Golden Minerals Company

The largest silver ETF, the iShares Silver Trust (SLV), has attracted huge investor interest and has seen an astonishing increase in asset growth. The SLV, which held $263.5 million in silver at its inception in April 2006, closed today with total net assets of $13.7 billion. Furthermore, to get a beat on what SLV "tonnage" was in April 2008:

SLV Alleged Inventory:

So….

* Silver price April 5, 2006 – 11.70 263.5 million / 11.70 = 2.25 million troy oz or 79 metric tonnes

* Silver price April 4, 2008 – 17.70 5,700 metric tonnes or 183.26 million troy oz.

* Silver price April 5, 2011 – 39.50 13.7 billon / 39.50 = 346.84 million troy oz or 10,788 metric tonnes

50,000 COMEX contracts @ 5,000 oz per contract = 250,000,000 troy oz

Another way of looking at the disparity between # of COMEX contracts in 2008 and NOW:

Could it be that "smart money" recognizes COMEX as a fraud but believe that SLV actually represents a viable investment in physical bullion? If so, would this not go a long way to explaining the ELEVATED price of silver on COMEX with reduced open interest? If this is the case – what we are witnessing might be more a case of an unprecedented "flight from the COMEX" in favor of what is perceived as a superior alternative.

If so, what happens to the price of REAL PHYSICAL when holders of SLV realize they’ve been duped?

Further to my earlier e-mail on SLV outstanding versus COMEX open interest: If the banks are moving the bulk of their suppression over to SLV – I believe that would appear on the Bank’s Balance sheet as "equity" as opposed to the much maligned off balance sheet "derivatives" category for official regulatory reporting.

I have noticed how SLV has recently begun trading at an even deeper discount to COMEX spot – IMO, this would be consistent with the banks moving "the tip of the spear" of their silver price suppression TO SLV from COMEX silver.

My comment: If that theory is correct, it could mean that the CRIMEX is still the price discovery mechanism and given decreasing volume, it would be easier to manipulate, cost less to manipulate and be much less a discovery mechanism than a leveraged tool for the cretins to do their dirty work.