While The Precious Metal Price Wanes, The Open Interest Gains!

Posted at 11:19 AM (CST) by & filed under General Editorial.

Great and Wonderful Tuesday Morning Folks,

        Gold is trading at $1,543.70, down $6.90 and recovering from the Asian low at $1,536.40 with the high to beat at $1,549.50. Silver is leading the dip, with its price now at $17.755, off by 24.1 cents and trading close to its low at $17.690 with the high to beat at $17.985. The US Dollar, which has to be printed in heavy fashion, is now trading at 97.180, up 12 points and trading right by its high of 97.195 with the low at 97.060. Of course, all this was done already before 5 am pst, the Comex open, the London close, and after JPMorgan posted another profitable year in trade.

      The emerging markets currency watch continues to show the pressure applied to the precious metals (w/1 exception) as the Venezuelan Bolivar now shows Gold trading at 15,417.70 showing a reduction of 32.96 in value with Silver now at 177.328 Bolivars reducing its value by 2.697. In Argentina, Gold is now priced at 92,441.28 proving a loss of 32.71 A-Peso’s with Silver now valued at 1,063.32 showing a 13.39 A-Peso reduction in value. The Turkish Lira now has Gold priced at 9,096.43 Lira’s proving a gain of 29.71 in value with Silver at 104.614 a loss of 1.031 Liras.

      January’s Silver Delivery Requests are unchanged from yesterday’s early morning post with the count at 10 and with a Volume of 2 put up on the board late last night. So far, these 2 contracts have a trading range of $17.875 and $17.855 with the last trade at the high. Yesterday’s Volume gained 1 more buy before the end of the day as we now wait again for the Resolute Buyer to step in to buy more big bars.

      Open Interest says it all in the commodities arena. Those that continue to ignore this will find out in time what a commercial signal failure is all about and how it starts (and ends). Silver’s Overall Open Interest now stands at 235,097 Overnighters proving the paper contracts increased by 637. We’re only 9,099 contracts away from breaking new ground again as we get close and closer to the old high at 244,196 Obligations.

      Then we have Gold’s Open Interest, and it too continues to gain more paper promises, with last night’s Comex closing numbers showing an increase of 9,456 more short contracts being added in order to tell us “holders” how wrong we are about the price, bringing the total count to 797,088 Overnighters. Gold’s OI is now only 22 contracts away from making another new all time high in paper, not price!

      Even though the prices are lower, the stage is still set for a move to sharply higher prices. This will happen when the short contracts get forced out, as the precious metals become harder to find at these low prices. That will happen in time as the Resolute Longs still refuse to leave making things very uncomfortable for the shorts. The Resolutes have lots of gumption, far more than the armchair warriors in a criminal element still sitting in short contracts, as our “It’s Not Called QE – QE” continues, in order to keep the system liquid, and against the Resolutes!

      Regardless of the shorts and their paper game, keep that contagious smile on your face, and a positive thought in the head, and as always …

Stay Strong!

J. Johnson