The Precious Metals Regain!

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

Great and Wonderful Thursday Morning Folks,

     Gold has turned sharply higher the day after the January Deliveries closed out with April Gold now at $1,585.50, up $9.50 after reaching $1,588.00 with the low at $1,580.00. To me, Silver is leading this mornings push thru the “fix” with the March contract at $17.735, up 24.8 cents and close to the high at $17.764 with the ridiculous low of $17.52. The US Dollar is still up there in purchasing power with the value pegged at 97.74, down 7.9 points and close to the low at 97.725 with the high at 97.91. Of course, all of this happened already before 5 am pst, the Comex open, the London close, the Brexit exit, and after Russia closes the Great Wall between itself and China, an Italian cruise liner with 6,000 people on board being quarantined, oh yeah, and after the FOMC meeting in which everything they claim, is rosy and wonderful (for those that print and do not earn).

      Our emerging markets currency watch really shows how volatile things get when currency print gets out of hand with Venezuela pricing Gold at 15,835.18 Bolivar, showing a gain of 95.88 overnight with Silver at 177.128 Bolivar regaining 2.596. In Argentina, the Peso has Gold’s value at 95,395.92 proving a gain of 699.40 Peso’s with Silver gaining 16.94 with its new price at 1,067.04 Peso’s. Over in Turkey, Gold’s value now rests at 9,487.95 Lira, gaining back 97.82 with Silver at 106.131 Lira, a regain of 2.017.

      Silver’s Resolute Buyer stepped in on the last day of January Deliveries and added another 13 purchases into the delivery system with the very last single lot order, out of that 13-lot purchase, at the low $17.37 when the other 12 traded higher, up to $17.45. Sure, the order is small, but it adds to the demands that go against the supply. February Silver Deliveries start in earnest on Monday with today’s Open Interest at 235 with a Volume of 16 so far with a trading range at $17.54 (high/low/last) still showing a possible starting order of 1,175,000 ounces of Silver. Not a bad start at all for a cereal month delivery.

      February Gold’s Open Interest is now at 33,950 Obligations proving a reduction of 68,177 Overnighters with another day or two to go in order to remove the trader’s element from the deliveries. The current Gold count leaves a hefty 3,395,000 Ounce starting order in a “delivery” month which is considered the “a dominant” purchase month while cereal months get ignored by most writers (for now).

      Silver’s Overall Open Interest regained 3,751 short positions in order to keep Silver from fully reversing during yesterday’s trade bringing the total now to 228,133 Overnighters willing to stay in the trade. Gold’s Overall Open Interest is now at 697,963 Overnighters showing another reduction of 20,953 Obligations as Gold regained all that was lost in price, amazingly during the Options Expiration and closing out of January’s deliveries.

      This last 3 days have been something else to observe. So much is going on it’s hard to keep up with everything that should have already affected the prices of precious metals, yet here we sit. Waiting, anticipating, and cogitating, on all the manipulating aspects, as the criminal element continues, at the same time it seems the recoveries are shallower, time wise. Maybe it means something this time. The Coronavirus is being touted as “Way Overblown”, then “horribly bad” as the videos are starting to show up that are truly scary! There is truth somewhere in the middle, regardless, right now, it pays to be prepared. As the videos claim, cities with millions of people, are shuttered and without preparations, forcing those that are in harm’s way to stay in harm’s way in order to keep the virus from spreading. Will people be shot at next in order to keep the spread from occurring? I pray for better times, yet am prepared for the worst, as we hope you are prepped as well.

      Prayers are truly in order at the same we keep that smile on our face and a positive attitude in the head, no matter what…Please do the same and as always…

Stay Strong!

Jeremiah Johnson