Silver Speculators Say It’s Time To Start Buying

Silver Speculators Say It’s Time To Start Buying by John Rubino for Dollar Collapse

The gold futures market took a big step towards bullish — or at least neutral — in the past week. Speculators (usually wrong at big turning points) scaled back their long bets while commercials (usually right at turning points) reduced their net short positions.

Gold COT silver speculators

This is progress, but still leaves speculators long and commercials short. The message: wait a few more weeks for 2019’s best entry point.

TDC Note – Don’t forget to visit Ken Schortgen, Jim Willie, London Paul, Producer CJ and yours truly at The Gadfly – one week FREE TRIAL and I can assure you, you will want to stay! Your support of The Gadfly helps to support The Daily Coin – twofer!

But silver’s story is a lot more interesting. In that market, speculators are now aggressively net short:

Silver COT silver speculators

Here’s the same data in graphical form, with silver speculator positions represented by the gray columns.

Silver COT chart silver speculators

Note that in September 2018, the last time speculators were comparably net short (visually, with the gray bars below the above graph’s center divide), silver was putting in a bottom that preceded a nice run through February of 2019.

Silver price silver speculators

This divergence between gold (wait and see) and silver (start buying now) is confirmed by the gold/silver ratio, which is at a multi-year high, implying that silver is undervalued relative to gold. Past spikes in this ratio have preceded precious metals bull markets in which silver outperformed gold.

gold/silver ratio silver speculators

Sharing is caring!

John Rubino

DollarCollapse.com is managed by John Rubino, co-author, with GoldMoney’s James Turk, of The Money Bubble (DollarCollapse Press, 2014) and The Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He currently writes for CFA Magazine.