Silver COT report May 17th

[jim4silver]

Here it is. Looks like the Commercials (often said to be the "smart money") added more longs and eliminated some shorts. I believe that we are either there or very close to where it could be said that the Commercials are now at the most "long" they have been with respect to their current number of longs and shorts in many years (from what I have read--but don't personally have the facts).

I have also read that it is the hedge funds and such that are pushing silver lower in the paper market (known as large speculators). Don't know if that is true.

I would imagine as gold and silver go lower more paper traders might ask for delivery especially if there are any supply issues for retail silver.

COT Silver Report - May 17, 2013 | SilverSeek.com

Jim

 

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[TreasurePirate69]

Here it is. Looks like the Commercials (often said to be the "smart money") added more longs and eliminated some shorts. I believe that we are either there or very close to where it could be said that the Commercials are now at the most "long" they have been with respect to their current number of longs and shorts in many years (from what I have read--but don't personally have the facts).

I have also read that it is the hedge funds and such that are pushing silver lower in the paper market (known as large speculators). Don't know if that is true.

I would imagine as gold and silver go lower more paper traders might ask for delivery especially if there are any supply issues for retail silver.

COT Silver Report - May 17, 2013 | SilverSeek.com

Jim

I totally agree that as paper prices go lower there will be a point where more and more traders will ask for delivery. Right now there really isn't enough of a spread between paper and physical to make enough money by taking delivery. Delivery costs are relatively high making the earning potential on taking delivery much lower. Once that changes and the spread becomes large enough there will be a rush into paper in order to try and take delivery which will put the paper and physical prices back in sync. Either that or the paper market will collapse due to defaults on deliveries. But I imagine the COMEX will do whatever it takes to ensure that it never happens.