Are the silver god's finally on our side?
Deficits are unsustainable. There will come a time where the charts and comex pricing become redundant. Parabolic moves are almost guaranteed at some point in the future. All we need is a depletion of aboveground stockpiles.
There's a claimed 1.6 Billion ozs of aboveground silver held by the LBMA, Comex and SLV, but there's also the issue with double counting. Much of the SLV holdings are held by JPM and are counted as Comex holdings. Much of the LBMA holdings are also Comex and SLV holdings. From my speculative estimates, there Probably only 800 million ounces left once you factor in the double counting.
With deficits of 250Mozs per year, and the silver used to feed the market to keep the price "stable" coming from these repositories, we probably only have 3 years of play left before the deficits really show their ugly face and result in the erosion of price controls. That is, of course, assuming there isn't any undisclosed stockpiles they can tap into. And that's also assuming they're willing to die on their own sword by continuing to maintain control of the price at the expense of their physical reserves.
London vaults have declined 330Mozs in the past 2 years, and it's claimed that 85% of their holdings are claimed by ETFs already, so as far as available silver is concerned, there really isn't much left. This is a prime "cooking the books" example - one that merely provides the illusion of aboveground reserves.
The chart below shows a 10moz decline in Comex holdings for the month of August alone, and the previous increase in holdings seem to coincide with the 'double counting/moving silver around' to keep up appearances that stockpiles aren't depleting at a rate that matches reality. Each month that passes is a month closer to the end game. Triple digit silver is in our sights and I wouldn't be surprised if we get there by 2027.
