Great and Wonderful Tuesday Morning Folks,
Gold started off on a tear Sunday night and has been put to sleep almost immediately after the first rally with the high to beat at $1,544.50 with the right now price at $1,538.90, up $9.50 with the low at $1,528. Silver did the same thing with its high still at the Sunday night point at $18.685 with the low at $18.365 and the right now price at $18.575, up 23.3 cents. The US Dollar’s trade has been supported (like the metals were stymied) with its trade at 98.26, up 40 points with the high at 98.33 and a low to beat at 98.01. All of this was done sometime before 5 am pst, the Tuesday Morning Comex open, and the London close.
The Venezuelan Bolivar now has Gold priced at 15,369.76, adding another 45.94 in Bolivar value with Silver now at 185.518 it too adding 1.049 Bolivar to the price. Argentina’s Peso now has Gold valued at 89,644.57, showing an additional 835.61 Peso’s in value. Silver’s price also jumped with the trade at 1,081.97 Peso’s adding 13.27 Peso’s to the price since the nation decided to control its currency value on our holiday. In this article’s last sentence it talked about the Argentine Peso’s black market making me wonder if this “black market” IS the Argentine Peso’s “Eurodollar” market? Supposedly each currency has one of these. I’m still digesting that one after the weekend’s Big Can of Worms non-report. Over in Turkey, the Lira now has Gold valued at 8,864.88 proving a drop in value of 88.96 T-Lira with Silver at 106.983 showing a loss of .815 in T-Lira value.
The September Silver deliveries are now in full swing with the Open Interest at 6,724 fully funded demands for physical showing us a rather large request for 33,620,000 Troy Ounces waiting for receipts with the Volume right now at 279 inside a trading range between $18.52 and $18.25 with the last purchase price at $18.43 so far this morning. Silver’s Overall Open Interest remains elevated and still showing a slight drop in count with the total now at 224,170 Overnighters proving a loss of only 118 Obligations since the Friday morning count as we are seeing the prices rise at the same time the Open Interest falls, leaving us the impression that the sellers have had enough (for now).
This Resolute buyer now has the full attention of everyone because the demands are now over 33 million ounces of physical Silver for this month alone! Do we have the physical or is a portion of it promissory notes for a later time? The constant demands for the product is here and now, even after the manipulated drop in price, which is proving to be too much for the short trader. They (the manipulating shorts) will have to let the price fly in order to find the natural value after being stymied like it has by these no-emotion Algos. It is might be safe to say Silver’s Resolute buyers have taken the stage and the crowds are going wild!
We have more tariffs being applied to Chinese imports which went into effect Monday. Immediately (1 minute later) after Trump had the new tariffs applied, China did the same on our farm products. China moved very quickly, at the same time they attacked their people (right in their wallets) by forcing their food prices sharply higher as if this would hurt us. While the media plays one side against the other, we’ve noticed a huge drop in all pork and beef products, which we loaded up on and placed in our freezers, and now they wish to hold off till later the purchase of our world famous bread basket foods. Watch what happens in the future here. When China has a food supply problem, they buy everyone else’s surplus, what happens when that gets drained out? Those nations that were so eager to sell to China will, in time, have to buy from us and China will also have to!
Nothing has changed for us with the exception that everything we’ve focused on over the past 20 years is in the process of being proven. The Shorts are in trouble and the physical buyers are feeling better. Plenty can go wrong here, especially for the shorts when the demand for physical is from a manufacturer. So keep that smile on your face and a positive thought in the head no matter what, and as always …