This Is One Heck Of A Ride In Gold & Silver!

October is one of the primary months…

submitted by J. Johnson via JS Mineset

Great and Wonderful Last Weekend of Summer Folks,

     We start Friday off with a rise in precious metals with Gold now priced at $1,960.90, up $11 and close to the London high at $1,964.10 with the low down at $1,951.10. Silver is up as well with the last trade at $27.31, up 21 cents from the Comex close with its high way up at $27.58 with the low down at $27.165. The US Dollar, which has plenty of print in front and behind it, is now valued at 92.89, down 7.9 points with the low at 92.785 and a high at 92.98. Of course, all this happened before 5 am pst, the Comex open, the London close, and after the Triple Witch Week failed to do anything in the charts. We’re still trading sideways.

      In Venezuela, Gold is now priced at 19,584.49 Bolivar, gaining 86.89 overnight with Silver’s trade adding 2.847 Bolivar with its price at 272.759. Over in Argentina, Gold’s value is now at 147,680.95 A-Peso’s providing yesterday’s buyer a 910.22 gain with Silver at 2,057.10, gaining 25.4 A-Peso’s since yesterday morning. Turkey’s Lira, leads the emerging markets rally as a 90.95 gain was added overnight with the last price for Gold at 14,835.25, almost doubling yesterday’s pull with Silver adding 2.479 T-Lira’s, a bit more than yesterday takeaway with the last price at 206.622 T-Lira.

      September Silver Deliveries now shows 908 fully paid for 5,000-ounce contracts waiting for receipts and with a Volume of 22 up on the board with a trading range between $27.31 and $27.285 with the last buy at the high, up 32.5 cents which just so happens to be a higher gain than the December contracts (for now). Yesterday’s full day of trade in Silver’s deliveries happened in between $27.235 and $26.53 with the last trade, at the end of the day, at $26.985, proving a loss of 37 cents, with a Volume of 343 reducing the Demands by 146 contracts that got receipts between here and London. So far this week, we’ve had 800 Contracts (4,000,000 ounces) swapping hands in the deliveries as Mr. Resolute see’s the best buy times like we do. Yesterday’s usual price attack had to have an additional 1,145 contracts added to the mix in order to keep this product sideways on the charts bringing the total Open Interest to 163,526 Overnighters willing to trade against the physicals that the Resolutes have to have.

      September Gold’s Delivery Demands now shows 88 fully paid for 100-ounce contracts standing for deliveries with a Volume of 6 already up on the board inside a tight trading range between $1,950.50 and $1,950.10 with the last buy at $1,950.20, a gain of $10.20 so far this morning. Yesterday’s full day of deliveries happened in between $1,946 and $1,933.70 with the last buy at $1,937.70 with the Calculated Close at $1,940, losing $20.20 from the previous day with a Volume of 67 and reducing the Demands by 79 contracts that got receipts, maybe. Now we are starting to see the pullbacks in the paper shorts after yesterday’s price drop as 5,599 contracts left the field of play leaving 576,793 in Open Interest, and as we get ready for the October Deliveries after next week’s options expiration and the last trading day for September Deliveries and the end of the (USA) fiscal year. So far for this week, we’ve had 326 physical contracts traded (32,600 ounces) which isn’t much but at the same time, it’s not bad for a TW week inside a cereal month for Gold. October is one of the primary months for the metal and a better gauge for this metal.

      Akshay Aiyer, a former currency trader for JP Morgan, conspired to fix prices and rig bids in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro, from at least October 2010 through at least January 2013, …. the defendant engaged in near-daily communications with his co-conspirators by phone, text, and through an exclusive electronic chat room to coordinate their trades of the CEEMEA currencies in the FX spot market… The Antitrust Division has charged five companies and six individuals in its investigation of collusion in the FX (Foreign Exchange) spot market.  On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc – pleaded guilty and agreed to collectively pay more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy in the euro-U.S. dollar FX spot market.

     In this article, sent last night to those that are members of GATA shows, Aiyer came to the United States back in 2002, and has been trading at JPMorgan at least up till 2013. This man, here in the USA, has been trading all these currencies for JPMorgan and has NEVER BEEN registered with the National Futures Association! He’s not even in FINRA’s registry. Granted there may be other places for this man to be registered, so I’ll leave room for that, but currencies and FX trading, are commodities, and as I understand it, commodities brokers are supposed to pass tests in trading, compliance, money laundering, and be registered under a brokerage, broker dealer, or futures commission merchant. JP Morgan has to be considered one of these, right? What am I missing?

      In my opinion only, this is a glaring hole that involves the governing bodies who chose to look the other way all these years. The Commodity Futures Trading Commission has many former and current employees that came from major institutions like JPMorgan, so why is there a loophole like this? How can a major bank have unregistered currency traders manipulating, err trading, markets for years and not be required to register as a commodities broker at any level? How many more unregistered traders are there “with clients” that should be legally registered out there, that are not under the watch of this regulatory body? This line of questioning may be why the DOJ is ultimately looking into it all, since the ones that make the rules for our markets seem to have a few holes between itself, and those they are supposed to watch over.

      In the meantime, holding precious metals is obviously far less risky than swimming the cesspools of the investment world, as we see more questions waiting for answers, and as we all understand the math behind the future life of contract highs in precious metals. So, have a great weekend, keep the faith, and hold on tight! This is one hell of a ride! As always…

Stay Strong!

J. Johnson

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