It should be noted that Silver has risen approximately 2% today, thus far, but also to a lesser extent so far week. Statistics coming out of the Comex may well account for this sudden reverse in the price.
For the month of July, thus far, we have seen 2350 notices served to the Comex, requesting the delivery of Silver equating to 11.75m ounces or approximately 363 tonnes.
In addition we have seen 6880 notices served to the Comex, requesting the delivery of Gold equating to 688k oz or 21.4 tonnes.
As we approach month end on Friday, it will be interesting to see how the price of both Gold and Silver react to the sharp increase in demand for the delivery of both Gold and Silver, given these contracts have to satisfied at the end of this week.
The question as ever remains, how much actual physical metal does the Comex possess?
I'm sure the question of how much metal the comex possessing is important. But, it does appear that they have a strong arm technique capable of forcing cash settlement. I can't find it now, but I once read that a physical delivery would be considered valid if it amounted to some percentage of the contractual amount less than 100%. Can someone correct me on that if I'm wrong?
Hi Sonny, historically that has very much been the case but there is increasingly pressure being bought to bear for them to stand for actual delivery and given the demand in July it remains to be seen how this will be handled.