Silver: Commercial Short Positions Continue to Rise

| About: iShares Silver (SLV)
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The numbers are understandably ballpark, but the fact is that the Commercial Short Position on the COMEX has taken a 2.2 Billion dollar short position since July 31, 2009. Using the Closing silver value, multiplied by the ounces sold sort derives the figure.

And what deep pockets the shorts have, since that 2.2 Billion short position has lost an additional 256 Million dollars in value (with silver at 17.75). Since the Commercial Short positions have continued to rise (with the exception of 1 week) each week, the paper losses continue to mount. During this 10 week period surveyed, Commercial Long positions increased only 4 of the ten weeks and declined the other six.

Since July 31, 2009, the Commercial Short Position has risen from 65,000 contracts to nearly 91 thousand (almost 50%) at the same time the price of silver has gone from $14 to nearly $18. The Long side of things has seen a decline from 29 to 26 thousand contracts.

It is possible that the Shorts have finally been unable to cap the rally in silver with the continuing pressure from the falling dollar and the shift in world financial markets away from the dollar hegemony. In order to maintain downward pressure on the price, the Commercial Shorts will have to add more than 7,000 additional short contracts to keep up the pressure or figure out some way to give some support to the falling dollar.

Disclosure: Long GLD, SLV, Physical Metal, retirement accounts