The Threats Of An International Print-A-Palooza!

Posted at 10:17 AM (CST) by & filed under General Editorial.

This is a public article, the majority of my work is now posted for JSMineset subscribers.

Great and Wonderful Monday Morning Folks,

      A violent reversal has occurred in Gold with Sunday’s 3pm pst opening price for April Gold at $1,592.80 up $26.10 then raced to $1,612.10 (the high so far) with the right now price at $1,597.10 with the low at $1,576.30. The Red Headed Step Child – Silver is still taking the beatings (and is getting stronger because of it) with its opening price at $16.50, up only 11.3 cents from Friday’s closing price with the rally sending it to $17.06 before they settled it down with the low at $16.445 and the right now price at $16.80 up 33.7 cents. The US Dollar is finally losing some altitude with the trade at 97.605, down 47.6 points and recovering from the low of 97.460 with the high at 98.045. Of course, all this happened already, while we slept, before 5 am pst, the Comex open, the London close, and after 2 days of spike trades occurring in all US treasuries.

      Gold’s price under the Venezuelan Bolivar is still being sent lower with the trade at 15,951.04 Bolivar showing a loss of 239.70 over the weekend with Silver at 167.790 Bolivar, taking away another 3.396 in value. Argentina’s Peso has Gold’s value pegged at 99,227.88 showing a reduction of 1,365.08 Peso’s with Silver at 1,043.70 Peso’s as the currency took away another 19.90 A-Pesos off of Friday’s price. The Turkish Lira’s price for Gold now sits at 9,954.15 showing a 123.57 T-Lira takeaway from Friday with Silver also losing 1.85 T-Lira with today’s price pegged at 104.710. With the emerging markets still sinking the precious metals, one may wonder if we’re finally going to see the primary currencies rally the precious metals now like they did under these 3 currencies a few years ago? The “Sit tight and be right” mindset may all of a sudden have a much bigger meaning under the US Dollar.

      March Silver’s Delivery Count now sits at 1,104 fully paid for 5,000-ounce contracts waiting for receipts and with the Volume at 305 up on the board with a trading range between $16.975 and $16.390 with the last price at $16.74. Our starting count for the month in deliveries totals 5,520,000 Ounces of Silver standing the chance of being removed somewhere in between the real and the fake (real honest to God Comex take-out at the delivery window or the EFP’s going to London). Silver’s Overall Open Interest fell by 17,329 Overnighters from Friday mornings quote with the count now at 201,349 Obligations showing a huge removal as we witnessed a panic during last week’s beatings. The loss in Silver’s Open Interest count from Tuesday’s Option Expiration Day to Friday’s tally was 44,729 Overnighters, one of the biggest drops I’ve witnessed in a very short period of time.

      March Gold’s Delivery Count stands at 252 fully paid for 100 Ounce Contracts and with a Volume of 431 up on the board this morning with a trading range between $1,608.30 and $1,574.30 with the last Buy/Sell 5-lot at $1,601.00. Gold’s Overall Open Interest is now calculated at 701,001 Overnighters proving a reduction of 28,812 Obligations leaving the impression that only the Longs excited both precious metals on Friday. Btw, “leaving the impression” has many meanings and not necessarily just a “Long” exit. Keeping Watch!

The Organization for Economic Co-operation and Development has sounded its alarm of concern after the US Treasuries started reversing slowly at first, then all of a sudden (Friday and today) as the Chinese import/export calamity starts to affect the global growth of the world’s economies. Then Goldman Sachs makes its statement claiming the possibility of 2 rate cuts in the next 2 weeks, with the expectations that a “coordinated” central bankers print-a-palooza may have to happen in order to keep things steady (but for who?).

      We’ve prepared to stay in place, hopefully you are too. That also means staying in our positions as well even though last weeks fight against the price proved even more so that the manipulations are real and are failing. The outcome of all of this will be a real price discovery in all things under fiat. So, keep the attitudes positive no matter what, have a smile on your face and a prayer in your heart, and as always …

Stay Strong!

J. Johnson