Great and Wonderful Friday Morning Folks,
Gold is positive again in the early morning with the trade now at $1,514.30, up $6.90 with the high nearby at $1,515.40 with the low at $1,502.90. Silver is up as well with the price at $18.22 up 4.3 cents after reaching up to $18.265 with the low at $18.045. The US Dollar, which spiked up to 90.105 during yesterday’s trade, and because the Draghi team cut rates to negative .5%, is now at 98.040 down 26.8 points for the moment with the high at 98.435 and the low close by at 98.000. All of this was done while the Comex was closed, before 5 am pst, and before the closing of London for the week.
In Venezuela, the Bolivar is losing value as Gold’s price increased with the price now pegged at 15,124.07 Bolivar, showing a gain of 18.97 in value with Silver now at 181.972, showing us a loss of .849 in value. Argentina’s Peso now has Gold valued at 84,939.56 showing a pullback with 11.96 Pesos taken off the price with Silver now at 1,022.15, losing 6.24 Pesos. In Turkey the Lira now has Gold valued at 8,583.96 proving a gain of 5.84 Lira after yesterday’s sudden reduction in interest rates just before the Euro-Union did the same with Silver now at 103.274 proving Silver lost 0.593 in T-Lira value.
September Silver Deliveries is still where all the activity resides with the Demands for Physicals standing at 525 fully paid for requests waiting to be transferred to London because we still have no physicals settled out here, proving a drop in count from yesterday’s numbers of 171 contracts with 135 (yesterday’s end of trade Volume) contracts being traded in-between a trading range $18.165 and $18.08 (yesterday). What we think we are witnessing in the early morning trades is the first purchases are always done at the higher pricings but later in the day, much smaller amounts of contracts get settled bringing the prices lower towards the end of the day. In short, more purchases are done at the higher prices but these single lot orders seem to be getting “special privilege” for the sake of reducing the price only. Really bizarre thinking reducing the prices instead of raising them when we see strong and continual daily demands. That’ll teach those buyers! It seems the Comex really has become a bankers joke.
As of this morning, the September Silver Delivery Volume stands at 85 with a trading range so far between $18.005 and $18.005, that’s right! One price for all 85 contracts with September Silver trading 0.036 cents lower than yesterdays close and while the highest Open Interest contract in Silver is trading higher. Somewhere in between today's early morning high and low, there are spread trades being settled, but once again, those numbers are not important (so they say). Silver’s Overall Open Interest continues to gain slightly with the total count now at 218,267 Overnighters showing an increase of 642.
Next Monday is the G8 currency rollover day with the Canadian Dollar rolling out on Tues which starts our Triple Witch Week Watch and we’ll add the question we want to see answered in an extreme positive for the coming week. Is this FOMC meeting inside the Triple Witch Week the reason why someone has stepped up to the plate and made all those October Silver Call Option purchases most recently? Someone bought over 6,300 more Call Options bringing the last tally up to 23,300+. What is this purchase for if not for protection against a (planned) surprise? Another interesting note here is the Open Interest in October Silver is now at 1,624. One would think the Options should be the smaller number, not the Futures, hmmmm.
Most likely the answer will be the usual, a precious metals beating which has been considered “the norm” over the past 2 decades I’ve watched this mess. One day, the break will occur to the upside, and the prices will never be down here again. This is why we remain optimistic about Silver and Gold in the future. Those that have heeded the warnings and accumulated real physical, will have their day. Please make sure you are part of our group. Have a great weekend, keep a smile on your face, a positive thought in the head, and as always …
Stay Strong!
J. Johnson