Dear Reader,
The commercials’ short position on silver is lower than it’s ever been!
3 months ago, they had a short position worth over $3 billion! As of the most recent COT report, it’s under $350 million.
I haven’t seen anything like this since 2001.
To top it off, we have the silver-to-gold ratio at 82-to-1, which is about as extreme as it’s ever been.
JP Morgan is also preparing for an imminent rise in the silver price, with a record physical hoard.
The dumb money, managed by hedge funds (95% of whom fail to beat the returns of the S&P 500 over a 10-year period), is actually showing a record short position in silver, which is incredibly bullish for precious metal investors.
To be clear, the dumb money is at a record short and the smart money is at a record low for their short exposure to silver.
In my experience, any time you see this, it’s essentially a guaranteed set-up for an explosive move to the upside. Of course, nothing is guaranteed with investments, but I do have to point out that silver is a screaming buy right now.
Recommendation: As a trade, consider iShares Silver Trust (SLV).
For longer-term speculators, now is a great time to pick up some physical silver from our friends at MilesFranklin.com.
We also plan to accumulate more shares of the purest silver producer on earth: First Majestic Silver (NYSE: AG).
