Adam Hamilton post excerpt on Silver COT:

” The recent record collapse in their upside bets on silver is unprecedented, and is wildly-bullish for silver going forward. Since speculators are now essentially all-out silver futures, it leaves massive room for them to buy back in as silver powers higher on investment demand. In this latest Commitments of Traders read current to last Tuesday, speculators’ total longs and shorts in silver futures were running 2% and 0% up into their silver-bull trading ranges! The most-bullish possible for silver is 0% longs and 100% shorts, indicating these super-leveraged traders’ selling is exhausted but they have vast room to buy back in. The most-bearish possible is the opposite 100% longs and 0% shorts.

That means their buying firepower has been expended, leaving nothing to do but sell big to mean revert back down near normal positioning. Today’s odd silver-futures scene is a mix of that, with super-low longs and shorts at the same time. But longs are more important, because traders usually have more of them. Speculators’ average longs during this bull have run 118.0k contracts, 2.0x more than their 59.6k average shorts!

So while there is room for massive long buying as well as new short selling, the former has much greater potential to drive silver prices. Merely to mean revert back to these bull-average levels, speculators will have to buy 50.9k silver-futures long contracts. To proportionally overshoot, they’d have to buy 101.8k. That’s the equivalent of 254.5m to 508.9m ounces of silver buying via silver futures likely in coming months!

These super-low silver-futures longs are reason enough to be really bullish on silver here. Such a serious anomalous lack of upside bets has wound up silver like a coiled spring. The faster these elite traders buy back in to restore normal positioning, the higher silver prices will shoot. But silver futures aren’t the reason I wrote this essay. Strong and relentless post-stock-panic silver investment demand is way more important!”