STOP PRESS. MASSIVE WITHDRAWAL OF SILVER FROM COMEX WAREHOUSES

COMEX Warehouse Stocks November 2, 2009

SILVER

2,584,384 ozs withdrawn from the dealer’s (registered) inventory
1,042,628 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 52.70 Mozs
Total customer inventory 60.98 Mozs
Combined Total 113.68 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
64 ozs deposited in the customer (eligible) category
Total dealer inventory 2.32 Mozs
Total customer inventory 7.10 Mozs
Combined Total 9.42 Mozs

Holy smoke! Look at that silver movement. The Brinks trucks must have worn ruts in the pavement hauling that much silver out of the warehouse in a single day. 2.5 million ounces was withdrawn from the dealer inventory and 1 million from the customer inventory. This is very curious, not only because of the size, but because in October there were only delivery notices for 250,000 ozs of silver during the whole month. Some one needs some physical silver in a hurry. Meanwhile the gold movement remains comatose! Can you imagine a day in a bona fide warhouse where 3.5 million ozs of silver are hauled away and 64 ozs of gold is deposited by a customer? Doesn’t that smack of the Marx brothers a “Night at the COMEX”!

There were 9 delivery notice issued in the NOV gold contract. The NOV contract total for the month is 101 contracts or 10,100 ozs. Bank of stopped 7 of the notices today.

There were 10 delivery notices issued in the NOV silver contract. The total delivery notices for the month stand at 58 or 0.29 Mozs.

There is only 0.9 cents of contango in silver NOV/DEC contracts and only 1.9 cents NOV/JAN contracts. The contango in gold NOV/DEC narrowed to only $0.6 and $1.6 for NOV/FEB

There is smoke coming out of the physical market. This is not about paper shuffling on the COMEX, this is about an increasing tightness of physical gold on the London cash market. Watch this space.
Cheers
Adrian