Submitted by SD Contributor Marshall Swing

Silver COT Report 6/8/12

Commercials sold off -890 longs but picked up a large 1,301 shorts to end the week with 45.54% of all open interest, almost a full percentage point drop since last week, and now stand as a group at -82,625,000 ounces net short, over 10,000,000 added net short from the previous week.  This is the result of the speculators going long because they thought the bottom was in.  But the bottom, of course, is not in yet and will not be in for quite some time to come.  As we approach the fall of the Western financial system with JP Morgan leading the pack, the precious metals will plummet.  But this is a good thing for us physical investors.



Large speculators grabbed 1,310 longs and a minor 74 shorts for a net long position of 48,970,000 ounces, a big increase in their net long position of well over 5,500,000 ounces from the prior week.  They were doing the right thing going long but as we shall see in next week’s COT they got slammed by the commercials and gave up many of those longs but not all of them.


Small speculators increased 359 longs and covered -596 shorts for a net long position of 33,655,000 ounces a significant increase of almost 5,000,000 ounces net long from the prior week.


What happened this past week is old business as usual.  It is the same old story where the commercials purchase huge amounts of shorts when the specs go long.  The speculators, thinking the bottom was in, jumped in head first buying longs and everything looked very good for a little while.  But the roof caved on the speculators in the last two days.  I will detail this in a report on Sunday.


The battle with the CFTC and the manipulation of silver and gold is over for now but I will always provide their access information for you so we can continue to remind them they work for us!

For your convenience, if you would like to contact the CFTC and express your views to them, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: and email addresses as well:  Chairman Gensler  Commissioner Chilton  Commissioner Sommers  Commissioner O’Malia  Commissioner Wetjen  Director Meister


See you next week!



  1. Oh… and I forgot:
    The 515 ton sell off accounts for four hours and started an hour BEFORE the Bernanke speech.
    And the commercials are trying to shake off their naked shorts by pushing speculators out of the market both ways.

  2. While it’s perfectly reasonable to me that ‘the low’ (in paper bids) on PMs won’t occur until the financial markets crash, reason also compels me to expect that very few holders of physical metals will act on those bids. Consequently, I’ll continue to accumulate small lots in the current range, keeping a small amount of banknotes in reserve for the slim chance that I might be among the extremely fortunate few to get a little acquisition in at those ‘panic’ levels. As things are right now, local pawn shops aren’t offering bullion in any quantity and even plated table settings are starting to disappear off the shelves of ’2nd-Hand’ stores. No, I’m not holding out for the ‘greed trade’. I really think that’s a chimera.

  3. Trade deficit shrinks in April, federal data show

    10:58 PM, Jun. 8, 2012

    The trade deficit has been on a saw-tooth pattern this year, after having hit $52.9 billion in January, the highest since October 2008. Some of the swings may be caused by distortions around the Chinese Lunar Year holiday.

    Growth in both imports and exports has cooled, which is “hardly surprising given the state of the global economy,” said Josh Shapiro, chief U.S. economist at MFR Inc.

    Economists are concerned that the European debt crisis could reduce demand for U.S. exports in coming months. Europe accounts for one-fifth of U.S. exports.

  4. Thanks 2OZ!

    Pat, I think the low will occur before the crash.  Reason is that JPM will try to get out of all their shorts when they see the final handwriting on the wall.
    Thanks for not confusing us with your shorts on here 427!!

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