Unfortunately for the bull camp the net spec and fund long in gold hit a new record high last week (as of Tuesday), but the market after the report measured into the low on Friday, did fall by $85 which should have moderated the record overbought condition.

The February 25th Commitments of Traders report showed Gold Managed Money traders added 766 contracts to their already long position and are now net long 284,972. Gold Non-Commercial & Non-Reportable traders hit a new extreme long of 426,732 contracts. Non-Commercial & Non-Reportable traders net bought 5,068 contracts and are now net long 426,732 contracts.

Like the platinum market, if the precious metals complex is indeed poised to return to a classic precious metals fundamental focus, (benefiting from historically low/negative interest rates, exploding global debt, coordinated central bank stimulus, and aggressive fiscal stimulus) silver should be considered extremely cheap fundamentally.

Also like platinum, the silver market into the lows last year was at the cheapest levels since the subprime crisis.

Furthermore, the gold/silver ratio is approaching the highest levels in at least 50 years at 95.6 with the modern era all-time highs seen up at 98.95.

The Commitments of Traders report for the week ending February 25th showed Silver Managed Money traders are net-long 62,850 contracts after net selling 5,593 contracts. Non-Commercial & Non-Reportable traders reduced their net long position by 4,160 contracts to a net long of only 100,348 contracts.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.