It was another week of panic, as volatility kept the investing public on tilt as rates, real yields, and U.S. Dollars continued to drive markets. As I write this story, the Dow Jones continues to tac on points creating a 1794-point range this week fueled by a rotation out of technology and into more favorable sectors. Is this the beginning of a new bull market? I don't believe so, as we set up another heavy week of global inflation data releases and the much anticipated November 2 FOMC meeting. Will the Fed raise 50 or 75 bps? It doesn't matter, but if you want to know the probability, here it is.
Getting back to Precious Metals, this was a very interesting week. My email box was constantly flooded with junior detective work on COMEX inventories. People have all kinds of wild theories on how tight inventories are, what is eligible or registered, and what the difference is. Here's the bottom line, based on my 20+ years as a futures and commodities broker specializing in Precious Metals. Every client I have had wanting delivery opened an account, bought a 5000-ounce futures contract, then fully funded the contract (ex. $19/oz x 5000 oz = $95,000), paid the fees (commission, storage, loadout, contract stop fee, etc) which comes out to about $500 (give or take) and has scheduled a time to pick up the Silver from the respected warehouse, has gotten their Silver. I have nothing else to say on this matter.
Some FCMs (Futures Commission Merchants) may choose to no longer want to assist in the actual "load out" of Silver or other commodities because their business model makes the most money on individuals buying and selling futures contracts to generate commissions and transactions. They are in the business of effecting securities transactions. However, plenty of FCMs will still allow individuals to prepare a load out. If you have $100,000+ and would like to talk delivery, please let me know. If you have never traded futures or commodities or would like to learn more about our options strategies, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
Daily Gold Chart
Daily Silver Chart
Moving on from deliveries, the outlook for Precious Metals still looks grim. Prices could continue to fall, and where I would start a new strategy of building futures contracts is $18 for Silver, $1585 for Gold, and $800 for Platinum. Shorting Copper, over $3.50+, is a hedge against other Precious Metals. To further help you develop a trading plan, I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold that can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Gold.
