Are Gold & Silver Now "On Sale"? | Andy Schectman

Massive delivery volumes continue unabated

March saw 14,559 gold contracts (1.45M oz) and 9,212 silver contracts (46M+ oz) delivered, with April first notice day showing 10,138 gold and 1,181 silver contracts immediately standing for delivery.

Eligible inventory exodus signals sovereign accumulation

Two million ounces recently left COMEX eligible storage (not for sale), representing metal physically removed from Brinks facilities by entities with capacity to transport and store 168,000+ pounds, suggesting government-level actors.

China imports at record pace despite production capacity

February marked China's largest single monthly silver inflow in recorded history, even as the world's second-largest producer buys concentrate from Latin America at double Western prices and flies physical metal home.

Price serves as misdirection tool

While paper prices decline and financial advisors discourage precious metals investment, Eastern sovereigns and deep capital exploit the discount to accumulate physical inventory Schectman calls 'the best value I've ever seen in silver.'

Exchange for Physical facilitates Eastern arbitrage

Large players exploit COMEX contracts exchangeable for physical delivery in Hong Kong, allowing metal to travel by armored car to the Shanghai Metals Exchange while Western markets focus on suppressed paper prices.

Fractional reserve structure exposed

Open interest vastly exceeds deliverable metal on COMEX and LBMA, creating a Ponzi-like dynamic where rehypothecated paper claims outnumber physical bars, vulnerable to a 'bank run' if multiple parties demand delivery simultaneously.

Technical anomalies suggest manipulation attempts

Four CME Group 'glitches' since Thanksgiving—including circuit breakers failing on both upside and downside moves—coincide with unprecedented delivery arithmetic that threatens price discovery mechanisms.

Retail markets face first starvation

In a scarcity scenario, sovereign mints would likely halt exports to the United States while institutions retain access, leaving local coin shops and small investors without supply while big money preemptively purchases future mine production.

2008 crisis provides roadmap for physical seize-up

When silver crashed 60% in 2008, physical supply vanished despite low prices—the US Mint shut down repeatedly, Perth Mint ceased new orders, and only one medical device company (Pyroat) had available silver for four months.