Resolute Longs Vs. The Reluctant Shorts

Posted at 10:01 AM (CST) by & filed under General Editorial.

Great and Wonderful Friday Morning Folks,

      Gold is never allowed to trade higher during the contract rollovers, with April Gold now at $1,564.30, down $7.30 and close to the low at $1,562.90 with the high to beat at $1,568.90. Unlike other precious metals posts out there, when the Open Interest in the front month (February) falls, and the next month’s OI exceeds the front, we start quoting the higher OI prices (now April). March Silver’s trade is now at $17.820 down 9/10ths of a penny after the dip to $17.74 with the high to beat at $17.865. The US Dollar found more strength with its trade now at 97.640, up 15.6 points and right beside the high at 97.675 with the low at 97.450. Of course, all this happened already, before 5 am pst, the Comex open, the London close, and after the DOJ released this report last night after the hearings; Surveillance Of Carter Page Based On Insufficient Evidence, No Probable Cause.

     Our Emerging Markets Currency Watch is leading the way today. In Venezuela, Gold is now valued at 15,623.45 Bolivar proving a gain of 42.95 overnight with Silver at 177.977 Bolivar gaining 16.98 which is far more than what was taken yesterday. In Argentina, Gold’s value under the Peso now sits at 93,859.53 showing a gain of 280.66 Peso’s with Silver gaining 10.54 with its final quote for the week at 1,069.30 Peso’s. Over in Turkey, Gold has a value of 9,292.34 Lira proving a gain of 37.89 with Silver gaining almost double yesterdays loses at 105.876 Lira, a gain of 1.17 overnight.

      January Silver Deliveries inside the Comex now shows a Demand Count of 103, an increase of 100 (500,000 ounces) Contracts after the final Volume of 110 was posted up on the board yesterday with a trading range between 17.755 and 17.730 with an adjusted closing price at $17.773. I had observed during yesterday’s activities the first 37 purchases (in Volume) had no posted prices to go with the trade. It was the last batch of purchases that finally posted the prices, which may be a no spread “Buy” order added in after the spreads were unwound (or wound up?). So far this morning we have a new Volume of 100 up on the board and once again, no price! Regardless, our Resolute Buyer theory is still workin in our favor, please keep it up until the Comex is drained!

      Silver’s Overall Open Interest fell by 269 Obligations leaving the total count at 233,919, helping to prove our point that the shorts are going against a set of buyers that are continuing to make their purchases at the exchange. Is there a problem with their normal supply route? This is why we think this Resolute Long may be a manufacturer with needs, not only in paper but physicals. Gold has a brand new all-time high in paper (Thank You Harvey O)! Gold’s Open Interest now sits at 800,104 Obligations proving an additional 9,750 more short contracts had to be added when normally a drop in count during the rollover would be occurring. Not Today! Apparently, the Resolute Longs Vs. the Reluctant Shorts have entered into a new level of challenge. This should be entertaining, and maybe it will be an entertaining price jump, that follows instead of the normal hard dump.

      Oops! Spoke too early! Gold’s trade after the Comex open is now at $1,567.70 still down $3.90 yet recovering from the earlier quote. Silver’s price jumped up 18.1 cents at $18.01, nice! So far this week, and including the Volume added during today’s write up, our Resolute Long has taken over 2 million ounces of Silver away from the Comex. Some will say it doesn’t matter, but others who have listened to Bart Chilton’s last recorded words during the Chris Marcus Interview see things differently, as we do! Bart Chilton last words are all about the manipulation of Silver and a certain criminal element.

      Enjoy the day and the weekend! Keep that smile on your face and a positive attitude in the head no matter what! and as always …

Stay Strong!

J. Johnson