Great and Wonderful Friday Morning Folks,
What we call the “norm” in precious metals is the idea that both products are not allowed to have any form of follow thru to the upside, only the down, with this morning being no different after yesterday’s low volume and higher price moves with Gold now at $1,569.50, down 50 cents after the trade reached $1,573.60 with the low not as far away as the high at $1,566.20. There cannot be a free moving market without Silver leading the way lower (almost every time) with its trade at $17.715, down 10.3 cents and close to the low at $17.695 with the high up at $17.855. The US Dollar is still being supported in value, even though we and a few other nations, are printing insane amounts money in order to stay in place with its value pegged at 98.48, up 10.4 points and right beside its high of 98.515 with the low at 98.300. Of course all of this was done before 5 am pst, the Comex open, the London close, and after the Treasury responded to the GOP requests for Hunter Biden, Burisma info.
Today’s emerging markets currency watch is flat as can be and on both sides of yesterday’s pricings. In Venezuela, Golds value is now at 15,675.38 adding back 8.99 in Bolivar value with Silver at 176.929 losing 0.399 of a Bolivar. In Argentina, Gold’s value now rests at 95,093.08 Peso’s showing a gain of 96.62 overnight with Silver at 1,073.63 Peso’s a reduction of 0.90 of a Peso. The Turkish Lira’s value for Gold now sits at 9,396.31 showing a gain of 1.3 Lira with Silver at 106.059 proving a loss of 0.282 of a Lira.
February Silver Delivery Demands now has a count of 6 posted up on the board proving a reduction of 5 with no additional purchases done during yesterday’s activity. So far this morning we still see no activity in the delivery system at all. Yesterday’s activity proved an increase in Open Interest showing how Silver would have been priced higher had the paper shorts not been allowed to pile on more control above as the +25% paper over physical target the CFTC has been discussing with the count now at 225,115 Overnighters, proving an increase of 1,373 pieces of paper with questionable backing. Now our next question in regards to the physical warehouse count and the CFTC approved paper supply for Silver; Are the registered and eligible inventory’s combined, or are they separated, when it comes to the +25% allowance of paper? If the answer is combined, they shouldn’t be, and if they are, Hello! Get your physicals out while you can.
February Gold’s Delivery count is now at 2,063 fully paid for contracts waiting for receipts and with a Volume of 105 up on the board with a trading range between $1,567.70 and $1,563.60 with the last trade of course at the low. Gold’s Overall Open Interest now sits at 652,490 Overnighters proving a very slight short paper exodus tallying 338 Obligations.
We keep hearing more and more “restrictions on travel” almost everywhere on the planet due to the Coronavirus. Cruise ships are kept away from the docks as some people onboard have contracted the virus and have already spread the contagion to everyone else onboard. Now we are hearing the rumor; … “For those patients who have been cured, there is a likelihood of a relapse,” Zhan Qingyuan, the director of pneumonia prevention and treatment at the China-Japan Friendship Hospital… Most of China is in a state of dismay because one side says “panic” and the other side (government officials) says “remain calm”, yet the side that says remain calm is now claiming the Whistleblower Dr. that gave the world the warning is not dead from the virus and is sequestering the story. If the good Dr. is alive, why not have him in front of a camera saying so? While the world waits for the “truth in numbers”, we are still seeing the reasons for Boy Scouting in preparation.
Prayers are indeed in order for the world’s population. If the virus is bad enough to cause dock workers in So. Africa to refuse to unload ships from China then one has to question “is this virus airborne alone, or can surfaces also contain and spread the weaponized virus? Then this story came out supporting the very idea of a surface spread. Let’s face it, the Just In Time Delivery System has already taken a hit, supplies will dry up as more and more fears spread action across the globe. Staying in place may be what the world has to deal with.
Also of note, I had forgotten to post the Velocity of Money chart during yesterday’s missive when I wrote … “What’s worse (maybe) is the Velocity of Money, which has made a New All Time Low (since the first quarter of 1959) and while we’re observing the Federal Reserve print machines churning in overdrive at the same time the 2 other most populated nations are doing the same….”
Regardless of all the issues (real or not), have a great weekend, keep that smile on your face and a positive attitude in the head no matter what … and as always …