no problem...they will.
from kitco:
gBut, I agree that taking physical possession is right in this case for a different reason. I am shocked at how little silver is in TOCOM's warehouse - less than 1.7 million ounces. I don't think it has to do with storage charges, but more to do with no inventories, period. Remember, these guys invented just-in-time inventories ( read: no inventories ) .h
I think that the just-in-time inventory concept was born out of necessity in Japan. There is not much space, and the space that is available is expensive.
Now, for the past 20 years Japan has had no problem whatsoever in buying silver, so I would imagine that the purchasing managers do not even consider supply risks for silver. As a result, it may be reasonable to assume that there are no inventories.
I went back to the warehouse receipts info at Tocom, and confirmed that there are only receipts for 863 contracts ( 60kg each ) of silver. Open interest is at a very low historic level of 20,000 contracts, but still not much silver. Actually below plat, which has 940 contracts worth of metal in the warehouse ( 50 were taken out last month! ) .
gJust think, you taking delivery of two contracts ( 4000 oz ) , could unravel the whole thing. Expect a call from Greenspan, or maybe even the Emperor.h |
