When we survey the silver landscape today, we see physical silver moving into the hands of individual investors rapidly. In the last 18 months, registered silver on COMEX went from 150,000,000 ounces down to 35,527,000 ounces currently. A recent report on the Economic Ninja YouTube channel also illustrates that a record number of silver contracts are being traded compared to the physical silver available for delivery (see graph). Previously, 500% was about average, but in September, it reached 1,000% and currently stands at 1,500%, a record.
At this pace of physical silver removed from the COMEX, the registered category would drop from 35 million ounces to zero by the spring of 2023.
In the background, we have Japan spending a record amount (over $42 billion) to intervene in the currency markets to support the Yen, which only slightly impacted for a short time. China and Russia continue to discuss creating a new financial system backed by gold, while some analysts insist the dollar is the safest currency today.
With savings rates in the U.S. dropping while credit card usage increases, fiscal challenges remain for governments, corporations, and individuals. Hence the demand for physical gold and silver and the widening gap between “spot” and the physical price.