One move in the latest silver COT report caught our attention. As of September 22, swap dealers held 48,987 short contracts against 22,745 long contracts. They added 905 shorts in a single week, equivalent to another 4.53 million ounces of silver in notional futures exposure. Their long position rose by just nine contracts.
That brought their net short position to 26,242 contracts, or about 131.2 million ounces. The gap between their long and short positions tells us more than the short count alone.
The COT report shows a clear shift: shorts increased while longs barely moved. We will be watching whether swap dealers add more shorts in the coming weeks or begin to reduce the position.
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