Just when I thought I was out... they pull me BACK IN!

Silver Open Interest just ballooned from 142,520 yesterday to 147,465 today.

The all important March 2011 silver contract, which should be rolling over to future months,
actually GAINED from 61,237 to 61,720 contracts today.

Asians Buying SLV to Take Possession of Silver Bullion

As an aside, there may be a hedge fund 'raid' on the Yen or Gold coming. Or perhaps word of official action has leaked. I am not sure what a 'watershed event' implies here.
"In an important development, The Gartman Letter – which not only has an excellent nose for major currency trends but which is also very well informed – declared a “Watershed” event for the yen, and increased its yen short positions, including adding another yen/gold “unit”. "

Guess Who Is Taking Delivery of 1.7 Tonnes of Gold from the Comex

"Never be surprised at the crumbling of an idol or the disclosure of a skeleton.”

John Emerich Lord Acton

Its delivery time for the May Gold contract on the Comex, and the statistics yesterday showed some interesting buying.

Bank of Nova Scotia 'stopped' 699 big contracts, and issued 100 contracts, for a net takedown of roughly 1.7 tons of gold, the bulk of which was supplied by J.P. Morgan.

As you may recall, the Canadian bullion bank Scotia Mocatta is a subsidiary of Bank of Nova Scotia. Socita Mocatta was recently involved in a bit of a scandal when some investors went to visit 'the vault where their gold was stored' and found it to be surprisingly, perhaps shockingly, undersupplied.

Is BNS acting to back up their paper, or are large investors asking for their bullion in advance? Either way, its an act of good faith on the part of BNS to take the delivery, and probably very smart to do it now.

While cash settlement may be an option, it is not ethical, and BNS is known for its high ethical standards towards its customers, unlike some of its more famous American cousins in the gangs of New York.

Nothing to see here, move along. Its all perfectly normal. No one really has to have what they sell and store for you anymore. Unless they are honest.

h/t Denver Dave