How Many Smelters Does It Take to Stay Liquid?

Posted at 9:16 AM (CST) by & filed under General Editorial.

Great and Wonderful First Day of Fall Folks,

      Gold is still in the playoffs after yesterday’s central bankers temper tantrum with the December contract now at $1,912.10, up $1.50 after hitting a high of $1,925.50, which happened much earlier last night with the low during London’s time at $1,898.90. The Red Headed step child – Silver – took the bigger beating, and is now trading at $24.455, up 6.8 cents after a high of $25.30 was reached with the low at $23.91. The US Dollar, no matter how much gets printed, is absorbed into the system somehow, with its value pegged at 93.555, down 12.9 points and close to the low of 93.50 with the high way up there at 93.93. Of course, all this happened before 5am pst, the Comex open, the London close, the last moments of Summer (officially ends at 6:30am pst), and after Nancy, once again, makes famous “Q and the Anons”, by attacking one of their own socialist supporting platforms of truth – facebook – by saying how can they ‘look themselves in the mirror’? The Anon’s say; “with the help of a hairdresser”, Simple logic answers the question(s).

      The emerging markets currencies are all interlinked directly into the primary currencies, woven into the fabric and completely anti-precious metals (until the breaking point is reached), with Gold in Venezuelan now priced at 19,097.10 Bolivar, giving the buyer a 255.68 discount from yesterday’s quote with Silver’s value reduced by 19.626 with the last price at 244.244 Bolivar. Argentinians are now able to acquire Gold at 144,377.39 A-Peso’s, giving today’s buyers a 1,533.11 discount, which is less than yesterday’s pull with Silver buyers getting a 142.68 A-Peso discount from Monday with the last price at 1,846.80, more than doubling yesterday’s drop. Gold’s price under the Turkish Lira is now valued at 14,617.35, with its cost reduced by 128.55 with Silver’s last price at 186.913 T-Lira taking back 14.152.

      Silver’s Delivery Demands now shows a count of 622 fully paid for contracts waiting for receipts, and with a Volume of 34 already up on the board with a trading range between $24.57 and $24.16 with the last buy at $24.275, down 2.4 cents from yesterday’s Comex Close. Friday/Monday’s delivery count was not reduced until way after the Comex close, and before the ICE end, where the “deciders” adjusted the count down to 634 contracts waiting for receipts, reducing Friday’s count by 274 contracts that may have gotten receipts here, London, or are still waiting. Now, we see a reduction of 12 contracts from that adjustment, that may have gotten receipts with yesterday’s full day of trade happening in between $26.30 and $24.075 with the last buy at $24.46 with that calculated Comex close at $24.299, down $2.729. Also, of note was yesterday’s Volume totaling 148 new buy orders which took away another 740,000 ounces in either physicals or receipts. Silver’s Overall Open Interest, the numbers behind the price, shows a reduction of 4,176 paper contracts that go against the physicals bringing today’s starting total to 159,117 Overnighters. The Open Interest numbers are getting down to the point where the biggest rises have occurred in the past. What will happen this time when the paper count gets below 130,000 contracts, that go against the physicals, when the physicals are that much harder to find? Reminder; how many more smelters does it take to keep Comex/LBMA physicals liquid?

      September Gold’s Delivery Demands now has a total of 72 fully paid for contracts waiting for receipts with a Volume of 1 and a single price “trading range” at $1,913.10, a gain of $11.90, so far today. The Comex deciders also made an adjustment in the demand count by raising the physical requests by 5 contracts bringing the new total to 93, and in between the Comex and the ICE close. Yesterday’s price range inside the deliveries happened in between $1,946.20 and $1,883.40 with the CCC at $1,901.20 reducing the value by $50.90 with a Volume of 52 contracts swapping hands. Yesterday’s volatility caused 1,812 short contracts to exit the trade leaving a total of 575,087 Overnighters to go against the buyers of physicals.

      The shorts may have brought the prices down, but all they’re doing is helping the buyers out, now more than ever, as more and more people see what the Federal Reserve, and the rest of the centrals are doing to the values of all currencies, which in turn makes all things outside the CPI far more expensive. Jay Powell is supposed to speak 3 more times this week, to make sure his point is made; “we’re gonna print a lot!” We also have the October Options coming off the board on the 24th, with next week Wednesday being the very last day of the 2020 fiscal year. Which may be why we see this drop in precious metals value along with Nancy and her squad of truthers, using a stopgap approach, to keep funds from those that need it to survive this thing, once again.

      Keep it real! Everything is changing and that includes the slamming of the precious metals price. One day, we will see the same exact move upwards, and it will never come back. So have faith in your logic, paper never wins over rock, and we’ll see it again, sooner than later. After all, Gold made a brand-new life of contract high in August! That is a fact and it will never go away. Silver will soon do the Hi Ho, and those that hold, will find it hard to peel themselves from the ceiling once that metal break free and catches up to the ratio. Prayers for all and as always …

Stay Strong!

Jeremiah Johnson

JeremiahJohnson@cableone.net

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