Silver is the most manipulated market out there (and for a reason)
Great and Wonderful Wednesday Morning Folks,
Our first paragraph of the day is all about the positive in precious metals under the US Dollar, with Gold’s trade at $1,288.50, up $6 and close to the high at $1,290.30 with the low at $1,283.80. Silver is following, like a spoiled child being dragged along, with its trade at $14.35, up 3 cents inside an 8 cent trading range between $14.40 and $14.32. Even the US Dollar is still in a positive with its trade at 97.895, up 5.3 points with a more volatile trading range, with its high so far at 97.94 and a low at 97.75. All of this of course is done while we sleep, before 5 am pst, before the Comex opens, and the London close.
Our emerging markets currency watch shows Gold’s price under the Venezuelan Bolivar to be trading at 12,868.89 gaining back 6.99 Bolivar with Silver’s trade at 143.321 losing an additional 1.148 Bolivar since yesterday’s quote. Argentina’s Peso now has Gold priced at 57,560.05, losing 6.764 with Silver at 641.016 A-Pesos, losing 6.267. The Turkish Lira has Gold pegged at 7,742.30 it too losing 24.71 Lira overnight with Silvers price at 86.2156 losing 1.0411 Lira. It seems the emerging markets are still holding all the volatility for now but that will change in time.
The May Silver Deliveries are still in play with the Demands for Physical at 194 fully paid for positions proving a drop of 25 contracts in yesterday’s trading activity. What is not shown is the Volume during yesterday’s trade which totaled 97 with Harvey Organ evidencing 77 of these notices being delivered during the trading day. This is telling us the demands are still there and someone is stepping in at the very last moments, to make sure their orders do not stay in the hands of the bankers for very long and at the same time, proving there is still product to play with (for now).
Silver’s Overall Open Interest is continuing to prove the point that the players are shorting the crap out of Silver with the count now at 220,763 Overnighters still in play as the short traders seemed to be allowed to do this “pull” just so they can screw over the options board like they have over and over again. This is an additional 9,055 more shorts being added (for liquidity purposes) in order to stay the price! James Mc, from Le Metro Pole Café fame (if you don’t subscribe you’re missing almost everything) did a little back checking “… In May 28, 2009 the silver OI was 100,655 contracts” … with the price at $15.16. Here is what has kept the prices artificially low, even though the governing bodies totally ignore the arguments GATA has proven to be real with the help of Bart Chilton. Silver is the most manipulated market out there (and for a reason), that will all change in time!
The markets are still reeling because of all the electoral turmoil in Europe with our paper markets trading lower and the bonds rallying higher (lower interest rates across the entire board) proving once again there is no reason to buy anything because borrowing money will be much cheaper by the middle of next year, a lot cheaper. Then there’s the counter party risk that is not being discussed surrounding Deutsche Bank and the idea that the masses, who are heavily involved with the markets, do not see what we do and are quite comfortable. In fact a Former Lehman Trader (is claiming): "Investors Are Acting Like Frogs In Boiling Water".
There is plenty going on everywhere now. The obviousness of this game is so glaring we are surprised that the metals haven’t shined yet but they will, especially when the warehoused product gets drained and at these manipulated prices. Acquire more if you can because these prices won’t last much longer, enjoy the day, and keep that attitude positive! It’s what helps us to …
Stay Strong!
J. Johnson