The Crowned Commotions of Silver and Gold

in #investinglast year (edited)

   Great and Wonderful Monday Morning Folks,    

      We open up our week with our usual starting point, precious metals trading weaker with Gold leading the drop at $1,289.70, down $5.50 with the low at $1,287.70 and the high to beat at $1,295.20. Silver is down 8.8 cents at $14.875, 2 cents off its low with its high at $14.95. With the precious metals under control, the US Dollar should be doing something different but alas, it’s following the precious metals lower with the value now pegged at 96.47, down 12.8 points with its low at 96.415 and the high at 96.58. Of course all this was done way before 5 am pst and our Comex open. Our emerging markets view within the Venezuelan currency now has Gold pegged at 12,880.88 Bolivar, losing 59.92 over the weekend with Silver now at 148.564 losing .949 of a Bolivar as these gyrations swing hard and fast, but not in the primaries, yet!    

      April Silver Deliveries have been something to view over the past few weeks, but not today, as the Demands for Physical stay at 1 and with zero Volume up on the board so far this morning. Silver’s Overall Open Interest has been climbing a huge wall of worry with the early morning count still showing 219,843 Overnighters are still in play proving only 512 positions got out before the weekends trade. This is where we think all price issues will be corrected. The exchanges will run out of physical at these below production prices, however these trading hubs, will have to prove they are still a viable way of getting product and real price, or they will be blown apart and blockchained into correction, if they survive at all.      

      Britain is now being labeled a rogue state –  “a nation or state regarded as breaking international law and posing a threat to the security of other nations.”  The list of reasons are well defined in this article but it misses the most treasonous reason, the intervention into our election process here in the states, making many other nations wonder what else Britain has done for the sake of a crown? It seems we have much more to discover, especially since the City of London has been heavily involved with the Comex EFP’s in precious metals going to London for well over 2 years using this so called “emergency procedure”. We hope its only paper being sent over and not the physicals, time will prove all and now we wait for this weekend’s update on the special “U.S., European Banking Union, and UK Officials Meet for Planned Coordination Exercise on Cross-Border Resolution Planning” and it’s outcome which no one has followed up on yet. Oh to be the fly on the wall there!     

      While the crowned commotions regarding the our nations sovereignty gets exposed, shipping continues to show weakness everywhere as world trade volume rolled over in late 2018 and into the new year, a sharp decline in shipping rates across all vessel types forced some operators to scrap their ships in Southeast Asia in the first three months of the year, reported The Wall Street Journal.  The Baltic Capsize has been making new all-time lows and is a perfect metaphor for the issues that are now plaguing the entire world’s economy. In short, no nation is doing well which is why these same nations print their currencies so they can stay in place (governing that is).     

      Nothing’s changed price-wise, but everything surrounding pricing is changing. This setup, has taken a long time to get to where we are now. Fake Prices caused by Huge Open Interest, Large Demands for Physical, those EFP’s (Exchange of futures for physicals), and then the latest governing bodies in charge of protecting all investors, had a gathering over this past weekend, to talk about the way the markets have been played, and how to bring them back to being trusted (blockchain?). What better time to be in physical precious metals, while everyone waits for what we all know should have happened a long time ago, the correction of a lifetime. Hold onto the real, and wait for the change to be a “surprise” for everyone else who ignores the real issues in precious metals pricing, and as always …   

Stay Strong! 

J. Johnson