Over 5% of COMEX Silver Drained WHILE Price Crashed 10% Yesterday, Silver Miners Prices Calling BS On Recent Silver Price Crash, COMEX Contango Narrowed Yesterday (Silver Backwardation Indicates Big Players Need Silver NOW)

🧠 Read Between the Lines: What's Actually Happening

• This is not organic selling.

  • It's most likely algorithmic or institutional dumping of paper silver contracts—at scale—at the precise moment when physical metal is vanishing.

• Big players may be intentionally shaking weak hands out of their positions.

  • Those who trade on momentum or emotion panic-sell, while the institutions quietly accumulate physical behind the scenes.

📉 Paper Price Crash vs. Physical Drain

On February 12th:

• COMEX registered silver dropped by 5.1 million ounces in a single day — over 5% of what’s actually deliverable.

• That brings the drawdown since late 2025 to a jaw-dropping 93 million ounces, or -53.5%.

• And yet, the price of silver on paper (XAG/USD) plunged ~10% intraday.

Think about that: demand for physical metal is exploding, yet the price craters.

This is the opposite of what supply and demand would predict.

🛠️ Miners are calling BS on the dip

Rashad Hajiyev notes that while silver recently plunged from $121 to the mid-$70s, senior silver miners (SIL) are only down ~12%.

That’s critical.

Their resilience signals supports that:

If this drop were truly organic, driven by collapsing fundamentals, miners would be leading the way down.

Instead, they’re saying, “We see what’s coming.”

🔍 COMEX contango narrowing = someone wants silver now

Karel Merckx digs into the March-May silver futures spread, noting it’s still in contango (future prices slightly higher than near-term ones), but crucially:

This is hugely important.

In a healthy, well-supplied market, contango reflects normal storage and financing costs.

But if the spread starts compressing—or even flips into backwardation—it signals immediate physical demand outweighs future supply ease.

Karel explains that while March isn’t blowing up yet, this tightening suggests the COMEX isn’t functioning as an abundant warehouse of silver anymore.

Even as paper price falls, actual silver continues draining, now down to ~93M oz in Registered (available for delivery).

🧠 The Heart of the Silver & Gold Thesis:

We are entering the endgame of a monetary system built on debt, leverage, and artificial stability.

The signs aren't subtle anymore—they’re screaming.

🔻 STRUCTURAL DEFICIT + NO SUPPLY RESPONSE = POWDER KEG

• Lukas Ekwueme lays it out plainly: we’ve had nearly a 1 billion ounce swing in silver market balance since 2016.

• That’s not just a deficit—it’s an existential scarcity.

• Only ~20% of silver comes from primary silver mines.

  • The rest is a byproduct.

  • So even if silver goes vertical, copper and zinc miners won't crank up production for it.

    • There is no supply-side solution.

⚡ Industrial Demand Is Only Getting Started

• Silver is the most electrically conductive element.

  • As the world electrifies (AI, EVs, solar, tech, etc.), industrial demand is relentless and inelastic.

• Silver is being burned for tech while monetary demand hasn’t even shown up... yet.

💰 Silver’s Monetary Role: Dormant, Not Dead

• Rafi Farber cuts to the core: gold and silver aren't "becoming" money—they are money.

• The dollar is debt.

  • Once faith in that breaks (as it always does in a supercycle unwind), people flee back to tangible monetary metals.

• Silver hasn’t been monetized since 1971… in a world about to rediscover its need for real anchors.

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Luke Lovett
Cell: 704.497.7324
Undervalued Assets | Sovereign Signal
Email: [email protected]

Disclaimer:
This content is for educational purposes only—not financial, legal, tax, or investment advice. I’m not a licensed advisor, and nothing herein should be relied upon to make investment decisions. Markets change fast. While accuracy is the goal, no guarantees are made. Past performance ≠ future results. Some insights paraphrase third-party experts for commentary—without endorsement or affiliation. Always do your own research and consult a licensed professional before investing. I do not sell metals, process transactions, or hold funds. All orders go directly through licensed dealers.