Another Reason to Hold Precious Metals?

in #investing3 years ago (edited)

  Great and Wonderful Thursday Morning Folks,    

      Gold was doing a lot better earlier with the trade now at $1,513.30, up 50 cents after hitting $1,522.30 with the low at $1,508.80. Silver is showing the “weak” signal with its trade at $17.795 down 1.5 cents after the high of $17.935 was reached at the restart of trade last night with the low at $17.695. The US Dollar finally has some movement in it, with its trade down 35.5 points at 98.46, recovering from the low at 98.37 with the high at 98.795. All of this was done before 5 am pst, the Comex open, and the London close.    

      Gold’s value under the Venezuelan Bolivar gained 60.92 overnight with its trade at 15,114.08 Bolivar with Silver losing a little, with its price at 177.728 dropping 0.399 Bolivar. In Argentina, the Peso now has Gold pegged at 87,377.44 Pesos showing a gain of 188.46 with Silver at 1,027.56 Pesos, proving a drop-in value of 4.17 Pesos. In Turkey, the Lira has Gold valued at 8,916.51 Lira giving those that hold a 125.25 T-Lira gain with Silver at 104.849 proving a gain of 0.832 in T-Lira value.    

      October Silver’s Delivery requests are now at 339 fully paid for (5,000 ounce) contracts waiting for receipts and again with zero Volume up on the board so far this morning. During yesterday’s trade 4 purchases showed up with prices yet, as of this morning, the delivery count was only reduced by 4 from yesterday’s numbers. So, where there 4 more purchases bringing the delivery total to 8 receipts or was it only 4? This is the problem in the ledgers the Comex numbers give with their lack of information regarding spreads entering or exiting inside the delivery month.       

      Silver’s Overall Open Interest dropped 1,576 Overnighters bringing the count to 212,560 Obligations willing to trade the futures and on a positive day. In the old days this would be considered a day the shorts exited, we’re not certain anymore with the way the algos cleared out all emotions in absolutely every trade out there, leaving the only way to know being when they run out of the physical products or shares.     

      We remind our readers of the 1979/80 precious metals rally by posting the Daily Silver chart from that period in time. Admittedly this is to support the issue we witnessed in the Silver Options Board found in 2016. That year’s movement (1979/80) was Silver’s biggest rally and it occurred within a very short period of time. Options were brought back into play in 1982, only after Silver hit $50 then Comex making it illegal to buy physical. With options in play now, for both the investor and the machine, we see one more reason to be looking at December 2019 and the situation with Silver Options.   Again, we still think options are in play, consider the pricing and timing in the charts.  

      We’ll hold on tight to our physical precious metals knowing that when the fiats collapse the run to safety net is what we are in already. So, hang on tight to the physicals, keep a smile on your face and a positive attitude on your head and as always …     

Stay Strong! 

J. Johnson  

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