enviro111

Silver Shorts Exerting Price Control

Rather than counting up the number of shorts, perhaps you should focus on the longs? both must balance at the end of the day.

Perhaps the large number of shorts are the banks just taking the opposite position as the speculative longs? If you long at the COT data and the silver price data you will see it is the rise and fall of the speculative traders long/short position that determines the silver price movement. When traders buy the price move up and vice versa. The commerical dealer activity does not show this pattern.

However, I think the concentrated short position has held down prices big time. Without someone to take the other side of the future's trade, the traders would have to bid prices higher in order to find a seller. This would lead to higher silver prices in general.