Ag - The Stress Is Still Here!
Great and Wonderful Monday Morning Folks,
Gold got some strength over the weekend with the trade at $1,500.30, up $11.60, just above the Algo made Maginot line, with the high close by at $1,501.50 and the low at $1,481.30. Silver is the Tag A Long Kid again with its trade up 11.1 cents at $17.655 with its “close by high” at $17.670 with the low at $17.455. The US Dollar is being supported as well, keeping up with that “Dollar supports Gold therefore Gold supports the Dollar” idea with its trade at 98.195, up 19 points with the close by high at 98.25 and the low to beat at 98.040. All this was done while everyone else but us traded, before 5 am pst, the Comex open, and the London close.
Over in the lands of heavily printed currencies we have the Venezuelan Bolivar, proving what will happen in the primaries once the algos break with Gold trading at 14,984.25 Bolivar, showing us a slight increase of 142.82 in Bolivar value with Silver at 176.329 Bolivar, gaining 2.147. In Argentina, the Peso now has Gold valued at 87,082.90 showing us a gain of 1,022.01 in A-Peso profit with Silver now at 1,024.80 Pesos showing a 14.90 Peso gain. Over in Turkey, Gold is now priced at 8,902.51 proving a gain of 201.12 in T-Lira value with Silver now at 104.761 gaining back 2.655 T-Lira, recovering almost all of Friday’s beatings. Not even a war can get the algos to break the controls set in precious metals, one day this too will matter.
The October Silver Delivery Count shows a 1 order gain during Friday’s trades giving us a total of 338 fully paid for contracts waiting for receipts and with a trading Volume of 2 up on the board so far this morning with a trading range between $17.54 and $17.525 with the high the last price traded. Silver’s Overall Open Interest continues to contract with the trade’s count losing 1,254 Overnighters since Friday mornings tally with the total now at 208,955 Obligations. All that’s needed now, is a continual drop in Ag’s overall Open Interest, as the Options play remains, then things could get really interesting.
In our opinion, the options board in Silver has been the only thing to stick out that is unusual in an already unusual world where wars, terror attacks, bank failures, internal government strife, carry on, as well as the continual printing, giving us nothing but grief in our precious metals market. This options thing has proven to be the anomaly since early 2016. In fact, the Open Interest in December 2019 Silver has been the highest in count all the way out to 2024, but don’t let that bother you (sarcasm), what difference does it make over an 8-year period? Or that this could possibly be something that has never ever been seen before?
The November Silver Call Options count continues to gain, with the total at 18,619 giving us a 97-count increase. Also, of note is the $17.50 and below count dropping 159 but the Calls at $18 to $17.50 gained 256 and with only 14 days of trade left before expiration. In our December 2019 Silver Call Options count, we show an overall reduction of 83 with its total at 88,310 with the $18 Calls and below dropping only 376 in count totaling 20,625 “In the money” and “At the money” Options still in play. January 2020 Silver Calls gained 639 in count totaling 8,731. February 2020 gained 410 Calls totaling 3,407. March Silver’s Call Options total now stands at 16,160 with 6,017 at $18 and below. The stress is still here, in this very short period of time, we hope it means something wonderful for precious metals!
President Trump has been working hard to ink out a deal out with China including bringing the news services in towards the end of this past week’s meeting to show that tremendous progress is happening in phase 1 of a multi-level approach. While we’re all hoping for a happy ending, China proved itself to be untrustworthy again, as today we see another one of their delays in play. A play that absolutely all the past administrations simply glossed over these past few decades. Once again, China is the one that walked away. I loved how Trump said China truly wants another president instead of him, he even said this right in front of their team on camera. Trump is still proving to me to be a Barbarian that cannot be managed by China’s rich handouts (where’s Hunter?).
The stresses are still here regardless of the algo and printing our failed system demands in order to stay in place. Holding precious metals during these past 8 years has been problematic at best, we still feel times are about to change. So, hang on tight to what is real, keep a smile on your face and a happy thought in the head no matter what, and as always …
Stay Resolute!
J. Johnson