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5 min readSilver's Unprecedented Discount and the Physical Drain from COMEX
Andy Schectman, CEO of Miles Franklin, has spent 36 years in the precious metals industry. He says he has never seen anything like the current conditions in silver. "This is something that just makes zero, zero, zero sense to me," he says. "And I find it to be the best value I've ever seen in silver." The reason: junk silver (pre-1965 US coins) is currently selling at a $2 discount to spot price — meaning buyers pay less than the melt value of the silver content. Schectman calls this a "price anomaly" that defies explanation, especially since during the pandemic he would have paid $9 over spot for the same product.
The Unprecedented Physical Drain from COMEX
The core story Schectman tells is about physical metal leaving COMEX at levels never seen before. In March, 14,559 gold contracts (1.46 million ounces) and 9,212 silver contracts (46 million ounces) stood for delivery. In a single week, two million ounces of silver left the "eligible" category — bars that weren't even posted for sale, pulled from storage at Brinks JFK in New York. That's roughly 168,000 pounds of metal in one week. In February, almost 39 million ounces of silver left COMEX entirely, getting loaded onto trucks.
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What you'll learn
- 1 (00:00) **Unprecedented Physical Delivery Drain** - Andy Schectman reports that the physical removal of gold and silver from COMEX continues at record levels, with billions of dollars in metal leaving the exchange each month.
- 2 (04:10) **Price as a Tool of Misdirection** - Schectman argues that the paper price is being used to mask massive physical accumulation by informed actors.
- 3 (06:30) **Who is Taking Delivery? Sovereign Actors** - The scale of the delivery drain points to government-level buyers, not retail.
- 4 (08:48) **Warning Signs: Inventory Tightness & Open Interest** - The ratio of paper contracts to deliverable metal is dangerously out of balance.
- 5 (12:55) **A "Run on the Bank" for Physical Metal** - The current delivery demand is analogous to a bank run, threatening the paper market's viability.
- 6 (15:20) **How a Shortage Would Manifest** - Schectman outlines the likely sequence of events if physical metal becomes scarce.
- 7 (22:58) **Impact of the Iraq War on Metals** - The war creates a "margin call" for oil-importing nations, forcing them to sell gold and other assets.
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Guests on this episode
Show Notes
TO TAKE ADVANTAGE OF ANDY'S JUNK SILVER OFFER go to https://thoughtfulmoney.com/buygoldAre gold and silver prices now "on sale" given how much the metals have corrected despite the raging war in the MidEast?Precious metals expert Andy Schectman thinks so. And when it comes to pre-1965 US coinage (aka "junk" silver), Andy thinks silver is trading at the best value he's ever seen in his long career.To learn why, watch this video.#goldprice #silverprice #preciousmetals _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.All the details on Thoughtful Money's relationship with the financial advisors it endorses, many of whom regularly appear on this program, can be found in the following documents. We highly recommend you review these documents as they cover the terms that will apply should you choose to work with one of these firms at any time after watching this video.Thoughtful Money Disclosure Document: https://thoughtfulmoney.com/wp-content/uploads/2023/12/Thoughtful-Money-Disclosure-Document-12.6.23.pdf?pid=227Thoughtful Money Agreement: https://thoughtfulmoney.com/wp-content/uploads/2024/11/Thoughtful-Money-Agreement-Agreement.docx?pid=227IMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2026 Thoughtful Money LLC. All rights reserved.
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