COMEX Silver Open Interest PLUNGED below 105,000 contracts Monday- a HISTORICALLY low OI level not seen in DECADES!
We anticipated that Open Interest in the May silver contract would decline significantly this week, ahead of the expiration of the May26 contract which goes off the board tomorrow.
That certainly began in full force yesterday, as OI in the May26 contract declined -8,764 yesterday, to close at 17,984.
What is shocking however, is that the majority of those contracts DID NOT roll to either of the next 2 Front Months (July + Sept) - as the July contract saw an increase of only +2,628, and the Sept contract only added +459 for a net 3,087 contracts.
This means that ONLY 35% OF THOSE CLOSING OUT MAY26 SILVER CONTRACTS ROLLED FORWARD!
65% SIMPLY WALKED AWAY FROM THE COMEX CASINO!!!
The massive decline in COMEX Silver Open Interest comes amidst the continued decline in physical silver inventories backing COMEX silver contracts, with Registered Silver Inventories down to 76 million oz, and TOTAL COMEX Silver Inventories down to 315 million oz.
Meanwhile, China has been rapidly stockpiling silver over the past 2 months, after combined silver inventories at the Shanghai Gold Exchange and the Shanghai Futures Exchange bottomed out near zero in the wake of the historic China silver squeeze which drove silver prices in Shanghai nearly to $150/oz in late January. SGE and SHFE silver inventories have more than DOUBLED off their lows, now back above a combined 40 million oz.
Expect China to continue grabbing as much physical silver as they can get their hands on while inventory remains relatively plentiful.
Meanwhile, after the CME shut down the silver market when it was breaking out in November for a “cooling issue”, and then again in February as silver was again breaking out over $94 for a “system issue”, gamblers are deciding to simply WALK AWAY FROM THE COMEX CASINO in droves.
SILVER TO $350-$500? MICHAEL OLIVER’S NOT BULLISH ENOUGH!
INVESTMENT DEMAND WILL DRIVE SILVER TO 4 FIGURES & INTO A MANIA!!
