The Paper Vs. Real Rock Battle Goes On!

in investing •  20 days ago 

 Great and Wonderful Monday Morning Folks,    

      I sure missed a day to remark on last Friday but today makes up for it all, with Gold breaking thru to newer highs with the trade now at $1,471.00, up $13.50 after traveling to $1,473.90 with the low starting point at $1,448.80. The Tag A Long Kid is doing fine as well with Silver’s trade at $16.465, up 19.5 cents after hitting $16.59 before all that calming paper was applied with the low at $16.135. The US Dollar is now trading at 97.435, down 41.7 points and right at the low of 97.425 with the high at 97.93. All of this was done before 5am PST, the Comex open, and the London close.    

      The Emerging Markets Currency watch now has Gold trading under the Venezuelan Bolivar at 14,691.61, showing a gain of 526.34 Bolivar since Thursday’s write up with Silver at 164.444 giving us a gain of 4.544 in Bolivar value. Argentina’s Peso now has Gold pegged at 65,592.61 proving a gain of 3,443.41 Peso’s with Silver now at 734.123 Peso’s showing a gain of 32.535. Over in the lands of Turkey, Gold is now priced at 8,161.25 T-Lira, it too proving a gain of 252.27 with Silver gaining 2.0474 with its price at 91.3415 Lira. We still think these prices moves are the future moves under the primary currencies, as the paper vs. real rock battle goes on.    

      August Silver’s delivery demands remain robust with the request count at 425 fully paid for contracts and with a Volume of 32 up on the board so far this morning. The trading range for these contracts (but not the ones in parenthesis) is between $16.125 and $16.405 with the last trade being the high (and a single lot order). The drop in the delivery count for the past 2 trading days proves 128 contracts (5,000 ounces each) got settled out somewhere between the EFP’s going to London or the physicals getting delivered here in the states. Silver’s Overall Open Interest is still super elevated with the count now at 237,890 Overnighter’s absolutely proving the shorts cannot exit their positions without causing sharply higher prices. Thursdays Open Interest compared to the right now OI count proves 1,367 more pieces of paper had to be applied to keep Silver in check. The draining of physicals will remove the paper game as the failures to deliver (because the refiners cannot produce enough at these cheap prices) get closer and closer to the end.     

      So the paper game is still on as we watch with certainty that prices cannot remain subdued for too much longer as the demands for physical Silver may be because the buyer is a manufacturer with very large requirements and not for monetary protection (is the buyer part of the United States Space Force?). If this is the fact that has been driving the Open Interest higher in Silver (so the centrals can form an exit), then we may be just ahead of the biggest move in a lifetime.     

      Please! Enjoy the moments that give you a smile, keep the attitude positive and stay different than those that choose to see only bad and negative things, by remaining certain that change is upon us all. After all, change is good! Especially if you are the right side of the trade. Enjoy your day, and as always …   

Stay Strong! 

J. Johnson  

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