Holiday Trading

I hope that everyone had a happy Ramuhanukwanzmas. After being closed yesterday, the markets are back open today and...surprise, surprise...the precious metals are trading lower.

There is a pattern emerging here. It seems that the EE has taken a liking to hitting the gold and silver markets on the last evening of three-day weekends. I can't really say that it's something you can set your watch by in the future. However, I also can't say that I was surprised to see gold down almost $20 at one point overnight. Volume is already abysmal. Throw in a holiday weekend and you've got practically no one around to take the other side of a Cartel sell order. And down she goes.

Any other time and I would have expected 1600 to hold as support in gold. Unfortunately, the extra-light holiday trading volume allowed for the failure of 1600 and now gold is going to be pressed to get back above there. It needs to get back above that level soon, too, as it is being pressed lower by the trendline I've drawn. It needs to break higher so that 1585 doesn't fail. Below 1585, we'll likely get a test of the 12/15 lows. Silver looks similar. It needs to stay above 28.60 or so or it will drop toward the 12/15 lows near 28. Yuck. With the charts looking this way and with the anticipated light volume, I fear we are in for a no-fun week.

paper_12-27amgold.jpgpaper_12-27amsilv.jpg

Just three items for your reading list today. First, another new piece from our buddy, Gonzalo. It's rather timely in that he discusses many of the things we've been covering here. Namely, that the MFing Global failure might continue to metastatize within the global banking system until it causes a complete failure of confidence and trust.

http://gonzalolira.blogspot.com/2011/12/run-on-global-banking-systemhow-close.html

With all the doom-and-gloom disinformation out there, here's a little red meat for you:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/23_Paul_Brodsky_-_Gold_Could_See_Five_Digits_in_2012.html

Lastly, here's an oldie but a goodie. Just for fun.

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=12786:fifty-years-of-suppressing-silver&catid=49:silver-commentary&Itemid=130

Have a great day! TF

185 Comments

bellyacre's picture

first????

first????

Mudsharkbytes's picture

First a 2nd time?

Fist, I mean first?

I guess 2nd a fist, I mean first time, works too.

Ferd Torgerson's picture

Being Third

Is quite an intoxicating achievement on a slow day for one who doesn't get out much.

Off to the mall with the Missus later today to use some of our gift cards.

Mudsharkbytes's picture

Four in a row

Howza 'bout quints?

roadtoruin's picture

(No subject)

sarah's picture

degroot chart

COT%2BSilver%2BLS%2525.PNG

Shill's picture

Treasury To Raise Debt Limit

Treasury To Raise Debt Limit By Another $1.2 Trillion On December 30?

Ha ha ha ha ha

foxenburg's picture

Questions

In the podcast with Andy Hoffman, Turd seemed to try to ask questions that didn't get answered. 
If all the disillusioned paper players pull out of the market - what's the likelihood of this impacting downward on price? Also, if there is a gap between paper and physical price, why don't arbitrageurs exploit the difference or take delivery?
Michael's picture

Hopefully some Turdites were also curious....

[reposted from previous thread due to no responses.]

Has anyone seen any follow-up to this most interesting (though unconfirmed, I believe) story on LaRouche's page?  I made a few inquiries earlier this year to try to ascertain that this was not an April Fool's joke, and I was assured that it wasn't.

http://www.larouchepac.com/node/17875

If there is any truth to this story, I am surprised that it has not been more heavily analyzed or scrutinized...so my curiosity is piqueued and wonder if anyone else has been aware of this strange bit of news about half a trillion in phony T-Bonds.  Because if there are known to be 38 existing counterfeit IBOE's, it would seem likely that there are more of them in circulation...somewhere.  And who would want to admit it anyway?

Not that it's bullish for PM's, just that it adds another wrinkle to the nature of the theft of wealth and the devaluation of the dollar.  But I cannot confirm this story at all...
 
I cannot be the only Turdite who is curious about this most unusual news, hopefully.

Silver_investor's picture

KWN interview with Paul Brodsky

The financial system would have to completely implode for gold to go to 5 digits (i.e. at least $10,000) in 2012. It's possible but not likely, in my opinion.

In a recent interview with Ellis Martin, Jim Sinclair gave a very conservative forecast for gold for 2012 of $1700-$2,100.  

Mickey's picture

Sinclair

I thought I heard him say upper 2's in his interview as being doable

Brodsky said to get to 10k we need formal devaluation--

But just about everybody is long term bullish and some short term bearish.

Even gartman is sort of bullish-he also thinks that when the ETFs GLD and SLV become soured, investors will turn to miners

SRSrocco's picture

THE COMING PHASE SHIFT IN SILVER

Foxenberg..... Jim Willie has written about this several times in his articles.  He believes (as do many) that towards the end we could see the paper price decline and the physical price head much higher.    I am writing two articles on silver currently.  One should be out within a week and the other after the holidays.

There is a coming PHASE SHIFT in silver that most are not prepared.  The focus on Technical Analysis is hypnotizing the silver and gold bugs.  Dan Norcini is a nice fella (and one of the good guys), but in reality, Technical Analysis is dead when you have the Big Bullion Banks and the Chinese painting the charts.  This last takedown in gold and silver that "supposedly" violated the 200 day moving average was done by manipulation.  And of course the MOOO's go along with it especially when the PAPER BULLION BANKS POSTER BOY....DENNIS GARTMAN does his "GOLD TOP" routine on CNBC.

I am simply amazed at the lack of understanding of just how horrible the current financial system is in by those who should know better.  Clive Maund doesn't realize it but he helps discourage the gold and silver investors by being a LARGE ADVERTISER of Technical Analysis gone bad.

Again, I am writing two articles that will try to give a FUNDAMENTAL LOOK at silver in supply-demand as well as a PHASE SHIFT which will be coming soon.  Silver should be trading well above $100 an ounce by now and ERIC SPROTT is dead on in his understanding of the paper silver market and the manipulation.

SILVER IS GOING OVER $150

Shill's picture

Something that needs to be

Something that needs to be highlighted from Turds morning post Via Gonzalo Lira's article..

As I write this, a lot of investors whom I know personally—who are sophisticated, wealthy, and not at all the paranoid type—are quietly pulling their money out of all brokerage firms, all banks, all equity firms. They are quietly trading out of their paper assets and going into the actual, physical asset.

Note that they’re not trading into the asset—they’re simply exchanging their paper-asset for the real thing.

Go ahead sell your metals...if you think all is well. The old saying goes, a fool and his money are soon parted. Or in this case... " A fool and his ASSETS are soon parted "

¤'s picture

The Daily DPHaze...

http://www.tfmetalsreport.com/forum/3172/daily-dphaze-news-machine

Thanks for the new thread TF.

When PAGE opens up none of this thin volume selling will matter. 

http://www.zerohedge.com/news/gold-down-chinas-tightens-controls

Carthaginian's picture

OIL

Dont forget Oil folks, dodgy things happening in the strait of Hormuz...

Chibster's picture

DEBT CEILING ABOUT TO BREACH ON DEC 30!

I already hear the printing presses warming up! 

The debt clock says we're at $15,160T but the DEBT CEILING is $15,194T.  Everything is going parabolic lately.  We're going to breach the debt ceiling by Dec 30th it says...

Quote:

    Obama to ask for $1.2 TRILLION debt limit hike: Treasury official

27 Dec 2011

WASHINGTON (Reuters) - The White House plans to ask Congress for an increase in the debt limit before the end of the week, according to a senior Treasury Department official.
The debt limit is projected to fall within $100 billion of the current cap by December 30. President Barack Obama is expected to ask for additional borrowing authority to increase the limit by $1.2 trillion.
Under the new budget, Congress can only vote to block the debt-ceiling extension with a disapproval resolution. Lawmakers have 15 days within receiving the request to vote down the debt limit increase.
The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request.

http://news.yahoo.co...-152416457.html

GM Jenkins's picture

Sinclair

Here is the interview with Jim Sinclair where he surprisingly agrees with Pierre Lassonde that $1500-$1700 gold this year makes sense, though he offers his own slightly better prediction of $1700-$2100.

I wonder what caused his turnabout. Just last week he was on King World News: "When asked what to expect from gold in 2012, Sinclair stated, “Well into the high $2,000s."

foxenburg's picture

SRSrocco

Thanks for taking the time to read my post. What I have trouble getting my head around is the "reset" price once the paper traders go away. For example, in the Dutch Tulip bubble days presumably there were genuine tulip growers trying to discover a value in tulip bulbs. There would be a genuine high price for a beautiful tulip. But then the whole thing got hijacked by speculators who sent the price to stupid levels. I see these as the paper gold traders. Then the speculators got burned and walked away. Leaving behind (presumably) the genuine tulip growers, etc. So, while the future of tulips/gold becomes far more stable and has integrity - I am a bit worried that - at least in the short term - absent the speculators, gold might settle down to a much lower level. Of course, I sincerely hope I am wrong. 

s2man's picture

PM's down

That's okay.  I missed the September dip (stupid dollar-cost-averaging).  I heading to the LCS today to pickup $20 face value of 90% coins.  My monthly budget is about $2 FV, but I'm not gonna miss this one. In fact, I hope TPTB can suppress the prices until mid-January, when I plan to get another $100 bag. 

I hope I don't break JPM with my massive silver move ;-)

Brotha Bob's picture

Debt ceiling and trading volume

Trading volume will be down until the first of the year. Let the EE have their way. I like a good sale on PM's. Less fiat for more metal. I'll take that deal any day.

So, last time around, increasing the debt ceiling caused a down-grade and metals spiked. Metals migh have some upward pressure with 100%+ to GDP borrowing, but will we get more down-grades?

question's picture

Re; Something that needs to be

"They are quietly trading out of their paper assets and going into the actual, physical asset."

That's sure one heavy basket with all their (golden) eggs in it. Will TPTB actually cause/allow a complete crash of the entire system? More likely a slow acting cancer that quietly eats assets with a few MfnG panics thrown in to keep us off balance and uncertain.

I think they're more intelligent than a virus-maybe- and don't want to kill the host; rather slowly bleed it. Evil intent rather than mindless grasping.

The scene is bigger than just dollars and cents and who dies with the most toys. These bast**d children need a strict parent to put them in the corner till they learn to behave in a civilized manner. Evil but dumb, they'll destroy-are destroying-our house.

I'm really afraid we're entering "The Long Descent" by John Michael Greer, a roadmap to the future.

People get ready there's a change a coming.

Shill's picture

I think they're more

I think they're more intelligent than a virus-maybe- and don't want to kill the host; rather slowly bleed it. Evil intent rather than mindless grasping.

Its been slow burning now for the last 10 years ( well 60 years but who is counting ). In order for a new global system to be implemented the process ( collapse ) must be put into hyper drive so as to not awaken too many people. The grab will go into over drive real soon, look at the current take downs as a gift from Ben himself, if your able to grab some, well then do so. Its already been proven via MF,G your own your own. If you fail to grab a fistful of what ever isn't nailed down at a discount...well then it is ones own fault.

Think about the timeline of the silly unconstitutional laws that were just passed or are being passed.  And the sneaky way they go about passing these law IE: Christmas day.

This is not on purpose THIS IS ALL BY DESIGN.

Carthaginian's picture

Few thoughts

- Oil clearly breaching $100

- Commodities catching a nice bid

- Euro holding up

- Palladium which usually tracks silver quite bullish

------------- PMs down

Things that make you go mmm...

2 things in the pipe: Iran and debt ceiling... looks like the freaking cartel is trying to freak us out before a massive rallye.

As ever, just sayin'...

Patrancus's picture

Edward Bernays would be so proud of his creation

The organized propaganda we see 24/7 infusing the sheeple with dillusions of entitlement that can only be found in the paper that they see posted on a bank statement or folded up in their pocket, keeps them herded together and prevents the casting off the paper illusion,  for real precious metal. It would make Edward Bernays proud of his creation. 

Economical Disaster's picture

America's farmlands to be carpet-bombed with Vietnam-era Agent

(NaturalNews) A key chemical of one of the most horrifying elements of the Vietnam War -- Agent Orange -- may soon be unleashed on America's farmlands. Considered by world nations to be a "Weapon of Mass Destruction" (WMD), Agent Orange was dropped in the millions of gallons on civilian populations during the Vietnam War in order to destroy foliage and poison North Vietnamese soldiers. The former president of the Vietnamese Red Cross, Professor Nhan, described it as, "...a massive violation of human rights of the civilian population, and a weapon of mass destruction."

A key chemical in that weapon -- 2,4-D -- is just months away from being dropped on agricultural land across the United States. Dow AgroSciences, which along with DuPont and Monsanto is heavily invested in genetically engineered crops, has petitioned the U.S. government to deregulate a variety of GE corn that's resistant to 2,4-D, which comprises 50% of the recipe of Agent Orange.

NaturalNews broke this story yesterday and published the details:
http://www.naturalnews.com/034492_D...

If the petition is approved by Washington, it would turn America's corn fields into chemical warfare zones targeted for mass pesticide poisoning with 2,4-D chemicals. The corn, of course, would be immune to 2,4-D, so it would uptake the chemical and transport it right into the structure of the corn kernels, creating "Agent Orange corn bombs" that would be chemically unleashed when consumed by human beings.

This is just the latest example of how industrial chemical giants and GMO companies of the world are committing acts of genocide against innocents. The introduction of 2,4-D-resistant GE corn is, essentially, an act of war against humanity.

Shill's picture

The most significant

The most significant financial story of 2011 is something you don't hear about, namely the huge rise in M1 and M2 money supply in the U.S.

http://www.shadowstats.com/charts/monetary-base-money-supply

For one thing, the ratio of M1 to gold price has been an indicator of when to buy and sell gold, long term:

http://www.howprofit.com/portfolio/future/us-m1-money-supply-vs-gold-chart-1970-2011.html

Lots of cash sitting somewhere, but for what?

Economical Disaster's picture

What to Except From The Government After The Collapse

After an economic crisis and with a “benevolent” authoritarian figure in charge, you can expect the following:

  • Expect Corruption: Maybe in their minds, it’s not even corruption. The high ranking politicians simply do extra-legal “favors” for one another, and perhaps they even believe their own BS speech, that they are doing them for “the greater good.” Or perhaps not. Perhaps they are just greedy, lying crooks from the very start.
  • Expect Loss of Freedom: Particularly the loss of gun rights. Americans should keep a close watch, and consider gun rights to be the “freedom barometer.” There will be direct attacks on the right to keep and bear arms. Reinterpretation of the Second Amendment. Indirect attempts such as taxing ammunition and firearms out of the reach of the average citizen. A greater number of legal requirements to own firearms. Some people believe that armed citizens don’t stand a chance against a national military force, especially one as powerful as the United States Army. This is the bullshit lie all governments around the world want you to believe, but the reality is very different.
  • Expect Censorship: We’ve experienced a growing amount of censorship in many forms. Calls from the Presidential Office directly intimidate reporters and news directors. There are threats of legal action and tax persecution to anyone that dares question the government… Phone tapping and email reading are widespread as well.
  • Expect an Inefficient Legal System: With growing crime, fewer resources, and possibly significant amounts of corruption getting in the way, the legal system will become slow, inefficient, and in some cases it may not work at all. For example, in Argentina legal resolutions not only take years, these days you can’ even expect justice at all. For some reason I’m not entirely certain of, even murderers and serial rapists are not being incarcerated. A disturbing number of them are being sent right from court to “home imprisonment.” I suppose it’s mostly due to prisons already containing over three times their maximum population capacity, and there being few resources to build more prison space.
  • Expect Failing Public Institutions: Hospitals, schools, and public transportation companies that receive government tax subsidies have all collapsed and are in awful condition where they do still function.
  • Expect Crumbling Infrastructure: The roads, bridges, and public infrastructure will get worse as time goes by.
  • Expect a Cultural Change (for the worse): I’ve seen bookstores, coffee shops and theaters closing, to be replaced by casinos, pastoral churches that are as bad as casinos (they steal people’s money promising salvation), bingo halls, drugstores where they mostly sell booze, porno shops, and internet booths, gloomy stores where people that mostly look like perverts get online.
  • Expect More Extreme Poverty and Shanty Towns: No big secret here either. It happened in the USA during the Great Depression and it happened here in Argentina after 2001 as well. Even now, the “villas” (shanty towns and tent or cardboard shack cities) are growing like a fungus all around Buenos Aires. People also take over abandoned factories and hundreds of families live there. Usually a local thug takes over and rents or sells the space.
  • Expect a Smaller Police Force: And expect police to concentrate mostly on the capital and major cities, in the downtown business areas and the nicer looking more affluent neighborhoods, usually in that order of preference. The government behaves very much like a cellular organism. When resources are scarce, the police mostly concentrate in the center, capital cities and places where high ranking officials live, leaving the suburbs and smaller towns to fend for themselves.
  • Expect “Commando” Criminals: This is how we refer to criminals that have certain “professional” backgrounds. Usually they are ex-cops (or even active duty cops) or ex-military. They are well armed, well organized, know how to use modern communications and they do intelligence work before a “mission.” These are dangerous people and have the skills to do serious bank robberies, kidnap rich people in spite of their security guards, or assault guarded gated neighborhoods.
  • Expect Even More Corruption: One thing we know about in Argentina is corruption. It’s everywhere and it has kind of become almost a national sport. What we learned is that you can’t expect honest government employees, when the leaders themselves are making very questionable decisions. This grows like a cancer in a democracy and eventually it’s impossible to eradicate it.

http://www.shtfplan.com/emergency-preparedness/what-to-expect-from-the-government-after-the-collapse_12232011

Turd Ferguson's picture

metals dropping

MODERATOR

no volume

no buyers

EE selling pushes them down

If long, be careful. Blythe may hit the gas this week, trip some stops and catch the longs flat-footed.

Shill's picture

If long, be careful. Blythe

If long, be careful. Blythe may hit the gas this week, trip some stops and catch the longs flat-footed.

I soooooo! hope they do Turd...I will be unloading some fiat. The precious DOW will now go unscathed in this take down guaranteed.

Nothing to see here folks...move along.....

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