In Ted Butler's Archive


The turnover or physical movement of metal brought into or removed from the COMEX-approved silver warehouses surged this week to 14 million ounces, the highest level since I first observed a surge in turnover seven and a half years ago. Annualized, that comes to 728 million ounces or nearly 90% of total annual world mine production. Huh? Why in God’s world would so much silver be physically moving in and out of, basically, 6 warehouses in and around New York City? (Actually, there are nine warehouses in the COMEX system, but the combined silver holdings in the smallest three warehouses hold little more than the one percent of the total holdings).

It doesn’t appear that the exact same metal is being transferred. Metal that is coming in is different from metal being removed, intensifying the mystery behind the movement. Most mystifying of all is that the physical turnover in silver is unique among all commodities, including gold. This unprecedented silver turnover indicates highly unusual physical silver wholesale demand. Somebody is taking down huge quantities of silver for industrial usage or for investment purposes. This is just one more of the amazing string of bullish factors that apply to silver. Apparently I am the only one reporting on this phenomenon. The lack of commentary on what is an easily documented circumstance is surprising.

More than 46 million ounce of physical silver have turned over in the past 5 weeks, a weekly average of more than 9 million ounces. This is the most in history and suggests this movement is so intense so as to almost be going off the rails or reaching some type of climax. JPMorgan has accounted for nearly 11 million ounces of the 46 million total turnover (both deposits and withdrawals) and no one should be surprised at JPM’s leading role in the record turnover. Silver is like an overheated boiler about ready to explode.

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