The Petri Dish

Posted at 11:40 AM (CST) by & filed under General Editorial.

Great and Wonderful Monday Morning Folks,

        Gold is moving higher in the early morning with the trade at $1,575.30, up $1.90 after reaching $1,580.20 before the control was put in with the low at $1,571.50. Silver is following along with the trade at $17.755 up 6.3 cents after it reached $17.805 with the low at $17.665. The US Dollar is still way elevated with the last quote at 98.510, down 6.1 points and close to the low at 98.49 with the high up at 98.610. Of course, all of this happened already, after the ICE opening (Sunday 3pm pst), before the Comex open, the London close, and after Kyle Bass (imo) unleashed a proper twitter response towards China’s so called “Face Saving Love” it shows towards its own.

      We have nothing but green showing up in the Emerging Markets Currency Watch for the first currencies of mankind. For instance, in Venezuela, Gold is now valued at 15,733.31 Bolivar giving the holder a 57.93 gain over the weekend with Silver at 177.328 Bolivar, showing an increase of 0.399. Argentina’s currency now has Gold trading at 95,616.61 Peso’s, an increase of 523.53 with Silver gaining 3.63 Peso’s with its current price at 1,077.26. In Turkey, Gold’s value is now at 9,485.07 Lira, proving a strong gain of 88.76 with Silver proving a gain of 0.849 T-Lira with the early morning price at 106.904.

      February Silver’s Delivery Demands remain low and steady, that is if you believe what you are seeing, with the demand count now at 7, unchanged from Friday and after a Volume of 6 was posted up on the board Friday without any price. So far this morning there is no activity at all within the delivery system. Silver’s Overall Open Interest now sits at 223,933 Overnighters proving things may not be so comfortable for the shorts as 1,182 pieces of paper Silver left The Comex.

      February Gold’s Delivery requests now sits at 1,729 demands for physical and with a Volume of 44 up on the board with a trading range between $1,573.40 and $1,568.60 with the last trade at $1,571.60. This proves a drop in demand of 333 fully paid for contracts that either got receipts for physicals here, or in London, via the EFP express. Gold’s Overall Open Interest is now at 655,148 Overnighters proving the shorts had to add 2,658 more contracts to steady the trade like it did.

      China’s issues are many. At present they are the largest manufacturer on the planet and the largest in population. The Coronavirus, regardless of where it came from or who’s to blame for its release, now has a supposed total of 80 cities in lockdown and they’re starting to add China’s capital city Beijing to the shutdown mix with outside vehicles and personnel no longer allowed to enter “parts” of the city. There is no question in my mind that the official numbers are highly suspicious, and should be considered untrustworthy. We look for different ways to gauge what the true infection numbers are and with that there seems to be an experiment going on with a cruise ship that is sequestered, and in lockdown. 

The Diamond Princess cruise ship, which is quarantined off the coast of Yokohama, has a total count of 2,500 (?) people onboard with a supposed infection count of 136 after being out and about for 2 weeks. Those onboard are not allowed to leave, as the infection count went from 70 to 136 since they last reported the count proving an increase of 66, almost doubling the last count. The odds of Japan allowing those without the infection to leave the cruise ship is slipping day by day as the infections reached over 5%. The situation for those on board, and for the family members of those stuck in harm’s way, have to be trying to say the least and our prayers go out to all. Those of us who distrust any government stats can view the ships information as the infection unfolds. The cruise ship, in short, has become a petri dish. An enclosed and isolated situation that bears watching as the rest of the planet observes.

      We remain certain, that the creativity of mankind can find ways to contain the situation. At present, the supply system we are all used to, will start to go wonky in short order. Who now is willing to receive any package from China, let alone a cargo ship loaded with containers? Even though this issue is with us, we remain positive and steadfast. The first currencies of mankind should help keep ones purchasing power in order as we expect investors everywhere to start looking for ways to protect the retirements from the onslaught of supply disruptions and the possible wild currency swings. Keep the attitudes positive, a smile on your face, no matter what, and as always …

Stay Strong!

J. Johnson