hemke sprott mone comex silver demand down Written by Craig Hemke, published July 5, 2023 on Sprott Money Blog.
As you may know, demand for physical silver is at an all-time high. However, demand for COMEX digital silver is at an eleven-year low. What gives?
What an interesting paradox we have here at the midpoint of 2023. Earlier this year, an organization called The Silver Institute reported on the latest global physical demand trends for silver. Given the "green agenda" and the growth in interest in all things electrified, it would follow that demand for silver as an industrial component would be soaring—and it is. In fact, The Silver Institute estimated that in 2022 alone, demand for physical silver outstripped supply by nearly 240,000,000 ounces:
Given that physical silver demand is surging to record levels, it would seem logical that demand for COMEX digital silver would be surging too. Nope. In fact, demand for COMEX silver (as measured by total contract open interest) is now at eleven-year lows.
As of Friday, June 30, total silver open interest on the COMEX stood at just 114,102 contracts. For context, consider the following:
- total open interest as 2023 began was 131,990 contracts
- the highest level of open interest last year was 168,283 contracts on March 8, 2022
- the all-time high open interest was seen on February 24, 2020, at 244,705 contracts
- at present levels, total contract open interest is the lowest since May 24, 2012
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