It’s the lack of trust in a game of confidence!
Good Hump Day Morning Folks,
Gold starts off positive again with the trade at $1,287.50, up $2.80 inside another tight trading range between a high of $1,291.80 and a low at $1,285.70. Silver is following along, as usual, with the trade at $15.115 up a penny inside its tight trading range between the high of $15.175 and the low at $15.09. If this isn't enough tightness out there then the US Dollars trade might help with its value now pegged at 96.85, up 5.5 points with a trading range between its high of 96.915 and the low at 96.785. All this installed calm is really getting to be bothersome, especially since this is all done way before 5 am pst and the Comex Open. Today’s Venezuelan Bolivar value for Gold is now pegged at 12,858.91, gaining 15.98 Bolivar overnight with Silver’s price now at 150.961 down .05 of a Bolivar as it seems the pricing is starting to turn higher.
It’s all in the deliveries from this point forward as the March Silver Physical Demands continue with the total request for Silver now at 906 (5,000 ounces in each contract) pending requests with a volume of 3 up on the board so far this morning. This is a 61 count increase in demand from yesterday’s numbers as we wait to see how many obligations actually got delivered here in the states or there in the city where all things in accounting seem to disappear. The Overall Open Interest in Silver continues to dally a bit at 190,005 obligations proving the loss of 117 Overnighters since yesterday’s count. Yesterday had a lot of activity within the delivery system so pay attention to Harvey’s numbers over the next few days to see if the demands have really jumped or not.
EU, ECB Activate Emergency Currency Swap Line To Brace For 'No Deal' Brexit, in short they are already printing because they are worried ... “Worried that there might be a shortage of euros available to UK exporters and banks if Britain leaves the EU without a deal, the BoE and the ECB have agreed to create an emergency currency swap line to ensure uninterrupted access to cash.” What they are really saying is the banks don’t have enough cash to allow the separation so they need more, a lot more and now!
Then of course the BIS is claiming their investment grade corporate bond market which now comprise 60% of all outstanding IG names in the US, be downgraded and whether a new financial crisis will follow. With financial luminaries, regulators and investors such as the Fed, the BOE, the IMF, Oaktree's Howard Marks, Doubleline's Jeff Gundlach, JPMorgan, and Guggenheim all warning that the "fallen angel" threat is arguably the most serious challenge facing the US corporate bond market during the next recession.
We don’t necessarily see it this way. We see the reversal in all things government debt taking a back seat to corporate debt because at least corporate debt has to be serviced continually or will get marked down. Government debt can be governed into AAA+ ratings, at the same time those in the know, won’t want any of it in their portfolios anymore as we think investors will leave the “not so safe anymore government debt system” and head for the corporate. In fact, it may have already started with the end of last year’s sudden Federal Reserve’s Reversal, which removed all rate increases in such a short period of time we’re still shocked by this change-up. They will have to reduce IG ratings in order to allow government debt to compete with them as we watch the swinging debt fly everywhere as all western governments face the same issue, the lack of trust in a game of confidence!
No sir! There is no reason to change up anything in our “holding precious metals instead of money strategy” as the governments try to make things work at the same time everyone is rising up against them. Government debt will soon to be the iceberg that sinks the ships holding too much of it. We stay afloat in our beliefs that Silver and Gold is real money and has been real for centuries and while governments enforce their debt support. So keep those precious metals close, have a positive attitude no matter what, and as always …
Stay Strong!
J. Johnson