The Resolutes Longs Are Forcing the Shorts to Add More Shorts

in investing •  14 days ago  (edited)

   Great and Wonderful Thursday Morning Folks,    

      Gold has a correction happening with the trade down $9.70 at $1,509.90 after dipping down to $1,503.50 with the high to beat at $1,518.60. Silver is following along with the trade at $17.045 down 15.1 cents and close to the low at $17.01 with the high to beat at $17.225. While all this pressure is being applied to slow the precious metals reactions, the Dollar ain’t doin’ much with its trade at 97.435, up by 9 points and close to the high at 97.45 with the low to beat at 97.255. All of this of course was done way before 5 am pst, the Comex open, and the London close.      

      It’s still all positive in our emerging markets currency watch. Venezuela is still adding value to the Nobel metal with the trade now at 15,080.13, adding 39.95 more Bolivar with Silver at 170.237, it too adding .999 in Bolivar value. Argentina’s currency has added 551.83 Peso’s to the price of Gold with the trade at 68,709.53 Pesos with Silver trading at 775.606 adding 8.734 Pesos. In Turkey, Gold is now trading at 8,293.45 Lira adding 25.42 in value with Silver’s trade now at 93.5853, it too adding .5360 Lira.      

      August Silver’s Physical Demand count now stands at 436 fully paid for 5,000 ounce contracts waiting for receipts and with a Volume of 28 up on the board so far this morning. Once again, we have another day of no trading range (yesterday) to offer in the delivery month. We’re still challenging the opaque here, if the count is real, how can the additional 29 contracts be added to the mix without a price? Also of note, the closing price for the delivery month now stands at $17.156, adding .751 cents to the price from the previous day’s close. Maybe today we’ll see some lower price swings as the stage is set for an attempt at beating the Resolutes. The big question for today; are the Resolutes going to add more Longs? Stay Tooned!     

      Speaking of the Resolutes Longs, the Overall Open Interest in Silver is now at a new record high with the count now calculated at 245,693 Overnighters proving an additional 5,755 more contracts had to be added into the fray in order to keep Silver from exploding any higher and out of the hands of the controllers. Regardless how today turns out, these Resolutes are taking on a machine that has been broken down and running on (delivery) fumes for up to 3 years now. The old record for Silver’s Overall Open Interest was 244,196 Overnighters, which now has been broken and proves an additional 1,497 more contracts had to be added in order to stay the price at $17.00, this is more than enough proof that the shorts are truly in trouble. Hang on to your shorts (centrals), the Resolutes are still here.     

      Supposedly all this calm being applied in the early morning is because China has Fixed the Yuan Stronger Than Expected. We’ll see because so far all this calm being applied has only stymied the movements and the tariffs are still there. So are the emergency rate cuts already brought in yesterday by a few other central banks. To add to this, a rumor regarding the Federal Reserve is floating about claiming The Market Is Now Pricing In Odds Of An Emergency 25bps Rate Cut – today. All this calm being applied and still the metals are sharply higher for the week.      

      So we watch the numbers behind the values, in the hopes we can glean more information because the deliveries and price are not jiving at all. The currency wars are still the game, and a day’s calm is only that, a day. Tomorrow is another day, as we wait and watch, with our physical precious metals in hand and away from the markets. With this in mind, we remain calm and upbeat. So keep the thoughts positive, have a smile on your face, and as always …   

Stay Strong! 

J. Johnson   

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