The Beatings Continue, But So Do The Call Options Purchases in Silver!

in #investinglast year (edited)

Great and Wonderful Monday Morning Folks,    

      Today is the last day of our fiscal year (US federal government) and as usual the morality beatings continue with Gold trading at $1,489.80, down $16.60 after being pushed down to $1,486.20 with the high at $1,507.20. Silver is still being used as the Red Headed Step Child with its trade at $17.23, down 42.2 cents after being knocked to $17.16 with the high at $17.66. The US Dollars trade, on the last day of the year, is at 98.925, up 16.4 points and close to the high at 98.965 with the low at 98.71. All of this nonsense happened before 5 am pst, the Comex open, and the London close.    

      Everything we are seeing in the currency’s arena is all about the support of the internationally accepted US Dollar mechanism (for now) with the emerging markets taking hits as well. In Venezuela, Gold is now trading at 14,879.38 Bolivar down 1,168.50 over the weekend with Silver losing 4.845 with its super sale price now at 172.085 Bolivar. In Argentina, Gold is trading at 85,399.44 Pesos showing a reduction of 436.70 with Silver at 987.662 Pesos showing a reduction of 25.088. In Turkey, Gold’s price is at 8,411.22 Lira showing it too lost 84.98 with Silver at 97.2719 losing 2.9681 in T-Lira value.     

      October Silver Deliveries are now in full swing with the count at 1,173 fully paid for 5,000-ounce contracts and with a Volume of 25 up on the board so far today with a trading range of $17.505 and $17.165 with the last trade being the low and a single lot order. This is only 5,865,000 Ounces of a product that is needed in just about all electronics and showing only a slight 33 count reduction from Fridays tally. We know the criminal element is still allowed to trade precious metals, what we don’t know is what deal they made with the last administration and if that deal will be removed by Trump or if we’re to wait for the last bar to leave but one thing for sure is, the Resolutes are still Resoluting!     

      If the last months activities were a real wash out, we would have seen a massive reduction in Open Interest but that isn’t happening! On September 3rd, when Silvers high price was at $19.75, the Open Interest in the early morning was 225,692. Today with Silver’s price at $17.23, the Open Interest is now at 218,832 Overnighters showing ONLY 6,860 Obligations leaving the field of play while we witnessed a $2.52 drop in value. Something else to add here is the biggest part of this OI drop happened last Friday when 3,831 Overnighters left the field of play. Again, one thing for sure is, the Resolutes are still Resoluting! Muhahahaha!     

      I did another Call Options Tally to see what else may be gauged here and found something just as interesting as the non-reductions in Silvers Open Interest within the futures. The Call Options Open Interest in November, December, and January all increased! November Call Options now tally (as of Friday’s close) 17,360, an increase of 1,946 with 2,515 of these purchases “In The Money” at or below $17.65. December’s Open Interest gained 2,084 more Calls totaling 87,662, an increase of 2,084 more purchases with 15,105 of these purchases “In The Money” at or below $17.615. January Calls shows a jump of 6,225 making it’s total 6,745 with 1,063 of these “In The Money”. A special note has to be given here on the January 2020 Calls, I did not keep a running tally over the past months’ time, so the jump in OI cannot be measured like we have with the weekly November and December counts, which where my primary focus. Still to this very day there are NO heavy Call Option Purchases further out than what we had witnessed in 2016 for this period of time we are in right now!      

      What we have here is a possible view of a play as a total of 10,225 (including January) more Call options were being purchased here while only 6,860 Futures left the field of play over the past month. In short, only the prices have changed but the dynamics behind the price has not, it’s becoming part of the play. Is it part of an exit plan or is it a part of a plan to simply surprise the shorts on the last trading days as these purchases get sent into delivery? All that matters now is the Resolutes are staying Resoluting and so are we.    

      My thoughts are, that starting tomorrow, we’ll be seeing the reversal in prices because this currency game we’ve all been forced to deal with is unwinding faster and faster as the global one world government idea fades from the bottom up. We are the Resolutes in precious metals because we understand the system and how currencies NEVER retain their purchasing power but precious metals do! So hold tight to the real, enjoy the show, keep appositive thought in the head and a smile on your face, and as always …   

Stay Strong! 

J. Johnson    

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