Someone asked me again, what is the significance of this inventory decline?
It is not that the world is running out of silver, far from it. There are allegedly 309,738,781 ounces of silver in the SLV Silver Trust. I think the bullion in GLD and SLV is often comprised at least in part by paper swaps and other forms of metal that are not unencumbered bullion.
It is that the amount of silver available for sale, in large quantities and the appropriate forms, is in increasingly short supply, down to record levels AT CURRENT PRICES.
This is significant for two reasons.
Such supply/demand imbalance, in the absence of supply or demand shocks, is often the result of long term artificial price manipulation and external forces in the market that prevent a market clearing price.
Eventually the market imbalance will be resolved, one way or the other.
I am trying to document what is happening and make people aware of it, so that they can't say 'no one knew.'
So let's see what happens.
History will have to record that the greatest tragedy of this period of social transition was not the strident clamor of the bad people, but the appalling silence of the good people."
Martin Luther King, Jr.
