Bill Holter’s Commentary
Yes, free and unfettered markets…!
BOJ To Start Lending ETF Shares To Prevent Market Freeze
October 29, 2019
While most central banks are contemplating how to gently break it to the public that since they are out of ammo with interest rates at all time low, and $15 trillion in global sovereign debt is now yielding negative – a financial abortion which suggests the value of money is negative – the only hope markets have to avoid collapse is for central banks to start buying stocks in the open market, the BOJ has no such problems: after all the Japanese central bank (alongside its Swiss peer) has for years been quite open that it purchases stocks and ETFs directly. Unfortunately, in its efforts to stabilize the market, the BOJ has been purchasing a little too many ETFs and it now owns far too much.
Last May, speaking to Japanese parliamentarians, BOJ Governor Haruhiko Kuroda noted that the central bank now owns nealry 80% of the country’s stock of ETFs, the result of a program begun in 2010 and ramped up in 2013.
J. Johnson’s Latest – This Is Silver’s Time Of Intrigue!
October 30, 2019
Great and Wonderful Wednesday Morning Folks,
Gold is trading higher under the US Dollar with the December contract at $1,495.20, up $4.50 with the high close by at $1,496.20 and a low at $1,489.10. Silver is higher as well with the December contract at $17.90, up 6.9 cents with the high at $17.92 and a low at $17.75. The US Dollar, which has had 100’s of billions of newly added print created in order to keep up with the bills it can’t pay, is now trading at 97.445, down 2.4 points with the high at 97.51 and a low at 97.36. All of this slow activity happened before 5am pst, the Comex open, the London close, and the very strong possibility of another 1/4% interest rate cut here in the USA.
We have nothing but positive trading in the emerging markets this morning with the Venezuelan Bolivar now giving Gold a price of 14,933.31 offering those that hold a 68.91 Bolivar jump in price with Silver trading at 178.776 giving the holders a 20.97 pop in Bolivar value. In Argentina, the Peso has Gold priced at 88,812.80 giving the holder a 377.07 A-Peso increase with Silver at 1,062.96 showing an additional 11.83 in A-Peso value. The Turkish Lira now has Gold priced at 8,557.73, it too showing an increase of 24.169 T-Lira with Silver at 102.455 offering a 1.014 uptick in T-Lira value.
Yesterday was the last trading day for the October Silver deliveries with the last count at 60. Today is simply a time out for Silver deliveries with tomorrow being the First Notice Day for the cereal month of November. A Cereal Month is a nice way to say “hardly any purchase” month. The November Open interest in Silver is now at 293 contracts and with a Volume of 1 up on the board with the price of $17.79 as a purchase and sell. FND is when all holders of long positions must have 100% of the margin in order to play the game. The sellers are supposed to have receipts for physical, with the spread traders owning all the background noise inside the hidden data of Comex (aka the moves without a price). 293 Contracts makes the delivery total 1,465,000 ounces of Silver (5,000 ounces per contract) possibly standing for delivery.