PMY - SILVER INVESTORS DREAM at start of BULL RUN, page-395

2020 full yr global silver production is forecast at ~800Moz

https://www.silverinstitute.org/silver-supply-demand/

So Sept Comex deliveries alone - if all seek delivery - at this stage would represent ~70% of total annual mine production - in one month

this trend has been going since March and the delivery totals demanded keep rising.

the conspiracy theorists view is JP Morgan and others are near out of silver to supply against the delivery and are short silver on paper

personally i think it more likely JP Morgan as a house - as opposed to clients - is net long silver and is part of the buying also

but it doesnt really matter - for purpose of silver price outcomes - who is where.

whats important is that - aggregate there's a big net investment bank short position that could drive a major short covering pop in silver price as the shorts have to buy back their silver short exposures and flip neutral/long once their silver short losses are too great

https://www.barchart.com/futures/commitment-of-traders/technical-charts/SI*0

commercials means investment banks

thats why she is hyperventilating

more broadly - if it takes place - it will mean silver should finally be out of the paper market suppression its been enduring since COMEX was set up - because US investment banks are only allowed to short to the extent of the metal inventory they physically own
(under rules imposed post GFC - US investment banks are only allowed to go to market neutral with their physical long vs derivative short positions )

What JP Morgan had been doing until recently is using its massive physical silver holdings to lodge Comex sells on the futures market

each paper contract - costing $us10-20us for most of that time - represents 5000oz of silver.

So for relatively little cost they could slam the futures market with massive implied silver selling - knowing most of the futures market buyers didnt plan to take physical delivery - so the silver futures price would wilt or collapse - depending on the size of the short

This would drive down the price of silver and JP Morgan would use the suppressed price to buy more physical

this construct is what all the silver bugs rail against and are hoping is about to collapse