"I estimate that the 2 through 8 largest[silver]shorts [aside from JPM] are still net short in excess of 32,000 contracts. That a quantity [160 million oz... or $160 million per each dollar move in silver] that could easily turn into a serious financial problem at some point. I'm trying not to overstate the danger to these shorts... and bullish implications to [the] price... but it's hard. - Silver Analyst Ted Butler, 28 December 2010

Yesterday's price action was very impressive. The dollar's activity had no impact... and the a.m. and p.m. fixes from London weren't there to interfere with trading... but they will be today.

The CME's preliminary volume data for Tuesday's trading was a shocker when it was released in the wee hours of this morning. It showed big gold volume... around 105,000 contracts net of all roll-overs. Silver volume was much more sedate... around 38,000 contracts net. The preliminary changes in open interest numbers aren't very reassuring... and could actually show big increases when the final figures are released later this morning. We'll see.

But, whatever the numbers are, they will certainly be in the next Commitment of Traders report, which won't be published until Monday, January 3rd.

Gold and silver prices didn't do much in Far East trading during their Wednesday... and prices still aren't doing much of anything now that the London trading day has begun. Volume is incredibly light... with emphasis on the word 'incredibly'.

But, after what happened on Tuesday, all bets are off that the 2010 fiscal year in the precious metal markets will go quietly into the night."

From Ed Steers 12.29.10