Great and Wonderful Hump Day Morning Folks,
After all the days of morality beatings, we start this day of with a positive note with Gold trading higher at $1,278.10, up 90 cents after reaching $1,282.10 before the London button of control was pushed with the low right here at $1,276.80. Silver is trading higher as well at $14.942 up only 2.2 cents and at the low of $14.93 with the high so far at $14.99. It seems the US Dollar is getting more volatility then the precious metals are allowed with its trade at 96.575, down 7.7 points and up from its low at 96.46 with a high so far at 96.785. This is a 32.5 point swing with Silver doing 11.5 cents and Gold only a $5.30 swing all before 5 am pst and the Comex open. Apparently in Venezuela, Gold is still dropping hard in value with the latest pricing under a currency in heavy print at 12,765.02 Bolivar losing a whopping 89.89 overnight with Silver at 141.173 crushing Silvers price by 7.641 Bolivar. Amazing volatility, one day, it will be proven under the US Dollar, British Pound, and the Eurocurrency.
April Silver Delivery Demands are still stuck at 1 with Zero Volume up on the board so far this morning. I watched all day yesterday to see if a fill would occur when a posted 28 count buy order was placed in the Bid at $14.945. It sat out there like a dead fish rotting in the sun all day long with no takers. Not that it matters anymore because it really does seem that the Comex pricing mechanism has become irrelevant when it used to be the place for real price discovery. The Open Interest in Silver continues to gain proving once again that the issues in Ag are only increasing the pressure under the lid as another 1,536 short trades are added into the Silver futures count now totaling 224,850 Overnighters in order to stay the price. The climb in Open Interest is our focus point! It proves pure and simple, this market is controlled, but only until there is no more physical to sell at this price.
What’s amazing to me is how everyone who does not or never has traded in commodities, tells everyone else to stay away at the time when everyone should be salivating because of the manipulations and the slowing of physical extractions, and completely ignore the fact, that commodities are exactly where all the banks recover their losses when the time comes (Ag leverage at 5,000 ounces a contract). It really is frustrating to be in the commodities business when commodity firms are not allowed to talk openly, but everyone who doesn’t trade, disses the price mechanism everyone uses to quote. Who’s helping who by doing this?
The reasons to be watching the precious metals at this time is because the global economy has not only slowed, it’s almost stopped! It’s exactly like being stuck on the 405 Freeway at 5pm on a Friday when a massive traffic accident occurred miles ahead and blocking both sides of the freeway. This isn’t just a country having currency issues, this is a global issue, and it is already become an “every country for themselves” moment in time, as the World Trade Suffers the Biggest Collapse Since Financial Crisis. If this isn't deep enough to prove it, then maybe the cardboard box count will help as exports slumped 19% y/y (container board and box shipments are a coincident indicator of trade momentum, and the latest data is quite simply a dire signal for global trade), box demand was much weaker-than-expected, amid continued global trade war fallout.
Right here and now, is every reason in the world to be in any and everything precious metals! Not only physicals, but in shares and futures (options did it for us back in 2010/11 and it will again), as the game of money flow slows to a crawl, then eventual panic, like in Venezuela! It is our opinion there still is no better place but inside precious metals, in accordance to your willingness to risk what you can afford to. So keep that attitude positive, have a smile on your face and as always …