The latest COT is a silver shocker. Silver Commercials covered a ton of shorts and took even more long positions than they unloaded shorts which indicates buying both side of trades, as I mentioned recently.
The state silver is in now feels like the Sargasso Sea with no trade winds blowing. Some are saying this looks bullish but I cannot see it as silver Commercials and Speculators are approaching parity in longs and shorts and I see that as stabilizing and range bound.
It is really rare to see the combined Silver Commercial short position at 40.6% but remember, that report reflects Tuesday afternoon after the low at $16.10 in the morning and a close of around $16.18 in the afternoon. Then, we had a major explosion where I guess the Commercials added many longs in the beginning as Managed Money ate shorts and then those Commercials bought many shorts higher up Wednesday thru Friday as Small Specs gobbled up more longs and some Large Specs may have bucked Managed Money’s short affair.
What this amounts to is those Commercials gained some fodder for expiry. There was a really interesting flag in silver, Friday at 9AM 9,236 contracts so we could see some small fireworks in silver over the next couple of days but gold looks like really sparkly. I am not expecting sub $16.00 silver this week.
Now contrast the last 3 days of silver with the last 3 days of gold and we see a completely upward trajectory in gold which indicates silver and gold Commercials have diverged tactics. Those gold Commercials still have, as of last Tuesday, a 62.4% short position and I expect it is much higher now near close to 70%. My guess is they expend some shorts before expiry but we’ll see as gold options have been declining and maybe all is over with for this month . Gold also had the Friday 9AM flag with 32,382 contracts…
Silver can now go quite some distance in time with no real expectation of price change since overall opposed positions are about a wash. Managed money does not have the fodder to grow its short position and the Commercials seem intent to stagnate price.
There are now 4 months to my July guess so the real war is going to be in gold.
My written theory for many years is the Commercials flip long just days or even hours before the Global Economic Crash and do it in such a way so the Speculators think all is well and they suck up shorts for profit as Commercials flip long. This flipping creates a massive price drop and price rebounds so quickly none of us stackers will be able to purchase physical silver or gold at those low basement prices. I am talking minutes, even as little as an hour for gold to drop several hundred points then rebound far above like a slingshot.
With the overall Commercial position in silver now close to even then it is simple for the Silver Commercials to flip long so something will happen to cause the gold Commercials to be able to publically justify a super massive short covering raid and say “we told you so”.
All this is why I say BUY PHYSICAL SILVER NOW.
I do not see a new low in silver or gold until the event happens. I see stagnation in silver with a war in gold. Will the gold Commercials begin releasing shorts and buying gold longs at lower prices so Managed Money can join their silver short counterparts?
The gold COT shows they did exactly that last week, albeit in a small way, but for the next 4 months, who knows…
I just told a very good personal friend, who is retiring soon, to stop thinking about selling their house and SELL IT NOW and to get all the cash they can get their hands on and buy physical silver with all of it, immediately. This is a person who has have never owned an ounce of physical metal.
If they crash all the derivatives and bonds then all the world’s currencies crash to NOTHING. ZERO. NADA. ZILCH.
Then everyone’s paper, in whatever form it is in, is gone. FOREVER.
Welcome cashless society and one world currency, 2018 style!
Revelation 13:3 And I saw one of his heads as if it had been mortally wounded, and his deadly wound was healed. And all the world marveled and followed the beast.
The people will love it.
Stay thirsty for physical metal, my friends,
PS… Attached below are a couple of very ominous, similar pictures indicating something very dramatic may be about to happen.
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