Politics and Governments Shutting Down is Nothing to Worry About (until?)
Great and Wonderful Wednesday Morning Folks,
Gold is trading higher but not like earlier with the right now price at $1,507.20, up $3.30 after reaching $1,516.90 with the low close by at $1,505.10. Silver lead the charge and may be leading the calm with the trade at $17.835, up 13.5 cents with the low at $17.72 after hitting $18 before the story about China agreeing again, and again, and again, hit the tape. The US Dollar is stagnated with the trade at 98.745, down 7.7 points with the high at 98.865 and the low at 98.595. All this was done before 5 am pst, the Comex open, and the London close.
In our emerging markets currency watch we see a pullback in Gold’s prices but a good strong rally in Silver. In Venezuela, Gold is now priced at 15,053.16 Bolivar proving a reduction of 31.96 in value with Silver at 178.127 giving Silver a 0.703 Bolivar gain. In Argentina, Gold is now priced at 87,188.98 Pesos, it too losing 167.22 Pesos with Silver at 1,031.73 Pesos, a gain of 13.62. The Turkish Lira now has Gold priced at 8,791.26 Lira showing a loss of 25.32 with Silver at 104.017 showing a gain of 1.268 in T-Lira value.
October Silver Deliveries now show a request count of 343 fully paid for demands for physical and with zero Volume up on the board so far this morning. This proves a reduction of 5 contracts from yesterday’s early morning quote that either got their physicals here or in London (paper or physical?). Silver’s Overall Open Interest shows a gain as 2,840 more contracts were added to the mix in order to keep liquidity happy giving us an early count of 214,136 Overnighters keeping Silver in place.
We’re still are in the throws of a liquidity crisis as the centrals get their heavily needed monetary addictions in order to keep their stuff steady against our demands in a market that is proving manufactured sales are still collapsing, evidenced in our transporting numbers; Rail Recession: Carloads Tumble To Thee-Year Lows Amid Manufacturing Implosion. Then the China story coming out (again) about buying our agricultural products after they did their usual thing, checking out the other nations supplies, and finding out we’re still the bread basket of the world (you have to know commodities to see this). On the other side of the planet, Britain’s politics are almost as bad as the US, but don’t let that bother you. After all, politics and governments shutting down is nothing to worry about, until their currency becomes a risk on again.
While the world is messing around with all this additional currency, we sit and wait, with physical precious metals in hand, as we strongly suggest one buys more. Why? Because one day, physical possessions are all going to matter (again). Keep a smile on the face a positive attitude in the head and as always …
Stay Strong!
J. Johnson