Thought of the day as silver spec shorts hit a new record high…

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The actual total level of speculators’ silver-futures shorts surged to a new record last week of 58.2k contracts and which is at least a 15 year high, if not all-time. This trounced the last record of 54.3k in early December 2013 and we can see below what happened after this magnitude of naked shorting below last occurred…

When the great majority of futures speculators have crowded onto one side of a trade, they are always wrong. They are the most bullish, with high total longs and low total shorts, right when prices are topping after long runs higher. And they are the most bearish, with low total longs and high total shorts, right when a price is bottoming before turning higher again.

The latter describes gold and silver perfectly today. The implications of these epic shorts are even more profound for silver than they are for gold, with the potential to launch a moonshot in this hated metal in the weeks ahead…

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