516 Million Ounces on Paper

Silver open interest stands at 103,250 contracts. At 5,000 oz per contract, that represents more than 516 million ounces of silver in nominal futures exposure.

That is a remarkable number on its own.

But it is important to remember that almost none of those contracts will ever result in someone taking physical delivery of the silver. Most futures positions are closed, rolled over, or settled before expiry.

An enormous amount of silver is therefore traded on paper without ever changing hands in physical form.