Great and Wonderful Tuesday Morning Folks,
Turn around Tuesday has started off right with Gold at $1,287.70, up $6.30 and close to the high at $1,288.20 with a low at $1,281.50. Silver is still following with its value pegged at $15.03 (July) up 9.7 cents with the high only ½ a penny away and a low at $14.94. The US Dollar seems to be dropping more than the metals are rising with the global currency of choice now at 97.29, down 29.1 points with the low right there at 97.28 and the high at 97.625. All this of course is done without the view of the American public, way before 5 am pst, the Comex open, and the London close.
Our emerging market currency watch continues to show the volatility we expect in the majors with the Venezuelan Bolivar now pricing Gold at 12,860.90 gaining 46.94 Bolivar with Silver at 150.112 gaining only .299 in the last day’s moves. In Argentina, the Peso’s wild swings now has Gold pegged at 57,102.13, losing 1,777.09 A-Pesos with Silver at 666.460 dropping off 21.849 in value. Get used to these price swings, that’s why we post them.
The May Deliveries in Silver start today with the first count posting 4,203 Demands for Physical, as 29,023 positions were removed yesterday and at the very last moments. The Volume posted this morning shows 185 contracts traded so far with a 32 lot buy order at 14.93 waiting to get filled as we wait and watch for the physical draining to force the prices higher. Silver’s Overall Open Interest took a big hit with the total count now at 198,351 Obligations as 14,592 overnighters jumped ship while the price refused to move during yesterday’s Comex sleep.
Argentina’s currency is starting to fester like Venezuela’s did 2 years ago adding to the mounting evidence that You Can't Stabilize A Bankrupt Economy with a chart in the article proving the devaluations in the emerging markets are supporting the values of the primaries (only posting US$/A-Peso) with the very last sentence adding the point we’ve been saying all along … Put another way, Argentina is now the future of the developed world. We use “primary currencies” instead of “developed” to make the point more pungent.
The battle of the barbarous relics continues to move forward even though the prices are controlled by the central bank system with their mouthpieces telling us they care not about the relics of the past yet must control the physical relics with the European Central Bank’s President Mario Draghi insisting the ECB must be allowed to approve any management of gold reserves within the euro zone countries specifically aiming their words at the leadership of Italy, who are listening to the will of their people.
Why was Italy singled out? According to the Wall Street Journal, Italian citizens are preparing to take control of Italy’s gold reserves. During the past few years, a multitude of small investors lost billions of dollars due to the failure of several Italian banks. The Bank of Italy is seen as an elitist, inefficient entity indifferent to the needs of ordinary people. Deputy Prime Minister Luigi Di Maio is leading the attack against Italy’s central bank, along with the “5 Star Movement” and the nationalist “League,” all of whom blame the countries financial woes on the incompetence of the central bank. We feel the populace is right in their assumptions.
The delivery game continues as the price suppressions helps only the buyers of physical and the banks, as we wait for the very last bar to leave the COMEX warehouse, which in turn will force the prices higher and higher. Bart Chilton, the Silver Martyr, spelled out in detail the criminality within the CFTC. THEY MUST BE INVESTIGATED! And just maybe, they are right now since the DOJ dragged JPMorgan (and the CFTC) into court because of Deutsche Banks admitted precious metals frauds. We must also see what else the CFTC approved besides the alleged Bear Stearns Precious Metals Short Positions. Investigate them like they do smaller firms (with a fine toothed comb and deep a colonic), or anyone else who points out that this committee thinks it is above the laws of man, and cannot be challenged. They are NOT above our laws!
Have a great day, keep a positive attitude no matter what and a smile on your face, no matter what, and as always …