J. Johnson’s Latest – How Much Criminal Activity had to be Applied in Order to “Stay” the Precious Metals?
June 26, 2019
Great and Wonderful Hump Day Morning Folks,
Well they finally got Gold to trade lower with the price, under the US Dollar, now at $1,409.00, down $9.80 after they punched the price down to $1,405 with the high to beat at $1,427.90. Silver is down as well, but not leading the decline this time, with its price at $15.335, down 4.8 cents after getting knocked down to $15.24 with the high to beat at $15.435. The US Dollar is by far less volatile today with the value now at 95.76, up 11.2 points after being pushed up to 95.835 with the low at 95.655. All of this was done well before the Comex open and the London close.
The emerging markets currency watch is now showing the Venezuelan Bolivar’s Gold price at 14,072.39 proving a drop in value of 225.71 in the overnight with Silver now priced at 153.158, losing 1.399 in value. Argentina’s Peso has Gold priced at 59,698.08 losing 1,054.88 in value with Silver now priced at 649.734 losing 6.89 in A-Peso value. Over in the Euro arena we have Turkey’s Lira holding Gold’s price at 8,125.28 showing a loss of 152.46 with Silver losing 1.0207 with its price now at 88.4339 T-Lira’s, showing us how much international currency pressure had to be applied in order to get the metals to trade lower under the primaries. Let’s see how long this will last.
It’s the final day of delivery for the June Silver contract with the count still at 4 and with Zero Volume up on the board. Next up on the delivery board is our July Contract which has a total OI count at 35,837 positions in trade showing a substantial drop in Open Interest since the Quadruple Witch Week but not enough of a drop yet (to calm the shorts) with the First Notice Day for July set for this Friday. The First Notice Day is defined as the last day speculators can margin the trade in the July Contract. Starting on Monday, all contracts are supposed to be 100% of the value of the contract size. Case in point; Margins right now for July Silver is $3,630 per contract. Come Monday, the required amount to hold a July Contract jumps to $76,675 (at $15.335 an ounce x the 5,000 ounce contract). Why trade here in the delivery month? Either to buy the real product, or to help gauge the control of price via calendar spreads with other months within the same commodity. This is where the tires meet the road and where we will see the real price reality come into play when a commercial signal failure occurs, which is why we focus on the demands for physical. This is the link between the physical reality and the game of paper.