Saturday, February 18, 2012
Good morning Ladies and Gentlemen:
The boys decided on Friday that a raid was necessary and their motive is to try and quell physical demand for our precious metals. The global financial scene is rapidly deteriorating and all citizens realize their paper currency is nothing but paper and seek the safe haven of physical gold and silver. Bank runs are occurring daily especially in the weaker PIIGS nations. The country welcoming their deposits is Switzerland who then take orders from the depositors to switch to gold and hold that metal as a currency for them.
The price of gold finished the comex session down by only $2.10 to a close at $1724.50.
Silver finished the regular session at $33.20 down 16 cents. The raid drove the price of gold down to $1717 but that was it and brave souls entered the comex and drove the price back to a minor loss.
Silver was the object of the bankers interest again. It is much easier to whack this metal as players have abandoned the arena and only physical players wishing actual metal are buying silver contracts. These buyers are actually quite delighted at the opportunity of picking up cheap metal on these "raid days".
Let us head over to the comex where you will see some very interesting developments.First the gold comex:
The total gold comex open interest rose by 2502 contracts from 438,174 to 440,676 contracts.On Thursday you will recall we had quite a reversal on gold and silver as these metals rebounded from their lows to finish slightly up. The bigger demand for metals caused our OI to rise. The bankers lick their chops every time they see higher OI as they try to remove these longs from their contracts. The front options delivery month of February saw its OI fall from 385 to 376 for a loss of 9 contracts. We had only 2 delivery notices filed on Thursday so again we lost 7 contracts to cash settlements or 700 oz. It seems Blythe has no other way to settle upon our longs except to offer them cash and a big fiat bonus. The next delivery month is April and here the OI remained relatively constant at 238,397 dropping by a touch higher of 200 contracts. The estimated volume at the gold comex was a miserable 116,731 as many investors are seeking their metal, or playing, elsewhere. No doubt the MFGlobal commentaries of late showing that customers will not receive any of their money is surely scaring people from playing at the comex in the USA. The confirmed volume on Thursday, the day of the big reversal registered 182,499 contracts but many of those were high frequency day traders.
The total silver comex OI breached its narrow channel by rising 649 contracts to finish the session at 107,270. No doubt that this rise is surely bothering our bankers as they know the players are serious in taking delivery. I am pretty sure that this was the reason for another raid in broad daylight. The front options expiry month of February registered a gain of 30 contracts rising from 187 to 217 contracts. This is the 8th straight day that we have seen a net OI gain in the front February month which no doubt is a signal to all that silver is needed badly in other jurisdictions. The bankers buy the front month to secure the metal and send it off probably to London to feed needy investors over there. We are now less than two weeks away from first notice in the March silver contract. Surprisingly the OI fell ever so slightly from 32,232 to 31,030. The players who sold rolled their contracts to May. The confirmed volume on Thursday, the day of the reversal was 60,903. Both volumes are very good as of late.
MORE
No comments:
Post a Comment