Silver COT Report 11/16/12: Commercials Increase Net Shorts a Massive 6.4 Million Ounces!

By SD Contributor Marshall Swing

Silver COT Report 11/16/12

Commercials added a huge 3,071 longs on the week and increased a massive 4,354 shorts to end the week with 46.54% of all open interest, a sizeable increase of +0.91% in their share since last week, and now stand as a group at 254,805,000 ounces net short, which is a massive increase of just over 6,400,000 net short ounces from the previous week!

 

 

 

 

 

Large speculators increased 955 longs while adding 664 short contracts increasing their net long position to 172,050,000 ounces, an increase in their net long position of just over 1.45 million ounces from the prior week.

 

Small speculators grabbed 1,500 longs and added 508 short contracts for a net long position of 82,755,000 ounces an  increase of almost 5,000,000 ounces net long from the prior week.

 

It was a buying week with sellers nowhere to be seen.  Categories, across the board, were positive, except for a slight dip in the producer merchant longs dropping a mere 13 contracts.

 

Total open interest increased by 5,254 contracts to 144,567.  I have written repeatedly that total open interest is meaningless except as a marker of traders interest in being in the market.  It does not mean price is headed up or down but merely reflects someone’s interest in parking their money in the paper metal for whatever reason.

 

In this week’s case, if we do the math we see it is the commercials that are responsible for the lion’s share of the increase in total open interest.  Perhaps they are making it appear there are good reasons to buy in order to draw more speculators into the market?  Well, that is in effect the net result but those large speculators were cautious judging from the percentage relationship of their new longs and shorts.  They were not as eager to jump in long as were the small speculators.

 

There may be some dips in the near future since we see the producer merchant did not add long contracts though it is interesting the swap dealers actually added more short contracts than did the producer merchant.  Much is hidden in the disaggregated commercials swap dealer spreading category as it increased nearly 1,200 contracts.

 

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. Who Wants Short Shorts? We Want Short Shorts. Man their digging a deeper hole but Mr Bernanke will be there to help.


     
     

    • Ben 10! The character on the left is the inferno alien that Ben can transform with his watch. It’s been a long time since I didn’t saw this cartoon show. It brings back good memories! :)

  2. This is great news!  You’re effectively buying a safety net at 80% off as the financial hurricane approaches. 
    Instead of emailing the names posted above and complaining about the manipulation, please ask them if there’s anyway they could get silver down to around $5 / ounce plus open up their silver storage vaults so we could back up the truck.
    The average cost to produce silver is around $30 to $35 per ounce, plus supply continues to evaporate, enjoy these bargains because it may not last much longer. 

  3. Fake paper silver as physical gets shorter in actual supply.

  4. I have the feeling that once the remaining silver gets down to a certain level, it will then actually be zero, and then .. splat. In other words … I believe they are lying more than we realise, and that the residual silver in comex and slv is way less than they say, in addition, to it being 1% the amount of paper silver. And, so it will take all by surprise at an earlier stage than we expect. Because I believe they are going to stack the chips against us ants in every way they can.

    • “Because I believe they are going to stack the chips against us ants in every way they can.”

      Indeed, Chief.  Those lazy grasshoppers always do. 

  5. I beg them to kill prices by end of January. I will be a happy buyer off my severage package…

  6. Good to read it… thanks as always!

  7. It doesn’t matter! Actually, I’m glad that the commercials are using these paper silver to suppress silver’s price because that way, I can buy more physical silver faster, cheaply and easily. They can have the papers while I enjoy the real thing which is physical! :)

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