I am always interested in how the real world in precious metals intersects with the “paper” world.
Looking at the number of days of world production to cover the large traders’ short positions gives you a bit of a sense of the disconnect between production and paper.
It also offers the opportunity to consider the relative short positions in gold and silver.
Imagine what would happen in the event of a significant precious metals rally. There would be a rush to the exits on the short side of the market which, of course, would create significant buying and price appreciation. However, the short position in gold could be cleared relatively quickly which would tend to slow the price appreciation of gold. On the silver side, even though the dollar amounts are a tenth (at best) those of gold, the short exposure is more significant relative to production. That would suggest that a silver rally could go on much longer than a gold rally.