All The Fuss

The PMs shot higher this morning after the Chicago Fed Goon was interviewed by LIESman on CNBS. The metals catapulted higher when The Goon admitted that more QE is likely because the economy is in such terrible shape. Really? NO! Whodathunkit?

Because this is a full-service PM site, here is a link to the full "interview":

http://video.cnbc.com/gallery/?video=3000042403

Could LIESman's head get any shinier? In a sort of Pinocchio fashion, LIESman's head gets more more shiny the more he shills and pimps for The Fed. Maybe we need to develop some sort of "Shiny Head Index" to help us all calibrate the degree to which LIESman is propagandizing? I can see it now. "Today's LIESman SHI is a 9. Be very cautious and take everything with skepticism". Hmmm. Have to give that one some thought.

Anyway, back to business. Gold is attempting to hold its gains but is already about $10 off its highs. I'm inclined to do some buying today as I expect the metals to be firm the remainder of the week, ahead of the BLSBS on Friday. Signals that the NFP (non-farm payroll) number will be lousy are already appearing. Namely, this "interview" today and the fact that President O'bottom pushed back his historic "jobs speech" to next week. Again, the logic is: Lousy job report = lousy economy. Lousy economy = more QE. More QE = much higher PMs.

As you know, I'm very excited about silver but I'm trying to pick my spot to enter. Open interest tumbled all of the way back toward 115,000 yesterday which is extremely bullish and pushing me to act in haste. The area around 41.25-41.50 would seem to be the right price as silver looks primed to mount an assault on 42.30 again. Once through there, it will spring toward 44 and, beyond there, 46.

paper_8-30amgold.jpgpaper_8-30amsilv.jpg

Here are a  couple of other interesting items to ingest. First, this guy does an excellent job of summarizing my thoughts toward Venezuela and its gold repatriation. Though El Commandante would certainly and understandably prefer to have his gold in his hands, at its heart this is an act of "financial war", a move to further destabilize the financial system of "the West".

http://www.resourceinvestor.com/News/2011/8/Pages/Gold-Politics-and-Venezuela.aspx

Here's more on "The End of The Great Keynesian Experiment":

http://news.goldseek.com/LewRockwell/1314546712.php

And here are two, interesting reads from KWN. First, here is John Embry of Sprott Asset Mgmt:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/29_Embry_-_Incredible_Physical_Gold_Demand,_Premiums_Exploding.html

Eric also interviewed Louise Yamada. There are lots of amateur chart-readers in the world, myself included. Louise Yamada is a professional. As a general technician, she has no peer.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/24_Louise_Yamada_-_Gold_%26_Silver_Still_Solid_But_Avoid_Stocks.html

OK, that's all for now. Gold is 1828 and silver is 41.38. Let's see where we go from here.  TF

269 Comments

speconomist's picture

Thanks Turd, Peter Schiff conference

Thanks Turd, guess we all owe some thanks to Evans (Chicago Fed President) too!

Allow me to repost a conference by Peter Schiff that didn't get much attention in the previous post, it is really BRILLIANT!

Tyler's picture

PMs and Food Commodities

Has anyone noticed that since the US downgrade when PMs are up, food commods go down and vice versa?  It wasn't like that before.

SilverTree's picture

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Tom L's picture

HL and SVM from the other Thread

Both look good on the 1 hour chart right now, and if the HUI pushes through 598.7 they are going ballistic in short covering.  HL has light resistance at $7.90, from there, it's $8.20 or so. 

This morning's action on both stocks busts the multi-week DT line visible on the 1 hour chart.  I would say if the HUI is kept under 599 all day, there will be a re-test of the BO levels on these. 

Ta,

BostonMatrix's picture

Am I too Cynical...

to be expecting another COMEX smackdown after this buildup in price?

which will then get canceled out on the Globex within a few hours?

Tesla's picture

LIESman Shiny Index 9.0

survivalwstyle's picture

OI for Ag @ 115

right on mrF, thx much. agrEE that this is extremely buLLish. i tOO am not waiting for friday to load the Ag truck.  back to the coin shop today, with hopes of an afternOOn ambush. 

¤'s picture

Shiny Head Index

That my friend, was so random, that I almost spit my coffee out and kind of choked it back in. Thanks for the links and the early laughlaugh

The Venezuela thing is big and it's died down for now. The East is out to break the western banking stronghold.  Bottomline is,  they know it's all about gold and silver for the West.

It's going to get interesting and it hasn't even really begun in earnest yet.

ScottJ's picture

The Return of Wise Men - (Mayan)

Great work as always Turd.  Silver and Gold look like they could be lining up for a big move, but the $HUI refuses to break out to new highs still (those shorts are pesky).  If we can see the $HUI break 610, convincingly and close there on a weekly basis soon.... then I would get really excited, as Turdville will be roaring with new customers (which probably means we should watch out for great volatility on the ride up!).

-

To mix things up, how about a message from Mayan Ancestry?

***

Added Schedule of Events for the week, courtesy of Jesse.  Fed Minutes @ 2PM.

http://jessescrossroadscafe.blogspot.com/

¤'s picture

Tesla

LMAO.....thanks!

RuNuts's picture

NORFED Liberty Dollars may be subject to seizure

Liberty Dollars held by collectors may be subject to seizure as contraband by federal law enforcement, officials with the U.S. Attorney’s Office and Secret Service said Aug. 24.

Statements by officials for those two federal law enforcement agencies seem to reverse the position taken in comments released from the United States Attorney’s Office in Charlotte, N.C., and published in Coin World in April, that mere possession of Liberty Dollars did not constitute a violation of any federal statute. (more..)

http://www.coinworld.com/articles/liberty-dollars-may-be-subject-to-seizure/

Shill's picture

Isn't it funny how the mining

Isn't it funny how the mining sector can take off big in the fut's then our market opens and BANG the sell off begins. Funny that. What happen the shares go stale in 15 minutes lol.

Getting real old.

Eric Original's picture

Consumer confidence plunges

Consumer confidence plunges to 44.5!!  Ouch

LongGoldLongSilver's picture

HUI Looks Ready to Rumble

http://www.economicfreefall.com/2011/08/what-are-our-miners-doing.html

It looks like 750-800 could happen quickly after breakout.

stoneeh's picture

The metals catapulted higher

The metals catapulted higher when The Goon admitted that more QE is likely because the economy is in such terrible shape. Really? NO! Whodathunkit?

QE3 = positive for PMs

no further QE (at least not explicit) = PMs will go down

That's what they are conditioning you for. It's wrong - there are much more positive than negative factors for PM prices even if there is no further QE.

Prices don't react on news, prices react on manipulation after or during news events for the purpose of conditioning market participants.

Silverman's picture

Great call Turd. 

Great call Turd. 

mrgneiss's picture

@Bostonmatrix - that is the

@Bostonmatrix - that is the point behind Turd's comment on SI OI at 115,000 - there is very little downside, it cannot be smacked down materially from those levels.  Who knows what the upside is, but there is very little downside at OI 115,000, call it 5% max, which isn't even a hard day for silver.

Blight Master's picture

ouch indeed

ouch indeed

Shill's picture

U.S. consumer confidence

U.S. consumer confidence plunges: Conference Board

WASHINGTON (MarketWatch) -- Consumer confidence plunged in August as expectations dived, with worsening views on future business conditions, jobs and income, the Conference Board reported Tuesday. The nonprofit organization said its consumer-confidence index fell to 44.5 in August - the lowest level since April 2009 -- from a slightly downwardly revised 59.2 in July. "A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade," said Lynn Franco, director of the Conference Board's consumer research center, in a statement. Economists surveyed by MarketWatch had expected an August reading of 51.9. Generally when the economy is growing at a good clip, confidence readings are at 90 and above. The expectations barometer tumbled to 51.9 in August - the lowest since April 2009 -- from 74.9 in July, while the present-situation gauge fell to 33.3 from 35.7.

Tom L's picture

@Shill

They know what their trading position is going to be for the day so they raise the bids in the pre-market to ensure that no one but them profits from the action before the market opens.  It's a game that's as old as trading itself.  I've learned to just ignore it.  I expect this will be a strong open and saunter vaguely downward to the close with some short covering between 3:30 and 4:00.  The DOW is selling off now, so we'll be caught in the x-currents of Gold up but not moving and the DOW down and that should keep the HUI below 598.7 all day.

Ta,

The Death Ceiling's picture

Schiff

Yeah, that's one of my favourite Schiff videos, I often show it to people that are beginning to have an interest in all this.

Not sure about his thoughts on internet shopping but he doesn't drift into his manic, exasberated state, which although I understand it, can be a turn off for some. 

LongGoldLongSilver's picture

Germany's Top Court Will Rule Bailout Illegal?

This could mean a lot, depending on the verdict. Better keep an eye on it.

http://www.reuters.com/article/2011/08/23/us-germany-court-eurozone-idUSTRE77M1RY20110823

"Germany's top court will give its verdict early next month on whether the government broke the law with last year's bailouts of debt-stricken euro zone countries -- a ruling which could limit Berlin's room to manage the region's debt crisis."

"The plaintiffs argue that the bailouts, which total 273 billion euros ($393 billion), violate property rights and other protections in the German and European constitutions, and break the 'no-bailout' clause in the European Union's treaty, which says neither the EU nor member states should take on other governments' liabilities."

Taking on other governments' liabilities? Nah, never.

http://www.economicfreefall.com

Ferd Torgerson's picture

@ RuNuts Liberty Dollars

The heading gave me quite a scare there until I read the actual article.

Thought they were talking about the Liberty Head Silver Dollars minted by the US after Morgans were discontinued.  Have quite a few of those since I started following PMs.

Glad to see they were talking about the Liberty Dollars minted by an individual that caused such a stir with the government.

Tom L's picture

That sound you here

is DrC and Oil getting the smack upside the head in the past 10 minutes.  Oil down nearly $2 and DrC down to $4.15.  In Cu's case it's just correcting to it's lower trend line on the 30 minute chart.

Oil is in all kinds of volatility right now.  WTF is wrong with people?  A FUBM and FUTF in Oil in under 90 minutes.  That's nucking futz!

Ta,

22tlane's picture

@eric original

My son is turning seven in a couple of weeks and guess what he put on his list last night. He wants a "big, shiny, special silver coin". Any ideas....I am just your run of the mill stacker. Thanks for your input.

BostonMatrix's picture

@ Mr Gneiss

True, but like I say; I'm a cynic, and a 5% drop would take it right to where i was expecting.

I'd hate to lose patience and take a long position just before a dip. But I'm also aware of the low OI. Basically, they've got me right where they want me today, so I'm buying phys as a 2 fingered salute and will see where the price action goes over the next 24.

best :o)

Tom L's picture

@Ferd

That doesn't make me happy.  They now have cover to go after all of NORFED's customers on the suspicion that they have contraband on their property.  They can now subpoena EBAY records for anyone who bought/sold one and charge them with crimes.  This is a way of criminalizing the holding of silver and breaking the back of many people associated with this movement.

The case against the Liberty Dollar was BS.  What they did to that organization and the man behind it was criminal and now they have license to use that BS court judgment to go after their political enemies. 

This is a big freaking deal for those of us who've been in this game for years.  I'm now one of those people. 

Ta,

¤'s picture

Oil

@TomL...I'm kind of looking at oil the last couple days here and wondering myself what's up.

It's price action is telegraphing something but I'm not sure what. I suspect that this Libya thing is so much bigger then we all realize at this point. And I would throw in MENA into that mix.

Anyone else noticing how you almost hear nothing about Yemen, Bahrain, Syria etc.  Not to mention Israel/Egypt etc. to the degree you might expect. I'm hearing silence for the most part.

The gears of war are lubed and run silent until they are put into gear.

ragandbone's picture

HFT Market meltup

Just because you know we live in a ridiculous "free market".... consumer confidence data is appaling, therefore markets are going to rally on expectations of QE... which did nothing for consumers the last two attempts...other than make prices higher... yes but this time it will be different [Sarc]

This is all becoming too absurd... and then there are people actually trying to chart this bullshit... LOL

Tom L's picture

More on NORFED

Many of you wouldn't be here if not for the efforts of those associated with the Liberty Dollar during the last decade.  This was an organization that woke a lot of people up and provided the critical mass for the Ron Paul Revolution and all the things that have sprung from that.

A lot of good people are going to go to jail or have their property seized further all because they wanted to bring to light the very things this site is dedicated to.  This is the ultimate DDoS attack, but it's not electrons they'll bring to the fight but AR-15's.

Ta,

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