the importance of COT open interest

most are confused by gold:silver ratio. this really only matters if youre doing physical swaps. yea this would be an ideal spot if you were planning on doing a swap gold for silver. but buying silver outright, not necessarily. the ratio may reverse but doesnt necessarily mean youre an instant winner long silver. now if youre doing credit spreads this ratio is extremely useful. aside from that faily psychological. if youre a physical dealer, now is an opportune time to swap physical gold for physical silver. for traders i say pay attention to open interest changes on COT reporting. you'll notice silver is fairly balanced on managed money side. however gold has a growing imbalance on the long side. if the trend is your friend. gold is in favor vs silver, ride that wave. also question why people are long gold and the implications of how aggressive powell will have to be to compensate for lack of fire power. based on the past the fomc has had 5bps of cutting power during a downturn. with 2.25. we dont even have half.. so... QE is likely to be used again if this cycle is really beginning to turn against us.