In The News Today

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J. Johnson’s Latest – Our Currency Watch Continues To Prove The Precious Metals Rally
October 3, 2019

Great and Wonderful Thursday Morning Folks,   

      Day 4 of the week still shows positive price movements for both precious metals (at least in the very early morning) with Gold leading the way at $1,510.70, up $2.80 and close to the high at $1,511.70 with the low at $1,501.70. Silver is flat to higher at $17.70, up 1.7 cents with the high close by at $17.795 with the low down at $17.55. The US Dollar is flat to lower with the value pegged at 98.66, down 2.9 points closer to the low at 98.62 than the high at 98.875. All of this flatness happened before 5am pst, the Comex open, and the London close.   

      Our emerging markets currency watch continues to prove the rally and now shows Gold trading under the Venezuelan Bolivar at 15,088.12 showing a gain of 185.77 Bolivars with Silver at 176.779 Bolivar showing it too gained 3.546 Bolivars since yesterday morning. In Argentina, Gold holders now see its price at 87,358.71 Pesos, adding another 4 digits of value (1,229.73 Pesos) to the left of the decimal with Silver now trading at 1,023.65 Pesos proving it too gained 2.3653 Pesos in the overnight. The Turkish Lira now has Gold priced at 8,600.99 showing it gained 55.33 Liras with Silver at 100.773 showing it gained 1.4339 in T-Lira value.      

      Our October Silver Delivery Demands lost a little ground yesterday but nowhere near earlier with the total count now at 491 Demands for physical and with Zero Volume posted up on the board so far this morning. This demand count proves 54 Obligations where delivered upon either here or in London with no trading range to view so far today. Even though Silver rallied a little yesterday, the shorts didn’t leave nor did any longs as the Overall Open Interest gained 359 more positions giving us 212,658 Overnighters duking it out in the arena of play as the deliveries continue to dry up supply of the real all the while cash is being printed in order to keep the markets moving.   

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Jim Sinclair’s Commentary

Is the dollar up or are all other currencies down?

The Euro Has Kept Falling. Investors Wonder How Low It Can Go.[Subscription Required]
October 3, 2019

The euro has drifted toward its lowest levels against the dollar in years as Europe takes the brunt of a global growth slowdown. Investors are now questioning: How low can it go?

The currency briefly sank below $1.09 this week, the lowest since May 2017 and not far off the levels below $1.04 last reached in 2003.

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Jim Sinclair’s Commentary

The key to a currency union is a predetermined method of exit. Major countries in Africa are considering a single currency. I rather hope they learn the lesson of the Euro and write into the agreement the method, means, and agreement also for an exit.

U.K. Farmers Rush to Sell Produce Ahead of October Brexit Deadline .[Subscription Required]
October 3, 2019

British farmers are racing to ship this year’s abundant harvest out of the U.K. by Halloween, when Brexit could pull the country out of the world’s biggest free-trade zone overnight.

Leaving the European Union without a deal—as Prime Minister Boris Johnson has pledged to do at the end of October if the bloc doesn’t meet certain demands—would hit British agricultural exports with customs duties, extra paperwork and checks on animal and plant health.

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Jim Sinclair’s Commentary

The bottom line, who decides what constitutes illegal content? It is a broad definition. This is a difficult question because who decides? Who watches the watchmen? Who decides what is illegal? Who censors the censors?

EU’s Top Court Backs Global Removal Of Illegal Content On Facebook.[Subscription Required]

Jim Sinclair’s Commentary

Anybody who puts a tariff on, taxes themselves. Tariffs do nothing but backfire until everything is more expensive. Since we have a currency that has a number before the decimal point, everybody pours in the dollar. When the dollar rises is more than 20%, all the prices of our goods and services go up 20%.

U.S. to Put Tariffs on European Planes, Whiskey, Cheese After WTO Ruling
October 3, 2019

The price of Scotch, French wine, cheese and other European exports is about to go up in the U.S. after the Trump administration announced new tariffs on billions of dollars of EU products starting Oct. 18.

President Donald Trump got the go-ahead from the World Trade Organization to impose tariffs on as much as $7.5 billion worth of European exports annually in retaliation for illegal government aid to Airbus. The award is the largest in WTO history.

However, there was relief for some firms as the U.S. removed leather goods from its original proposed list and measures on wine and spirits weren’t as severe as some expected. Shares of European luxury companies gained after a Wednesday slide on concerns about tariffs and falling sales in the key Hong Kong market. LVMH gained as much as 2.4%, Kering SA ticked up as much as 1.7%, and Hermes International by 1.4% in European trading on Thursday.

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