Trading Positions Silver Signal

Money Metals Exchange - Traders have staked out the largest position ever in the COMEX silver futures. The number of open contracts on the COMEX passed 200,000 last week.

Given the recent downward bias in prices, most of the trades were initiated by speculators betting prices will go lower still. But they have been matched with buyers looking for prices to head the other way.

These contracts represent more than a billion ounces of silver - the highest in recorded history. Extremes in open interest often foretell a big price move is coming - in one direction or another. The leverage in the futures markets makes these extremes explosive. All that is needed is a catalyst (Greece?) to start prices moving, putting the squeeze on traders in the wrong position.

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