The Silver Options Board is in Play!
Great and Wonderful Turnaround Tuesday Folks,
So it looks like, at this early stage in the morning, that there was only a 2 day (Friday/Monday) pullback in precious metals with green showing up on the monitors with Gold leading at $1,516.70, up $5.10 after being pushed down to $1,503 with the high close by at $1,518.80. Silver is trading in the positive as well and with another change upcoming most likely by tomorrow as the Open Interest in December Silver is about to surpass September in rather early fashion (before the options expiration) with September Silver now at $17.00, up 6 cents and close by it’s high at $17.03 with the low just 1 penny above yesterday’s low at $17.83. The US Dollar has remained Steady Eddie during this change up with the trade at 98.27, up 4.9 points and right close to the high at 98.30 with the low close by at 98.165. All of this activity occurred before 5 am pst, the Comex Open, and London’s EFP closing.
We have green lights in all emerging currency markets that we watch with the Venezuelan Bolivar showing Gold trading at 15,148.04 Bolivar showing a 123.84 gain in value with Silver adding 1.698 Bolivar with the price at 169.788. Argentina’s Peso now has Gold valued at 83,179.99 adding 695.07 A-Pesos with Silver at 932.327 proving an additional 9.50 A-Pesos being added to the price as the trade heads to and above the 1,000 Peso mark again. Over in Turkey, Gold is now at 8,677.64 proving the addition of 254.62 in T-Lira value with Silver now at 97.2593, it too adding 3.0324 T-Lira’s.
August Silvers Deliveries are still stuck at 2 fully paid for contracts, as we observed during yesterday’s trade a Volume of 1. We think this wound up being a spread trade that turned into a delivery as we observe this morning Zero Volume, but those trades in parenthesis are still there showing a bunch of numbers with no additional activity. It appears that yesterday was nothing but another attempt by the shorts to scare out a few longs which failed, with the Overall Open Interest now at 230,789 proving the addition and failure of 3,426 more shorts being added to the game that now needs to be extracted, and by the end of the month too!
Also of note is the purchased Calls in September Silver that will expire next week Tuesday. The Open Interest in the $17 Call is still highly elevated with the total now at 1,460 positions showing a slight drop in count but not like before and that includes the rest of those 15,000+ Calls that are deep in the money and below $17. As we have suggested before, it appears that the Options Board is in play!
Another one of those odd observances is the rollover into the December Contract. In our opinion, this time seems to be far earlier than ever before. Silver specifically has a normal approach of allowing the options to expire first than the subsequent and huge rolling out of the spot month and right into the next non-cereal month. We have September’s Open Interest at 98,947 with Decembers count at 96,552 in this early morning report. Those that are short the trade might be preparing for a rate cut tomorrow and are getting out of Sept earlier than normal.
We’ve mentioned in the past that the mathematical calculations in the fiat system is the total problem and cannot be fixed without adding more and more fiat/debt till the entire system implodes upon itself in a rinse, wash, and repeat, manor that has been going on for centuries now. What is needed is a solid math solution that cannot be gamed! We have a solution already in the works called “block chaining”, at least it’s by far a better approach than to allow a small group to print money whenever THEY are in trouble against those that trade against their positions. The force of the markets should be with the population and not those that game the fiat as it does now. In the current game, the only thing that makes the market move will be a shortage of product. That product and current focus of our missives has been Silver, and it may be the play of a lifetime, if one is on the right side of it all.
We remain steadfast on our beliefs! Holding onto precious metals during the crushing blows of a failing fiat is the only safe haven for now with centuries of proof behind us. The 3 emerging markets currencies we post daily is today’s evidence that there is a real situation afoot and is going to accelerate into public awareness soon enough as the failures bleed right into the primary currencies of the world. So hold on tight your precious metals, keep a positive attitude in the head no matter what, and as always …
Stay Strong!
J. Johnson