Great and Wonderful Friday Morning Folks,
Gold is barely trading higher than it’s close with the price at $1,579.50 up 70 cents and inside a $5 trading range between $1,581.20 and $1,576.00. Silver is leading the rally (barely) with its trade at $17.68 up 6.1 cents after hitting $17.69 with the low at $17.595. The US Dollar finally broke thru and is now at 99.02 up 6.2 points after it reached up to 99.045 with the low at 98.950. Of course, all of this “hardly a trade” happened before 5 am pst, the Comex open, the London close, and after Harvard and Yale, are put under investigation, for not reporting their incoming foreign funds as we wonder what that money was truly sponsoring? Did they too, think she could not lose?
Gold under the Venezuelan Bolivar is now priced at 15,775.26 proving an increase of 23.97 Bolivar with Silver at 176.579, it too gaining 0.749 of a Bolivar. In Argentina, Gold values sits at 96,845.44 Peso’s proving a gain of 382.90 overnight with Silver adding 7.25 to its value at 1,083.99 A-Peso’s. The Turkish Lira, which we feel is more closely tied to the Euro because of its proximity to that monster print machine, now has Gold valued at 9,573.97 Lira adding 19.27 with Silver at 107.160 it too, adding another 0.499 of a T-Lira.
February Silver Delivery Demands has dropped from a 10 count to 1 during yesterday’s trades and with no price to offer what so ever, and even after a Volume of 3 was posted up on the board at the end of the trading day. Spread entry or exit, who really knows, with the exception of those that feel bad math is good for investing. The numbers behind the price is proving far more of the problem for the shorts than anything else. In fact, the Open Interest gained another 1,914 more shorts while the price went up 12.2 cents with the total count now at 225,725 Overnighters. The count is still highly elevated and only 18,471 pieces of paper off the all-time Brexit/Trump/Win high.
February Gold’s Delivery Count now sits at 726 fully paid for contracts waiting for their 100-ounce receipts proving a drop of 150 obligations inside a trading range between $1,574.10 and $1,570.20 with the closing price adjusted higher at $1,575.10. Even though we like the higher close, this still points to the idea that the paper controls the price and not the real purchases. Gold’s Overall Open Interest now sits at 674,264 Overnighters showing an increase of 17,365 more shorts being added, proving our point, that if there really was a limit to how many contracts, in total can be used verses an outside, audited, and confirmed warehoused numbers, prices would be different than they are now, and more than likely, sharply higher. Gold’s Open interest is off the top by 124,277 Obligations.
Our Petri Dish observation of the infected passengers sequestered on the cruise ship in Yokohama, Japan, has continued to rise. 44 more cases of the illness have been added since the last count bringing the total to 218. The affect of this event has caused the cruise line to cancels 18 future cruises because 30 countries and territories now have the virus and with the way people are stuck in place, most likely future passengers will cancel their plans and simply stay at home. There should be more cancelations coming if this spread continues. Also, of note and inside this report, Sydney, Australia, now has an infected ship to deal with, bringing the infected ship count to 5.
Vietnam is now following China’s lead as “villages” (plural) with 10,000 people or more, close to the nation’s capital, were placed under quarantine on Thursday after six cases of the deadly coronavirus were discovered there. It seems the virus is not slowing down one bit, instead, we see the spread gaining traction. It is truly unfortunate that governments can never be truthful about anything, it would really help here. We expect next week’s “end of the quarantine” which is scheduled for the 19th, to be extended until there really is a count drop.
We pray to be wrong here, horribly wrong! At the same time, we are not taking things lightly. If the spread does not drop it will increase and with it, more and more travel, shipping, and international trade will be affected, period! What you have is what you are stuck with, we strongly suggest stocking up on things you will need, in order to stay in place. Please offer up a kind thought or prayer to all infected. Have a Happy Valentine’s Day, a wonderful weekend, and a good President’s Day on Monday, keep that smile on your face, and a positive thought in the head no matter what, and as always …