Great and Wonderful Hump Day Morning Folks,
Gold is trading lower this morning with the going price at $1,396.90, down $3.60 after being pushed down to $1,391.80 with the high 30 cents above the ($1,400) Maginot Line). Silver is down 3.2 cents at $15.115 with its low at $15.07 and the high at $15.165. The US Dollar is equally as flat as the precious metals prices with its trade at 97.075, down 2 points with the high at 97.165 and a low at 96.965. All of this non-activity happened before 5 am pst, the Comex open, and the closing in London.
Our emerging markets currency watch now has Venezuela’s Gold priced at 13,951.54, adding 37.95 in Bolivar value with Silver pegged at 150.961 gaining .649 Bolivar. Argentina’s Peso now has Gold priced at 58,398.06 it too adding 168.27 A-Pesos with Silver pegged at 631.885 adding 2.755 Pesos. Turkey’s Lira has Gold priced at 8,026.83 adding 93.65 Lira with Silver now at 86.8568 adding 1.1516 T-Lira. We are finally seeing all 3 currencies in massive print pushing the precious metals prices higher, hopefully this will lead right into the primary currencies.
July Silver Delivery demands now show a total of 554 requests for physical proving a drop of 175 obligations with the EFP’s going to London or getting the physicals here. So far this morning the Volume in the delivery month is showing 3 contracts traded inside a trading range between $15.055 and $15.00 with a buy order posted at $15.035 with a 24 lot Bid. Silver’s Overall Open Interest is now at 217,448 Overnighters proving 1,279 positions exited the playing field as the shorts start to worry about todays’ prepared remarks from our Federal Reserve Chairman (who has been warned he can be fired) in front of the House of Representatives.
The Trucking Industry is paramount to our country’s financial health and wellbeing. If the industry is moving, so is our country’s velocity of money flow. If trucking is not doing well we see reports like this Class 8 Truck Orders Crash 70% In June After A 71% Drop In May. The Interest Rates our nations businesses and people are paying are amongst the highest in the world, giving the rest of the competing nation’s a far better rate of return and Trump is demanding we have equal rates as those we compete against. This is why all interest rates in the USA were reversed back in Nov and maybe one of the reasons why we are seeing more and more evidence of a financial slowdown. What else is new out there in the land of purchases that will make our lives any better? Nothing, in fact cars and houses are not selling at all either! Why should anyone invest in these high priced items now when going into debt 1 ½ years from now will be cheaper for the borrower, possibly saving as much as 1½%? The point of contention is right here!
All this will get ironed out in the markets. They always do! If one is in the right position, they will benefit. Those that are not in the right positions will lose value. Usually, most of the people are wrong and that’s what causes the giant shifts, as the masses run towards the right trade or the trade that is going up in price. Since most people have been comfortable and complacent with their quarterly statements from their financial institutions, who make sure their investors hold all the risks and the banks don’t, these investors see nothing going wrong. But we do, obviously! Which is why we hold most of our values in Silver and Gold. So keep your precious metals close and those attitudes positive, no matter what is going on, and as always …