Great and Wonderful Wednesday Morning Folks,
Apparently, it’s correction time at the Comex with Gold getting the pressure during London’s watch, but only after Gold reached $1,699.30 before they opened on the island’s trading period with the price right now at $1,627.80, down $33 after being forced down to $1,615.20. We used to have symbols on the monitor, before the algos erased all evidence, that would tell us the markets were in fast trading. This is when the floor’s governing bodies, who used to watch for illegal activity in the pits, would raise both hands up in the air and walk backwards away from the floor, meaning any price is a good price. For brokers outside the pit, the letter “F” next to the price warned everyone about the floor’s activities. Even though those days are gone, today’s movements while writing would have been labeled as FAST. Silver however, is not moving at all with the trade at $14.47, up 21.3 cents after hitting $14.895 with the London low at $14.325. The rallying US Dollar, is having trouble with the value as we see another pullback after our 10% rally with the trade at 101.480, down 76.7 points yet recovering from the low of 101.240 with the high at 102.110. Of course, all this happened before the Comex open and after the White House and Senate have agreed on the “Largest Rescue Package In American History” (to date).
In Venezuela, Gold is now priced at 16,257.65 Bolivar showing a 402.50 pullback with Silver gaining 5.143 Bolivar with the price at 144.519. Argentina’s currency now has Gold valued at 103,670.88 Peso’s showing a reduction of 2,687.17 with Silver at 921.229 showing an addition of 31.325 A-Peso’s. Over in the land of Turkey, Gold’s price is set at 10,485.65 Lira a reduction of 34.96 with Silver at 93.2488 proving an increase of 2.6136 T-Lira.
March Silver Deliveries were very active during yesterday’s Comex trading period as the Volume jumped to 167 inside a trading range between $14.075 and $13.36 with the very last physical trade at $13.97 with the adjusted closing price at $14.229. Today we have a Physical Demand Count of 106 up on the board, proving a reduction in count of 18 after all that activity. So far today, we have a Volume of 103 already posted inside a trading range between $14.715 and $14.455, with the last trade at $14.495. Silver’s Overall Open Interest continues to collapse as another 5,848 Overnighters jumped ship, but only after their captain steered the ocean liner directly into an iceberg of titanic size, hitting a $1 rise ($5,000 per contract) leaving 151,302 Overnighters still onboard and in the trade. We’re only 13,000 contracts away from the OI that was held back when Silver went to $49.84. From this point forward, the controllers may simply be out of ammo and are now susceptible to the real purchases since there is no coins, rounds, bars, out there at these prices. Thank you Comex, for being the last place to buy $10 to $8 below the real. Let’s see how you can supply the demands or fail. With Trump demanding he will keep the markets open; you may be the ones forced to deliver.
March Gold’s Deliveries were also quite active during yesterday’s activities, especially for a cereal month, with to total Volume at 442 inside a trading range between $1,685.50 and $1,592.70 with the last purchase at $1,648.60 and of course the adjusted close at $1,660.20. Today’s early morning post shows yesterday’s huge gain in demand as the Demand count went to 386 proving 355 more purchases were made for physicals with this morning Volume at 106, with a trading range between $1,676.50 and $1,637.40 with the last purchase so far at $1,638.40. Gold’s Overall Open Interest now sits at 548,504 Overnighters showing that same Algo Captain running into yesterday’s huge $100 high berg.
Spreads for physicals are being blown out as coins, bars, or whatever we can get, is up to $150 over spot for Gold, with Silver’s spreads up to $10, as Comex becomes the cheapest place to buy physicals. Smart buyers are taking advantage of the spreads and jumping into the Comex to make profits in between. All these buyers have to do is take delivery of the Comex bars and send them to a dealer with access to a smelter that will melt that bar down and make it into the sizes and shapes people want in real life. That is “if” they can get the bars. What I mean here is all the Comex warehouses are now in a city under locked down, with London being shut down too and with the help of Boris, who seems to be wearing a brown shirt! With the Canadian Mint shut down, and the US Mint running out of everything, I’m sure these bars will deliver themselves. From where I’m sitting, I don’t see a problem, do you? I am also quite curious about the ratio spread between Au/Ag. Could it be someone not onboard the Algo ship, is trying to stretch the spread till one side breaks? Only time will tell as we go thru an event, epic in the history of man.
So, remain calm. Have a smile on your face and a prayer for all who are sick. May the recovery be short, so we can start to move forward again. We love our countries, and we are built to make life better. Keep the faith and as always…
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