Can we call this a currency crisis yet?

in investing •  13 days ago

 Great and Wonderful Hump Day Morning Folks,    

      Gold is trading higher this early morning, up $4.20 with the price at $1,289.80 with the high to beat at $1,291.90 and a low we never want to see again at $1,285. Silver is still giving the sell signal that seems to be approved by the CFTC (since they refuse to do anything about it) with its trade at $14.915, down 1.1 cents after reaching, once again the $14.99 price before being pushed away from the Maginot Line with the low at $14.895. The US Dollar is trading lower with the value now at 97.27, off by 12.9 points in between a high of 97.375 and a low at 97.18. These prices were tallied before 5 am pst and the Comex open and a few hours before the London markets are stopped.      

      The Emerging Markets currency board now shows the Venezuelan Bolivar’s value of Gold at 12,881.88, a gain of 83.90 Bolivar overnight with Silver’s value now at 148.964, gaining .949 Bolivar. Argentina’s Currency called the Peso, is showing the Nobel metal at 58,406.91, a 1,127.80 A-Peso gain (X a 100 ounce contract) – DAM!!!), with Silver now gauged at 675.446 proving a gain of 13.616 A-Peso’s (X a 5,000 ounce contract) as the excitement (I have) about the future of precious metals prices, under the primary currencies, is getting harder and harder to contain.     

      Everything precious metals trading boils down to the delivery requests and that count now shows a total of 499 demands for physical with a Volume of 36 up on the board so far this morning. Harvey Organ’s nightly watch proved 150 Contracts got their physicals during yesterday’s trade which is only adding more intrigue as we see the systems supplies weakening and the demands continuing unchanged. Silver’s Overall Open Interest has waned a bit with the tally now at 199,591 Overnighters, proving a loss of 657 Obligations as we wait to see if the OI totals fall to 139,000 as the price swings to $50.     

      Italy is reminding everyone about its plight as the EU “deciders of debt” refuse to lighten the burden Italy’s citizens have as their debt spread trades are being blown out again. Turkey’s debt burdens are not even talked about in this (past) article but the threads that bind are deep with counter party risk everywhere within the EU credit/debt system with the only solution being printing more money that cannot be earned. Bloomberg Intelligence analyst Tomasz Noetzel stated, “This is a major threat to capital of (foreign and) domestic lenders, given that some 40 percent of the $460 billion of loans in Turkey are non-lira denominated.” Can we call this a currency crisis yet?     

      Main Stream Media is still promoting the collapse in trade talks with China as the stock markets of the world seem to be reeling from the rumors as the Futures and Bond Yields Tumble As Traders Brace For Trade Talks Collapse. Another article on Zerohedge is simply titled Shattered! With tons of charts showing the stresses Triple Tops can produce within the indices and the VIX. All this is doing is proving the reasons why everyone should be holding some precious metals either in a portfolio or in physicals.    

      We’ll sit right here with our physicals and precious metals trade positions, as we watch the debtors and creditors fight over the table scraps left by the central banking system as they weaken the values of currencies which in turn facilitates inflation, then hyperinflation like those currencies of Venezuela and Argentina. It’s coming whether you see it or not. So hang on tight to what is real, keep a smile on your face and a positive attitude in the head, no matter what, and as always …   

Stay Strong! 

J. Johnson   

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