Good Friday Morning Folks!
Gold is trading higher this morning and is right now at $1,282.90, up $3.20 and right in the middle of its London created trading range between $1,285.40 and $1,278.90. Silver is leading the charge higher with its trade at $15.035, up 7.5 cents with the high at $15.09 and the low at $14.955. The US Dollar has some profit taking going on, by the longs, sending the cleanest turd in the fiat toilet down 5.9 points at 97.86, up from the lowest point at 97.80 with the starting point at 97.95. All this of course was done before 5 am pst, before the Comex open, and the closing in London.
The emerging markets are starting to bubble, a lot, and just under the surface of the primaries, with Venezuela’s new price for Gold at 12,812.96 gaining another 46.94 Bolivar overnight with Silver now at 150.162, a gain of 1.398 Bolivar. Argentina’s Peso price for Gold now stands at 57,807.37, gaining 1,790.71 Peso’s overnight in what can only be labeled as shocking! Especially if one just so happens to be long a precious metals futures contract in the country under that currency. Silver under the A-Peso trade is now priced at 677.464, gaining another 22.759 overnight.
April Comex Silver Deliveries are coming to an end with a show of 1 still up on the board and with zero Volume posted so far this morning. We did have another buyer step into the fray yesterday and was settled out already making us wonder if this one lone buyer (who maybe waiting for his receipt) got stepped over in the FIFO (First In - First Out) of fairness. Also of note, there was a buy order out there totaling 27 demands for physical at $14.875 during yesterday’s Comex trading period and apparently he’s still trying to get something going with a buy order now at $14.925 with a 24 count “Bid” still waiting for a fill. Silver’s Overall Open Interest remains elevated with 214,818 Overnighters still in play proving another 435 positions left during yesterday’s trade.
A few hours after yesterday’s earliest morning report came out, Argentina got hit with another bout of selling causing the nations credit and FX markets to crash for a second day, signaling an implied probability-of-default gauge over 60%, as investors rapidly lose faith that President Macri will fend off his populist foes and win re-election this year. The precious metals results of this event is posted above proving the idea that having a large portion of one’s retirement funds in Silver and Gold, while a nation goes thru a currency readjustment, is the safest place to be, that is if one wants to keep their purchasing power intact.
Pimco’s Mohamed A. El-Erian, posted in a Bloomberg article his views on the Argentina and Turkish issues with this point sticking out the most; Argentina is increasingly suffering through a cycle of financial disruptions, economic contraction, debilitating inflation and weakening creditworthiness …. It is our opinion that in time these emerging markets corrections will sag and drag the primary currencies into a huge quagmire of doubt with debt and shares getting dumped sending precious metals sharply higher, everywhere, because all currencies (and debt instruments) are tied together within the central banking system. The central banks are “all in” to make sure the precious metals do not rise. With that in mind, central banks will all be buying when they run out of physical. I just looked at the buy order count for April as I close this report. We now have the bid in Silver at $14.975 with the count of 46 (230,000 ounces). Go buyer!! Let us drain their supplies and get this order filled and let’s get this ball rolling again.
Have a great weekend, keep your precious metals in hand away from all risks, keep that attitude positive no matter what, and as always …