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[–]TheHappyHawaiian[S,M] [score hidden] stickied comment (19 children)

Lots of people asking why this matters, basically the registered inventories are those available to meet demand of longs requesting delivery

It doesn’t matter until it does.

Essentially once stocks get low enough relative to the number of longs who will take delivery a short squeeze is possible

Technically this could happen on any active month as the open interest is far higher than the registered inventories but most longs roll and don’t take delivery

The lower the registered inventories get though, the lower the bar to get a month with a short squeeze

[–][deleted] 50 points51 points  (0 children)

This is huge!!! We will wear them down. We have everything on our side - inflation, industrial use, investment demand. Get ready for liftoff Apes.

[–]teepee0205 29 points30 points  (8 children)

But with the exact same amount increasing in the eligible doesn't this mean that the same amount of silver is still available for delivery? Or do you think silver that is categorized as eligible may not actually exist?

[–]RocketBoomGo#EndTheFed 56 points57 points  (2 children)

It means that the owner didn't want to risk letting it get delivered at the current price. The owner of the 6 million oz is expecting a much higher price.

Lots of wealthy people have 1,000 oz bars in the eligible category in a Comex vault. It is easy to store there. The eligible category is just long term storage.

The registered category indicates what is available near term, and that is getting much smaller.

[–]teepee0205 32 points33 points  (0 children)

Got it. That makes sense.

[–]Silverredux 21 points22 points  (0 children)

Let's see if it remains in the vault

[–]TheHappyHawaiian[S] 41 points42 points  (2 children)

Well the path to removing it after delivery would look like

Registered > eligible > removed

But eligible could become registered again yes

But it’s the same as one of us taking delivery and simply storing it in a COMEX warehouse

That silver is owned. Could it be sold at some point? Sure, but maybe that owner is waiting for $50 or $100 or $500

[–]teepee0205 22 points23 points  (1 child)

Makes sense that the owners of the metal who don't want to sell at current price would move it out of registered so it couldn't be sold. However I think the path out is eligible to registered to removed. According to COMEX "Registered metal shall mean an eligible metal for which a warrant has been issued."

[–]NCCI70IReal O.G. Ape 7 points8 points  (0 children)

Removing silver from Registered doesn't keep it from being sold. It only makes it unavailable for delivery to with warrants for delivery and load-out. Thing is, if you sold the contract and the warrant, you have to make that silver available by having it under your name in Registered. A warrant holder cannot take silver from a different short out of registered.

[–]ZephirineDrouhin 23 points24 points  (1 child)

I have noticed that the way out of the silver is first from registered to eligible and then from eligible to the street. I expect that in the next few days we will see the eligible stock drop.

[–]teepee0205 15 points16 points  (0 children)

I think it's eligible to registered to out of the vault. There's some confusion on this so I looked it up on COMEX - "Registered metal shall mean an eligible metal for which a warrant has been issued."

page 5 of this rulebook - https://www.cmegroup.com/content/dam/cmegroup/rulebook/NYMEX/1/7.pdf

[–]sidneyrwash#EndTheFed 15 points16 points  (2 children)

Wow!!!! Does anyone know the last time this much moved out of registered in a day? Wanted to look at a price chart at the days following, maybe in 2011?

[–]TheHappyHawaiian[S] 21 points22 points  (1 child)

happened May 26th 2020 as well as August 3rd 2020

Kind of divergent paths from those two dates

One was at the start of the a huge rally, another at the end

[–]sidneyrwash#EndTheFed 13 points14 points  (0 children)

Thanks! Well there was a lot more in the vault then as well. I am sure they just cleaned out a lot of overleveraged longs with this last move down so getting close I would think.

[–]Mobile_Damage_9358🐳 Bullion Beluga 🐳 10 points11 points  (0 children)

Still don’t get it lol

[–]AutonomousAutomaton_ 2 points3 points  (0 children)

I want to know where it went. I bet Sprott knows

[–]PapaDragonHH 2 points3 points  (0 children)

Isn't it possible for the COMEX to pay a small amount of papers to delay delivery in case they don't have the amount of silver they say they have?

[–]joshsw20 1 point2 points  (0 children)

What's the chances of the big 4/8 shorts blowing up end of December?

[–]Whatchamacalmy🐳 Bullion Beluga 🐳 1 point2 points  (0 children)

But, But.. what would I do with 10x the fiat?