Well, the Commitment of Traders Report lived up to its advanced billing...especially in silver.
In silver, the bullion banks decreased their net short position by an incredible 16,446 contracts...
which is 82.2 million ounces.
I've never seen a 1-week change this large in silver, ever!
The net short position in the Commercial category declined to 121.3 million ounces.
It's been many years since the Commercial net short position has been this low.
The '4 or less' bullion banks are now short 159.7 million ounces...
and the '5 through 8' Commercial traders are short 42.9 million ounces.
So these eight traders combined are short 202.6 million ounces of silver, which is 167% of the entire Commercial net short position.
If these eight Commercial traders disappeared, the remaining Commercial traders [...all 34 of them] are massively long the silver market, just like everyone else.
...the fact is that the real reason the price declined was because of paper trading on the Comex...
and it had nothing whatsoever to do with real-world supply and demand fundamentals.
Eight [and probably much fewer] traders in gold and silver control the price of both these metals...
and that's flat-out illegal.
They hold a short-side corner on these two markets.
The tail is wagging the dog, as there is no true price-discovery mechanism allowed to operate in these markets.
Can you imagine how fast the CME and CFTC would react if eight or fewer traders had a long-side corner on any commodity???
Ask the Hunt brothers and you'll find out...
and they didn't even get close to the position sizes that JPMorgan et al, hold.
Nick Laird's Days of World Production to Cover Short Positions graph... here it is now. Please note the red bars in particular.
These are the '4 or less' traders in every commodity that's traded on the Comex futures market.
Note how the biggest ones are in the precious metals...silver and gold in particular.
It would take 82 days of total world silver production for the '4 or less' Commercial shorts to cover their short positions.
In gold it's 67 days.
All this data was extracted from yesterday's Commitment of Traders Report...
and then converted into days of world production for each commodity.