COMEX Commercial Silver Net Shorts Lowest in Eight Years! Ultra Bullish!!

• The bullion banksters are clearing out their silver short positions rapidly. It appears they no longer have any confidence that silver price will go lower. Do they know something we don’t? Or is this just a normal position liquidation? My assessment is that they know silver (and gold) prices are about to rocket higher with the coming Eurozone meltdown. Thus, they have been clearing out their short positions. Expect gold to surge past US$2000/oz and silver past US$50/oz by year end. The bullion banksters (IMO) will by then be net long instead of short precious metals!
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  COMEX Commercial Silver Net Shorts Lowest in Eight Years
  Special  Got Gold COT Flash Report, http://www.gotgoldreport.com/
  –Large traders the CFTC classes as “commercial” report lowest combined net short position for silver since April 1, 2003.
  –COMEX Commercials reduce net short bets on silver by 60% past month as silver drops 28.5% – position suggests low confidence in lower silver prices.
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  HOUSTON — The Commodity Futures Trading Commission  (CFTC)  just released its commitments of traders (COT) report at 15:30 ET Friday for trader’s positions as of the close on Tuesday, October 4, and according to that report traders the CFTC classes as “commercial” reported their least net short positioning for silver in more than eight years.
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  Recall that a week ago we reported a stunning drop in the large commercial net short positions (LCNS) in both gold and in silver futures. The “commercials” continued to reduce their net short positioning in this week’s report, a small 1,932-contract reduction in gold futures, but another relatively large reduction of 5,339 contracts in the LCNS for silver futures.
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  To put the silver changes in our usual format, as silver fell $1.84 or 5.8% Tuesday to Tuesday, from $31.88 to $30.04, commercial traders reduced their collective net short positioning by a large 5,339 contracts (22%) to show just 18,923 contracts net short.  The total open interest edged 912 contracts lower to 101,102 open.
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  Just below is our graph for the commercial net short positioning for silver futures on the COMEX. Note that the current LCNS is lower than all the previous data on the chart, meaning that the current net short positioning of the commercial traders is not only quite low, it is historically so.
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  Indeed, we have to go all the way back to April 1, 2003 to find a lower commercial net short position for silver futures (15,845 contracts then with silver then $4.43). Just below is a much longer term chart of the silver LCNS for reference.  Apologies are in order.  This is a very large chart and it has to be reduced quite a bit to appear in this format.
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  As of Tuesday, the largest, best funded and presumably the best informed commercial traders of silver futures continued to get much “smaller” in their net short positioning for silver futures.  There can be no doubt that the commercials view the current downdraft for silver as a silver plated opportunity to very strongly reduce their short bets in the leveraged paper silver contracts.
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  As shown in the graphs above, just since September 6, as the price of silver declined $11.95 or 28.5% COMEX commercial traders have reduced their collective net short positioning for silver by a remarkable 28,383 contracts or 60% (not a misprint), from 47,306 to 18,923 contracts net short.
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  We compare the nominal silver LCNS to the total open interest.  We think that gives us a better idea of the relative positioning of the largest hedgers and short sellers – the Producer/Merchants and the Swap Dealers combined into a single category – compared to all the other traders on the COMEX. When compared to all contracts open, the relative commercial net short positioning (LCNS:TO) for silver fell from an already low 23.8% to a shockingly low 18.7% of all COMEX contracts open.  (Remember, just four weeks ago the LCNS:TO reached 41.7%, the highest LCNS:TO of the year.)  The silver LCNS:TO graph is just below.
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  …. for the full article click here!

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