Gold & Silver COT Report: Commercials Net Short Nearly 300 Million Oz in Silver, 25 Million Oz in Gold

Submitted by SD Contributor Marshall Swing:

Gold & Silver COT Report 11/30/12

Commercials declined 894 longs on the week and increased 712 shorts to end the week with 47.05% of all open interest, a small decrease of -0.18% in their share since last week, and now stand as a group at 283,960,000 ounces net short in silver, which is an increase of just over 8,000,000 net short ounces from the previous week

 

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Large speculators borrowed from their friends and relatives to buy up a massive 3,776 longs but they also added 3,004  short contracts increasing their net long position to 193,665,000 ounces, an increase in their net long position of just under 4 million ounces from the prior week.

 

Small speculators bought into 1,408 longs and added 574 short contracts for a net long position of 90,295,000 ounces an increase of well over 4,000,000 ounces net long from the prior week.

 

The furious buying continued and even increased for the speculators this past reporting period but since Tuesday’s close we saw a shakeout of both speculator longs and shorts with massive volatility in both gold and silver, particularly gold.  The real war has been in gold over the last 3 weeks as we compare the charts.  We will see huge changes of position in next week’s COT numbers.  However, for this week, despite all the position changes in open interest, total open interest was all but stagnant.

 

The divergence of open interest position changes on the part of the speculators in this report tells us we can expect more volatility in the near future as huge short positions were taken by some large speculators.  This divergence creates weakness in the overall speculator long position.

 

In gold…

 

 

Here we do not see the same short positions taken by the large speculators as in silver but we see them taken by the small speculators.  Also note the longs bought by the producer merchant.

 

I believe these longs bought by the producer merchant to be temporary positions that were bought to entice the speculators to buy longs.  These positions were probably sold off right before each of the raids.

 

Again as in silver, we see significant divergence of direction like we have not seen for many months.  This only makes the speculators easy prey for the commercials.

 

As always, for your convenience, if you would like to contact the CFTC and express your views on the commercial trader’s unfair dominant short position, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: http://www.cftc.gov/Contact/index.htm and email addresses as well:

 

ggensler@cftc.gov  Chairman Gensler

 

bchilton@cftc.gov  Commissioner Chilton

 

jsommers@cftc.gov  Commissioner Sommers

 

Somalia@cftc.gov  Commissioner O’Malia

 

mwetjen@cftc.gov  Commissioner Wetjen

 

dmeister@cftc.gov  Director Meister

 

See you next week!

 

Marshall

Comments

  1. Listening to Eric Sprott over at another site, he said he hadn’t received his 9,000,000 oz purchase yet, but if he doesn’t get it on time he will announce it publicly.  That 9 mil is about the same as all the silver standing for delivery this month, you know?
    What a lame deal, one fund buying silver while the rest are shuffling their bubble gum card silver back and forth.
    I have seen the enemy, and he is (some of) us.

    • Why doesn’t he just go and buy every single remaining ounce of physical remaining in the Crimex? Just crash the whole darn thing!

    • TPTB won’t let him clean out the comex, it would start the crash of the US economy.

    • I wonder what would happen happen if Eric Sprott announce publicly that he didn’t received his physical silver on time? Maybe it will cause more dramatic actions in the silver market as the buyers seek for the physical silver.

  2. RRG- That’s not what he’s trying to do, he is just sourcing real metal (as required) for his fund. In the interview he didn’t say where he got it, but he did his part. Placed the order and is taking delivery..
    I would wonder where the hell everyone else is.. Where did those 47,000 contracts go?
    That’s the real weakness, they either rolled over or sold out for fiat payola, I guess.  At the last possible minute.
    Mr. Sprott is one of the good guys, in my view. 

    • Whatever the reason and whomever it was, it has been very effective in crushing the price.  Yes, Sprott is one of the good guys and doesn’t cower from the from JP Morgan or the Hedge funds who are most certainly in collusion. If any of many billionaires in the world dicided to buy every oz. of phyzz Ag in the Crimex they would probably shut it down!

    • Time is coming when one of the banks will break ranks and ask for delivery and bring the system down. No honor among thieves you know.

  3. 9,000,000 oz’s that is one hefty amount and fiat price. Go get them Eric, hope it all goes well for you. Stack The Physical

  4. No matter what the cartel does, their paper gold and paper silver tricks won’t work in the end as physical gold and physical silver are in short supply. When that happens, their manipulations will be destroyed.

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