Open Interest Is Still Proving Our Point and At Every Turn!

Posted at 9:42 AM (CST) by & filed under General Editorial.

Great and Wonderful Tuesday Morning Folks,

       The money-maker called Options Expiration Day is here with Gold doing what it almost always does on this day, trade lower with the April contract at $1,578.10 down $5.60 and at the low with the high to beat at $1,588.50. Silver has been leading the charge lower, ever since yesterday, giving us “the signal” with its trade at $17.90, down 16.1 cents with the low at $17.87 and the high at $18.115. The US Dollar is still king of the currencies with the trade currently at 97.90, up 13.3 points and the high so far with the low at 97.715. Of course, all this happened already before 5 am pst, the Comex open, the London close, the start of the FOMC meeting, and a whole list of stories surrounding the coronavirus and quite possibly the largest quarantine ever in mankind’s history.

      In Venezuela, Gold’s value dropped a bit with the current price at 15,761.27 Bolivar showing a loss of 118.86 with Silver at 178.776 Bolivar producing a 34.96 loss in value. In Argentina, Gold’s value is at 94,814.29 Peso’s, taking back 556.68 which is only a portion of yesterday’s gains with Silver at 1,075.52 Peso’s taking away 19.92 in value. The Turkish Lira has Gold priced at 9,383.71 Lira, a loss of 72.38 from yesterday’s gains with Silver at 106.434 T-Lira taking back 2.095.

      January Silver Deliveries have all been settled out with absolutely all of the pending orders that were waiting for receipts, getting them and have left the arena of play leaving the Demand Count at Zero this morning and with no Volume either. Not sure if this is an oddity or not, I simply do not recall seeing zeros on Options Expiration Day before. Also, of note, we now have 1 more day of trade before the closeout of the January Cycle with this Friday being the first notice day for the February Deliveries. Will Mr. Resolute show up again today? Let’s face it, the past 4 days of trade brought in over 3 million ounces of demand making things uncomfortable for the shorts who have no choice but to deliver.

      Silver’s Open Interest is still proving our point and at every turn. Where would the price be if it wasn’t for all this paper controlling the price? As of this moment, the Open Interest in Silver is at 238,088 Overnighters proving a gain of 4,652 more short contracts having to be added into the Comex in order to “stay the climb” during Sunday night and yesterday’s viral panic. This leaves the criminal element 6,111 more short contracts before breaking new ground in order to keep things static.

      Gold’s Open Interest is also proving how precarious things are as its Overall Count dropped 36,281 Overnighters during yesterday’s fear trade leaving a total now at 751,981 Obligations proving what can happen when the rats jump ship as the ratio spread starts to wobble and the idea of a supposed unexpected fear surfaces right on time.

      Coronavirus may be a worthy reason for worry, not only health wise, but supply chain wise as well. The viral airborne virus spread supposedly takes 2 weeks before the symptoms become noticeable. The “spread” has already happened several weeks ago with the chance of the virus widening the infected area and all over the world because of the way we travel. What needs to happen now is to see a slowing of the spread and absolute containment. Also, of note, when has anyone trusted what any government has to say, when what comes out of their mouth is “remain calm”? Especially China, and its truth ministry. A Global economic reversal could be around the corner, with frightening results for those who have no preparations.

      We’ll pray for no more deaths, as the markets have no choice but to obey all supply and demand numbers, which have not been doing well at all even with all that Repo-Printing, and as the M2 money supply heads to new low territory.

      Regardless of the events of the day, we remain vigilant and confident. We’ll keep a smile on our face and a positive attitude in our heads no matter what, because we are prepared, hopefully you are too. Stay Resolute and …

Stay Strong

J. Johnson