There is a Real Problem for the Central Shorts
Great and Wonderful Tuesday Morning Folks,
Gold is lower under the US Dollar with the trade at $1,272 down $5.30 with the low right here at $1,271.20 and the high to beat at $1,277.70. Silver is doing the same with its trade at $14.375, down 7 cents with its trade right at the low of $14.36 and our high to beat at $14.46. At least the Dollar is heading higher against the metals with the value pegged at 97.945 up 18.1 points and it too is right beside the forced number at 97.975 with the low to beat at 97.78. All this opposing activity was recorded before 5 am pst, the Comex open, and before the London close.
In Venezuela, Gold is now priced at 12,704.10, losing 38.95 Bolivar in value with Silver doing the same, continuing its slide downward with its trade at 143.421, losing .249 of a Bolivar. In Argentina, Gold has reversed with its trade gaining 6.95 Argentinian Pesos with the price at 57,474.98. Silver is trading at 649.511, it too regaining 2.17 A-Pesos. Since Turkey is now acting out by cutting its interest rates from 25.5% to 24% we’ll start looking at the power of precious metals under that currency as well with Gold now priced at 7,704.87 Lira with Silver gauged at 87.0735.
The Silver Deliveries for the month of May still have some intrigue to deal with as we see the demands for physical at 227 and with a Volume of 22 up on the board so far this morning, proving a drop of 126 demands as either receipts for physicals have been dished out, a short trader exited, or some EFP’s going to London, sometime over the past 3 days. Even though the price of the precious metals keeps getting played with, the real fear factor is not in the price but the numbers behind the price that is proving the thesis that there is a real problem for the central shorts who constantly try to scare the trade lower. No one on the Long side is getting out! That is our point here! The Overall Open Interest in Silver continues to climb with yesterday’s additions putting on another 979 more shorts in order to stay the price making the new total now 210,487 Overnighters. This is what most stock chartists cannot see nor understand. Commodities Open Interest and Volumes will be what tells us when the pressure is too much for the shorts, not the charts. Charts are like Hollywood, simply pretty pictures with no intelligence because the chart uses the fake prices to paint the exact opposite of what is really going on.
Teresa (won’t go away) May is still not doing anything for Britain, except delay, Mario Drahgi has yet to be right on anything when it comes to the European economy and he’s still trying to keep the Euro-Currency alive. Then there is Deutsche Bank, the bank with all the problems being piled on high, with the shares getting crushed by sellers trying to get whatever they can out. None of these real stories have affected our precious metals like they should, but they will in time, and maybe one of these stories will be what the central shorts use to blame game it all away from their intentions.
The paper game is coming to an end which will force the shorts to retreat from the price lines they used to keep chartists off balance, but those of us who have the commodity experience understand what it takes to paint the chart. The Supply and Demand sequence has been altered to keep things static, for now. This is temporary and cannot last because there has to be physicals to support the demands for physical. What price will be the line in the sand the shorts will no longer be willing to fight over? Maybe we can say, at this point, what difference does it make? Prices will rise once the paper game is forced out by cheap prices when the costs to extract blow out what is left in inventory. Have a great day, Stay the Course by keeping a positive attitude in the head no matter what, and as always …
Stay Strong!
J. Johnson