Silver — Commitment of Traders

Silver trades on COMEX in 5,000-troy-ounce contracts and straddles the line between precious and industrial metal — roughly half its demand comes from manufacturing, solar panels, and electronics. That dual nature makes the COT report especially informative: commercial hedgers include both miners locking in prices and industrial users hedging input costs, while speculators bet on the monetary premium. Silver's COT positioning is often more volatile than gold's because the market is smaller and more easily moved by fund flows. The COT Index helps traders spot extremes: when speculative net longs are historically high, silver is vulnerable to sharp reversals; when they collapse, a snap-back rally often follows. The silver-gold spread also influences COT readings — funds rotate into silver during risk-on periods, inflating the spec long. Monitoring weekly position changes alongside the COT Index gives a clear picture of whether the current trend is supported by fresh conviction or is simply the residue of an ageing position.