In this chart we plot the cumulative speculative long position in Gold and Silver relative to cumulative open interest. The price is constructed using half Gold and half Silver.
The cumulative speculative position reached 23% last week. From 2002 through 2012, the lows came around 25%. The recent low in the cumulative speculative long position was the lowest in nearly 12 years. If precious metals are back in a bull market, then there is plenty more room for the current reading of 23% to rise.
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