Welcoming a Week of Total Uncertainty

  Great and Wonderful Monday Morning Folks,     

      We start the day off with lower prices in the precious metals with Gold taking most of its reduction within (literally) the last hour of trade with the December price now at $1,504.30, down $19.30 and as usual right beside the low at $1,503.30 with the high to beat at $1,523.60. Silver is following with the trade at $16.83 down 29.2 cents and it too right beside the low at $16.82 with the high at $17.175 (Sept). The Volume for the Silver punch totaled 29,895 out of 104,065 (Sept totals) as of this write up with December Gold’s volume at 151,794 with its OI at 447,065. IOO (in our opinion) this amount of pump and dump wreaks of desperation. The US Dollar’s trade is nothing like the precious metals volatility with its value now at 98.10, up 9.3 points close to the high at 98.13 with the low just as close at 98.005, all of this was done pretty much during Honest London’s trading period, before 5 am pst, the Comex open, and the end of London ETF settlements for the day.  
 

      One would expect a much harsher treatment under our 3 emerging currencies watch, especially after last week’s stellar rise in all with the Venezuelan Bolivar pricing Gold at 15,024.20, proving a loss of 202.74 Bolivar with Silver now trading at 168.090 Bolivar, showing a loss of only 3.495 over the weekend. Argentina’s Peso now has Gold trading at 82,484.92 taking back 4,729.25 A-Pesos with Silver taking back 60.073 with the price now at 922.827 A-Pesos. Over in Turkey, the Lira now has Gold pegged at 8,423.02, dropping 52.11 in T-Lira value with Silver at 94.2269 losing 1.2827 in T-Lira value.     

      The physical demand requests for August Silver has just about been met with the total count for physical now at 2 fully paid for contracts giving us a drop of 47 in count and with a Volume of 1 up on the board, and once again, with no trading range. The idea of EFP’s going to London have taken over the deliveries at the Comex. Nick B., who watches Harvey Organ’s stats and is part of the inner circle of Gold watchers, has been able to view the nightly closes of delivered receipts from Comex and is declaring that since he started watching (July 12th) that Comex HAS NOT DELIVERED any physical Silver with a super low minor amount of Gold possibly being handed out since his watch. Another note here is these stats that Nick has been able to view, gets disappeared after posting and is not able to be seen once the newer post pops up, thus keeping us all out of the loop if we are not literally right there to retrieve it and save that data on a spread sheet. Silver’s Overall Open Interest is now at 227,363 Overnighters proving a loss of 1,992 positions since Friday morning’s count. It must be noted that this count is “live”. Another idea might be applicable here, if the Friday closing Open Interest count was substantially lower than now, we may be seeing an attempt of forcing the longs out of their trade since the drop in price seems to not be gathering steam as the shorts re-enter their trade once the market reopened Sunday night.     

      The FOMC meetings start tomorrow with the data points coming out this Wednesday with gag orders imposed on all Fed Presidents, is this a head’s up for us? Then there is the Deutsche Bank shares that keep getting closer and closer to zero at the same time it appears no physicals are leaving our shores for other nations with the only exceptions being those papered over EFP’s. Also of note is our Resolute Long, will he come in again with another batch of demands while the count is now at 2 with 10 more days of trading in August with the options coming off the board in 8 days? We’ll have to see what happens from this point forward because the short traders now have the prices going lower with the possibility being this may be another 1 day event in a week of total uncertainty. So hang on tight to the physicals, acquire more if you can, and please be patient with my writings. It appears I will continue to be getting more and more calls during my early morning write up time as things start to really get wonky. Keep the attitudes positive and as always …    

Stay Strong! 

J. Johnson