Precious Metals Stand Strong in the Flames of Fiat!
Great and Wonderful Friday Morning Folks,
You can’t keep a good currency down, and when the fiats are on fire, Gold stands strong within the flames, with the trade at $1,438.70, up $10.60 from the Comex close with the high so far at $1,454.40 with the low close to where we are now at $1,436.20. Silver is up as well with the trade at $16.345, up 14.7 cents after reaching up to $16.50 and just like Gold, trading close to the low at $16.27. Over in the Algo Pits of the Currencies, the US Dollar is trading at 96.68, up 23.1 points and very close to the high at 96.705 with the low at 96.415. All of this was done while we slept, before 5 am pst, the Comex open, and the London close.
The emerging markets currency’s, under insanity print, now has the Venezuelan Bolivar pricing Gold at 14,369.02 adding 15.98 in Bolivar value with Silver at 163.246 putting an additional 2.247 Bolivar into the price. Argentina’s Peso print has Gold pegged at 60,954.28 adding 489.67 in A-Peso value with Silver at 692.529 adding 7.414 A-Pesos. The Turkish Lira has the first money of the world at 8,122.97, it too adding 11.77 in T-Lira value with Silver adding 0.3928 T-Lira with its price at 92.2944.
Comex Silver’s Delivery system has been our primary focus with July’s demands for physical now at 276 requests, proving Comex finally gave out some metal to those waiting buyers with a drop in count of 128 and with a Volume of 2 up on the board so far this morning with a trading range of $16.275 and $16.235 with the last trade being the low of the day so far. The most astounding thing to see is the continual addition of short trades being added to the mix as the controllers of paper boldly go back into overdrive. That is until yesterday as 1,703 obligations left the field of play after this (not so painful for us) rally these shorts had to deal with this week. This bring our Open Interest totals to 234,220 Overnighters still in trade. So far this week, roughly a $1.10 was added to the price with the shorts losing from the very beginning to now, as the starting of the weeks Open Interest showed the 217,753 trades in play , proving the shorts lost a total of $1,197,641,500 before the additional 14,764 shorts were added.
More evidence of a slowing in the global economic condition is showing up in the Railroad industry. “We are seeing a range of conflicting data points and economic indicators and regularly speak with customers who despite the recent downtime - slowdown, remain cautiously optimistic about the second half.” Happy and sad at the same time yet the tariffs are being blamed for it all, but we think the reverse in interest rates has just about shut off all the big buys as the promises of cheaper rates in the near future, means saving money, and that is what we do when we see a cheaper tomorrow, we wait to buy. Even stores and warehouses do this, leaving very little in inventory till the rates settle.
It’s been a nice week for precious metals. Whether it’s the Brexit, Deutsche Bank’s issues, or more data being released in the DOJ cases involving the international banking system crimes, we simply don’t know. What we do know is this fiat game has been in overprint for too long and the currencies might be on the verge of going home and coming home. What can go wrong? Nothing! That is if you are sitting on physical Silver and Gold. Have a great weekend, keep the attitude positive no matter what, and as always …
Stay Strong!
J. Johnson