On the heels of some fierce trading this week in the dollar, gold and silver, below is an extremely important update on the war that is raging in the gold and silver markets.
The following charts are from Jason Goepfert at SentimenTrader.
Commercial Short Positions In Silver Hit All-Time Record Highs!
King World News note: Below you can see that the commercial hedgers short positions in the silver market market have now hit another all-time record (see remarkable 23-year chart below).
Continue reading the KWN piece below…
In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events. To find out what he and his company can do to help answer that age old question for you CLICK HERE.
The commercial shorts are at a level (real-time) that raises serious concern. As stated earlier, the commercials now have their largest all-time short positions in history. The last time the commercials held close to this large of a short position in silver was in 2004. Again, that does not mean that the price of silver cannot head significantly higher in the short-term.
What is important to note on the chart above is that when the commercials were this short silver in 2004, there was a brief 12.7 percent pullback in the price of silver, but over the next 18 months the price of silver more than doubled from the low of that pullback in 2004. So from late November of 2004, when the price of silver fell to about $6.70, the price of silver soared to $14.31 by early May of 2006. Nevertheless, the commercials now all-time record short bets against silver and that is something that traders and investors should watch closely.
Commercial Short Positions In Gold Hit All-Time Record Highs!
King World News note: Below you can see the commercial hedgers’ short positions have hit another all-time record in the gold market (see 10-year chart below).
King World News note: Again, sometimes it’s important to take a step back and look at the big picture in the gold market (see fascinating 23-year chart below).
The commercials were never this concentrated in terms of their short position in gold until about 2010. After that, gold briefly pulled back in 2010 but then went on to surge a staggering $800 over the next 20 months. This means there could still be a lot of room to the upside in the gold market, but the current leg of the advance is in a danger zone in terms of the commercial short position in gold.
Sentiment in the silver market has now reached the “Excessive Optimism” levels (see 10-year chart below).
However, note that sentiment in the silver market reached the “Excessive Optimism” levels many, many times on the long-term chart during bullish advances. So this is normal and healthy, especially during bull markets, even though it waves a caution flag in the very short-term (see 23-year chart below).
It would appear that the endless talk about the massive commercial short positions in both metals coupled with the bullish advance coming on the heels of a brutal 5-year cyclical bear market is keeping a healthy level of “fear” in the early stages of the newest leg of the bullish advance. So it will be very interesting to see how gold and silver trade from current levels in the days and weeks ahead. ***KWN has now released the timely powerful audio interview discussing the gold and silver markets with Rick Rule and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
The charts above are from SentimenTrader. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***Also Just Released: Top Citi Analyst Issues Major Update On The Silver Market Click Here.
© 2016 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.