Traders Are Taking Their Hands Off of SLV
Decreased net positions
As silver has been falling day after day and week after week, investors have been retreating from the precious metal. According to the latest Commitment of Traders (or COT) data released by the Commodity Futures Trading Commission (or CFTC) on May 5, 2017, large speculators and traders have decreased their net positions in silver futures.
The iShares Silver Trust ETF (SLV) has fallen ~5.5% in the past month, and it’s seen a trailing-five-day fall of 3.6%. However, it continues to maintain a year-to-date (or YTD) rise of 2%, a little higher than silver itself.
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Commercial and non-commercial positions
Non-commercial futures contracts of COMEX silver futures, traded by large speculators and hedge funds, totaled a net position of 71,367 contracts in the data reported on May 2, 2017. This amount was 22,246 lower than in the previous week, which saw a total of 93,613 net contracts.
The commercial positions of hedgers and traders engaged in buying and selling silver futures for business purposes totaled a net position of -86,574 contracts last week, a weekly rise of 21,515 contracts compared to the total net of -108,089 contracts in the previous week.
SLV witnessed significant inflows of ~$85.7 million at the start of May. However, the fund has suffered massively since, and its choppy price may have burned investors.
Another silver-based mining fund that’s fallen tremendously over the past month is the Global X Silver Miners ETF (SIL). SIL has seen a 5.4% fall in its price in the last 30 days. Mining stocks such as AngloGold Ashanti (AU), Gold Fields (GFI), Sibanye Gold (SBGL), and Harmony Gold (HMY) also have fallen considerably.