Gold & Silver COT Report 5/3/13:
Commercial longs removed 2,573 long contracts from their total and covered 5,507 total shorts to end the week with 50.74% of all open interest, a big increase of 2.40% in their share of total open interest since last week, and now stand as a group at 71,150,000 ounces net short, which is a decrease of almost 15 million net short ounces from the previous week.
By SD Contributor Marshall Swing:
Large speculators sold a total of 3,097 longs covered a net 286 short contracts decreasing their net long position to 60,950,000 ounces, a huge decrease in their net long position of just over 14 million ounces from the prior week.
Small speculators sold off a net 2,110 long contracts and also covered 1,987 short positions for a net long position of 10,200,000 ounces a decrease of 615,000 ounces net long from the prior week.
We have not seen the commercial percent of total open interest this high in a long, long time. They are in total control though their net short position is at historic lows they can control price with ease and are buying longs as fast as they can get speculators to take short positions.
This reporting period saw a mass exodus from open interest totals in silver. Traders could not sell long and cover short fast enough and are choosing to not renew their interest in the market.
There were massive changes in the respective spreading categories and in the disaggregated commercials reporting we see significant long buying by both parties and some short positions taken by the swap dealers.
Silver opened the period around $22.90 and went to a high, by Friday, of $24.83 but the large speculator hedge funds were not moved out of most of the short positions taken the previous week.
The small speculators continue to move towards a net short position while over in gold those small speculators have in fact achieved a net short position of -148,900 ounces.
In gold, the commercials picked up both longs and shorts by almost a 3 to 1 ratio as total open interest increased by over 6,000 contracts. No lack of interest in the metal there.
Those large gold speculators who last week picked up over 17,000 new short positions added another 3,325 short positions to their stash this time. This is setting up for another attack on the gold price and will take silver down with it.