Is going to be extremely interesting. I really think that the commercials will be net long silver for the first time I have ever seen. Anyone know when it is next released?
Hopefully prices stay where they are until after tonight then so we can get an accurate picture of what has occurred over the last 2 days on Friday I think it will be close!
old reports: http://www.cftc.gov/MarketReports/CommitmentsofTraders/HistoricalViewable/index.htm latest report: http://www.cftc.gov/dea/futures/other_lf.htm report release dates: http://www.cftc.gov/MarketReports/CommitmentsofTraders/ReleaseSchedule/index.htm And I wonder too. This silver price drop isn't reflected in any ETF. Their gold ETF shows a huge drop (33%) but silvers still sits on the same tonnes level. So I wonder who sold silver to the market. Maybe some mining/recycling new stock that was accumulated to then be dumped on the market?
I don't think there was any physical silver involved, just futures contracts. Just the same people behind the gold smackdown making sure both tanked.
But the net amount silver futures was less than 20000 before the price collapse, if they would have caused the price collapse, it would imply that they nearly became net zero or even net opposite position (demand net short, supply net long), a situation that, as far as I know, never happened in precious metals.
Don't measure a daily volume in ounces or silver supply, that's a scam from silver pumpers, a same contract, a same 5000 ounces, can be traded 1000 times in a day.
Profit to one party would result in loss to the other (with fees being skimmed out in the middle by the exchange). Banks can be market makers but not the sole participants (they need dummies to scalp after all, that's why they love the market spruikers encouraging people to join).
Naked shorts can't stay naked for months. A matter of days. Regulation. And it's even not relevant, because the spot price only reflects the difference long/short of the futures market supply (commercial hedgers + swap dealers) and the demand side (speculators). These are always equal because every seller requires a buyer. You can't have a contract without a counterparty. You can't gain dollars if these dollars can't be removed from another account (because there is no account). That's the reason that finviz.com's #contract trends show the NET total position trends under the price trend. All the other positions undo eachother. In other words: they neutralize eachothers effect on the price. For ex, if I would sell you a monsterbox, the price wont change. Simply because the higher supply chain doesn't see a higher or lower demand due to our trade. It's only if I sell you 100 ounces and 400 to a dealer, that the dealer will have to order 400 ounces less from the higher supply chain, that the latter sees a demand drop of 400. The 100 ounces is just a shift, not affecting price.
The COT are a fake as much as LIBOR. Used to part "sophisticated" investors from their money. "'Friday was a 4.88 standard deviation move in the price of gold. For simplicity's sake let's call it a five standard deviation move. Statistically we get a five standard deviation move approximately once every 4,776 years. So we should not expect another move like this out of the price of gold until May 17, 6789. Currently the two-day price change in GLD is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let's just say the sun is expected to burn out first.'" - Russell Rhoads, CFA of the CBOE Option Institute
What do you think is wrong in the COT report? Would they give wrong position numbers? I rather doubt that. Also, if you learn about some subject (here silver market), gradually you are drawing like a painting, and so far, no contradicting elements found. To give 1 example: a while ago I wondered why the silver price still was on the 3 x 2008 level. Because I didn't see silver ETF stocks rise since end 2011. While they did rise during 2009-2010, so were an explanation for the silver price tripling. How did it come that since end 2011, price didnt drop? Which other demand replaced the ETF demand? I couldnt find any. US Mint and some other big ones sold still as much as previous years, so those did their part in keeping the silver price on this 2008 x 3 level. But that alone couldnt suffice. Well, the price drop since last friday, with no ETF stocks dropping, confirms that my wondering had some ground. Probably they mined/recycled some silver, but didnt make it available to sell / for sale on the market. Until recently. So in this scenario it wasn't a change on the demand side, but on the supply side. Gold, another story. IShares Golds stock dropped 1/3 recently. That's 30 tonnes gold sold, which is 3 times the 10 tonnes of alleged Cyprus 'reason'. Which turnt out to be false (as of yet) since Cyprus central planning denied the gold sale. So 'they' wanted to slam precious metal prices down, case gold it was done with ETF positions (and maybe some other sources too), case silver it was done with supply mass hoarding then big dump. This gold/silver market difference is also indicated by the Comex stocks. Gold dropped since some months, silvers rose since some months.
Pirocco where are you getting this from? If I buy a December put then that put is going to hang around until December or until the option is exercised. The person who shorts on the Comex might have some cash in their Comex account to cover losses but they most certainly don't have to hold the silver, thus it is a naked short that would be lasting months.
Well this was not what I expected. The commercials are more short now than at $26... Normally they are almost perfect traders. This is backwards.... Commentry from TFMetalsReport.com:
Do not rely on COT to know what the bullion banks are up to, they've been making up numbers for quite a while now (the COT are just the tip of the iceberg that they let you see). It's all part of the generalized fraud in the system that is reaching its climax. (think Enron) The banksters are extremely long physical metals at this point, and have been loading up on mining shares for years. I you want to buy a few tons of physical gold bullion and pick it up next week, price is $2000+/oz usd. (silver $35+/oz). It might be six months before the bozo brigade realizes it.
