Silver (from G. Kleinman)
The Commitments of Traders indicated the commercials in the past few weeks had liquidated 12,500 shorts, added 7,000 longs. Their ratio of shorts to longs has now narrowed from an extreme 9:1 a month ago to a more normal 3.3:1 as of June 1st. New Report comes out end of this week. Since there was large commercial buying noted all last week, this ratio is probably even lower now. Industrial demand for photography remains good and supplies are tightening. Warehouse stocks are historically very low and Warren Buffett, one of the smartest investors of our time, still has his 130 million ounces of silver safely tucked away. COMEX stocks are currently at 73,698,000, down over 140 million ounces pre-Buffett (1997). In statistics released after the close Thursday, they were down another 635,000 ounces, now at THE LOWEST LEVELS SINCE LAST OCTOBER. At some point, (it is just a matter of time) this market will run. Be patient. |
