Silver Will Continue To Appreciate And Protect Your Capital

COMEX SILVER: Depletion Rates Accelerating!

I've been keeping track of the COMEX inventory for years. Instead of throwing a bunch of data into a chart, I decided to look at the depletion rate in very simple terms so I can report this in just a few lines.


I’ve been keeping track of the COMEX inventory for years. Instead of throwing a bunch of data into a chart, I decided to look at the depletion rate in very simple terms so I can report this in just a few lines.

One year ago, COMEX inventories were at 117,246,000 oz. as of 6/24/2010. Today they’re at 97,859,632 oz. If we want to see what the depletion rate for that set of data is, we simply divide the inventory loss by 365 to get a daily loss of 53,113 oz. This becomes the daily average depletion rate (including weekends and holidays). Projecting how long it might take to deplete the entire inventory then becomes a simple division exercise where we divide the current inventory by the average depletion rate: 97859632/53113=1842 days=about 5 years.

Using the above data, you might conclude the comex will not default for another 5 years. However looking at more recent data reveals a different story.

If I use this same exercise on the last 50 days as my time frame, the loss becomes 94,345 oz./day resulting in a depletion projection of only 2.84 years

It gets worse and worse as the depletion rate is going exponential and will soon go hyperbolic.

Using the last 25 days of data, we see a depletion average of 154,102 per day resulting in a total comex depletion projection of 1.73 years.

It gets better–In the last 5 days, the comex has lost 403,468 oz resulting in a condition of “COMEX ZERO” in just 242 days. This Means that the “COMEX WILL BE COMATOSE” by February 21st 2012.