Fight the New World Order!

I think it's a great opportunity to buy silver right now. Im not going to tell you where to buy it. Im not advertizing for anybody. I just keep saying buy silver and join the Silver Liberation Army. If you really want to know whats going on in silver, check this out once in a while:

http://www.cmegroup.com/trading/energy/files/Silver_Stocks.xls

It's the COMEX inventory report. Look it up. There are two inventory categories.

a) registered

b) eligible

The 'registered' category tells you about silver that's sitting in the warehouse and is available for delivery. A bank like JP Morgan for example would place silver in a warehouse as 'registered' to cover their silver short obligations thru physical delivery. Remember: silver shorts are computer-made contracts for selling silver that is not definitly available. As you can see JPM has it's own warehouse but there is no registered silver. That means they can't or don't want to deliver.

The 'eligible' category tells you about silver that is in posession of a customer who took delivery and let it sitting in the warehouse for himself with the possibility of withdrawing it later. He could also sell it from there. That's why it's called eligible, because the silver is not yet available but could be.

The point is that the eligible category is saying nothing about the overall physical supply because it's not available. Only the registered silver is supposed to be available. Some people say that the registered numbers are cooked and the real amount of silver is much smaller. As you can see we are at 31,102,671 ounces of registered silver right now (by 5/26/2011).

Now look at this:

http://www.cftc.gov/dea/futures/other_lf.htm

It's the report of traders to the Commodity Futures Trading Commission (CFTC). Scroll down a little bit until you find SILVER. Now read what it says at 'Open Interest'. It tells you the amount of contracts that are short and potentially have to be served with silver. By reporting date of May 24, 2011 there are 121,395 contracts outstanding. One contract is 5,000 ounces. If you multiply it you get out 606,975,000 ounces. Now look again what's available: 31,102,671 ounces (maybe)!

Maybe you should think about it (but not too long).