J. Johnson’s Latest – Another Reason to Hold Precious Metals?
October 10, 2019
Great and Wonderful Thursday Morning Folks,
Gold was doing a lot better earlier with the trade now at $1,513.30, up 50 cents after hitting $1,522.30 with the low at $1,508.80. Silver is showing the “weak” signal with its trade at $17.795 down 1.5 cents after the high of $17.935 was reached at the restart of trade last night with the low at $17.695. The US Dollar finally has some movement in it, with its trade down 35.5 points at 98.46, recovering from the low at 98.37 with the high at 98.795. All of this was done before 5 am pst, the Comex open, and the London close.
Gold’s value under the Venezuelan Bolivar gained 60.92 overnight with its trade at 15,114.08 Bolivar with Silver losing a little, with its price at 177.728 dropping 0.399 Bolivar. In Argentina, the Peso now has Gold pegged at 87,377.44 Pesos showing a gain of 188.46 with Silver at 1,027.56 Pesos, proving a drop-in value of 4.17 Pesos. In Turkey, the Lira has Gold valued at 8,916.51 Lira giving those that hold a 125.25 T-Lira gain with Silver at 104.849 proving a gain of 0.832 in T-Lira value.
October Silver’s Delivery requests are now at 339 fully paid for (5,000 ounce) contracts waiting for receipts and again with zero Volume up on the board so far this morning. During yesterday’s trade 4 purchases showed up with prices yet, as of this morning, the delivery count was only reduced by 4 from yesterday’s numbers. So, where there 4 more purchases bringing the delivery total to 8 receipts or was it only 4? This is the problem in the ledgers the Comex numbers give with their lack of information regarding spreads entering or exiting inside the delivery month.
Bill Holter’s Commentary
Maybe not THE most insolvent nation on the planet but certainly the most insolvent in the EU… now issues bonds with a negative yield? Umm, have the buyers never heard of the concept of “risk premium”? Absolutely nuts and the entire episode will end as THE biggest credit collapse in all of history, And remember, when credit goes, so do fiat currencies as they all have one thing in common…they have value because “credit” is their foundation!
For The First Time Ever, Greece Issues Negative Yielding Debt
October 10, 2019
As armies of fixed income strategists battle over whether US Treasuries are facing higher or lower yields, Greece has no such qualms and in a historic shift today, the former bond market pariah and Eurozone’s most indebted nation, joined the exclusive club of negative-yielding European nations when bond investors lined up to pay the nation that was at the heart of Europe’s sovereign debt crisis.
A sale of €487.5 million of 13-week bills on Wednesday drew Greece’s first-ever negative yield of minus 0.02% as investors now pay Athens for the privilege of lending it cash, as Bloomberg first reported. Greece joins the likes of Ireland, Italy and Spain – not to mention virtually all core Eurozone nations – which benefit from the ECB’s insane monetary policy and deepening fears of a global recession.
It’s been an unprecedented turnaround for twice bankrupt Eurozone member, whose bondholders suffered massive losses back in March 2012 when the country was forced to accept the biggest bond restructuring in history, bringing the Eurozone to the verge of collapse.
Just a few years and several trillions in bond purchases by the ECB later, the region is grappling with an altogether different problem – the spread of negative yields, which reduces borrowing costs for governments in a form of soft default, one which is crushing savers, pension funds and insurers, and which has prompted some of the most respected names in finance to shriek in terror as the cost of money in even Europe’s most insolvent nations is now negative.