Well...

...that was interesting, wasn't it? A long and crazy day but I do have a few things to add.

First of all, I thought I should re-post this in case you missed it earlier. Thank you to "Pining" for the fantastic piece of Photoshop art:

large_boatscene.jpg

My two favorite parts are Atlee giving everyone the finger and the hot chick jumping off the bow.

In case you missed the updated charts I posted at about 4:00, here they are again. I can re-use them because prices haven't changed much in the time since. However, I have a feeling that that's about to change.

paper_12-14pmgold_0.jpgpaper_12-14pmsilv_0.jpg

You may have seen this earlier at ZH. Its a new technical summary from Citi. In it, they claim that gold should bottom at around 1550 but still trade to around 2300 next year. Gee...where have I heard that before???

http://www.zerohedge.com/news/citi-predicts-gold-3400-next-two-years

ZH also posted the stock market section of the same Citi report. It included this vehwy scawey chawt. Yikes!

large_citi_djia_1.jpg

Next....Never fear, the CFTC is here! What a Cartoon Corral these morons are...

http://www.reuters.com/article/2011/12/14/us-mfglobal-cftc-idUSTRE7BD20L20111214

Ole Eric King was hard at work during the downdraft today. First, he interviewed Santa and then he tracked down Egon von Greyerz. Both will be required listening when they are finally posted in their entirety. Until then, here are links to partial transcripts:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/14_Jim_Sinclair_-_Why_Gold_Was_Smashed_Today_%26_Whats_Next.html

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/14_Von_Greyerz_-_Currency_Collapse,_Hyperinflation_%26_Social_Unrest.html

Jeff Nielson has chimed in with a terrific column that discusses negative lease rates and Libyan gold. I find all of the attention today to negative lease rates rather interesting as I'm pretty sure TFMR was this first place to notice them and warn of impending doom last week. Not that that's any great honor. It's kind of like being the first White Star lookout to have seen the iceberg.

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=23385:the-bankers-new-gold&catid=48:gold-commentary&Itemid=131

Lastly, just a word or two about today's open interest numbers. (Remember, the numbers we got today reflect the changes from yesterday.) Two very important items.

  • The Feb11 OI only fell by about 500 contracts. When added to the 1500 contract decline of Monday, Feb11 OI is only down 2000 contracts while Feb11 gold is down about $53. I would have expected a much greater drop in OI. What this confirms for me is that there are very few human holders of Feb11 contracts. Almost all of the Feb11 contract holders are WOPR on one side and the sub-human EE on the other. If this is true, the likelihood of finding a bottom near 1550-1560 just increased quite a bit. What I'm driving at is: I feared that the MFGRAP would permanently scare away buyers of paper Comex contracts. However, if the spec long position is almost entirely WOPRs, they'll simply flip back over to "buy mode" as soon as the technical picture improves. IF gold bottoms as I hope, we should soon be able to buy paper with confidence and expect a handsome rally.
  • Dec11 gold continues to get new open interest. We added 137 brand new contracts yesterday...all in the face of a selloff? When added to Monday's gains, we've got almost 650 new contracts this week! That's amazing!! There is clearly an effort afoot to jump the queue and get some gold delivered this month and not wait for February. No, I don't think that the gold Comex will collapse from the weight of this. Not this month, at least. However, this potentially speaks volumes about the utter lack of bulk, physical gold available in the world. Very, very interesting and must be watched.

OK, that's all for now. Be on the lookout for some sharp volatility overnight and tomorrow as the metals search for a bottom. Let's see how today's lows hold up and keep our fingers crossed. Regardless, keep the faith and be happy. You have chosen to sock away savings in real, true money. Do not be discouraged by the blatant and shameful price manipulation tactics of The Cartel. The precious metals are going to have extraordinarily strong, fiat-relative performance in 2012. Soon, the pain of today will be long since forgotten.

TF

228 Comments

Shill's picture

Obama calls for short-term

TheGoodDoctor's picture

Interesting.

Interesting.

Turd Ferguson's picture

someone posted this earlier

MODERATOR

I meant to include it:

Urban Roman's picture

Good news, Turd!

Good news, Turd!

Jill says she knows where your money is!

(but she's playing hard to get)

.. Jesse's been on a MFG roll today ..

[edit]

Oh, I see that you already know that story. Don'tcha just love the way they say "commingling", as if sometimes, by mistake they leave too much of their money in the customer accounts. Yeah, happens all the time I bet.

survivalwstyle's picture

pining

wiNNing. i am in humble awe of your mad photoshop skiLLz. came and read through 6 pgs of main st tonight to sEE how we tOOk this biAtch slap and sEEing that pic stiLL has my chEEks hurtin'...muito brigado amigo!

aside from a yahOO who shaLL remain nameleSS, my first ignore user...as only the members of project TFMR get named, i am glad to read aLL the positive perspective. mrF as our captian, thanks so much for your honest perspective. kEEp them coming, aLL of you. many here do not post so much, if at all, but, like me, enjoy reading such paSSion from the band...i baited the hOOk this afternOOn. nothing crazy, that powder was spent over the last 6 months and my SCA is above 25 we are geTTing close to becoming totaLLy underwater in paper. F paper..continue to try to re-establish my phyZZ.

now about my next boat trip...i sure hope i have beTTer luck, last trip that iceberg of fiji reaLLy meSSed us up. lost everything....but i am not scared..shEEt haPPens, and that caNNot haPPen again can it???? everything is loaded up as the misses and i are headed to brazil for a month or so...haPPy sails! may your sea remain calm, wind always at your back, when you get the oPPortunity to castoFF...set the hOOk. this is not a 1/2 day boat. the seas may get rough. hang tough!

peace

puTTin this here as mrF just opened this 1 up ;o)

rowdyboy's picture

JPMorgue ordered Corzine and MFing Global to steal customer $$$

This is a series of 4 videos with Max Keiser. His wall street source at MFing told him of JPMorgue ordering Corzine to steal the MFing customer funds to pay for MFing's derivative losses or he would sleep with the fishes.

http://www.youtube.com/user/thealexjoneschannel?blend=1&ob=4#p/u/3/WoXooThB-_o

Its game on! Gangsta Bankstas vs Shadow Gangsta Bankstas.

You breaka da daisy chain, I breaka your face! Kapeesh?

bernard's picture

you really have to ask

you really have to ask yourself, who in their RIGHT mind is on the bid side of the futures market for these silver contracts now? It's a wonder the price isn't already at zero! Thank those brave souls // ETF Rebalance algos!

Compare Gold Prices

Colonel Angus's picture

Doing my part...

Just bought me a good amount of junk silver to support the prices around here. If we all do our part, then maybe Max Keiser and the Turd will be shown to be the true geniuses that we all know them to be. 

exiledbear's picture

Time to get in the mood of the Weimar season

silverwood's picture

Silver and Gold

SILVER AND GOLD

Silver and gold, silver and gold
Ev'ryone wishes for silver and gold
How do you measure it's worth?
Just by the pleasure it gives here on earth.

Silver and gold, silver and gold
Mean so much more when I see
Silver and gold decorations
On ev'ry Christmas tree.
Graveworks's picture

White Star

Give yourself a little more credit Turd, at least you gave us plenty of lifeboats, which is more than can be said for White Star Lines.

exiledbear's picture

No

Just bought me a good amount of junk silver to support the prices around here.

​That's not why you buy it, you buy it because now you have something of value OUTSIDE THE BANKING SYSTEM. You think they're going to stop with MFG? Last I checked Corzine is still a free man and the money is still missing.

The financial circus aside, take what happened in Argentina as a template for what's likely to happen here - over ONE weekend, all accounts were devalued by 30% and there was very little you could withdraw per day. All the grocery stores got cleaned out and everyone (except for a few assholes) got reduced to a subsistence living standard Are you prepared to live the white trash lifestyle? It's coming soon.

No matter what you do - what coming is going to suck. Hard. But which scenario would you rather be in? One in which you don't have the guns and the gold, or one in which you do? At least in the latter scenario you have a fighting chance. In the former, you don't. Even so, not everyone here is going to make it. I might not make it. Only a sliver will live to see 2020.

tread_w_care's picture

dammit man

I want my 1550!  I had to pull the truck off to the side and cut it off.  Rolled the windows down.  Going to catch a nap.  Wake me up when it's time to BACK THAT THING UP!

AinT's picture

Sprott

I'm wondering at what level Eric is going to step in with his 1.5 Billion. I'm actually surprised that JPM have allowed the price to get this low as they must realize the minefield they are walking into. I'm seriously thinking about going out and purchasing everything I can get my hands on this weekend at $29, I'd imagine that if we hit $25 we'd see some truly huge movement into silver including potentially Eric.

cpnscarlet's picture

My Day ends with ...

A delivery of ASEs from Gainesville - bought a few days too early. And my purchase of 2 Au MLs was a day "too early". I'm sure most of you will agree that getting the metal is the important thing. The day was hard to be sure, but as many have said, we've seen it before and for those of us who have been stacking for decades, the profits are very secure. Now if I could find a job, everything would be jake.

Love the boat pic, but I guess I missed it. (So what am I, chopped liver???) Not even a pennant with my avatar? I don't even see Sasha on board.

Bay of Pigs's picture

I like Shill

pointing the gun over Turd's shoulder who is smiling and raising his glass in a toast. LOL...priceless.

TF, you deserve a lot of credit for sounding the alarm before this all went down. Nicely done. I recall you were criticized quite harshly when you didn't see the last smash down coming. I eagerly await for Turd's Second Bottom call, whenever that may be.

Vernon Wormer's picture

Pining

Nice piece of work. Thanks for including me. I haven't felt this honored since I received by big yellow hat in the mail.

Turd, thanks for all you do. This is hands down the best site on the web. See you at camp!

Shill's picture

mother-of-all-million-dollar-

mother-of-all-million-dollar-wagers

http://thefundamentalview.blogspot.com/2011/12/mother-of-all-million-dollar-wagers.html

And you BOP emptying the Gold into the sea...Priceless

York Rite's picture

Obama to approve indefinite detention and torture of Americans

Published: 15 December, 2011, 02:28

Less than a month after he threatened to veto terrifying legislation that would cease constitutional rights as we know it, Obama has revoked his warning and plans to authorize a bill allowing indefinite detention and torture of Americans.

More: http://rt.com/usa/news/obama-detention-veto-defense-853/

caseret's picture

To Strongesidejedi and Shill

Gentlemen,

To StrongeSideJedi wrote:

"Therefore, my conclusion is that the MF Global bankruptcy is a financial 9-11 event.
MF Global has taken out the entire agricultural industry's financial structure.
MF Global is much worse than 9-11.

MF Global has essentially interfered with the planting season for 2012."
*********************
Shill quoted from the Minn. farmer tells of losses in MF Global failure | StarTribune.com:

"A Minnesota farmer told a Senate panel Tuesday he wants to know what became of $253,000 of his money that's gone missing in the collapse of commodities trading firm MF Global Inc.

Dean Tofteland, who raises corn, soybeans and pigs near Luverne, told the Senate Agriculture Committee that whoever was responsible for the disappearance of money from client accounts like his must be held accountable."

*******************

From what I can see is, a deliberate campaign to get small farmers off their land for pennies on the dollar. The big US agribusiness farms are vertically integrated; they don't need recourse to the COMEX.

http://en.wikipedia.org/wiki/Category:Agriculture_companies_of_the_United_States

And, the amount of lobbying done by big agribusiness will ensure that their interests will be covered in any federal investigation.

http://www.opensecrets.org/industries/index.php

To me, it is like the dustbowl/depression of the dirty 30s all over again, where the big shits can squeeze out the honest folk for pennies on the dollar.

Best to you.

Edit:

With all these farmers losing their positions, you can expect the price of just about everything grown in the US to go up next year, i.e., Monsanto yields are decreasing, herd size of hogs and beef are decreasing, etc.

Good luck to my neighbours to the south.
 

Adventures's picture

I'm so stealining thos videos for my blog!

Thanks for all the info Turd and the laughs

dragonpunch's picture

What do WOPR and EE mean?

Could anyone please clarify what those two acronyms mean?

Bay of Pigs's picture

Shill

That writer doesn't know Nadler, Gartman or Christian very well if he's taking shots at Grandich. He is absolutely correct, those guys are the Three Stooges on gold.

survivalwstyle's picture

might as weLL

dont hit my coin shop. bout to drop props. leave knots. buy this dip e.sproTT and the rest of you big beNNy friends. doing our part here to move phyZZ oFF the strEEt. use that paper sOOn. let this come up. let it burn. it is on.

So It Goes's picture

The clueless

Ahh,

Just got back from a couple days of travel and missed all this volatility.  Thank goodness really - I lived without the stress.

Was talking with some bright folks - well trained - PhDs and MDs - know their fields.

Alas - none have even heard of MF Global - let alone know the potential consequences of that bankruptcy that we - who read Turd, Sinclair, Willie et al are exposed and understand.

These bright people are busy and rely on the mass media for information - so sad really - it seems almost too difficult to try to bring them up to speed.  They are going to be slaughtered for sure.  Even my quote from the late but still brilliant Howard Katz - "If you don't buy gold at $1500, you certainly will when it is $3000" - brings the deer in the headlights stare.

Good calls Turd - the bottom is probably in or very near.

My .02 - Just prepare for the collapse and the ensuing chaos - food, water, emergency supplies, defense,  and an alternate currency - gold and silver.  

Keep stacking - forget the short term volatility.

shaz's picture

Thanks Turd

well

managed the dreaded last post again

*harrumphhh*

so ill re post here.....

CNI in Cali Inglewood had everything available  today in the morning and phones were off the hook

1oz silver maples +2.75 spot...2012

10z gold pamp sussie bars +40 spot

cash and carry, great LCS

P

Katie Rose's picture

I bought my first silver

I bought my first silver when it was $10.70. The last silver I bought was SAE's @ $46, including premium.

I've added along the way. One large order I actually canceled as I was sooooo afraid I was doing the wrong thing. That silver was $15 + premium.

I've had 1/3 of my silver stolen and received exactly $1000 from the insurance company who then canceled my policy. First pay out in over 30 years, and they canceled my policy!!!!!!!!

I wish I had more silver. I didn't have the TURD to help me along. I was doing this purely by instinct. Didn't know what zerohedge was; I really didn't know anything. I just had some college economics classes and things didn't feel right.

What I want to say is, "This too will pass."

It might take awhile, but silver will regain its loses. So will gold.

If I had any fiat I would be loading up big time. Who cares if it goes down another dollar or two? Premiums will just go up as the metals go down. Dealers have to make a profit.

I have lots of regrets about being so afraid and not buying more when I was able to do so. The money got spent on "professional clothing" and other silly things.

Now I tend goats and make cheese and lead a very quiet lifestyle. It is very rewarding.

TURDVILLE is an awesome resource! Please pay attention to the wisdom offered up here. Hindsight is always 20 20.

I believe those holding off purchasing will regret their inaction, just as I regret my canceled order.

Thank You TURD and all others for your daily insights! I wish you were around when I was beginning this journey with PM's all on my own.

Eric Original's picture

Mrs. O saved my bacon again...

When I get all pissy like this, Mrs. O slaps me upside the head and says:

This is long term money!  Do you need it tomorrow?  No!  Then stop being such an idiot!

To which I reply:

.

.

.

yes dear.

Eric Original's picture

Katie Rose

I love your posts. They are so from the heart it takes my breath away.

backseatdriver's picture

DragonPunch: FYI

Welcome friend.

To answer your question, WOPR is from the most excellent 80s movie Wargames, Turd uses it as an synonym of sorts for HFT/Algo computer trading

EE can be found at the top of the page under Turdisms.

BSD

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