Silver and a COMEX Inventory – Part 1
During a new Q A talk with china analyst, Ted Butler, a emanate of raging in and out transformation of earthy china within a COMEX room complement came adult some-more than a few times.
We asked Ted if he could report how this transformation literally works…
“Are these literally trucks?
“Is Brink’s a partial of this?”
“Is this literally putting one thousand unit bars on pallets, onto trucks and relocating it?
Ted: Well, that’s what’s happening. That’s because we beheld a emanate starting 4 and half years ago and that’s because I’m sustaining in articulate about it today. John’s doubt is good. What a heck is going on here?
First off, it’s not Brink’s trucks. You competence have held a news a integrate of weeks back, per a large china heist. Ten million dollars value of china stolen from a Port of Montreal.
I trust they indeed recovered it or they nabbed a crooks and fundamentally what it was a lot of people were astounded when they saw it was a container. Like a vessel enclosure or a rail container. A enclosure we would see on a highway transmutable between vessel and rail and truck. This is how they vessel silver.
They don’t vessel it in Brink’s trucks. They vessel it on Mac trucks. One truckload is 6 hundred thousand ounces. That’s a homogeneous of a hundred and twenty COMEX contracts.
It weighs about forty-two thousand pounds or twenty-one brief tons . That’s a standard truckload. Think of this, a 6 hundred unit is one truckload, that’s a normal movement. It’s never exact. It competence be 5 ninety-three or competence be 6 hundred and 10 thousand ounces.
Much like a one thousand unit bar is never one thousand ounces exactly. It’s always a small underneath or a small over.
These are large trucks that are holding these containers of china in and out of warehouses.
Every once in awhile you’ll get a transfer. But that’s rare. These transfers are how J.P. Morgan’s inventories have grown adult in their room over a final 4 and a half years.
There is a daily recover from a CME that shows what came in and out to a fragment of an unit in 6 opposite warehouses. In other words, we can determine a ounces that come in and out each workday into a COMEX and it’s not a same.
You don’t know where a things is entrance from if it’s not entrance from another warehouse. You don’t know where a china is going to if it doesn’t go in another room – it’s only taken out.
It’s this consistent and raging transformation – these truckloads of china entrance in and out of these several warehouses.
What a heck are they doing?
Well, it’s not make work. It’s finished for a reason. There is good responsibility involved; labor and equipment. It’s not being finished haphazardly. Nobody undertakes an operation like this unless it’s mandatory. It is required. It is genuine and it’s happening.
I can’t tell you, other than my best guess, as to because it’s happening. we would appeal each singular one of we as I’ve been soliciting my subscribers for a final 4 and half years, to offer a opposite explanation.
This involves a second largest register on earth. The initial is a 3 hundred and twenty million ounces or so in a SLV, – a largest save of china on earth.
The second largest, a hundred and sixty-seven or so million ounces is in these COMEX warehouses. This is not a teenager cause in a china market. I’m articulate about a second largest register in a universe and it’s a entirely documented transformation and it didn’t exist before to 4 and a half years ago. But many importantly, it doesn’t exist in any other commodity, only silver.
Knowing all this we try and take these facts, a transformation and what’s holding place and a whole logistics of a thing and common sense, and say, “Well, because is it being done?”
The best that we can come adult with is that it’s an denote of tightness. Whenever register turns over frantically, it’s branch over for a reason. we would contend a reason is there’s only a consistent direct for silver. And new batch contingency brought in constantly to feed inventory.
That is synonymous with a parsimonious earthy indiscriminate marketplace condition that could really easy lead to a shortage. we can’t come adult with any other reason. As we said, I’m open to any other explanation. You can't repudiate that it is holding place. You have all these people involved. There are attorneys, accountants, auditors, warehouse-workers, and trucking companies. Are they all in on some conspiracy? we don’t consider so. It’s happening. It’s not a artificial number. The doubt is because it’s happening. I’ve given we my best interpretation though we appeal other interpretations.
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