The Lone Ranger’s Horse (Silver) Breaks Free! Or Did He?
May 17, 2019
Great and Wonderful Friday Morning Folks,
We start our last day of the week off with Gold trading slightly higher at $1,287.10, up 90 cents and close to the high at $1,289 with the low at $1,284.50. Silver is trading lower as well, but that depends on what contract one quotes with July’s price now at $14.485, down 5.4 cents with a high to beat at $14.555 and the low, close to where we are now at $14.45. The US Dollar’s trade is still benefiting with the price pegged at 97.75, up 7.2 points and right beside the high at 97.775 with the low at 97.59. Of course all of this is done while we sleep, during London’s trading time, before 5 am pst, and the Comex Open.
Our Emerging markets paragraph starts off with Venezuela’s Bolivar collapse, which made the precious metals soar over the past 2 years with Gold now at 12,854.91 showing another loss of 74.91 in Bolivar value being taken out with Silver now at 144.669 losing 3.06 in Bolivar value all during this overnight period. Argentina’s Peso now has Gold priced at 57,597.06 Argentine Peso’s, losing a huge amount totaling 643.41 A-Pesos with Silver now posting a price of 648.147 losing 17.372 in A-Peso value in what we call, “a cleaning by the shorts”.
The Silver Deliveries is where our focus has been for way too long and admittedly, with the way things have been going for our sector, I was thinking we may never see a jump in demand ever again. That is until yesterday’s trade when someone decided the low was here and placed a sizable order for physical as we witnessed an increase in May’s Open Interest now totaling 353 Contracts waiting for physical. This is an increase of only 55 Contracts which is nowhere near the additional trades made in May’s delivery contract which had a Volume of over 270 during yesterday’s beating. Someone stepped in and purchased over 1,350,000 ounces within the Delivery Month. Either to buy physicals, or to exit a near term hedge, or maybe it’s another level of EFP’s going to London. No matter what, this is huge and should mean something in support for High Ho Silvers price. The demands for physical has now pushed the May Silver price to $14.58, far above June’s price at $14.42, July’s price at $14.445, Sept Silver’s price at $14.52, with December’s at $14.63, oops! Now we have Decembers price at $14.60. Every single month of trade, with the exception of December’s price is proving demand is accelerating beyond the capacity to manipulate (in my opinion).