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Metals , Investing , Trading

Here’s What Silver Investors Need to Know

Large Speculators have been making this bet on silver

by Bob Stokes
Updated: May 18, 2023

Observations over the years reveal that hedge fund managers tend to extrapolate current trends of financial markets into the future -- just like most Main Street investors.

In other words, hedge fund managers are just as much a part of the "crowd" as the little guy.

So, this 2021 headline from the American Enterprise Institute is not surprising:

The SP 500 Index Out-performed Hedge Funds over the Last 10 Years. And It Wasn't Even Close

Hedge funds and trend followers are known as Large Speculators in the Commitment of Traders report published by the Commodity Futures Trading Commission. They usually take the opposite side of the trade from a group known as the Commercials; insiders who participate in a business related to a given commodity. The Commercials usually turn out to be on the right side of a trade.

With this in mind, let's focus on silver. Here's a chart and commentary from our May 15 U.S. Short Term Update:


Large Specs... are strongly betting that [Silver]'s rally will continue. The middle graph on the chart shows the Large Spec net long or net short position as a percentage of total non-spreading open interest. Two weeks ago, it was 23.49%. Last week, despite a 9% decline in silver prices over just five days, Large Specs are net long 23.14%, hardly budging from their prior stance... We will keep you apprised of new developments.

The U.S. Short Term Update makes clear that Commitment of Traders positions are not a great short-term timing tool. At the same time, be aware that extreme positions often occur at key trend turns.

Also keep in mind that silver's Elliott wave structure can help you to anticipate price turns.

Our U.S. Short Term Update provides that analysis for you, as well as for gold.

Get useful insights by following the link below.

What is Your Investing Timeframe?

Near-term? Intermediate? Long-Term?

Our Financial Forecast Service covers all three!

It's worth reviewing now, especially considering that the NASDAQ 100 appears to be at or near a critical juncture.

Besides stocks, our Financial Forecast Service provides you with our outlook on bonds, gold, silver, the U.S. dollar, the U.S. economy and more.

Follow the link below so you can financially prepare for what may be just around the corner.

Chinese Investors Are Rushing into Gold. Should You?

The wild card for the global markets remains China. You've heard about its real estate problems; now the yuan is on the rocks. Here's our monthly Global Market Perspective contributor, Mark Galasiewski, with a handy chart and a few under-the-radar highlights from the October issue to give you a unique perspective on the situation.

European Stocks: “Deeper and Deeper”

October is almost here, and so far, "things are quiet" in the markets, says our monthly Global Market Perspective contributor Brian Whitmer. But watch as he lists a few items on his radar as he gives you highlights from the new, October issue.

Another Way to Measure (and Predict) Volatility

Volatility has reigned on Wall Street this month. One way to measure and predict it is by looking at the difference, or "spread," between the "fear index" VIX and junk bonds. Here's our Head of Global Strategy, Murray Gunn, showing you an interesting chart in a preview of our new, October Global Market Perspective.