Great and Wonderful Wednesday Morning Folks,
Gold is trading higher under the US Dollar with the December contract at $1,495.20, up $4.50 with the high close by at $1,496.20 and a low at $1,489.10. Silver is higher as well with the December contract at $17.90, up 6.9 cents with the high at $17.92 and a low at $17.75. The US Dollar, which has had 100’s of billions of newly added print created in order to keep up with the bills it can’t pay, is now trading at 97.445, down 2.4 points with the high at 97.51 and a low at 97.36. All of this slow activity happened before 5am pst, the Comex open, the London close, and the very strong possibility of another 1/4% interest rate cut here in the USA.
We have nothing but positive trading in the emerging markets this morning with the Venezuelan Bolivar now giving Gold a price of 14,933.31 offering those that hold a 68.91 Bolivar jump in price with Silver trading at 178.776 giving the holders a 20.97 pop in Bolivar value. In Argentina, the Peso has Gold priced at 88,812.80 giving the holder a 377.07 A-Peso increase with Silver at 1,062.96 showing an additional 11.83 in A-Peso value. The Turkish Lira now has Gold priced at 8,557.73, it too showing an increase of 24.169 T-Lira with Silver at 102.455 offering a 1.014 uptick in T-Lira value.
Yesterday was the last trading day for the October Silver deliveries with the last count at 60. Today is simply a time out for Silver deliveries with tomorrow being the First Notice Day for the cereal month of November. A Cereal Month is a nice way to say “hardly any purchase” month. The November Open interest in Silver is now at 293 contracts and with a Volume of 1 up on the board with the price of $17.79 as a purchase and sell. FND is when all holders of long positions must have 100% of the margin in order to play the game. The sellers are supposed to have receipts for physical, with the spread traders owning all the background noise inside the hidden data of Comex (aka the moves without a price). 293 Contracts makes the delivery total 1,465,000 ounces of Silver (5,000 ounces per contract) possibly standing for delivery.
Silver’s Overall Open Interest remains elevated with yesterday’s nickel drop showing 465 Overnighters leaving the field of play with the total Open Interest in all Comex Silver at 221,495. This is a very high profile of heavily over weighted paper keeping the Silver price subdued as we wait out the physical demands, to finally take over the pricing controls.
We’re now within a month’s time of the December Silvers Options expiration day. The last month of the year has been a key period of time over the past 3 years since the elevated Open Interest in the Comex Silver Futures happened as well as our observances in the Open Interest in the last half of the years Options in Ag. We can’t help but admit our excitement and frustrations, this is Silver’s time of intrigue, or a complete 3-year waste of time watching over the antics inside Comex as the DOJ and CFTC continue to investigate a criminal element still being allowed to criminal Silver. Will Silver’s price start to rise, and will the shorts exit all at once or, are these long ago purchased Call options part of their escape plan, or is it a buyer who needed time to acquire the funds for physical, or is this a head fake that cost up to 100 million to do 3 years ago?
This seems to be one hell of an insurance policy if anything else. But with the last few weeks of insanity printing still going on, and the fact that there is something really big causing the Federal Reserve to print in massive fashion, it’s hard to think any other way since 100 of billions of US Dollars are being printed in order for the markets to tell us precious metals holders, how wrong we are to believe the price of real money is worth less than the paper we print.
This is the game we chose to play, as the printers help prove how right we have been, to hold physical precious metals and keep it outside the arena of fake. So, keep that smile on your face and appositive attitude in your head no matter what, and as always …