Great and Wonderful Wednesday Morning Folks,
Gold is higher in our earliest morning report with the trade at $1,552.30, up $7.70 after starting from a low at $1,546.50 with the high near by at $1,554.70. Silver is following along with the trade at $17.840 up 9.8 cents with its starting point at $17.770 with the high at $17.920. The US Dollar may be getting a nose bleed from its lofty height with the trade at 96.985, down 10.9 points with the high at 97.180 and the low nearby at 96.955. Of course all this was done before 5 am pst, the Comex open, the London close, and after another not so convincing Democratic debate occurred where a socialist is claiming “rigged” who also ignored the Veritas exposure.
Venezuela’s Bolivar now has Gold valued at 15,503.60 Bolivar showing a much steeper climb than the last 2 day’s pullback recovering 85.90 overnight with Silver gaining 0.849 Bolivar, recovering very little from yesterday’s price drop. In Argentina, Gold is now valued at 93,136.31 proving the recovery of 695.03 A-Peso’s regaining all this past week loses and then some, with Silver only gaining back 7.07 A-Peso’s with the trade at 1,070.39. The Turkish Lira has Gold priced at 9,137.95 Lira recovering 41.52 T-Lira which was more than yesterday’s pullback but nowhere near Monday’s drop off with Silver at 105.017 regaining only 0.403 of a T-Lira. Gold’s recovering price swings may be predictive, stay tooned!
January Silver Delivery Demands now show a count of 23 fully paid for contracts waiting for receipts and with 0 Volume posted so far this morning proving an increase of 13 more purchases during Tuesday’s trade. Yesterday’s Delivery Month trading range didn’t budge one inch as the Volume jumped from 2 to 17. So, the delivery month had a 2-cent swing ($17.875 – $17.855) with 15 additional purchases, all the while the (February and) March Contract(s) traded well below the delivery months prices, yet the Comex closed the Delivery price at $17.674, hmmm. Said another way, the delivery month has been trading higher than the futures contracts, and it has been going on for a while. In the old days (and maybe just ahead?), this type of action would stress a “shortage” of product to deliver. Of note, that was before Algo’s took over and this giant amount of “new paper” that has been applied to the price.
Silver’s Overall Open Interest is proving the Resolutes are still on the field of play with this morning OI count at 235,551 Overnighters showing a gain of 454 since Tuesday’s early morning post. Gold, as expected, did make another New Life of Contract “Paper” High of 798,131 proving a gain of 1,043 ( in Open Interest) and at this price. This is proving our point that if there was a limit to how much paper is used on the exchanges, like the miner’s restrictions on hedge’s, prices would be different, sharply different, and most likely at new life of contract highs!
The game goes on, as the Resolute Buyers step in with deliveries making a mess of things for the short traders. The prices will be ironed out in time, without a doubt, all one has to do is wait it out. So, keep your physical precious metals in hand and away from any third party, have that smile on your face, and no matter what, have a positive attitude in the head. As always …