Inventory drain in India's MCX

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Background:
Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. ([1]) MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others).

In 2012, MCX has taken the third spot among the global commodity bourses in terms of the number of futures contracts traded. Based on the latest data from Futures Industry Association (FIA), during the period between January and June this year, about 127.8 million futures contracts were traded on MCX.[1]
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Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading (But actual volume is far behind CME group volume as Silver is traded in 30 kg lots on MCX whereas CME traded in Approx 155 kg Lot size same in Gold 1 kg : 3. kg Approx ...

http://en.wikipedia.org/wiki/Multi_Commodity_Exchange

April 3rd: Silver (30 KG Bar) Total 92793.5752 KG
April 11th: Silver (30 KG Bar) Total 73590.9476 KG
April 19th: Silver (30 KG Bar) Total 45729.0412 KG
April 25th: Silver (30 KG Bar) Total 37247.0048 KG
May 1st: Silver (30 KG Bar) Total 22177.0157 KG
May 3rd: Silver (30 KG Bar) Total 20432.7952 KG
May 4th: Silver (30 KG Bar) Total 22987.7142 KG

75% of their inventory gone in a month.

Find the numbers here: http://www.mcxindia.com/SitePages/Delivery.aspx#

Further, it appears that 9K+ of the current ~23K reported is actually an electronic credit (IOU) or promise to deliver and not actual physical in stock inventory.

24. What is Dematerialisation?
Dematerialisation refers to issue of an electronic credit, instead of a vault/warehouse receipt, to the depositor against the deposit of commodities. Any person seeking to dematerialize a commodity would have to open an account with approved Depository Participant (DPs).

http://www.mcxindia.com/marketoperation/delivery/PDF/faq/FAQ.pdf
 
I'm reading all over the place about the complete dearth of silver bars for sale, and the rationing of metals at wholesale warehouses. How long can "they" keep up the charade?

One day, and that day may well be coming soon, "they" will have no alternative but to cover those short bets and let silver do her thing.
 
Looks like they found some inventory yesterday.

May 4th: Silver (30 KG Bar) Total 22987.7142 KG
May 6th: Silver (30 KG Bar) Total 47910.1939 KG
 
And... poof... it's gone.

May 7th: Silver (30 KG Bar) Total 20793.5022 KG
May 8th: Silver (30 KG Bar) Total 20700.5387 KG
 
Just a ho hum update...

May 16th: Silver (30 KG Bar) Total 18420.1534 KG
 
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