Great and Wonderful Friday Morning Folks,
Precious metals are recovering from the typical “before the Comex Open” hit with Gold being knocked down to a low of $1,476.30 before recovering to $1,480.90, down $2.20 with the high to beat at $1,481.80. Silver was knocked down to $16.92 before the bounce with the trade now above the Maginot line at $17.01 with the high near by at $17.03. The US Dollar is not doing anything inside a 10.5-point trading range between 97.43 and 97.325 with the last quote at 97.390. All of this happened before 5 am pst, the Comex open, and the London close.
We have a mish mash of price swings in our emerging markets with Venezuela’s Bolivar now gauging Gold’s value at 14,790.49 Bolivar losing 8.99 in the overnight with Silver now at 169.887 Bolivar proving a gain of 0.549. Argentina’s Peso now has Gold valued at 88,684.62 Peso’s showing the noble metal recovered 59.31 with Silver at 1,018.84 Peso’s it too regaining 4.84. Over in Turkey, the Lira has Gold’s value at 8,529.33 Lira, taking back 4.32 with Silver at 97.9701 showing a gain of 0.3272 in T-Lira value.
Our December Silver Delivery Demands now show a contract count of 914 fully paid for contracts waiting for receipts, or to day trade, inside the delivery month proving an 88-count drop from yesterday’s numbers that just so happened to have 248 contracts traded (yesterday) during the 14.5 cent climb. So far this morning the deliveries in Comex are posting a 19 count Volume inside a half penny price swing between $16.825 and $16.820. How can anyone be trading and profiting off a $25 swing per contract? Algo’s maybe, but they would have to control the entire 19 lot Volume, this minor move in price should make one wonder if there’s an element of criminal here. All day yesterday (and everyday), I observe multiple lot quantities of buy/sell orders 3 to 4 cents higher than the last trade but no takers, yet the Bid and Ask columns continually post ever changing quantities inside the “bracketed” throughout the months traded but no action at the higher prices. In our opinion, this is counter intuitive trading, in order to keep the prices stable, there must be a reason for this and in time it will be outted.
Silver’s Overall Open Interest fell quite a bit during yesterday’s little 14 cent rally helping to prove our point that the only way Silver is kept down is by all that paper pressing the price to artificially lower values with the OI count now at 204,967 Overnighters, proving 3,383 short trades exiting the market during our 24 hour cycle in reporting. That’s 241.6 contracts per penny move, and in our way of thinking, we consider the point that when the rest of these Silver shorts are forced to leave their Dire Straits, the prices should Schwing higher in a musical extravaganza as the chairs are pulled and the music is stopped!
We don’t believe the markets will freeze up first, like many thinks will/should happen. Why? Because it’s never happened before in any commodity. We think this has to play out within the exchanges that have been controlled in order to find the “real” price. Jim Sinclair had mentioned in one of the interviews (on the paid for side) that he felt the Hunt Brothers had a good reason to sue the exchange for outlawing the buying of physical Silver from Comex (if they wanted to). That may happen this time, if Comex does it again and is allowed to do so by those that are supposed to make sure there is no criminal element manipulating prices. We think Silver’s Criminal Element may be in Dire Straits at the Exchange, once we start seeing how high up the criminal elements management ladder this all goes, we may be seeing the prices follow.
Have a great weekend, keep your wealth in hand and out of the system, keep a smile on your face and a positive thought in the head no matter what, and as always …
Stay Strong!
J. Johnson