Hedgies are the most short ever… and Commercials are the least hedged in 14 years… and it appears rumors of PBOC buying along with dismal data from around the world has sparked a renewed awareness of another looming QE sending gold well north of $1100 and silver back above $15. Hedge funds aggregate net position has been short for the first time in history.
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Commercial Hedgers are holding the lowest net short position in gold futures since the launch of the gold bull market in 2001.
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And this happened… Silver looking for $15.44 (50DMA) as next test
As Bonner & Partners recently noted, the next silver bull market may have already started
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Silver is down 7.1% this year.
Will this weakness persist? To find out, let's look at the key factors in the silver market this year.
The first two factors helped push silver 19.9% lower last year. That's more than gold or any other precious metal fell. Despite this, silver production rose 5% in 2014. That added to the pressure on prices.
Why did miners produce more silver when prices were falling? Because of:
