The COMEX is not on the brink of default. I skimmed the article. The big mistake he makes is assuming all futures contracts that are in the money get exercised. They don't. They get settled for the cash difference between the strike price and the spot market price.
There are forward contracts on deliverable silver, from miners, and futures contracts for the investment market. Frequently, inexperienced bloggers fail to account for the concrete nature of the forward contracts, which are concretely deliverable silver ... miners don't promise more than they can meet.
COMEX has an exactly predictable delivery schedule. And there are futures contracts that largely settle in cash. If you ignore the deliverable stream, and make the mistake of assuming all options are exercised, then you can find a mathematical silver shortage, where no such shortage exists.
There is no cash settlement in physical markets when a contract is marked for delivery. Sorry. And this article is about contracts that have been marked for delivery. If you hold a contract that is marked for delivery into expiration, you are responsible for delivering product.
They call it a contract for a reason.
I don't get it. If they need silver, why no just buy it? Now, if they say it's not available, simply raise the bid until it appears. Heck, if they raised the bid enough, I'd sell 'em mine. Isn't that they way the market works? I mean you cant have it bothe ways, both a low offer, and unavailability...