarely talk about in my real life. The biggest reason why I don’t talk about it, is that it is too large of a subject to cover in such a short amount of time. Far too often, eyes roll into the back of the head of the unsuspecting civilian after about 2 minutes of talking.

This past week was a good week for all of us. Not only did we see gold breakout to to new nominal highs, we saw silver this week break the consolidation since the Silver Drive By Shooting. Yesterday, while I was finishing up on some work while redoing the Academy, I checked the Registered CRIMEX silver warehouse inventory and saw it was down another 500,000 ounces yesterday. As I was about to shut down the computer for the night, my lovely wife looked over my shoulder and saw the CRIMEX chart. She said, “Wow, what is that a chart of!?” I replied, “the silver inventory.” She said, “there is no denying that is going down.” Any chart showing such a steady drawn down in inventory like silver’s is not good. (Well at least for the silver shorts.)

The CRIMEX has lost 2/3rds of their registered inventory in three years.  The average withdrawal rate per day for the past 3 years was 55,000 ounces a day leaving the vaults. In the past 3 months, its rate has triple that at 155,000 ounces per day.

The most interesting aspect is that while the decline looks orderly and in a channel, the withdrawals are actually going at a fast pace against a smaller inventory. The rate of  decline of 55,000 ounces out of 87 million ounces was only .06% decline per day, now it is 6 times that rate with a much, much smaller inventory. As these withdrawals continue, the effective default date draws closer. The combination of the rapid decline and with smaller inventory has brought the projected default date where the CRIMEX can no longer keep this ruse going has dropped from November 2012 to January 1st 2012 only 5 1/2 months away. There have been months where we have seen 12 million ounces leave the vaults in no time at all. With hundreds of millions of paper contracts trading silver, only a small percentage of paper players need to stand for delivery to break the back of the CRIMEX.

Keep stacking, our Default Day is closer than we think. It could be a default of the CRIMEX or of the entire world economy. When it does happen, there will be no ‘do overs’. It will not matter at what price you bought or what form of physical silver you bought. The only thing that will matter is that you did buy while the rest of the world was high on debt.


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13 comments to “Wow, What Is That A Chart Of!?”

  • Data Miner

    Nice work on the increasing amount of silver being pulled from a smaller and smaller pile. At current (and increasing withdrawal amount), the next 5 months should be very interesting…. like you say, get physical, cause when it’s gone, it’s gone…

  • PitBull Pappa

    I’m glad I took advantage of the dip and bought more silver since the drive by…:) I just keep slowly picking up pre-65′ coins when I find a good deal on them.

    Keep stack’n… hold strong & go long…

    PBP

  • IDSilver

    I just received a shipment of silver this morning from Apmex. It came while I was making a batch of biodiesel. I have another one scheduled for the 27th and will likely order more tomorrow evening.

    The best news yet is that I believe I just “woke up” my sister.

    Thanks SS for all the supporting information.

  • ewkeane

    Curious, indeed. this chart trend could be drawn foreward into time to create a price range with pretty good accuracy.
    the range within the tops and bottoms are pretty close.
    it will be interesting to see what will happen to price action when folks figure out when the vault will be emptied in the not too distant future. not too long, i think, then they will have nothing to trade with after that happens.
    i wonder how close is the account to being accurate, in other words, are they short on silver, and buying time with price interfearence and paper bids?
    i hope every one demands delivery, and that bank owners get stuck with a sack of worthless paper entered into evidence at a fraud trial, or even at a bankruptcy court, what ever.
    this might be a good time to get a side job, get paper and get ounced up at the local coin shop, or maybe even ebay.
    beware the 200dma, it could drop some, but more likely than not, the market price will advance. if it does drop out, take the advantage of low prices till the elevator starts going up again.
    by the way, you penny pinchers that are stacking pre 82 might appreciate this link;
    http://www.kokogiak.com/megapenny/nine.asp

  • RUJOKING

    Good job with the #’s.

    Since the COMEX is near certainly lying that they have more silver than they do…

    & a run on physical AU is also near certain as big buyers wise up…

    The default date is likely much sooner than 1-12-12.

  • Tyler

    Can someone please tell me how much silver is needed, Is for example 1000 ounces enough to be able tp create any real wealth when this explodes, or is that not enough? I don’t mean to be able to eat, I mean to be able to actually go out and buy some hard assets like real estate (for example) when silver peaks and they are at the bottom of their cycle. I’d really appreciate any input guys…. Thanks.

    • Silver Shield

      1,000 ounces is a fantastic start and I believe will be able to secure a bright future.
      It is the equivalent of 10,000 days of hard human labor throughout all of human history.

  • Indeed, that chart is an eye opener to say the least!

  • When the Crimex runs out of inventory what’s to stop them from trading “paper silver” anyway? They already trade silver they don’t have now. They’ll just pass a new law or standard and keep on ripping off the uninformed Sheeple, RIGHT???

  • Tyler

    Thanks for your reply and thanks for the excellent information on this site!

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