Massive COMEX silver inventory movements to report from Wednesday's action, including a 1.5 Million ounce withdrawal from Scotia Mocotta!
Of perhaps even more interest is an 215,439 ounce movement from HSBC to Scotia Mocotta vaults!
Why would 215,439 ounces of silver need to be shifted from an eligible HSBC vault to an eligible Scotia Mocotta vault?
2 possible reasons we can think of.
Either Scotia Mocotta is in trouble and running out of phyzz and the inventory is needed to put out a fire at Scotia, or else someone with $9 million worth of silver being held in the HSBC vault is no longer confident that HSBC is good for their 215,439 ounces.
Either way, the movement displays a lack of confidence. Expect confidence to continue to erode until a massive panic level is reached and everyone simultaneously attempts to extract whatever physical silver remains on the COMEX.
COMEX SILVER WAREHOUSE INVENTORY UPDATE 9/1/2011
*Brink's received a deposit of 614,455 ounces into eligible vaults
*Brink's also had a withdrawal of 300,592 ounces out of eligible vaults
*Brink's also adjusted 67,489 ounces out of registered vaults, and into eligible
*HSBC had a large withdrawal of 215,439 ounces out of eligible vaults
*Scotia Mocotta received a deposit of 215,439 ounces into eligible vaults
*Scotia Mocotta also had a large withdrawal of 1,451,450 ounces out of eligible vaults
*No movements in The Delaware Depository or JP Morgan vaults
*TOTAL REGISTERED SILVER Inventory declined 67,489 ounces to 32,078,652 ounces
*TOTAL ELIGIBLE SILVER Inventory declined a net 1,070,098 ounces to 72,259,389 ounces
*TOTAL COMEX SILVER Inventories declined to 104,338,041 ounces