Will the Mexican Border Crisis affect Comex Silver?

in investing •  13 days ago  (edited)

     Great and Wonderful Thursday Morning Folks,    

      We start our morning off with another rise in precious metals pricings with Gold at $1,341.20, up $7.60 and right beside the high at $1,341.70 with the low at $1,331.30. Silver is still tagging along with its price at $14.95, up .159 cents and is literally at its high with the low at $14.73. The US Dollar is showing some selling with the trade at 97.080, down 17.1 and 2 points off the low with the high at 97.39. Of course all of this happened before 5 am pst, the US Market open, and the close of London.    

      Venezuela’s Bolivar now shows Gold priced at 13,395.24 adding another 11.99 to the weeks tally with Silver at 149.313, it too adding another 1.049 Bolivar. As a reminder here, Venezuela loped off a few decimals from its old currency value. If we were to observe Gold in the old Bolivar value, Au would be at 13,395,235.00 Bolivar and Ag would be at 149,313.13 Bolivar (in a 100 ounce Au contract and a 5,000 ounce Ag contract). Argentina’s Peso, which still has all its numbers, has Gold trading at 60,214.44 Peso’s, proving a whoppingly large increase of 1,326.02 A-Pesos with Silver doing the same, gaining 7.778 Peso’s proving a price of 671.235 A-Peso’s. Turkey’s currency is now showing Gold’s price at 7,746.51, proving a gain this time of 8.764 Lira with Silver now at 86.3374, a gain of 1.4782 T-Lira in the overnight.    

      Our June Deliveries in Comex Silver had a good jump in purchasing during yesterday’s game play as the buyer found a price the seller was willing to give away physical, with the count now showing a 50 lot on the board and with Zero Volume again. This is a gain of 46 additional purchases with most of the buying happening at $15 with a few sells later in the day pushing the real cash price lower than the futures prices. The rest of the day’s trade was all about reducing the spot price below the futures value because that buy order pushed all the months’ prices higher. If those lone sell orders didn’t show, the spot (cash) price would have closed above the further months which would have caused another inversion. In the old days, this was a close your eyes and buy moment because that literally meant a shortage of product to deliver. Ironically the Overall Open Interest in Silver only gained 57 additional contracts proving the total to be 216,427 Overnighters with almost all of this being added into the Delivery Month, a first for me, not sure about anyone else.     

      Adding to the currency issues, US-Mexico ended the tariff meeting without a breakthough (Mexico refuses to stop the caravans) which in turn will add more issues at the border. I have to ask the question about the biggest seller of Silver (Mexico) and the Comex Silver situation. Will this border issue affect Comex Silver Deliveries? Let us watch, wait, and see, because the media will never be helpful to our cause.    

      While we watch the Mexican border issues, our President is in England to honor the D-Day Soldiers that made us proud to be Americans. Our fathers fought alongside the rest of the “allied fighters and stood in the fires of hell to help turn the tide of World War II” as we helped a bunch of nations with their border issues all at once. I honor our American past! Sure it wasn't perfect, what nation has that in their history? This week has been something else already and I for one am glad to be in the position I’m in, and I hope you are comfortable too. So keep your precious metals in hand, have a positive attitude no matter what, and as always …   

Stay Strong!  

J. Johnson  

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