Massive Attacks On Gold Reek Of Desperation
- Massive Attacks On Gold Reek Of Desperation
by Dave Kranzler, http://investmentresearchdynamics.com/
The paper silver open interest on the Comex is at all-time highs. The previous all-time high was 224k contracts when the price of silver was pushing $50 in 2011. The current paper silver open interest is 229k contracts with the price of silver at $18. At least the degree of fake silver open interest in silver was more appropriate to the price level at which silver was trading in 2011.
Having said that, the current paper silver open interest is entirely inappropriate relative to the amount of silver reported to be held in Comex silver vaults. 229 thousand silver contracts translates into 1.15 billion ozs of paper silver. That number represents about 37% more actual silver ounces produced by global by mining companies in one year. Compare that paper representation of silver to the actual 193 million ozs of silver reported to be held in Comex vaults, primarily “held” by JP Morgan which is reporting nearly 102 million ozs of silver in its vault.
Notwithstanding whether or not those 101 million ozs of silver are actually sitting physically in JP Morgan’s Comex-designated custodial vault (and much of it has likely been hypothecated), the amount of paper silver issued primarily by Comex bullion banks is nearly 6x the total amount of silver reported to be held in Comex vaults.
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