http://harveyorgan.blogspot.com/2011/06/massive-drain-of-comex-silveralmost-all.html Who is J.S. Kim: http://www.smartknowledgeu.com/aboutus.php
A quote from some private correspondence with me from someone more knowledgeable in futures: "The Comex daily reports - as you know, there is a page at the end that has daily settlements AND daily ex-pit (EFP EFS) volumes on it... he misconstrued that the EFPs were settlements of futures - he just took their volume as a % of EFP volume + settlement volume... then he also made up the fact that EFPs are futures for ETF - which is possible in gold (i don't know if it's possible in silver) - but we have no way of knowing if that's what happened.. the Silverbugs will now think that longs are being given shares of GLD/SLV when their futures settle - which is a flat out falsehood - unless of course the longs WANT that - then they can get it via an EFP" "unfortunately, he's clearly never done an EFP, and doesn't realize that it's a privately negotiated transaction, which means that BOTH parties must agree - shorts can't just "deliver paper" to longs."
Also, as someone who is knowlegeable in futures... let me explain what exchange for physical means (EFP): It is the process by which a bilateral (over the counter or OTC) contract is substituted for an equivalent position in the futures market. That means an open future can be settled against an open OTC position, as long as the OTC position is simmilar to the futures, and both parties to the OTC contract agree. The above statistic does not disclose what the OTC contract actually was. They could have ranged from agreements to deliver silver to options. Have a read of how it works on the Electricty market: http://d-cyphatrade.com.au/trading/trading_mechanism/exchange_for_physicalefp