Great and Wonderful Tuesday Morning Folks,
Gold is lower in the early morning with the trade at $1,501.80, down $9.50 and right beside its low at $1,500.40 with the high at $1,511.90. Silver is still following with its trade at $17.96, down 9.6 cents and it too right beside its low at $17.94 with the high not that far away at $18.085. With the drop-in precious metals price, one would think the Dollar is in a super rally but alas, the fiat is up only 12.4 points with the trade at 97.48 and right beside its high at 97.50 with the low down at 97.275. All of this was done during London’s trading period, before 5 am pst, the Comex open, and the London close.
We apparently have a mishmash occurring in the emerging currency markets with the Venezuelan Bolivar rising causing Gold’s price to drop with the trade at 14,999.23 Bolivar, losing 133.83 in value with Silver at 179.376 down 1.897 Bolivar. In Argentina, where the zeros have yet to be lopped off the currency’s value (like Venezuela did a few years ago), Gold is now trading at 89,590.04 showing a loss of 794.18 A-Pesos with Silver at 1,071.34 it too losing 11.34 A-Pesos. In Turkey, the Lira now has Gold gauged at 8,626.14 Lira giving the holders of Gold a 6.61 T-Lira gain with Silver at 103.162 showing a lose of 0.085 in T-Lira value.
The November Silver Deliveries continue to confound me with its Open Interest numbers, which legally requires 100% margin in order to hold a position in the contract. Truly there can’t be someone trying to day trade inside the delivery month, the lack of liquidity is suicide to the day trader, so what are these numbers about? November Silver’s delivery count is now at 23 contracts waiting for receipts and with a Volume of 1 up on the board, and once again with no price. Yesterday, the Open Interest was at 16 which proves a 7 lot “buy”. So, where is the price for this increase in deliveries? Is Silver truly Priceless? Sometime during yesterday’s Comex trading period, the Volume went from Zero to 23 and with No Price once again! Spread trade, exit or entry, new purchases, yada yada yada, all require a price in order to sustain the math, yet even those people that work on the exchange cannot answer what is going on, and we’re supposed to trust the numbers? Not!
Silver’s Overall Open Interest continues to gain as another 1,653 more shorts got added into the mix bringing the new total to 229,622 Overnighters. We watch Silver strictly, unfortunately there is not enough time or room to write about Gold at the same time. If we did, the reports would be too much for the daily read. With that in mind, Gold has been breaking new ground in paper contracts as well but not the physicals, just like Silver! COT reports have their place, so do options, and so do deliveries. All of these encompass and control the physical products, yet many will focus on some but not all the information, totally ignoring the entire system the shorts use to game the price.
All Physical deliveries matter! When the controlling paper shorts run out of physical product, they will have no choice but to allow the prices to rise. Personally, I do not believe that we will see a default at these prices, which some are looking forward to because of the DOJ investigation of JPM. Comex, along with the other depots of precious metals around the globe, will have to allow the prices to move higher in order to bring in holders of physicals who hold precious metals in size (including the miners). It just may be this buyer who has been gauging the system, is a manufacturer. If true, we’re really going to have a rally in price.
So we sit and wait, knowing one day the prices will be forced to rise. We’ll keep our precious metals in hand and out of the system due to change. So, keep the attitudes positive, have a smile on your face, and as always …
P.S> Comex has now placed a price for the single purchase at the Comex for today. That price is now $18.025 with the “time of trade” at 2:05:34 am est. Nice to see a price but that delay is still bullshit in a world run on Algos running and spoofing the futures price.