The strangeness in Silver continues to confound - J. Johnson's Latest 7/10/18
Good Tuesday Morning,
Gold is lower this early morning after the London Brexit fallout was taken off the news wires almost immediately with Gold back to Thursday - Fridays trading ranges at $1,249.50, down $10.10 with a low so far at $1,247.70. Silver is down as well following Gold’s lead with its trade down 14.9 cents at $15.99 after hitting a low of $15.92. The US Dollar is higher as everything is reversed from yesterday’s activities with the current value at 94.10 in between a high of 94.225 and the low to beat at 93.75, all this happening before 6am pst.
July Silver’s Open Interest is now at 863 contracts dropping off 347 obligations with zero volume so far. AG's over all OI added 2,011 additional contracts in order to supply all the buying needs with more short trades in their typical fashion of fair price analysis in which we beg to differ and for decades now.
Silver options are showing some more of the unusual with December 2020 $20 Calls being purchased. I don’t have a buy date but I do have the OI number of 100 Options purchased with a closing price of $1.062 per option. The closing value is $5,310 per option and $531,000 in total. Even crazier is the purchase of the July 2021 Call/Put purchases at the same strike price of 18.25. Once again, I do not have the purchase prices but these options closed yesterday at $2.461 equaling $12,300 each to total $7,109,400 just for the Puts. The Calls, which have the same purchased quantities, closed at $1.853 or $9,265 each for a total of $5,355,170. Admittedly I don’t know what the game is here, if these Put purchases were done first when the futures trade was much higher and then the Calls bought later, then the continuing plan this trader(s) may have is to use the Puts as protection for long futures positions. At present the Open Interest in July 2021 is zero but with a closing price of $17.614 making the Puts Very Deep In The Money. If I start to see futures purchases popping up within the months to come, I’ll consider this thought to be a more valid idea. Regardless the strangeness in Silver continues to confound.
Bitcoin is lower this morning as a price whack occurred there too with the current price set in US Dollars at $6,391.32 down $318.68. Ethereum’s trade is at $437.87 a loss of $48.72 and Litecoins trade is at $75.69 down $3.74. News out on the wire for the blockchaining technology is all Walmart! As it applied for a US Patent and Trademark for a technology that the banks (and nations) supposedly hate.
Britain is not completely out of the spotlight after yesterday’s most unusually active news day as Nigel Farage may have shut them all up after he mentioned he may just come back into UKIP, since Teresa May obviously succeeded in derailing what the voting populace wanted; the independence from the European mess. I love the way this man speaks directly to the union of the misguided, he is truly missed and I for one, am glad he’s stepping back into the fray, at least in a threatening way.
Italy has popped up after a few days of no news reporting as The Italian Interior Minister goes to Russia this weekend to meet Putin. My guess here is Italy IS going to bring back its Italian Lira (along with some of the other N. Mediterranean nations in tow doing the same) and may be pitching the idea to start off trades with Russia. China would be another obvious stop if this meeting succeeds. Other Italian news shows the Roman Catholic Church is now fully involved with politics and money as The Guardian claims “the Church is now at war with Italy” over the migration issue. Do as they say not as they do is how I see this. If the church is so concerned, why are their gates yet to be opened to the migrants? They have plenty of room.
The issues we have involving the international currencies and the central banks control over the printing of trade notes, is still the mess we have to deal with. Each day we see more and more of the mess as the political, social, and economies of the world, spin further into its final conclusions. It is this reason that we, the outsiders to the main stream media, have been telling all what we expect to see happen. The banks are failing and will have a conclusion, most likely not to the liking of the masses. As we’ve been saying for a while now, Get out if you haven’t already, Hodl precious metals and maybe a crypto or two, and as always …
Stay Strong!
J. Johnson