On the heels of some fierce trading this week in the dollar, gold and silver, below is an extremely important update on the war that is raging in the gold and silver markets.

The commercial shorts are at a level (real-time) that raises serious concern. As stated earlier, the commercials now have their largest all-time short positions in history.

The last time the commercials held close to this large of a short position in silver was in 2004. Again, that does not mean that the price of silver cannot head significantly higher in the short-term.

What is important to note on the chart above is that when the commercials were this short silver in 2004, there was a brief 12.7 percent pullback in the price of silver, but over the next 18 months the price of silver more than doubled from the low of that pullback in 2004. So from late November of 2004, when the price of silver fell to about $6.70, the price of silver soared to $14.31 by early May of 2006.

Nevertheless, the commercials now all-time record short bets against silver and that is something that traders and investors should watch closely.

http://kingworldnews.com/warning-commercial-short-positions-in-gold-silver-hit-another-all-time-record/