cartel taken to kneesBy SD Contributor Marshall Swing:

Commercial longs sold off a total 1,326 1,037 contracts and covered 4,918 net total shorts to end the week with 48.59% of all open interest, a decrease of 1.02% in their share of total open interest since last week, and now stand as a group at 41,670,000 ounces net short, which is a decrease of almost 18 million net short ounces from the previous week, a massive net short covering of over 30% of their entire short silver position!

Silver Buffalo Rounds As Low As
$1.19 Over Spot At SDBullion!

 

silverCOT

 

goldcot

Large speculator longs decreased by 1,474 contracts and picked up 2,750 net short contracts decreasing their net long position to 22,955,000 ounces, a massive decrease in their net long position of over 21 million ounces from the prior week.

 

Small speculators sold off 289 long contracts from their total and covered 921 short positions for a net long position of 18,715,000 ounces an increase of over 3.1 million ounces net long from the prior week.

 

Just when we thought maybe the end of bearishness was at hand, speculators seemed to double up on their shorts, commercials went even further long, and open interest plummeted.

 

Commercial banks, as a whole, are only a couple of weeks away from being net long if the same turnover happens as happened this last reporting period and large speculators only need one more week at this rate to be net short.

 

However, the producer merchant portion of the commercial banks is still almost 131 million ounces net short and they hold most of the big cards so do not start counting those eggs as chickens yet.

 

In gold, the directions were almost identical to silver but by far greater percentages.  Gold saw a 9% reduction in total open interest and the majority by the commercial class of traders.

 

In both gold and silver the large speculators took huge new short positions but the culprit is not managed money.  Managed money covered a huge volume of shorts so the remaining class of large speculators and the small specs are  still expecting to see prices decline from here.

 

But the most interesting point in the data I would like to mention is while silver was trading in a range more volatility was in gold and commercials in both classes and both metals decided it was a great time to take profits with gold leading the way.

  1. I’ve been reading about the silver rocket getting ready to take off ever since I started stacking after the big may smash. With any luck I’ll see some positive price action after averaging down on silver for years.
     
    I know my real wish of the crooked bankers and politicians hanging from trees won’t come to pass, so silver going ballistic will be a nice consolation.

    • With any luck I’ll see some positive price action after averaging down on silver for years.
      Why would you want to see positive $Spot action? so you can sell your Silver? For dollars? That doesn’t sound like a smart move. If the paper price goes up that means it is still in control of the market. I welcome it dropping significantly more until the paper market is finally broken. My advice would be stop referencing your wealth in dollar terms (that will be meaningless before you know it) – use ounces instead.

    • It is really a struggle for those raised in a Western thinking mindset to discard the USD as their reference point of value.
      For monetary stability, humans require a reference point of value – a physical asset, ideally one without conflicts. There is really nothing special about Gold… except that as an element it has the most suitable characteristics we require to be that reference point. Aside from the obvious that it is durable, portable, divisible etc. you used the term ‘otherwise useless metal’ with a negative connotation – where it is actually an essential positive. Being ‘useless’ means it can’t conflict within the marketplace for its purpose as a wealth asset unlike, say, salt or petroleum. That also means it won’t be used up. Petroleum’s divisibility is inconvenient and it’s not ever lasting (it can be used up!). Opposingly, these are the reasons that Gold has been a representation of wealth for over 5,000 years. The number of gold atoms on Earth is fixed. History maintains that it is the perfect asset choice as that reference point of value.
      The USD is no Store of Value – how much history do you require? Yet people still believe in it… till they won’t. the rest of the globe is awakening (no buying Treasuries – or far less, trading Oil, wheat etc. for Gold – Turkey, Iran, China, Russia) What difference does it make if your Silver goes to $200/ounce if a cup of coffee is 100 trillion?

    • It’s really pretty simple.
      Firstly, and very simply, very obviously, Metal prices getting set free will help crush the current system which has to happen.
       
      Secondly, In terms of this bull sh1t pontificating of “stores of value” – do the math, I’ll do it for you if you need help. Silver in the last 2 years has been a poor store of value. Sorry to be the bearer of obviously bad news. Those are facts. I stack so obviously I am on board, but save the “count ounces” drivel. This market is an illusion and it needs to go away.
       
      I feel silver is the most undervalued asset on the planet, and I would like to see it reach it’s fair value, which is multiples of what it is now.

    • Pitiful what you understand after all this time ranting in this forum.
      Silver in the last 2 years has been a poor store of value.
      Only if you sold it… for dollars… in the last 2 years. What you are representing yourself as – is a trader. You are trying to time the market – expecting it to go up. WHY DO YOU KEEP REFERENCING EVERYTHING IN DOLLAR TERMS?!?!!? Do you realize this paradigm will be ending?
      The super-rich don’t time their Gold for trading – they hold it (forever) as a STORE OF VALUE (now SoV is Bull – what a world – what about MoE? and UoA? – I suggest you read The Quantitative Theory of Money) because it has been the best store of value in history. It protects their wealth (notice I use the term ‘wealth’ and not USD?) from any and all financial outcomes. If you want a quick buck to buy a new HD TV or trip to Jamaica – then short Silver – your calls, as a short-term trader, so far have been way off the mark. If you hold it then you are holding it for your legacy, to protect your wealth NOT to sell for USDs to buy ‘stuff’. Back to the all-you-can-eat buffet and Reality TVs shows, Hoss.
      I feel silver is the most undervalued asset on the planet
      and yet you complain that you can buy it so cheaply. If I thought that I’d be overjoyed right now. You must be a short-term trader – they will get wiped out in this environment. Go buy more Silver – maybe you’ll crash JPM…

    • Sounds like you require a good dose of FoA:

      Take the most able years of your broad middle-age to expand your skills and knowledge and to produce something the world wants or needs. Sell your time, energy, and capability to the highest acceptable bidder. Throughout your life strive to improve your special talents or capabilities, and strive to make your field of passion also your field of employment. Your only obligation is to prepare yourself for your feeble years by producing an excess during your productive years, and living with discipline so that you will have adequate savings to draw upon until the day that your spirit flees your body for a more suitable residence.
      Part of the discipline that assists you with your obligation to yourself is the wisdom not to be duped into selling your productivity for less than what it’s worth or for false promises, and don’t squander your meaningful and important savings by chasing uncertain rewards for undue risk.
      Truly, what is a dollar but an empty promise? A promise that springs into existence as easily as a loan contract. A promise that the borrower will one day give that dollar back, and a promise that the issuer will at any given time exchange such a dollar for nothing more than another dollar. If you are willing to sell your valuable productivity for payment in dollars (or any other fiat currency,) the quality of your discipline must either be called into question, or else you have satisfactorily called the currency into question and found it to be one in which borrowers cannot ever be allowed to default and, more importantly, the supply can’t be issued (expanded) to such high levels and at a rate such that the purchasing power is eroded, or be capable of contracting such that businesses and the economy fall into a recession or depression. A careful review of fiat currencies and fractional-reserve lending practices will reveal that no fiat currency can suitably pass muster.
      So there you have it. When you strive to master the all-important art of timing your investments, the most crucial time is every payday in which you are, in truth, selling yourself–selling your own time, labor, and productivity. Are you being paid-in-full on each payday, or are you accepting an empty paper promise of payment built upon the strength of and the continuation of the confidence of everyone in society. Are you worth payment-in-full? Have you ever received an ounce of honest money for a day in your life? You can perfect your investment timing by being paid in Gold–you would be paid-in-full at the very moment that you sold your productivity. But in an acknowledgement of the currency structure of the present realm, for your own convenience, take your dollar paycheck and first use it to pay your various bills to all of the others who have been duped into accepting dollars for the sale of their own products and services. Anything left over represents your excess production, and is almost suitable for saving. Since your employer probably paid you originally in dollars, it is up to your own discipline to convert this excess into Gold to effect your own immediate payment-in-full.
      Held as Gold, your excess production has now become suitable for saving until the day arrives that your feeble old age forces you to become a net spender instead of a net saver. The timing couldn’t be any easier or more evident!

    • I understand what a dollar is. Again, spare me the drivel. Until it’s over, it isn’t over, which is why I want silver to go ballistic.
      AGAIN, the inconvenient fact is that if I went all in on the stock market when I started buying silver, and cashed out today, AND went all in on silver, my stack would be quite a bit bigger.
       
      You talk about how worthless dollars are, but call me out on hoping silver finds it’s true value? LMAO…
       
      FOA can FO.
       
       

    • why I want silver to go ballistic.
      in dollar terms?
      my stack would be quite a bit bigger.
      in what? USD?

      You just don’t get it do you. You want to get rich by buying Silver, you want to trade silver at a high dollar value for paper…  frigg’in genius. Good luck with that. Keep following your gurus Morgan, Kaiser, etc. – people like you rarely wake-up

      You should be looking at how much Gold – you can get for your Silver, buddy. NOT USD… the last man standing in this will be Gold.

      FOA can FO
      That about says it all for your intelligence. Keep buying the most underrated asset on the planet right down to $5 USD and a skyrocketing SGR.

    • Roubini is one of those who has predicted 9 of the last 3 recessions and 3 of the last 1 depressions.  He’s not happy unless he is predicting immediate financial doom for one and all.  Like all extremists, he will be right on rare occasions… but not in general, which is where most of us live.  Apparently, this is sufficient encouragement to keep him at it.
       
      Personally, I prefer Peter Schiff’s commentary because he is particularly good at tying his predictions to current and historical facts that are either known or can be found online.

  2. Silver manipulation is going to continue. It’s just not going to continue in the same direction for too long. It may well be that prices will be driven so aggressively, that if you’re not already in, it’s too late to get in. Especially with physical. See how hard it is for dealers to deliver on low prices. Imagine what happens if the price doubled between you ordering and the dealer taking delivery from the mint or wholesaler. There is little incentive to honor the sale to you. He can just default and sell the silver to the next person. Having an ethical dealer is essential.

  3. Silver is value store of value, but its still true having more of it is better than having less.  If I would have sold my silver at $49 and invested that money in stocks, I could buy 4X that amount of physical silver today.  What was true yesterday is still true today, insider knowledge will always beat the rest of the crowd.

    • We really do need to get over the idea that anyone knows what the future holds.  Most people have enough trouble properly interpreting a 2-D graph with x-y coordinates, let alone a 3-D graph with x-y-z axes.  Now, consider all of the data that contribute to the graph we call the US stock market.  How many dimensions would it have if it could be depicted completely?  50,000?  More?  I don’t know but it would be more than sufficiently complex as to challenge the capacity of a supercomputer or even a few of them working the problem.  Which is to say not only do we not know the future, it is unlikely that we ever will, manipulation or not.  Given this, don’t worry about it.  Just buy the gold and silver you can, while you can, and call it good… because that’s what it is.  :-)
       

    • Anyone that believes anything they read on KWN is a fool. If those so-called “experts” were half right, hell even ten percent right, it would be amazing, After being a daily reader for over two yeasr now I have have concluded KWN is merely a venue to pump up metals in an extremely positive light – clearly one-sided. My guess is that Eric King is being paid by all of his “experts” to post those “EXCLUSIVE, AMAZING, EXTRAORDINARY, STUNNING, UNBELIEVABLE” - “articles” pumpng PM’s every day. Look at all of the contributors; they are in the business of selling PM’s, PM stocks, PM newsletters. I would not be surprised at all to find the site was created by all involved.  You will never read anything but how great PM’s are on KWN… and yes, you will read blatant lies as well… talk about a conspiracy, well, look no further than KWN.

  4. @ZMAN
     
    You are aware that when bond yields rise that holders are selling. The rise in yield means the Fed needs to print more money to pay the interest unless all the rules of bond economics has changed since the last time I looked.

  5. I disagree, that gold is the end game and silver is just a commodity.
    Gold is money, carefully preserved money.  Silver is turned into all sorts of high demand consumer products even as the supply is diminished.  Most of them use so little per unit, they won’t be profitable to recycle until it’s too late..  Now the world will not give up solar energy,  pharmaceuticals, chemicals or advanced electronics just to preserve silver for use as a decoration or even as money.  It will be used up. Toward the end, prices should skyrocket (ha) at first, then we will be made an offer we can’t refuse-  either cash or the cuffs, it’s that important.  The trick will be to sell it (or stash it) just before they make a move.  Adventure just ahead, get a helmet.
    The gold in those vaults will still be lying there in thirty years, doing its job. Being shiny money. And valued at whatever level the ‘market’ sees fit.  Like today.
    Just one opinion.  Do your own due diligence, as always.

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