Resolute Longs and the Silver Stress Test Challenge!

  Great and Wonderful Wednesday Morning Folks,     

       Gold is higher, and right now the December trade is at $1,505.90, up $21.70 and right close to the high of $1,507.70 with a low at $1,484.30. Silver is leading the charge with its trade at $16.945, up 50 cents with its high close by at $16.97 and the low down at $16.45. The Dollar is staying in place for now with the value pegged at 97.425, up 8/10ths of a point with the high at 97.535 and the low to beat at 97.225. All of this was done way before 5 am pst, the Comex open, and the London close.     

       Our emerging markets currency watch is all positive today! In Venezuela, the Bolivar now has Gold priced at 15,040.18, showing a gain of 313.61 Bolivar with Silver now at 169.238 adding 5.443 Bolivar to the price. In Argentina, the Peso has Gold valued at 68,155.04, a rocket ship launch of 1,229.08 Pesos with Silver now trading at 766.872, et tu adding an additional 22.437 in A-Peso value. Turkey’s Lira has Gold priced at 8,268.03 adding 107.80 Lira to its value with Silver now at 93.0493, a jumping of 2.2878 T-Lira’s.     

      August Silver’s Delivery requests now shows a post of 407 contracts, fully paid for and still waiting for receipts, with a Volume of 9 up on the board so far this morning. Just like yesterday’s trades, and after seeing the previous day‘s volumes go to 30, we still have no trading range to offer today, with the delivery month‘s closing price at 16.405 proving 7 contracts were settled out yesterday either in EFP’s to London or physical’s here. There’s nothing to worry about because all the trades being done in the delivery month are none of your business. The secret parenthesis’s trade has taken over the Comex. I’ll argue the point here that “if” these are spread trades entering or exiting, there HAS TO BE A PRICE COORDINATE! And they should be posted! Hello McFly! Silver’s Overall Open Interest is proving the shorts are still “staying the price” by adding more short contracts with the total count right now at 239,938 Overnighters still in play proving the addition of 1,430 more contracts where added just to keep Silver from breaking double zeros ($17.00).     

      In a surprise move overnight, New Zealand did an emergency ½% rate cut and at the same time China turned up the Currency War a notch, by letting it’s currency fall even more. To add a little intrigue to the mix, New Zealand is part of the “5 Eyes” that Q has warned about over the past few years.  In addition to Q’s heads up, each of these Eye’s has a central bank too, hmm. Also of note and not discussed too much anywhere, was the sudden reduction in our further out interest rates since the 1st of August. The Eurodollar, which is the largest (interest rate) commodity on the planet (based on Open Interest), has reversed another 50 basis points, which means the Fed Window’s rates out in December 2020 is now at 1.25% compared to the right now interest rate, which is at 2.11%. Nothing to see here, unless you are buying any big ticket item (houses, cars, boats, yada yada yada) or you’re a CFO of a major corporation, who will stall all purchases till rates are cheaper.     

      So the Currency Wars are on and open for all to view. I recall Jim Rickard’s claims of being part of a military war games test using currencies as a weapon, instead of the old school marines, planes, weapons and bombs we’ve watched over the decades. Apparently more damage can be done to a nation’s infrastructure, by destroying their monetary system and leaving the masses in place unhurt by weapons. I know, way outside the box of normal thinking, but it does seem to be in play now.     

      Regardless or the reasons, the precious metals are being bought up and the currencies of many nations are collapsing, proving the best place to have one’s retirement is in physical Silver and Gold and outside the system in collapse. So be a Resolute Long and take the Buy Silver Stress Test Challenge by buying more physical’s before the currencies really start to drop in value, which in turn will send Silver and Gold higher against all currencies. Enjoy the day, keep a positive attitude in the head no matter what, and as always …   

Stay Strong! 

J. Johnson