Silver and gold have both been on incredible runs during the last year, but the rally in silver has been far more impressive from a percentage standpoint. In fact, the gain in silver has been almost three times as good as the gain in gold.

Both are near all-time highs, but from a sentiment perspective it would appear silver has more room to the upside than gold. Looking at the Commitment of Traders report for both metals, the large speculators aren't nearly as optimistic toward silver as they are gold.

The current net positions on silver show large speculators are long approximately 33,000 contracts. This is almost half as low as the highest net long position in the last five years.

Gold on the other hand is much closer to its highest net long position. The biggest net long position of the last five years was set just a few months ago at 286,000 contracts. The current net long position is right at 237,000 contracts.

Based on the current situation, I would look to invest in silver rather than gold for my precious metals allocation.