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We have been involved in one heck of a transition these past 5 quarters. Not only has the politically gamed background been forced up front and center for both party’s embarrassment, the intelligence agencies and foreign agreements (entanglements such as those of NATO, NAFTA, CAFTA et al.) are now totally open to full exposure speculation.  And boy the protestations coming from those that are finally being looked at are loud and obnoxious aren’t they? So much commotion is going on that it is really hard to stay on a singular subject without asking if we are not being told all we need to know.

If we stick to the subjects within the sectors of precious metals and currency, we’ll find that there seems to be very little meaningful data at hand with the only exceptions coming from the financial priests on high (G7) who claim all is well and to fear not what they do, for their data is invincible. So what if it’s all in secret?  It’s all they say but it doesn’t jive with what we are living thru at present.

Without getting into all the other things that used to make the movements within the markets, we’ll look at what has happened based on a time period from June 2016 to the present in chart form. The US Dollar is our first post; with a brand new low

The European Currency is next; with a brand new high

Now Gold;

And of course Silver; both seem to be coiling

Each one of these charts are set up in the continual format in order to keep balance in the prices during what is called the roll over periods in the commodities market. The charts all seem to be pointing to a clarification of contention and imo, we’re about to see some volatile movements in fiat and a continued climb in precious metals.  I set these charts up to show the changes that have occurred from June 2016 to the present because a major currency event occurred and since that time another happened that required the term “liquidity” to be used beyond what has ever happened in the past.

The Brexit Vote was taken in June 2016 with the outcome going towards England not becoming a player in the failed system of conjoin nations. I call it failed because ironically no one thought about the “what if” scenarios, like having a way out of the failed marriage after the money was gone or other uncalculated events not brought up before the blind acceptance.  It failed for the simple reason that it was built that way, because those that decided upon the terms knew what they were doing by not allowing exit terms.  Now the populations of each enslaved nation are starting to react negatively and their anger is aimed upwards and towards these deciders.  It’s obvious to all under the conditions created that the whole idea of central planning anything failed, to the point that no other country wants to join. In fact, more and more countries want to leave and now the actors on stage are playing it out like “Sorry, we have no exit clause …. Too bad it wasn’t planned out in case we failed!”

The US Dollar and the European Currency (EC) go against one another almost exactly, but the precious metals follow their own course and are in line positively with the Brexit reaction. First the Dollar explodes from around 91 to just under 97 and the EC goes from around 1.1450 down to about 1.0950, all in a three day period. That type of swing used to be very disruptive in all things currency and debt but apparently it means nothing anymore. Now we see a new low for the past year in the Dollar and a new high in the EC, I think it is possible these trends will continue.

Silver and Gold traders seemed to have had a longer lasting view about the Brexit vote in that they knew this would be very disruptive to the entire G7 currency system no matter what the outcome.  Most likely because of the many failed attempts to leave the union after a nation was absorbed into the uncontrollable clutches of EU debt and its new rules.  Gold went from around $1,200 to about $1,380 (13%) in a short period of time and Silver went from just below $16 to just over $21 (23%). Indeed a decent move for both metals but the one piece of data that cannot be seen in these charts is the jump up in Open Interest within Silver that made a life of contract high during the Brexit vote period and the Trump win in November.

Open Interest is the total amount of buyers and sellers holding their contracts overnight. The highest Open Interest ever recorded before these two events was around 198,000. When Silver tried to surpass the 1980 all time high most recently 2011, the OI was only in the 135,000 area, but now our new mark to beat is 235,000 OI which happened during these 2 votes. What does this tell us? Imo, some hedgers or flat out new shorts have come in to supply liquidity for the buyers. At least that was the micro-phoned statement used by main stream to blow over the fact that these prices do not represent mined products, just a diluted way of reducing the price under dollar terms and additional shorted contracts.

There seems to be an issue with these 2 separate events (Brexit/Trump) but both create the impression that they are in play inside the Comex Silver market and it’s Open Interest. Many sources from within  GATA and other experts over the past 2 decades, have stated they believe that Silver IS the lynchpen to all things monetary. If that is close to being true it would explain why Comex Silver contracts have such a huge point of leverage with 5,000 troy ounces per trade compared to Golds 100 ozs.  In truth I don’t know how they came up with these contract sizes. They certainly do not represent any sort of 15 to 1 ratio in what used to be our nations currency spread between the 2 metals.

There are so many unintended possibilities within our market structure, it all may lead to one thing, very large amounts of volatility. The noises coming from all sources seem to continue to ignore the burdens of the masses and only point to how everything is controlled. This may be the moment in time when things really start to unwind, no one really knows. Regardless of when, Silver and Gold have always reached peak in order to correct the failures imposed by a currency and those that govern it. The movements within the 2 major G7 currencies and the open interest in Silver during these 2 votes may be all we need to see this out, so hang in there!  We would love to hear your comments …

Stay Strong!

J. Johnson