Headed Out

I'm behind schedule and in trouble. Sorry for the quick post. More Sunday when I return. First, though, please check out these items I have for you.

First of all, the short-covering continues in the PMs. Yesterday, while gold was rising $26, the total gold OI was falling by over 1000 contracts. Again, since it is nearly certain that some new longs were added, how many Cartel shorts were covered? 3000? 5000? The question is: Why is the Cartel covering here and will they continue (like August)? The trend continues in silver. Price rose yesterday by 60 cents or so but total OI fell again by 500 contracts. That's $1.75 (5+%) in gains over the past two days while total OI has fallen by 1000 contracts. This is very exciting! With each passing day, the possibility is increasing that I will be proven correct about EE intentions in 2012. Watch the latest "Wicked Witch" video again for a reminder.

OK, here's your homework assignment for the weekend. There are two links below. The first one I found at the Mises Institute website and it discusses the idea of a "liquidity trap". It certainly sounds plausible to me. What do you think?

http://mises.org/daily/5881/Is-the-United-States-in-a-Liquidity-Trap

This next article is also very interesting and thought-provoking. Written by FOFOA, it is a fantastic discussion of some "gold standard"-type ideas. I must warn you, this stuff can be a bit mind-numbing so, hang in there. It's well worth your time and effort. Again, I'm curious to see your thoughts and feedback in the comments.

http://fofoa.blogspot.com/2012/01/gold-must-flow.html

We've had a great week and the metals are going out strong, particularly gold. I'll try to find some time to chime in through the comments section once I see the CoT numbers tomorrow. They likely won't be too crazy as they are basis last Tuesday. Next week's CoT should be very, very interesting.

Have a great weekend!  TF

196 Comments

bellyacre's picture

FIRST

First

peterleee's picture

2nd

But only because I had to register 1st

RedRover's picture

Another Video, awesome!

Another Video, awesome! What's going on w/ the subscription? I want in. Cheers!

Airgead's picture

Thurd

Thurd

Third not anymore... 

Mammoth's picture

Bought Some More

Had a nice, first-time visit with a new coin-seller yesterday.  Bought some Morgans & Franklins at spot, and some nice Walking Liberties below spot (WTF?).  Usually, sellers want a premium on the Morgans, but I wasn't about to complain.

One minor oddity - although I brought a current frame-grab from the coinflation website showing their calculated coin prices, this seller weighs his coins on a scale and makes his own calculations.  The price actually came out a tad lower than coinflation's - but again I wasn't going to complain.

---------------------------------------

If you are an old car buff, go back to the end of the previous thread and check out that mid-sixties Pontiac LeMans that I used to have.  They just don't make 'em like THAT anymore!

MonkeySmoke's picture

picked up some...

gold today. I was staring down some 2012 Eagles, but the premium was too high.

Mammoth's picture

Re: Classic Cars

DPH said...

"I find it interesting, and kind of cool, that people name their vehicles for whatever reason and the names themselves."

-  -  -  -  -

Anna was a character in Tolstoy's masterpiece "War and Peace."  Although she was a beauty with a fine disposition, she was more or less ignored because her blood was less aristocratic that of others around her.

---------------------------------------

Eric O, I would rather admit to eating Canned Bacon, than to have totalled one of those.

Dr G's picture

Have a great weekend

Have a great weekend everybody!

dziprick's picture

Sprott PSLV (PHS.U IN Canada)

With the drop in premium the trust is a heck of a buy in my opinion.  I can buy the units for a lower premium tha at the Vancouver Bullion and Currency Exchange.  Even if silver does not go up, the premium for the trust was all the way up to 30%.  I think we can ride the rise in silver and the rise in premium on the fund.

Of course, you don't get to hold your silver in your hand!!

Eric Original's picture

mammoth

demon alcohol was involved, sorry to say.  And testosterone too.  A bad combination.  I left 5 teeth on the pavement, but more or less OK otherwise cheeky

289, three speed.  God, that thing could fly.  Neck snapping acceleration...

What an idiot my Dad was for letting me buy it.

¤'s picture

thanks TF

I'll check out the links for sure. This PM action is starting to look a lot like the Fridays we used to enjoy last year. TGIF!

silverparatrooper's picture

LOL at Eric

Yeah my dad didn't want to buy me and my brother that oldsmobile 442 back in the day. I'm still pissed about that. Have a good weekend people. I'm offshore so I have a lot of internet time to lurk and make ridiculous comments on CNBC.

Be Prepared's picture

The market seemed like..

I would be forever digging

But finally, I finally hit pay dirt and the market has yielded a few nuggets......

Dr G's picture

Silver hustling to $34 in the

Silver hustling to $34 in the close. It wants it. What a week. Started near 30.25 and moving at 34. Suck it Blythe!

Strongsidejedi's picture

Silver price action

I have an explanation for the behavior of the banks/cartel.

By liquidating short positions now, they elevate the price on Comex.

The comex futures contracts are then calculated at this elevated price point.

Because they do not have the short position, the bank can reliquify the short position at the higher price point on Monday.

If it's China, they can sell on Sunday night USA time and force the price back down Sunday night and then open in London to take delivery at the lower price point that they created.  

Cartel in the USA would like the lower price point once they are attempting to fill the "delivery" futures contracts next week.

If Sprott is correct and the Comex doesn't have the gold or silver, the price should fall from Sunday through Tuesday morning NYC time.  This will allow the banks to suck up the physical from the miners at the lower price point, before going long into the Option contract lock mid-month.

If I am correct, the OI liquidation TF is seeing is the cartel liquifying their USD's by evaporating paper short positions.

They will be back...

I'd love to hear what other guys think of my theory.

Eric Original's picture

trooper

Your old man probably saved you some teeth!

Transformer's picture

Ain't dat somethin', bout

Ain't dat somethin', bout JPM.  I don't trust 'em.

So hey, Alex Jones says that the Enterprise, our oldest aircraft carrier, has been moved to the gulf so that it can be used in a False Flag, with either us or the Israelis attacking it, like the Liberty was in '67 to get us into the war against Egypt (the Russians stopped that one).  Alex says the ship is to be decommissioned next year, and the military is willing to sacrifice it to have an excuse to attack Iran.  This seems like total BS to me, what does anyone else think?

XenoFrog's picture

Finally... It was getting a

Finally... It was getting a little depressing to always have to revise my excel silver book down every week.

s2man's picture

Umpteenth!

Purdy pic there, Mammoth.  I like that your dealer weighs the coins.  I've been thinking more about weight lately and picking the newer coins, or the .50's cause they have less wear. 

Last time I was there I mentioned this to dealer and some old guy (like I'm not an old guy) started going, "give him the thin ones. give him the thin ones".  Cracked me up.

Dr G's picture

Allow me to paint with a

Allow me to paint with a broad brush (the numbers are close enough). For the week:

Silver up $4

Gold up $100.

That's the real deal. Stack it up my friends.

Eric Original's picture

you gotta get up pretty early

you gotta get up pretty early in the morning to beat those old guys to the 90%!

¤'s picture

Nice ride EO

Sweet 'stang if I ever saw one!    I didn't have a hot ride back in HS or after.

Dad's old car worked nicely back then and was slower. Good thing!

beinki's picture

Oh wicked Witch

cris's picture

Silver close above $34?!?

From the updated portion of  Bizarre Silver Open Interest:

The Turd wrote -

The key levels to watch are on the charts below. It would be fantastic if gold could close above 1720 but 1705 will do. A silver close near or above 34 would be extraordinarily great but, really, anything over 33 will be fine.

.................................................................

Ask and it shall be given.

SSK's picture

Turd, You gotta chime in on

Turd,

You gotta chime in on the miners. What a week. HUI climed 57 points off the Wednesday lows. The candlestick on Wednesday is one of those boners you may never see again.  After a dismal 2011, those who trade the miners are feeling much needed relief.

What do you think? Do the miners have legs here. Or are we looking at an oversold bounce?

Thanks.

Hook's picture

I always like the LCS reports

So I will add one of my own.  There was plenty of silver, I asked if people had been selling and got a big 'yes sir'.  What was interesting is that he raised his premium from a buck over for bars and generic rounds to a buck and a half over spot.

I forgot to ask what he's buying at - it usually is a buck under spot - but I never have any to sell since I keep losing it out on the lake.

There was some gold, but not a huge amount....

zilverreiger's picture

RP newletter update

“It was his newsletter, and it was under his name, so he always got to see the final product...He would proof it." Renae Hathway, a former secretary in Ron Paul’s company and former supporter of the Texas congressman, in the Washington Post today

iceman321_2k2's picture

Gold's Best Friends...

Hey, forget QE3. With Bernanke and Congress at the wheel, who needs QE3?

http://wallstcheatsheet.com/gold/with-friends-like-these-does-gold-need-an-official-qe3.html/

survivalwstyle's picture

bering sea gold

someone told me about this today. i have not sEEn the original "GOLD RUSH" but watched this preview...and it lOOks like we may have located both ferd T and last rebel in the same video ... or is this a ED sighting??? http://dsc.discovery.com/tv/bering-sea-gold/

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