ed steer on comex silver:

The Comex-approved depositories showed another decline on Thursday. This time they reported silver stocks down 582,801 troy ounces. The 2.4 million ounces that the Comex brought in a week ago Friday, was obviously meant for the deliveries that have been ongoing all this past week... and they've gone through most of it in the last four days. You may ask [and rightly so] why the Comex just doesn't deliver from the stocks they have on hand. Well, there's a very good reason for that, and it goes like this... every single ounce of that silver sitting in those four Comex warehouses is owned by someone; a financial institution, a user, a private investor... and the list goes on. Of that group, nobody wants to sell at the current price, so if the Comex wants to fulfill their delivery requirements, they have to bring in silver from outside the Comex for that purpose... or they would be in default... and that's what they've been doing. On the other hand, if they couldn't get it from outside sources, then they'd have to bid up the price high enough that some of the holders of Comex silver would be willing to part with it. And that, dear reader, would drive the silver price up substantially in a very short period of time... and we mustn't have that, now must we?

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