While speculators may 'hate' silver, they're not the best indication of dumb money. Retail investors, a better indication of dumb money, hated silver from April to July 2012. Today's reading suggests strong dislike that's consistent with an early stage rally (chart).

Chart: Silver London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


Headline: The Dumb Money Hates Silver, It’s Time to Go Long

Speculators hate silver...

For the past year, the positive silver headlines have been few and far between.

Ever since the poor man's gold peaked near $50 in April of last year, it's become a despised metal.

Admittedly, it's been languishing near $27 since early May not far from where it was for the first time – in this bull market – back in late 2010.

But as I'll show you, right now a number of technical, seasonal, and sentiment indicators are pointing upwards for this volatile metal.

This could well be the critical turning point silver investors have been waiting for. One of these indicators is the resilient price of gold.

Source: resourceinvestor.com

http://edegrootinsights.blogspot.fr/2012/08/buy-when-dumb-money-sells-silver-and.html