Comex Silver Futures Open Interest Is Equal To Total Silver Produced In 2013

 The short position in Comex silver futures alone is almost equal to all the silver  mined in a year  - James Turk, King World News (Link)

I knew the silver futures open interest on the Comex was somewhere in the vicinity of the total amount of silver produced globally in a year.  But when I saw Mr. Turk’s comments, I wanted to calculate it out for myself.

As it turns out, the amount of paper silver open interest based on yesterday’s total silver futures open interest of 163,592 contracts is nearly 818 million ounces of silver (Comex link).  As you can see from the table below from The Silver Institute, total silver mined globally in 2013 was 819.6 million ounces:

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With scrap recycling, total silver supply in 2013 was 978 million ounces.  So, the Comex paper silver futures equals 83% of the total amount of silver available for industrial users, jewelry buyers and investors.

Does this make sense?

To add to the absurdity of the Comex operations, as of today there were 57 million ounces of silver registered for possible delivery to holders of silver futures contracts.  Yet, for the next big delivery month of July, there’s a total of 348 million ozs worth of open interest.   That’s 6 times the amount of silver registered for possible delivery.  There’s 176 million ounces of total silver on the Comex.

In theory, if ALL of the July silver longs stood for delivery, there’s enough silver to fill half of them.

Up to this point in time, there’s no risk to the sellers of the silver futures that anywhere close to the amount open interest right now will stand for delivery.  That doesn’t mean that it can’t happen.

The point of this is to highlight just how fraudulent the Comex is.  There is no other commodity market in the world that allows the futures open interest in relation to the available underlying  deliverable commodity to get anywhere close to the ratio that exists in Comex gold and silver.  When oil and gas get a bit out of whack, the CFTC cracks down on the “manipulating” bank.

This will eventually resolve itself with much higher prices for gold and silver.  Mining stocks will go parabolic.  To see a couple of good ideas to take advantage of this market dislocation see this link:   Stock Research Reports.    I will be adding a least one more this week.   AAU in particular has a heavy concentration of silver in its big Mexico mine project.

The Comex is is emblematic of the extreme fraud and corruption that is now endemic to U.S. political and economic system.  The people who are really in control of our system have lampooned it into a complete joke.

This will not end well for most of us…

13 thoughts on “Comex Silver Futures Open Interest Is Equal To Total Silver Produced In 2013

  1. Dave, do you really see anything significant happening in the PM price and mining shares before the whole system just blows up? At this point, I have the point of view that everything will just remain the same until the whole system collapses in <5 years, and at that point, the prices of bullion and mining shares will be the last thing on our mind given the collapse of our economy and society. I basically just shrug my shoulders with the manipulation now, just expecting nothing will happen until it all falls apart, and at that point, there will be much more important things going on.

    1. Ya I’ve considered your scenario and I think there’s a good possibility that we go sideways until the dollar collapses – Hemingway’s “you go bankrupt slowly then suddenly.”

      I don’t really have a good feel anymore. CLearly the Comex gold futures were set up in 1974 to enable the Govt to control the price of gold when needed. They need it now because the U.S. is collapsing.

      1. So if there is a “good possibility” – why would someone bother with mining shares? They have been a disaster for years, and could be flat until it doesn’t matter. So tempting to buy more now, but I tell myself no more, given the “theory” that everything will collapse before anything substantial happens in the shares. I am actually tempted to bail on the next little jump, just to ensure I actually get some of it back.

    2. I see it that way too. And my fear is that TPTB are going to keep this going for several more years. I wish I hadn’t put so much fiat into precious metals. I could be using that fiat right now for other things.

      1. They don’t have several more years. Some people, not necessarily me but not necessarily not me, think they don’t have several more months. You “tell-tale” is the ramp up in U.S. militarism around the globe. History may not repeat but it rhymes. We’ve seen this pattern from collapsing empires going back to at least Rome. The most recent being Germany in the first part of the 20th century.

          1. Hey, if the NY Times is saying we need wars to stimulate economic growth, then that’s the warning the elitists are giving us that we’re going to war in the Middle East.

  2. The Gods of the Copybook Headings by Kipling

    AS I PASS through my incarnations in every age and race,
    I make my proper prostrations to the Gods of the Market Place.
    Peering through reverent fingers I watch them flourish and fall,
    And the Gods of the Copybook Headings, I notice, outlast them all.

    We were living in trees when they met us. They showed us each in turn
    That Water would certainly wet us, as Fire would certainly burn:
    But we found them lacking in Uplift, Vision and Breadth of Mind,
    So we left them to teach the Gorillas while we followed the March of Mankind.

    We moved as the Spirit listed. They never altered their pace,
    Being neither cloud nor wind-borne like the Gods of the Market Place,
    But they always caught up with our progress, and presently word would come
    That a tribe had been wiped off its icefield, or the lights had gone out in Rome.

    With the Hopes that our World is built on they were utterly out of touch,
    They denied that the Moon was Stilton; they denied she was even Dutch;
    They denied that Wishes were Horses; they denied that a Pig had Wings;
    So we worshipped the Gods of the Market Who promised these beautiful things.

    When the Cambrian measures were forming, They promised perpetual peace.
    They swore, if we gave them our weapons, that the wars of the tribes would cease.
    But when we disarmed They sold us and delivered us bound to our foe,
    And the Gods of the Copybook Headings said: “Stick to the Devil you know.”

    On the first Feminian Sandstones we were promised the Fuller Life
    (Which started by loving our neighbour and ended by loving his wife)
    Till our women had no more children and the men lost reason and faith,
    And the Gods of the Copybook Headings said: “The Wages of Sin is Death.”

    In the Carboniferous Epoch we were promised abundance for all,
    By robbing selected Peter to pay for collective Paul;
    But, though we had plenty of money, there was nothing our money could buy,
    And the Gods of the Copybook Headings said: “If you don’t work you die.”

    Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
    And the hearts of the meanest were humbled and began to believe it was true
    That All is not Gold that Glitters, and Two and Two make Four
    And the Gods of the Copybook Headings limped up to explain it once more.

    As it will be in the future, it was at the birth of Man
    There are only four things certain since Social Progress began.
    That the Dog returns to his Vomit and the Sow returns to her Mire,
    And the burnt Fool’s bandaged finger goes wabbling back to the Fire;

    And that after this is accomplished, and the brave new world begins
    When all men are paid for existing and no man must pay for his sins,
    As surely as Water will wet us, as surely as Fire will burn,
    The Gods of the Copybook Headings with terror and slaughter return!

  3. http://qz.com/222408/smugglers-use-bizarre-ways-to-get-around-indias-obstacle-course-of-gold-imports/

    By Sunil B.S. @sunilbs_tweets 2 hours ago

    The Indian government has raised import taxes on gold three times over the last year; it’s now at a double-digit 10%. It’s also now mandatory for importers of gold to eventually export 20% of what they have imported, a measure designed to narrow down the yawning current-account deficit.
    Though the curbs did help the government to bring down the deficit, it has yet to make a dent in consumption.
    Further, to get around tariffs, Indians continued to import gold illegally…”

  4. http://www.mining.com/worlds-most-expensive-baby-bottle-made-of-gold-and-diamonds-44414/
    Cecilia Jamasmie | June 14, 2014

    http://www.foxnews.com/leisure/2014/06/17/gold-and-diamond-encrusted-baby-bottle-will-set-back-six-figures/
    $272K gold and diamond baby bottle is the perfect gift for your next baby shower
    Foxnews – June 17, 2014

    This line of Spanish Suommo (nesting) bottles “inspired by Russian dolls”, nurses pure gold
    and feeds like a nascent gold bull would, by necessity, from a mother of invention.
    Take Dubai’s physical, domestic gold exchange expecting in two months.
    Or the BRICS meeting next month where among other things, “The $100 billion Contingency Reserve Arrangement (CRA) will be launched at this year’s Summit and final details of the New Development Bank (NBD) will also be unveiled.” http://thebricspost.com/south-american-leaders-to-attend-6th-brics-summit/#.U6FF3bE-cRZ

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