Great and Wonderful Thursday Morning Folks,
The Algomated Shorts in Gold continue to restrict all upward movements with the trade now at $1,293.90 down $1.50 and as usual close to the low of London at $1,293.50 with the high at $1,297.90. Silver is worse off because it needs more pressure to control with its price at $15.01, down 9.2 cents and right at the Maginot Low of $15. The US Dollar is seeing more support from all the activities in Europe with the value pegged at 96.77 up 10.8 points inside a 20 point trading range between the low at 96.605 and the high at 96.805. All of this non-volatility of course happened before 5 am pst and the Comex open. The Venezuelan Bolivar now has Gold priced at 12,922.83 taking back some of the gains it attempted during yesterday’s trade with Silver now at 149.912 losing .899 Bolivar in value.
April Silver Deliveries are pressing forward with the demands for physical now at 77 obligations waiting for receipts with Zero Volume up on the board so far this morning. This means 20 contracts were settled out yesterday, somewhere between the Comex and the City of London, where we still have no idea if these receipts that are sent over there actually get settled out in physical, cash, or at all. Silvers Overall Open Interest continues to climb, proving a gain of 1,915 more shorts to stay the price now totaling 201,579 Overnighters as we head towards breaking 245,000 held overnight contracts that were required when Trump won, when he entered office, and when the population of Britain did it’s Brexit vote. In our opinion, this is where it all breaks down, which is why we focus on the numbers behind the price.
Italy’s economy is not doing so well these days as the not so united Europeanization populations continue to complain about the EU’s burden placed upon all employment and purchases (income and taxes) as the … Italian stocks tumbled on Thursday after the Italian Treasury once again slashed its forecast for economic growth for 2019.” Then more reasons get added for holding precious metals.. This debt mountain threatens the financial stability of Italy and the future of the euro: Any plans to strengthen the single currency must solve the question of who will bear this burden." The Euro Leaders of course feel the people should bear their entire burden, but the people no longer want this political union anymore, which is why we hold physicals.
Then we have a good one coming soon here to the states as Deutsche Bank is still being investigated for ignoring all the questionable activity within their American Branch as the “…. report describes Deutsche's US unit …as a "kind of legal mirage". For years, the leaders of the US subsidiary were merely puppets, with little real power, influence or knowledge about the subsidiary's operations… This lack of authority helped foster an atmosphere of lax compliance and AML controls, which endured even after US regulators demanded that changes be made.” One day, we will be able to see how in-depth the frauds became, that is, if we get to see more of the past activities in a courtroom. Ironically, DB stopped this activity in 2016. Was it because they too thought she would win? Hmmmm
Yup, there is still no reasons to be investing within a system that is gauged against the mass of traders, unless that is, you understand what is happening as the game of numbers hides the activities behind the posted price. We feel time and volatility will pop the price of Silver and Gold, and quite possibly at the last moments, before a rush in value occurs like what happened in the top 10 cryptos these past few days, when the shorts get stopped out as the questions of deliveries within the trading hubs of electronic digits gets a challenge. So hold on tight to the physicals, keep that attitude positive and the smile on your face permanent, and as always …
Stay Strong
J. Johnson