Great and Wonderful Tuesday Morning Folks,

Gold is trading lower again this morning, not because of physical supply increases, but because they can add paper to the printer anytime they want, with Gold now at $1,454.30, down $2.80 and recovering from the low at $1,449.50 with the high to beat at $1,457.80. Silver is just like Gold in that it’s all about the undeliverable paper contracts that are allowed to control the price instead of physical supplies, with its trade at $16.77, down 3.2 cents after dipping to $16.665 with the high to beat at $16.875. The US Dollar is still under support, even though it has to be printed, which should be driving its market price into the dirt, with its value now at 98.215, up 18.2 points with the high right here at 98.250 and the low at 98.055. All of this was done before 5 am pst, the Comex open, and the London close.

In Venezuela, Gold is now priced at 14,524.82 Bolivar proving a loss of 100.88 Bolivars with Silver at 167.490 showing a reduction of 0.70 of a Bolivar. In Argentina, Gold is now priced at 86,881.85 losing 430.52 A-Pesos with Silver at 1,001.83 losing only 0.18 of a Peso. In Turkey, Gold is priced at 8,391.67 proving a loss of 65.95 Lira’s with Silver now trading at 96.7755 losing 0.4677 of a Lira.

The Open Interest in the fully paid for contracts of November Silver, waiting to get their receipts for physicals, now stands at 5 and with a trading range between $16.805 and $16.785 and with a Volume of 17 posted so far this morning. The physical demands are proving a reduction of 25 contracts from yesterdays post and with 1 price reported during yesterday’s trade at $16.765 for a 5-lot purchase, yet with only this one price posted, the Comex felt the closing price should be 9 cents lower, at $16.675. This is proof that more paper instead of more physicals controls the price.

Silver’s Overall Open Interest remains elevated but did show a reduction of 2,882 Overnighters proving a total now at 222,379 Obligations still in trade. This is the issue that eventually will be addressed as the game heads onto overtime. Paper contracts are the fake in a deliverable system. What has to happen is someone has to remove all the central banks physical possessions and in a public way, through the Comex!

The economies cannot be doing well at all! The printing of money in order for governments to claim to be in place is all the proof that a thinking man needs to prove things are not as rosy as advertised. If things were doing so well, printing would not be occurring, taxes would be flowing from sales, and items will be coming off the shelves, as the world’s population jostles to get the better price. Instead we have collapsing new and used car loans, mortgages unable to be met, against the printer, who can only survive when the money flows freely.

These are the reasons why we hold physical precious metals outside this system of fake pricings. If there wasn’t a problem with delivering physicals at the Comex, they wouldn’t need as many pieces of paper to control the prices, pure and simple! The only way to fix this is to take delivery, which is why we applaud the Resolute Buyer of Silver at the Comex! Is he a manufacturer, a money guy, or both? Stay Tooned, with a smile on your face and a positive thought in the head, and as always …

Stay Strong!

J. Johnson