Comex in trouble?

Harvey Organ posted this on his site tonight.

"Now for silver:

There were no deposits of any kind for the dealer nor the customer.
There was a small withdrawal of 16,370 oz to the customer. There were no adjustments.
The comex folk notified us that 13 notices were sent down for servicing for a total of 6500 oz. The total number of notices sent down so far this month total 425 contracts for a total of 2,125,000 oz of silver. To obtain what is left to be serviced, I take the open interest
of February (114) and subtract out the deliveries for today of 13 which gives me 101 notices to be served or 505,000 oz of silver.

Thus the total number of silver oz standing in this non delivery month of February is as follows;

2,125,000 already served) + 505,000 oz (to be served) = 2,630,000 oz. vs Friday total of
2,535,000 oz. (we gained another 95,000 oz of silver and nobody wishes to take a cash settlement.

I am very impressed with the total OI in silver and with the front March contract where it seems that the silver boys are resolute. Tomorrow will be a huge test. If I see these guys still standing for delivery, our bankers will start to prepare their burial ground."
So why do I mention this? 
Simply this; regardless of price it looks like buyers are standing their ground. If they stand their ground once at this level it is my theory that the people who actually use silver will sit up and take notice. If the manufacturers start to get nervous about either supply or price we are going to see fireworks. A "supernova" maybe?

So this might seem simplistic and absolutely obvious to the the bugs but to the mainstream media not so much.  

There is a disconnect between what we bugs see and the alternative reality of mainstream.
In the days to come the buyers of silver will either roll over or stand for delivery. It has been calculated that it will take about 7-10 thousand contracts to actually stand this month for delivery to make a dent in the status quo. 

We will know soon enough. 

1 comment:

sierra_hpbt said...

EXACTLY.. and those industrial users will panic and drop 500 million to procure silver at the blink of an eye. Look at what Sumitomo group did with korean zinc.