It Doesn't Take Much to Stampede a Jittery Herd

Great Wednesday Morning Folks,    

      Gold is trading higher as we start the “too early to trade report” with the price at $1,298.40 up $2.10 after reaching $1,300.00 with the low down at $1,293.60. Silver is flat at $14.805, down .007 of a penny inside a trading range between $14.865 and $14.765. The US Dollar’s trade continues to find buyers with its value at 97.46, up 13.8 points and at the high with the low at 97.24. What really seems to be sticking out over the past several months is the complete reversal in all US Treasury Instruments making us think that something very very bad is happening and all the while, everyone, NOT part of the club, is kept out of the discussion, which means those in the club, are the ones in trouble. All of this activity of course was done way before 5 am pst and the Comex Open, also way before the London close.    

      Venezuela’s currency now has Gold priced at 12,967.77 Bolivar taking back a little (11.99) from yesterday’s move with Silver now at 147.865, gaining 5 cents worth of Bolivar value on top of yesterday’s gains. Argentina’s Peso has yet to see the slicing off of digits to the left of the decimal as it shows Gold’s price now at 58,350.50 losing some 116.83 in Peso value after the giant move in yesterday’s trade. Silver under the same currency is now at 665.321, losing 2.52 A-Pesos as the swings remain wild under the emerging markets.     

      The May Deliveries in Silver seems to have slowed down a little with the demand for physicals at 295 fully paid for contracts waiting for receipts and with no Volume up on the board so far this morning proving a reduction of 12 but with no receipts being settled out as of late last night (thank you Harvey). It also seems the Algos are no longer churning the trade, at least since yesterday. What is meant by this statement is the early morning Volumes are only at 17,324 for the July contract which has an Open Interest Count of 154,126. In the past few months we've seen giant amounts of churn (in the Volume, in fact, some days the churn was more than the OI count) even when the prices are not moving. Now we see the exact opposite happening, a 10 cent swing in price with a low count under 18k in Volume, this could mean something and maybe even be a positive for the price. Stay Tooned!    

      In other emerging market news, Turkey decided to start collecting fees from their foreign currency traders to the tune of 0.1% tax, upsetting the apple cart for some, and sending the Lira lower but not making precious metals under the Lira break thru the high of last year, but they sure seem to be working hard to do so. And wouldn’t you know, another story that still keeps popping up like a bad Hillary nightmare, is Theresa May, and she plans to bring back (another??) Brexit Deal for a 4th vote next month. Hello Teresa McFly! That horse has been dead for way too long already, but Britain has its own humor and we Americans still don’t get it. However Nigel Farage’s Brexit Party continues to surge in the polls as the Tories tumble to 5th place in European Parliament polls.     

      The world markets are not working like any other time in it’s past. There is something afoot involving the world banks, American treasuries, and our Precious Metals. Out of these 3, only one is the saving grace, not only for the individual, but nations as well, but not the banks. They survive only inside their own paper game. Precious metals have always been the run too when the markets get wobbly. No one is running yet but they will, people are getting jittery, not jiggy about all that is happening right now, and it doesn't take much to stampede a jittery herd. So keep your precious metals in your own possession and out of the system, keep a positive attitude in your head no matter what, and as always …   

Stay Strong! 

J. Johnson