SILVER LININGS

Below we show the latest Commitment of Traders report and we show the net noncommercial long and short positions for a variety of asset classes. It struck us, especially as long-time gold bulls, what little attention silver gets even though the two precious metals are driven by similar developments over time.

The reality is that bullish sentiment on gold right now is infinitely higher than it is for silver; and keep in mind that while gold is the most malleable metal of all (the only metal that will look the same 1,000 years from now as it does today), silver pieces going all the way back to pre-biblical times were the primary medium-of-exchange (fiat paper currency, in the overall scheme of things, is a relatively new phenomenon and a convenient one for politically sensitive central banks). How well known is that up until 1968, silver certificates were redeemable for an equivalent amount of silver?

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