Silver Shortage – How to tell when this happens…

COMEX Silver - Commitments of Traders

This is the COMEX 5000 Troy Ounce “Jumbo” Contract – ( 1000 Contracts = 5 Million Troy Ounces of Silver )
Example: An Open Intrest of 120,000 Contracts = 2 Troy Ounces for every person in the USA.
The red bars show “Commercial” Traders. They are selling their Silver, like Oil producers sell their Oil.
When the red bars increase, there is more Silver available for sale. (Over Supply)
When the red bars decrease, there is less Silver available for sale. (Shortage)
Over time, the bars gain and lose energy, like a coiled spring.
The bars are always trying to find a middle ground, so here are the rules:
[1] – When the bars have grown for a time, it is time so sell Silver.
[2] – When the bars have shrunken over time, is time to buy Silver.

Important Charts