In silver, we see the commercials going FAR more short and the large specs going far more long. Really interesting is the price rise, yet the speculators, on the surface, are not buying up long contracts by the bucket – but they covered so MANY short contracts that their net long position went skyrocketing upwards. For the commercials part, both the producer merchant and the swap dealers added huge on the short side to the tune of over 12,000 new contracts total. Notice the silver commercials added over 50 MILLION ounces net short!!
So, in my numbers world, with price rising, that tells me the commercials led the way and FORCED the speculators out of short positions. Notice a very modest pickup of short contracts by the small specs. Those guys know the top is near and they are getting ready to ride the rocket downhill as the commercials crash price in the coming days.
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