The Boy Scout Hedge; Always Be Prepared!

Posted at 10:09 AM (CST) by & filed under General Editorial.

Great and Wonderful Friday Morning Folks,

       Gold did wonderful during yesterday’s trade, yet before the very restart of the night session, Gold was pushed lower than the Comex close. Comex uses the 10:20 am pst price as a closing number as ICE (International Commodity Exchange) closes much later in the day at 3 pm pst. That being said, Comex’s April Gold CLOSING price was set at $1,589.20, up $13.20 yet ICE’s last trade for yesterday is at $1,578.70 taking the price down $10.50 off the Comex close. So, when the markets reopened for the night trade, people who do not know this trick, would think something negative happened. Now, let’s look at what happened since.

      April Gold is now trading at $1,583.50, down $5.70 from the Comex close yet up from the last trade in the continuing saga of “prices are not manipulated”. The high so far is $1,586.60 with the low at $1,575.00. Silver did the same, closed up strong on Comex, yet brought back down lower after that closing price was posted, when the “after the Comex close” shorts stepped in with March Silver’s price at $17.825, down 16.7 cents from the Comex close yet up ½ penny from the ICE close. All this was done inside a trading range between $17.895 and $17.790. The US Dollar doesn’t seem to suffer like precious metals (since the G7 currencies close at 12pm pst) with its trade down 10.1 points from the close with its high at 97.790 a low of 97.595 with the current price at 97.610. Of course all of this was done already, before 5 am pst, the Comex open, the London close, after Carter Page Sues DNC Over the fake Steele Dossier, the Brexit day of relief, and as we wait to see how many more coronavirus infections were spread out after 5 million Wuhanese flew out to see family before their holiday and, as we wait for more info on their extended market shut down.

      Our emerging markets currency watch on precious metals is split, with Gold’s price in Venezuela now at 15,815.21 Bolivar showing a loss of 19.97 with Silver at 178.027 Bolivar showing a gain of 0.899. In Argentina, Gold’s price is now at 95,257.53 Peso’s proving a loss of 138.39 overnight with Silver at 1,072.23 Peso’s giving those that hold a gain of 5.19. The Turkish Lira has Gold priced at 9,473.81 Lira losing 14.14 over the past 24 hours with Silver at 106.647, a gain of 0.516. 

      February Silver’s First Notice Day is here meaning all speculators have to leave this month’s contract or have 100% of the margin to hold the trade with the count at 221, with a Volume of 1, and no price for that one lot order. Silver’s Overall Open Interest gained 1,118 more shorts to stay the price (were these added after the Comex close?) with the count now at 229,251 Overnighters.

      February Gold’s delivery count is now at 8,191 dropping 25,759 contracts as we wait for Monday’s delivery count and as we consider the changes in Deliveries and Positions Limits recently sent in from above (CFTC). Not surprising, is the example in the letter using all grains and a single sentence regarding precious metals, yet I loved the “silver bullet” descriptor used and, in a way, saying there is more needed to control the manipulation monster within. I would love for this to have a secondary meaning for a certain criminal element currently under investigation.

      The Coronavirus, that came out of nowhere, has issues on many sides, including the reporting of it all. The last time a communist country told the world nothing was wrong, we got Chernobyl. Russia’s Communist party collapsed after that event because everyone in Russia and abroad, all of a sudden, lost absolute faith in their Government and the media reports stating all was well while at the same time a Radioactive Cloud started sweeping across foreign lands. It may not be radioactivity this time, but the leadership is exactly the same. I think it’s safe to consider not only the “official” words, but also the words coming out from below. the people in the mix that are suffering right now because they did not do the Boy Scout Hedge (always be prepared).

      Ironically the Boy Scout Hedge is something we all have discussed in different ways like holding precious metals as the reset may be upon us and to have enough food stored at home to last a few months in case the “Just In Time Delivery System” gets shut down. This is not a gloat post; this is a head’s up for those that are ill prepared and a pat on the back for those that have Boy Scouted their future.

      Please offer up a prayer for those in harms way. It’s proper and human to do so. Please Please Please consider Boy Scouting your future if you haven’t already. Enjoy your weekend, keep a smile on your face and a positive attitude in your head no matter what, and as always…

Stay Strong!

Jeremiah Johnson