Nothing Screams “Calm” Like the Overall Open Interest In Comex Silver and Gold!

Posted at 11:10 AM (CST) by & filed under General Editorial.

Great and Wonderful first trading day of 2020 folks,

      Gold starts the year off right with the trade at $1,525.50, up $2.40 and right by the high at $1,525.90 with the low at $1,519.70. Silver is still Silver, tagging along with the trade at $17.965, up 4.4 cents after hitting a high of $18.005 with the last night low at $17.830. The US Dollar has a bounce in its step with the trade now at 96.355, up 29.7 points after reaching up to 96.425 with the low at 96.100. Of course, all of this was done before 5 am pst, the Comex open, and the London close.   

      In Venezuela, Gold is now priced at 15,235.93 Bolivar showing a gain of 16.98 since Tuesday’s tally with Silver now priced at 179.425 Bolivar showing a 1.099 pullback. In Argentina, Gold’s value under the Peso is now pegged at 91,267.66 Pesos, showing a gain of 13.48 with Silver at 1,074.79 showing a reduction of 7.56 in A-Peso value. The Turkish Lira’s value for Gold is now priced at 9,091.64 proving a gain of 24.33 Lira with Silver losing 0.484.

      January Silver Deliveries are in full swing now with the physical demand count at 216 fully paid for 5,000-ounce contracts waiting for receipts either to be delivered here at the Comex or sent to London (so they can be sent back here in pump and dump fashion). So far this morning, there has been no purchases made so we have no trading range to post as of yet.

      During Tuesday’s trade, the delivery month’s Volume was equal to the Open Interest of 232 Contracts, inside a trading range between $18.065 and $17.80 with the last trade settled at $17.825. So, what this is suggesting is 100% Volume Vs. Open Interest was traded, inside the delivery month, and the prices dropped? Riiiight! Like the holder of the product is worried about lower prices when the costs of extraction are sharply higher than what is described as a real price.

      The Comex delivery system has a solid consistency, to opaque everything, as we wait to see if the Resolute Buyer stepped in and doubled Tuesday’s original Open Interest with the Comex delivering the posted 232+ contracts already waiting in the supposed FIFO (deliveries are supposed to be First Order In – First Order Out) claims at the exchange, or, if this was a spread trade “out” of these posted orders for physical? Here’s what the numbers might mean; it’s possible that only 16 contracts were delivered on Tuesday with a Volume of 232, or 232 more purchases were made as 248 contracts got receipts, or the mish mash in the middle of these two examples? This system has issues alright, which is why we are here reporting on it. We, of course hope the Resolute Buyer is doubling down going into the Soaring 20’s of Precious Metals, and that this Resolute Buyer is a manufacturer with needs. 

      Nothing screams calm like the Overall Open Interest in Silver as the shorts continue to acquire more paper with the Overall Count now at 229,700 Overnighters proving a gain of 2,842 more shorts in order to stay the price. At the same time, Comex Gold continues to gain more paper as well. This is exactly what we look for in a commercial signal failure, rising open interest, rising prices, and low inventory. Nothing to worry about huh?

      Each day and for years, if not decades, we survived the slings and sucker punches given by those who are allowed to add paper to suppress the prices instead of allowing the prices to move upward with the restrictions on paper. There should be a figured mechanism that restricts the issuances of this additional paper being added to the Comex by the centrals who have controlled the price via a criminal element. This will either end with the CE being forced to close its precious metals trade desk under RICO, or the last bar gets taken out as the COMEX is forced to find product. We should be encouraging those that can, to buy up those large bars at Comex and to swap them out into USA Legal Eagle precious metals tender!

      Nothing says Happy New Year, like a Resolute Buyer, the continuing saga of “more papers please” and the reduction of physicals, all happening at the same time. Enjoy the day, the year, and the physical possession’s you hold in your hand. When the currencies find their natural price, you will be more thankful for having the physicals, than those that opposed the ideas with paper …. Keep the faith, the attitudes positive, and no matter what …

Stay Strong!

J. Johnson