Great and Wonderful Monday Morning Folks,
Gold is trading at $1,554.40, down $5.70 after being dipped to $1,547.00 with the starting point high at $1,563.10. Silver is down 8 cents at $18.025 after going below the Maginot line again hitting $17.940 before it recovered with the high at $18.130 which of course is the Sunday night opening price. The US Dollar, a continually printed product of bad math, is now valued at 97.165 up 8.7 points after being supported all the way up to 97.245 before losing steam with the low at 97.050. Of course, all of this occurred already during Asia and London’s trading times, before 5 am pst, the Comex open, and the London close, and after “death to liars” is being chanted in one nation specifically, which can be heard in many others as well, if one has the ears to hear and the eyes to see.
Our Emerging Markets Currency Watch continues to show the control the primaries have over almost all other currencies with Venezuela’s Bolivar now pricing Gold at 15,450.66 showing a pullback of 32.96 from Friday’s trades with Silver at 180.025 Bolivar, giving back the exact amount taken during the previous days move. Argentina’s Peso now has Gold valued at 92,408.57, it too losing 165.12 in A-Peso value with Silver at 1,076.71 proving a 0.10 A-Peso gain. The Turkish Lira now has Gold priced at 9,066.72 showing a reduction of 42.57 in paper printed value as Silver holds on to its value with the price at 105.645, showing a gain of 0.326 in T-Lira Value.
Comex Silver Delivery Demands now show 10 fully paid for contracts waiting for receipts and with a Volume on 4 up on the board so far this morning, with a trading range of $18.02 and $17.97 with the last 2 of the 4 purchases at $18.02. Even though the count is small compared to the paper used to control the price flow, it shows the constant need for large bar supply. It also shows how little value Comex considers the delivery issue we have as last Friday’s Volume of 2 still shows no price. Also, of note Friday’s Demand Count was at 41 proving 31 contracts got settled out here or in London during Friday’s “no need to price a delivery purchase” day.
Silver’s Overall Open Interest now posts a total of 234,460 Overnighters showing the short traders had to add another 218 more contracts into the market in order to keep the liquidity level, at a price the centrals demand against the buyers of physicals. Silver’s level of paper against the physicals remains elevated and consistent, and for years now. We’re not surprised that Gold’s Open Interest caught up as now both commodities are trading just below their life of paper contract highs. Silver’s All Time High in Paper is at 244,196 with Gold’s All Time High is at 797,110.
This weekends weekly discussion with Jim and his team, inside the paid for side, added much more understanding to the events of the week. The team is discussing our present history in the making. Maybe even being the precursor to the greatest transfer of wealth in history. If one does not have the time to read or study over the week, the “paid for side” is one of the best purchases one can make. One can listen at any time on Sunday and at one’s leisure, or the discussion can be saved into a MP3 format to be listened to on the road on the way to work.
REPO-mania is the event that was discussed and the question of why the western nations seem to hate Russia and China so much? “Because they are evil” doesn’t cut it anymore. That statement has been used for centuries now and still the questions surrounding their history have yet to be discussed. I think it would take an entire multi years long television series to go thru all of Russia’s written history, written by their own countrymen over the centuries allowed for everyone to read after their communism collapsed, and to compare their writings to those that wrote about them from western civilizations viewpoint. What else can be discovered that was not there before? It is apparent that Russia and China have an obsession with Silver and Gold, and it may have been always that way.
Moving forward, first we witnessed Silver being pummeled with paper liquidity, then most recently Gold. However, since 2008 the Federal Reserve had to print, and continually do so ever since, Why? This is what is being discussed as it’s happening, live! Want to know more, consider getting into the paid side and be amazed!
Keep your precious metals in hand, keep a smile on your face and a positive thought in the head no matter what, and as always …
CIGA Werner sends us a chart that needs no commentary at all except to ask what happened since 2010?
US Equities v Global Equities (ex US)
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Former CIA Officer and counter-terrorism expert Kevin Shipp says the threat of outright war with Iran is over—for now. Shipp says Iran will change its strategy from overt conflict to covert conflict against the U.S. Shipp explains, “Iran has backed down. There is no question about that, and even their so-called missile strikes against the U.S. are basically just kicking sand, intentionally missing their target. Iran understands if they entered into a war with the U.S., they would be left with nothing more than a burnt stump. So, Iran is backing down . . . What Iran is going to do is engage in asymmetrical warfare. I think they are going to start activating their sleeper cells in the United States and other countries like Saudi Arabia. We are going to start seeing attacks on easy targets in places like Iraq and activation of cells within the United States.”
More cash is required to tell us how wrong we are.
Fed Injects $83BN In Liquidity As Market’s Repo Addiction Getting Worse
January 9, 2020
Two days after we reported that a disturbance may be brewing below the surface of the repo market again, after the first oversubscribed term repo in over three weeks, when on Jan 7 the Fed received $41.1BN in submissions for its $35BN two week repo, we got another indication just how strong the market’s addition to the Fed’s easy repo money has become, when moments ago the Fed announced that its latest 2-week term repo operation was also almost oversubscribed, as $34.3BN in securities ($23.3BN in TSYs, $11BN in MBS) were submitted for today’s $35 billion operation, as dealers continue to scramble to the Fed for liquidity which they are no longer using for merely “regulatory” year-end purposes (since it is no longer year-end obviously), but are instead using it to pump markets directly.
We all know by now the push for fake meat. As with fake cigarettes (Vaping) and fake sugar (saccharine), it is proving to possibly be more toxic than the product they are replacing.
It is being shown that fake meat is not necessarily healthier than the real thing.
The reason I bring this up is because of the uncanny parallels between fake meat and fake gold.
Fake gold, ie: Comex futures, ETFs like GLD, etc., do not necessarily represent a safer alternative. In fact, they may be more toxic than the individual investor realizes. Unfortunately, there is no FDA to protect the investor from toxic effects (not that they do such a good job anyway).
The one thing that fake gold has over fake meat is this: UNLIMITED amounts of fake gold can be printed at will.
Real gold has its limits.
‘A partnership of that magnitude would also raise questions about whether Beyond Meat has the production capacity to serve the thousands of McDonald’s locations in North America. Howard, in Wednesday’s research note, said: “It is of note that Beyond Meat may not have enough capacity to fully supply McDonald’s nationwide at present.” ‘
CIGA Wolfgang Rech
Beyond Meat Stock Reverses As This Key Question Hangs Over Hopes For McDonald’s Deal
January 8, 2020
McDonald’s (MCD) on Wednesday said it would expand its test of a Beyond Meat (BYND) plant-based burger in Canada, a small step toward what an analyst said could send Beyond Meat stock on yet another tear higher on epic sales gains in the years ahead, even as questions remain about its ability to meet demand.
The fast-food burger giant said the test expansion, starting Jan. 14, would include 52 restaurants in Southwestern Ontario. The expanded test will last 12 weeks. McDonald’s began the initial Beyond Meat test, for 28 restaurants in the London, Ontario area, in September.
Most of the restaurants that were part of that first test will keep serving the Beyond Meat sandwich, called the P.L.T., or Plant. Lettuce. Tomato. Starting Jan. 14, the P.L.T. will sell for around 5.99 Canadian dollars, or $4.60.
Bill Holter’s Commentary
Every step forward for China is a step backwards for the dollar…
How Chinese Financing is Fueling Megaprojects Around the World
January 7, 2020
How Chinese Financing is Fueling the World’s Megaprojects
On a mountaintop a few miles north of the bustling streets of Harare, Zimbabwe, a curving, modern complex is beginning to take shape. This building, once completed, will be the home of the African country’s parliament, and the centerpiece of a new section of the capital city.
Aside from the striking design, there’s another unique twist to this development — the entire $140 million project is a gift from Beijing. At first glance, gifting a country a new parliament building may seem extravagant, but the project is a tiny portion of China’s $270 billion in “diplomacy spending” since 2000.
AidData, a research lab at the W&M Global Research Institute, has compiled a massive database of Chinese-backed projects spanning from 2000–2017. In aggregate, it creates a comprehensive look at China’s efforts to grow its influence in countries around the world, particularly in Africa and South Asia.
Bill Holter’s Commentary
Again, they will say “you were warned”!
World Bank Warns Of Global Debt Crisis Amid Borrowing Buildup
January 8, 2020
The World Bank has highlighted the risk of a fresh global debt crisis after warning of the biggest buildup in borrowing in the past 50 years.
In its half-yearly Global Economic Prospects (GEP), the Washington-based organisation said of the four waves of debt accumulation since the 1970s, the latest was the largest, fastest and most broad-based.
The World Bank, which provides loans and grants to developing and emerging economies to help tackle poverty, said there could still be a financial crisis even though historically low interest rates were making debts more manageable.
Great and Wonderful Friday Morning Folks,
Gold continues to show what pressure can do when more paper is applied to the “buy” with Gold at $1,550.30, down $4 after hitting a low of $1,546.70 with the high at $1,555.00. Of note, none of this activity created a new low so far with the trading range remaining inside yesterday’s attempt to scare out the Resolutes. Silver is actually doing better than Gold with its trade at $17.925, down 1.1 cents after hitting a low of $17.860 with the high nearby at $17.975. Yesterday’s early morning low was beaten out by 1 penny before the trade went dormant with the yesterday’s low still intact. The US Dollar still has the “support of print” with its trade at 97.22, up 5.8 points with the high at 97.30 and the low to beat at 97.095. Of course, all of this happened already, before 5 am pst, the Comex open, the London close, the US Unemployment report, and before China pulls another “we won’t sign” this deal (until?), a very easy thing to see if one simply applies pattern recognition to the subject.
In Venezuela, Gold’s price is now set at 15,483.62 Bolivar discounting the value by 24.95 Bolivar with Silver now trading at 179.026 Bolivar showing a loss of 0.999 in the overnight. In Argentina, the Peso now has Gold valued at 92,573.69 Peso’s proving a drop of 272.63 overnight with Silver at 1,070.61, subtracting another 5.53 in A-Peso value. In Turkey, Gold’s value is pegged at 9,109.29 Lira proving a loss of 29.47 with Silver still being held down as well with the trade at 105.319 T-Lira, showing a loss of 0.653.
January Silver Deliveries proved the Resolute(s) needs are still being met with the demand count now at 41 fully paid for contracts waiting for receipts to be filled here, or EFP’d over to London, and with zero Volume posted up on the board so far this morning. In yesterday’s early morning report, we had a Volume of 13 posted, but by the end of the day that Volume jumped to 38, yet the trading range remained so constant it boggles the mind. January 9th Delivery month purchases, and sells, only had one price posted at $17.76, and still they adjusted the closing price at $17.860. The Demand Count increased by 9 proving once again the reasons why we distrust Comex math and its regulatory body which only seems to rubber stamp central bank needs. So, we’re to believe that the entire day’s negative trade activity, kept the continued purchases at one price, all day long? Riiiight!
Silver’s Overall Open Interest only lost 134 paper contracts during yesterday’s trades (right up to right now) proving the Resolutes are not buying the storyline the media induced as they attempted to gaslight the lie of a starting nuclear war, which failed in spectacular fashion leaving the Overall Open Interest at 234,242 Overnighters in order to keep Silver subdued. Silvers Open Interest is so elevated that we are less than 10,000 more pieces of paper away from making another paper contract high that was made when Trump killed it in 2016. Even Gold’s Open Interest continues to climb with last nights Comex closing tally at 786,392 Overnighters proving the addition of 1,269 more contracts were needed but failed as the Resolutes stay in the trade.
Comex can add the paper but not the physicals. We support those that are Resoluting against the shorts, who buy the physicals from the supposed last resort, the Comex. Everyone who buys and holds physicals, has a stake in the trade that goes against this papered lie called the Comex Price. This is why we are as constant as the Resolutes, in fact we believe they already won it all. Of course this will be proven when the Open Interest starts to collapse, as the prices spike higher, when the Comex is be forced by law, to supply the physicals, they claim has this fixed value (that Comex created by oversupplying the paper contracts), while the mining sector proves they have slowed their extractions because of this artificial value created by paper and not the physical supply and demands.
Have a great weekend, hold on tight to the facts, as well as the physicals. Keep the attitudes positive and the smile on your face, as we roll forward into the weekend. As always …
Great and Wonderful Thursday Morning Folks,
Gold got hammered yesterday and last night, after the word “Peace” was used with the trade now at $1,554.60, down $5.80 and recovering from the low at $1,541.00 with the high to beat at $1,562.40. Silver took the bigger hit, because it’s Silver, with the trade at $18.025, down 14.2 cents with its starting recovery at $17.825 with the high to beat at $18.225. The US Dollar, which is still getting support from the federal reserve “repo printing act” is now trading at 97.100, up 10.4 points after reaching up to 97.200 with the low at 96.955. Of course all this was done before 5 am pst, the Comex open, the London close, and only after Gold spiked to new life of contract highs in the EuroCurrency.
In Venezuela, Gold’s new and temporary buying price is now at 15,526.57 Bolivar showing a drop of 241.70 overnight with Silver now at 180.025 Bolivar, losing 3.895. In Argentina, the Peso now has Gold priced at 92,846.32 proving a 1,503.87 A-Peso reduction with Silver now trading at 1,076.14 giving the buyer a 24.41 A-Peso discount, in what I think may last for a very short period of time. In Turkey, where the Lira controls the trade, Gold is now priced at 9,138.76 showing the reductions at 259.94 T-Lira with Silver dropping 3.645 in T-Lira value with the price at 105.972.
January Silver’s Delivery Requests are now at 32 fully paid for contracts waiting for receipts and with a Volume of 13 up on the board with a trading range of $17.760 (high/low/last) showing a 32.8 cent loss for the seller but a huge gain for the holder as our Resolute Buyer may still be in need. This proves the Delivery Count increased by 16 contracts during yesterday’s trades.
Silver’s Overall Open Interest is where the paper meets the physicals, in a free for all fashion (inside a criminal element arena of play as the DOJ observes) with the total count right now at 234,376 Overnighters proving only a 20-count drop in all paper that controls Silver. In short, yesterday and last night’s activity did very little in attempting to scare out buyers, in fact it seems they didn’t scare anybody, as the Resolute Longs remain. Gold’s Overall Open Interest has leveled off but at the extreme count of 787,584 Overnighters with the new Life of Contract Paper High of 797,110, which was established this past Monday. So, if the price fell but very few Resolutes left the field of play, does that mean a short-term drop?
We think so and this is the reason why we suggest chartists, who ignore the paper behind the price, may be missing the reason how the market gets controlled. Strict chartist will never know the Open Interest has more “tell” than the price.
In the meantime, we wait, as nothing has changed. The repo markets continue to require newly printed cash in order for the centrals to stay in place, at the same time all this paper is being applied behind the price which has remained super-elevated. We’ll continue to support the Resolutes, and the buyers of physical, while the centrals continue to need more printed cash. Enjoy your day, keep the attitudes positive and a smile on your face no matter what, and as always …