That Must be the Best Duct Tape in the World Holding it All Together
May 22, 2019
Great and Wonderful Wednesday Morning Folks,
Gold is trading at $1,275.20, up $2 inside another tight trading range between the high at $1,276.30 and the low at $1,272. Silver is leading the mini-charge with its trade at $14.45, up 4 cents inside its own tight range between $14.455 and $14.37. The US Dollar is also stuck in between a bunch of non-volatility with its trade at 97.84, down 5.6 points after reaching as high of 97.97 before the buyers stopped with the low down at 97.81. All of this non-activity happened while we sleep, before 5 am pst, and the London close.
Our emerging markets gold for currency swap shows that Venezuela’s price for Gold is now at 12,736.06 Bolivar, regaining 31.96 in value with Silver recovering .898 with its current price at 144.319 Bolivar. Argentina, which lead the charge yesterday, now has the Peso/Gold swap valued at 57,112.44 losing 362.54 Pesos with Silver losing 2.425 A-Pesos with its price at 647.086. Our new addition, the Turkish Lira now has Gold priced at 7,790.46, a gain of 85.59 Lira with Silver now pegged at 88.2699, gaining 1.1964 Lira overnight. We see the level waters of the primary currencies unmoved, but those tributaries leading to the primaries are sure stirred up. We still expect one (if not all) of the primary currencies within the Dollar’s currency basket to go volatile. The problem we have is almost all of them (currencies within the basket) have serious issues within the central bank manipulations schemes, with any or all of their concerns, possibly sending the precious metals into the stratosphere pricewise, we simply don’t know which one goes first, or if that even really matters anymore.
Our May Silver deliveries carry on with the demand for physicals now at 225, dropping only 2 contracts into the delivered bin and with a Volume of 49 up on the board so far this morning with a price range between $14.40 and 14.39 (this is the real SPOT price, not Kitco’s). This is a super tight buyer/seller agreement and the antipodal of last week’s story, (is someone “not on our side” reading this too?). The big trading point is our Open Interest within Silver’s overall numbers with the count continuing to gain as another 367 more shorts got added to the fray proving the count at 210,854 Overnighters “staying” the trade (keeping prices steady). Our point being, the buyers, who are continually being punished for thinking Silver should be higher in value, are refusing to exit their positions as the shorts keep adding. Normally the buyers would cave by exiting their trade, bleeding and wounded. This may be another attempt at scaring the trade lower, but it could also mean the shorts are against the ropes. Only the deliveries will matter in this game, and when the shorts can’t deliver … Boom!!