Commercial Hedgers in Silver Market “Less-Short” Than in Last Thirty Years – Is JPMorgan a Catalyst?
The story for this week’s end as far as silver is concerned is not its more than a $1.15 run on the heels of an 18-month low, but, instead, that commercial shorts have positioned themselves “less-short” than in the past thirty years. A long recurring theme of the last five years has been the gradual liquidation by big players of their short position. As can be seen on the charts below, the commercial hedgers have placed themselves as long as they’ve been: at about 10k-15k contracts short. In the last year the last time they were at this point was as silver had fallen over a two month period, at year’s close, to about the level at which it sits now. Indeed, today they are “less-short” – the shortest in thirty years.
On the five year chart, the truth related to us through online C0T charts demonstrates that this is as “long” as they’ve been in at least five years. The current point, of about 10k-15k contracts short, on the five year chart, appears to basically be touching position-zero of neutral. You can see the CoT charts, underneath the traditional silver chart, below:
But, I would like to observe that, we have seen this trend before. A considerable dip followed by temporary strength, only to be followed by yet another dip. It is short-term bait-and-switch in the silver market, as the public gets hoaxed in-and-out of the market. Simultaneously, insiders profit from their fraudulent prophecies.
On the minds of mainstream investors is the possibility of deflation, as a slowdown in China joins the slowdown in the US, as well as the debt crisis intensification in Europe. Per documents fabricated through institutions such as the Silver Institute, the belief has been embedded that industrial demand out of the US and Asia will be the driver of silver price through 2015. This is a fallacy, as the driver of price always has been market manipulation. In this day-and-age this method is honed in the paper markets. But, the manipulation is multi-faceted, stemming from elitist hoards of the metal and control of the information regarding the metal, etc. The silver market is merely one part of a global agenda. The Pentagon refers to this agenda as “full spectrum dominance.” Silver, just like you and me, exists under the same dominatrix.
Supply-and-demand cannot dictate the price of silver considering that it has for so long been manipulated. But, for this weekend, the short-term story is that the commercial hedgers are as long as they’ve ever been: just over 10k contracts short. Next week might be a quiet week – indeed, the metal might trader higher. But, patience is a virtue, even when it comes to savings. And, in my opinion, silver is bound for yet another correction, as the powers-that-be game the system and drive markets for dead-ends – as long as they can or until their agenda is complete.
A major reason for the new position of commercial hedgers might be desperation by JPMorgan. JPMorgan has been speculated to hold consistently a position of 10k contracts short in silver. As further losses by the bank have been reported regarding their “London Whale” bad-apple-rogue-trader hogwash, has the bank been forced to sell-off major positions, including their short in silver? Probably. But, that does not mean that silver will easily trade through $50, $75, $150 on its way to $500. There is still a fight to be fought. It can be found at sites like Max Keiser, Silver Liberation Army, SGTReport, Silver Doctors and BrotherJohnF, among many others.