Good and Wonderful Monday Morning Folks,
Remember that Gold had a good day on Friday where it rallied just over 1%. Also remember that good days like these are almost never allowed to have a second or third day of rally with today being no different with Gold now at $1,294.60 down $4.70 and right at the London Low of $1,294.20 with the high at $1,299.20. Silver, the Tag-A-Long-Kid, is now trading at $15.305, down 4.4 cents and at the low of $15.285 with the high to beat at $15.365 after its 30 cent price rise on Friday. The US Dollar is up but barely with the value now pegged at 97.30, up 3.1 points and closer to the low of 97.23 then the high at 97.41. All this of course is done way before 5 am pst and the Comex Open. The Venezuelan nightmare continues with Gold now pegged at 12,929.82 Bolivar gaining 5 more Bolivar over the weekend with Silver at 152.859 it too gaining 1.698 Bolivar as we read that the people of the country have now been without power for four full days.
March Silver’s Open Interest is the same as last Friday’s numbers which means we still don’t have good up to date data with the count at 535 requests for physical with 0 Volume up on the board so far this morning. We do a have a buy order for 33 more obligations at $15.215 (March) with no takers as of yet proving someone still needs product. Silver’s Overall Open Interest lost 143 contracts with the total count now at 191,993 Overnighters still in trade as we wait for better data later in the day.
Theresa May is expected to call a second meaningful vote on her Brexit plan (Today), the prime minister is facing another massive defeat .. But according to MPs and cabinet ministers who have shared their grievances with the Telegraph, BBC and other British media outlets, it's possible that May could be forced to resign before she gets there. It seems everything is tied to Britain so we wait to see if anyone else out there sees the precious metals as a safe haven as things continue to get wonky in all currencies and as the British Pound may be the next to take a hit.
We try our best to use facts to support our ongoing thesis that precious metals should already be sharply higher in value. We already have the Deutsche Bank admittances of precious metals, currencies, debt, interest rate manipulations, and they admitted that many other central players have been doing the same (such as JPMorgan and the [failings of the governing body] CFTC investigation that is in court now). One of our favorite indicators we haven’t seen in a while is the CPI Inflation Calculator and where the price of Silver should be based on the 1980 high at $50 versus the value of the US Dollar now. Not that it will tell you anything different than what we have already, but right now, the Silver price under the US Dollar, should be equal to or higher than that of the Venezuelan Bolivar, we calculated $161.77 in US Dollars. Based on everything, we should already be seeing this price! Here's a little home work; find out where Gold should be under this calculator compared to the 1980 high.
Everything seems to be stalled, including the already expected rally in precious metals. The waiting has been maddening to say the least, but all our data points to a full reversal. Not only in the debt instruments on a global scale, but real value of real products as well. What we've been warning about is happening already. If any Venezuelans (or Argentinians) had listened to Jim Sinclair, Bill Holter, GATA, and everyone else, over the years, then they are doing far better than most around them. If they listened, then they may have prepared, and that is our boon! So keep your precious metals close no matter what, keep a smile on your face and positive attitude in your head, and you too will be able to …