Posted at 6:25 PM (CST) by & filed under General Editorial.

If one offered investors a fat tail put option that never decays or expires, costs about -1% pa to carry, has no counter party risk & no chance of ever becoming worthless, there would be a line out the door. But when one explains that this option is physical gold… no interest.

          S. Mikhailovich

Posted at 11:25 AM (CST) by & filed under Jim's Mailbox.

Courtesy of Dave.

Jim

OCC Report: JPmorgan Chase And Citibank Control 76 Percent Of All Precious Metals Contracts At 5,362 Federally-Insured Banks
June 24, 2019

By Pam Martens and Russ Martens

As of March 31 of this year, there were 5,362 Federally-insured commercial banks and savings associations in the United States. Just two of these banks, JPMorgan Chase NA and Citibank NA control 75.7 percent of all precious metals derivatives contracts held by all of the 5,362 Federally-insured banks and savings associations. This finding comes from a report released last week by the regulator of national banks, the Office of the Comptroller of the Currency (OCC). (See Table 9 in the Appendix of the OCC report.)

Commercial banks are supposed to be making safe and sound business loans to keep the U.S. economy humming, creating good-paying jobs and making America competitive around the world. But according to the latest OCC report, of the $38.57 billion held in precious metals derivative contracts by all Federally-insured banks and savings associations in the U.S., JPMorgan Chase Bank NA held $17.509 billion and Citibank NA held $11.691 billion. JPMorgan Chase is currently under a criminal probe by the U.S. Department of Justice involving precious metals trades.

Equally concerning, the trading of precious metals derivative contracts by Federally-insured banks has grown exponentially since 2001. At that time it represented less than $5 billion. During the financial crisis in 2008 and 2009, precious metals derivative contracts at the banks were less than $15 billion. They have more than doubled since that time.

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Posted at 11:21 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Cloaking the Comex vs. The Resolute Longs!
June 25, 2019

Great and Wonderful Tuesday Morning Folks,    

      Gold continues to lead the charge with the trade right now at $1,431.90, up $13.70 and after it spiked to $1,442.90 from the low down at $1,421.40. Silver, is still screaming in the grocery store as momma Gold is forced to deal with the anchor that will soon lead the precious metals rally with AG’s trade at $15.475, up 1.4 cents as I watched the Algo’s make the signal that has failed these past few days with the trade right by the low of $15.42 with the high I want to see beat at $15.59. The US Dollar is barely moving with its value pegged at 95.56 up 7.3 points and close to its high at 95.585 with the low at 95.365. All of this was done while we sleep before 5 am pst, the Comex open, and the London close.    

      Gold gained 178.77 in Bolivar value in Venezuelan with Silver now priced at 154.557, a gain of only .10 of a Bolivar. Argentina’s Peso now has Gold priced under it at 60,752.96 A-Pesos, a gain of 247.96 with Silver at 656.624 losing 7.288 in Peso value. Turkey now has Gold trading at 8,277.74, showing a gain of 78.55 in T-Lira value with Silver pegged at 89.4546 showing a loss of .2041 in T-Lira value, and all done in the overnight.    

      The key to it all is in the delivery system within the Commodity Sector with June Silver’s delivery demands now positing a 4 lot with zero volume up on the board so far this morning, proving a drop of some number I’m no longer sure about (94) since the math doesn’t jive again. Yesterday we had an OI number of 102 demands for physical (5,000 ounce contracts each). But during the day (yesterday) a Volume of 24 was posted and with no sales price displayed on my trading screens. Apparently Silver’s Overall Open Interest is showing the “fear of the shorts” as a number of contracts were added in order to give us the Silver Signal we have now and during the cloaking of the deliveries to the tune of 2,777 more positions in trade bringing the Overall count back up to 231,366 Overnighters in order to keep Silver from doing the move Gold is doing now.  Will the signal work like it always has in the past, or are we in the change of a lifetime? Pay attention to the deliveries! They matter the most.

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Posted at 8:45 AM (CST) by & filed under In The News.

J. Johnson’s Latest – The Future Pop in Silver’s Price Will Be Loud and Clear!
June 24, 2019

Great and Wonderful Monday Morning Folks,   

      After a nice weekend of wonder, we wake to see that the precious metals are still trading higher with Gold now priced at $1,414, up $13.90 after reaching up to $1,414.80 with the low at $1,403.60. Silver is still being dragged along like the spoiled and tired child we see at the grocery store with its trade at $15.465, up 9.5 cents after reaching up to $15.515 before being calmed down with the low at $15.385. The US Dollar is on its way to losing 200 points since last Tuesday with the trade now at 95.505, down 21.3 points and at the low of 95.500 with the high at 95.715. All of this of course was done after Sunday’s opening at 6 pm Est and right now, before 8 am Est, the Comex open, and the London close.    

      Venezuela’s Bolivar now has Gold priced at 14,122.33, gaining 136.83 since Friday’s quote with Silver adding .649 in Bolivar value priced at 154.457. Argentina’s Peso now has Gold priced at 60,505.00 taking back 171.53 from Friday with Silver now at 663.912 taking back 3.373 A-Pesos. Over in Europe, the Turkish Lira now has the noble metal gaining 66.93 with the price at 8,199.15 T-Lira with Silver pegged at 89.6587, losing 1.3828 in T-Lira value.   

The June Silver’s Delivery period is just about over (this Wednesday) with tomorrow being the July Options expiration day with the June Count in Silver still at 102 obligations waiting for receipts and with Zero Volume up on the board so far this morning. The Overall Open Interest in Silver fell a bit on Friday proving a drop of 10,469 shorts getting out of the way with the total now at 228,589 Overnighters staying in play in order to keep Silver from doing far less than what Gold is doing. The buying pressure is building under Silver with the SGR (Silver/Gold Ratio) over 91 to 1. The future pop in Silver’s price will be loud and clear, after that last bar is confirmed to be removed.     

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Posted at 8:50 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Former CIA Officer and whistleblower Kevin Shipp says abuse of the National Security Agency (NSA) spy data (Section 702 of the FISA Act – warrantless surveillance program) used against President Trump to remove him from power was “epic” and “the worst case of sedition in American history.”  Shipp says, “They used illegal subcontractors . . . so the FBI could spy and abuse the 702’s. That is huge. It’s one of the most vast violations of the Constitution and Title 18 U.S. Code criminal law. . . .This is the biggest espionage story in western history without a doubt.”

Shipp says that the order to spy on Trump came from the top. Shipp contends, “The 702’s and especially Obama using that to attack his political opponents or go after his political opponents abusing the NSA 702’s . . . I think sedition is there along with multiple espionage violations . . . and these people will go to prison. Ultimately, this leads to Barack Hussein Obama. We can only hope these people will break away from the swamp and move in that direction. He (Obama) was not only aware of the program, he was directing it by using his National Security Advisor and UN Ambassador. . . . There is no doubt about it. He received the ‘Presidential Brief’ from the CIA every single day. . . . So, Obama knew about it at least in the presidential daily brief, and it is clear from the (Peter) Strzok and (Lisa) Page text messages that Obama was directing it. This leads directly to him.”

Shipp says that stories about a super-secret program to spy on Americans called “The Hammer” is a “totally false story.” Shipp says, “This is very troubling to me. Why would they push this so hard, especially now. It is diverting attention away from the true surveillance scandal, and that is the 702’s, the NSA and the spying and counter-intelligence operation against Trump.”

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Posted at 9:13 AM (CST) by & filed under Bill Holter.

This article was posted for subscribers in early May. Now that gold is breaking out above the manmade, 6 year trading range, the concept is extremely important. Please reread the article until you understand what I am describing?

Bill

The Greatest Gold Call Option On The Planet?
Originally posted May 6th, 2019

If you have done your homework and concluded the financial world is on the precipice of a credit/currency meltdown, then you understand gold (and silver) is your safe haven. We at JSMineset posted a quote by Simon Mikhailovich six months ago and have left atop the homepage ever since.

If one offered investors a fat tail put option that never decays or expires, costs about -1% pa to carry, has no counter party risk & no chance of ever becoming worthless, there would be a line out the door. But when one explains that this option is physical gold… no interest.

–     S. Mikhailovich

We did so because the quote is 100% correct. Gold is the ultimate put option versus an overlevered world. But how can you “leverage” your position in gold either offensively, or as a hedge defensively? Plainly, what is THE greatest gold call option on the planet? What follows is my opinion of what I would look for in seeking the greatest gold call option. Let’s look at the characteristics of a call option and apply them to gold.

The list of characteristics are as follows;

  1. First and most important, the option must have a direct and contractual connection to real physical gold, verifiable as to the existence of the physical gold. A paper contract “promising gold” will not cut it because the liability involved where you must rely on someone else’s performance. You want as direct a calin to physical gold as possible.
  2. The option must have leverage to the price of gold, meaning it must out perform gold on the upside. The option must move in multiples to the upside when gold is moving higher.
  3. The option should have no expiration date.
  4. The option should never be allowed to be taken out (sold) from under you against your wishes. Its sale should be solely on your discretion and your timing.
  5. It must be liquid.

In the real world, what might this call option look like? Checking off the boxes from the above wish list, this option can only be a corporation because corporations have no date of death. They live forever unless they are bankrupted or taken over by another entity. In this instance, the call option would have no decay of premium or “time value” because there is no expiration date.

The company would also need to be chartered in a jurisdiction where a takeover attempt is extremely difficult. In Canada for example, it is extremely hard to take over a company in a hostile manner because before the process is done, the suitor must effectively control and have the vote of 90% of outstanding shares. This is a tall order if management has any sizeable stake, impossible if management can count on 10% or more of the votes.

As for leverage, this option can only be a mining company with operating leverage to the price of gold. For instance, a company that can mine current gold of $1,300/oz at say $650, makes $650 per oz mined. But if gold doubles to $2,600, this same company will make $1,950 per oz. A doubling of price creates three times the profit! The gearing is obviously much higher if the company is a high cost producer. For instance, a producer with a cost of $1,200 per ounce only makes $100 profit if it sells product for $1,300, but will make $1,400 per ounce if gold doubles. In this case, the option will have earnings at 14 times leverage to gold’s price.

This company must have proven and economically mineable reserves. Obviously the more reserves the better but the important part is the amount of ounces per share outstanding. The more proven gold per share, the better! It would also be helpful if this company not only has a lot of gold per share, but also has the future prospect of adding in many more gold ounces to their reserves by drilling and proving even more. Then, is there a “blue sky” factor? In other words, is there any prospect of finding more economically mineable gold,either deeper on the same property or on other properties owned? Lastly, is there even more gold but mineable only at higher prices? This is where the really crazy leverage comes in!

Maybe of greatest importance, where or what country does your reserve reside? Your property must be in a country with a rule of law and the threat of nationalization minimized. This threat can be minimalized in several manners. Is your contract with the host nation fair or is it imperialistic and not allow a fair share to the host? If imperialistc, the risk of nationalization is high. Along these lines, does or can the host nation have the know how and work force to efficiently mine the reserves? Or would their share of the reserves be enough to entice them to sit back and collect revenues knowing their take is higher than if they tried to mine the entire property on their own with picks and shovels?

Liquidity is also very important, I would desire a company listed on at least one major stock exchange. A major stock exchange in two different countries (or even more) would be ideal. Remember, as they say, “liquidity is only important when you need it”!

Lastly, and still under the rule of law category, is your mining company chartered in a jurisdiction that has an international treaty with the country where the reserves exist? This point is often overlooked but extremely important if conflict arises between the miner and the host nation. This is something many do not know, a treaty between nations is stronger than any business contract, not a minor point by any means.

Wrapping this up, the above is not 100% complete but enough of a boiler plate to be functional. Mining companies have been beaten down (many bankrupted) and for the most part forgotten since 2011. This should be expected because of the “leverage” described above. Leverage works both ways, up as well as down. Put mildly, current “entry” into any gold or silver resource/operation is about as cheap as any time in history…in other words, the downside is minimal because it’s already happened. The “it’s already happened” part is important because the next big move in gold and silver is up rather than down. The time to seek maximum leverage to gold WITHOUT using margin is here and now!

Please read this a couple times or more because you have the blueprint to levering small amounts (or large) of capital into large amounts of gold and thus price action without using margin, without a contract where another entity makes a promise you must rely on, and without an expiration date…AND at a deep discount to anything even resembling “fair value”. It’s pretty simple really, if you understand the above, you can position yourself for maximum gain/protection when (not if) the credit/currency system implodes. Gold (silver) will be the primary (possibly ONLY) beneficiaries when the skyscaper of debt topples. Maximum leverage to gold’s price should be extremely high on your list of preparations!

Standing watch,

Bill Holter

Holter-Sinclair collaboration

Posted at 9:04 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Are the Resolutes Longs winning? Stay Tooned!
June 21, 2019

Happy Quad Witch Friday Folks,

Gold continues to lead the charge with the trade at $1,400.30, up $3.40 after reaching as high as $1,415.40 before the London Bop was applied just over 3 hours ago and after the high was reached with the low we’re recovering from at $1,386.10. September Silver is now the lead contract because the Open Interest is now the highest. I’ll be using that months pricings from this point forward, with the trade recovering after the shake out with the price now at $15.40, down 16.8 cents after being knocked down to $15.235 with the high to beat at $15.625. The US Dollar is not doing anything with the trade at 96.10, down 3.8 points with the high at 96.235 and the low at 95.995. All of this activity happened before 5 am pst, the Comex open, and the London close.

The Venezuelan Bolivar now has Gold priced at 13,985.50, adding an additional 142.82 Bolivar to its value with Silver now trading at 153.808 adding .649 Bolivar. Argentina’s Peso has Gold priced at 60,676.53 adding 608.66 A-Pesos with Silver trading at 667.285 Pesos, losing 2.963 A-Pesos during the overnight. Turkey’s Lira now has Gold priced at 8,132.22, adding an additional 251.52 in value with Silver gaining another 2.1329 in T-Lira value. A damn good week considering all we’ve been thru.

June Deliveries continue to confound as that Resolute Buyer (or whatever we can call this guy who can simply place receipts up without a price) added an additional 103 MORE demands for physical to the mix during yesterday’s trade bringing the total to 136 and with Zero Volume up on the board so far this morning. It looks like yesterday’s overall trade was about a few shorts exiting their positions of risk, with the total count now at 236,428 Overnighters proving a drop of 2,630 Obligations. Are the Resolutes Longs winning? Stay tooned!

Today is the Quad Witch, chock a block full of position squaring, as the central planners try to keep the ship from listing as the demands for physical start to really shake the system created to make people think “Silver and Gold – Bad”, “Paper and Debt – Good”! In fact, if we consider the entire global banking position as a single entity, every single nation has a fiat currency, and all these fiats trades against the real money. All of them trade against Silver and Gold. No wonder precious metals are considered the most manipulated market of the world. Silver and Gold are the links to the entire system. This Algo system sets the prices in support of the fake currency values and now the deliveries are destroying this practice, and right before our very eyes!

Addendum:

Hey!

We actually have a real price in June Silver today. A trading range between $15.295 and $15.26 was created as a 3 lot traded in today’s activities. The last time we had a “real” price in June Silver was the purchase at $15 a few weeks ago…Tick Tock, shorts got clocked!

Stay Strong!

J. Johnson

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