Wednesday, June 19, 2013

Special Got Gold Report - Large Trader Positioning in Silver Futures

HOUSTON – As a courtesy to our blog readership and the general public we are releasing an excerpt of our recent special report to Got Gold Report Subscribers on the positioning of large traders in silver futures. GGR Subscribers received the report via email and on the private GGR welcome page on Sunday, June 16.

This report documents the stunning positioning of the largest, best funded and presumably the best informed traders of gold and silver futures – the traders the Commodity Futures Trading Commission (CFTC) classes as “commercial,” including some of the bullion banks many of those traders end up trading through.

20-Year Low Combined Commercial Net Hedges for Silver Futures

As of June 11, commercial hedgers held a combined net short position so small, that when viewed as a percentage of all COMEX contracts open, it is the lowest in at least 20 years. In other words the people who hedge silver for a living are in no mood to put on net hedges or bets that silver will fall considerably lower in price with $21 handle silver.

Just below is one of the many charts in the report that detail the large trader positioning visually. To download the PDF of the report follow the link below.

Download 20130615GGRsupplementalSilverCOTpublic

(Combined Commercial Net Short Positioning since 1993 for silver. Lowest since 1997. Source: CFTC for COT, Cash Market for silver prices after 2003, LBMA for silver prices prior to 2004, GGR.)

Posted by Gene Arensberg at 07:03:42 AM in Got Gold Blog

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But, Gene A, you say hedgers? Was JP Morgan’s perennial massive short position due to hedgers? Oh well, each to his own. What are ya gonna do? Some people just refuse to go there.

Assuming the gold/silver setups are as posited, we are gearing up for incredible price explosions to the upside. The question is from what price levels and when are they going to kick in?

As constantly mentioned here, the change in the trading patterns ought to tell us. In the meantime it seems the WAR on the precious metals continues. As per recent commentary, this WAR seems to be about keeping the pressure on gold and silver so The Gold Cartel’s bullion banks can cover more and more of their massive short positions put on for many years, even decades. It is a long process, as we are witnessing.

When the WAR ends, or at least this Battle of the Big is over, the move up in the prices of gold and silver will be a sight to behold. In the meantime The Gold Cartel continues to be bent on taking as many casualties as possible.