COMEX registered Silver Stocks took a million ounce hit on Monday, dropping total COMEX silver stocks to slightly less than 116.5 Moz. Of that amount, only 61.5 Moz is registered (available for delivery against contracts). Total COMEX stocks haven't been this low since 2006 and are off significantly from the 134 Moz reported in 2008. With current stock levels, COMEX has 517 Moz under contract vs 61.5 Moz of registered silver to back those contracts.
Meanwhile Commercial Short positions rose to 83.07% of all short positions as both Small and Large speculators pared their short positions. That's the highest percentage since July when silver nose-dived from $14.26 to $12.63 in a single week. Commercial Short Positions at that time were about 363 Moz vs 361 Moz last Friday.
Small investors are long the largest amount since July's price drop while large speculators lost some of their positions during the most recent price drop.
With Comm Short positions so high, there would be pressure on the price to fall more, but stability seems to have set in at $14 oz and the Commercial Short Position will have to build by a couple thousand contracts by the end of the week to force prices down. Total silver under contract built considerably the week of August 14th and lost a little ground last week.
Disclosure: Long SLV, GLD, Physical metals, retirement accounts
