We’re at the Nitty and the Gritty of this 3-year Silver Option Study

 Great and Wonderful Thursday Morning Folks,    

      Gold’s is in a super tight trading range and under early morning pressure with the trade at $1,493.30, down $2.40 after being pushed down to $1,490.40 with the high at $1,496.30. Silver has no volatility either with its trade at $17.54, down 4 cents with its high at $17.60 and the low at $17.485. The US Dollar is having more movement then the real money with its trade now at 97.25, up 1.4 points after the push down to 97.055 with the high close by at 97.300. All of this non-trading activity occurred before 5 am pst, the Comex open, and the London close.     

      Gold’s trade under the Venezuelan Bolivar is showing a loss of 17.98 in value with the price at 14,914.33 Bolivar. Silver’s value in Venezuela is now priced at 175.181 Bolivar barely proving a nickel drop. In Argentina, Gold’s value is now priced at 87,967.82 giving the noble metal a 395.62 A-Peso jump in value with Silver at 1,033.21 Pesos, it too gaining 4.48 in the overnight.  Over in the agreeable lands of Turkey, Gold is now priced at 8,627.07 Lira proving a loss of 17.08 in value with Silver at 101.373 Lira’s showing only a 0.066 T-Lira loss in value.     

      The October Silver Delivery requests shows a 22-count drop from yesterday’s trades giving us a total of 113 fully paid for (5,000 ounces per contract) requests waiting for receipts and with zero Volume posted so far today. Yesterday’s Delivery Month Volume reached 27 as the trading range widened to the upside giving the high price in the delivery month a post of $17.56 with the very last single order trade of the day at $17.49 with Comex’s closing price is $17.517. Silver’s Overall Open Interest remains elevated and it also gained another 554 more shorts in order to “stay the price” with the total count now at 215,133 Overnighters. Still to date the elevated count in Open Interest has yet to be reduced proving the shorts have to keep the count elevated or the price WILL explode.     

      Next week Monday, is the November Silver Options expiration day with the last trading day for October Silver Deliveries being Tuesday. As observed during last months roll overs, we witnessed a 99 count buy order in the physicals and a jump in the Open Interest in the November and December Calls. We’re still curious how this all turns out as I’m sure one day we’ll all see these Algo controlled prices break out of the barriers as emotions always set the pace based on fears, real and contrived. On September 6th, Silver’s November Call tally totaled 12,791. Every week since, the Open Interest has gained, even below the $17.50 Call Strikes, with the tally as of last Friday being 18,949 showing a gain of 6,158 additional (insurance policy?) option purchases. December Silver’s Open Interest in “Calls” on September 6th was 82,325, it too gained with it’s total as of last Friday being 88,547, increasing the total by 6,222.     

      We’re at the Nitty and the Gritty of this 3-year Silver Option Study, at least based on this huge purchase in Call options back in 2015/2016 and that giant jump in Open Interest within the Futures. What a time to be in the physicals, with the product in hand and away from the failing system we are now stuck in. So, keep your precious metals close, have a smile on your face and a positive attitude in your head no matter what, and as always …   

Stay Strong!

J. Johnson