Liquidation

It's beginning to look a lot like 2008. Everywhere you go. Selling anything you can find, can ease your liquidity bind. From gold to stocks to crude and the eur-oh.

Wow! Does anyone else have deja vu, all over again? If it isn't nailed down, it's getting thrown out today. We're either at the end of this liquidation cycle/event or we're just at the beginning. Time will tell, I guess. I mean, for crying out loud, look at the euro. It's right at the lows of 2008 and just points away from the lows of early 2010.

Crude, too. Just nasty. Events in the MENA be damned, just sell Mortimer, Sell!

And, of course, this is all spilling over onto the gold and silver servers and motherboards pits. If it has a bid, sell it for pete's sake. While you still can! Regardless that The Great Reset is fast approaching. It's of little consequence that gold and silver will soon be revalued multiples higher. I need cash NOW! Sell Mortimer, SELL!

And, of course, in the background, just whom do you think is buying?? Never forget that for every seller, there is a buyer. Who might that be??

And I hope you're not expecting all of this to calm down anytime soon. Today is the last trading day of the June12 gold contract, also known as First Notice Day. As you've learned, FNDs are almost always DOWN days as The Cartels are wont to dissuade as many as possible from standing for delivery.

And I hope you realize that Friday is another BLSBS day. Surprising that it's on the 1st day of the month. I'd have expected it to be next Friday but it's not. It's this Friday. Two days from now. As you've learned, the metals are almost always sold off prior to and just-following the release of that monthly make-believe.

So, here are your charts. The GOOD NEWS is that buyers continue to emerge near $1535 in gold and near/above $27 in silver. The longer these levels can hold, the more the downward momentum will wane and, eventually, we might break out of the range to the UPside. Additionally, you should note that this is the third, consecutive Tuesday-Wednesday that saw the lows of the week in the early trading hours of Wednesday. Not coincidentally, those lows keep occurring near the $1535 and $27 levels. Let's see if another bounce will develop today.

Just a couple of other items for you today. First, I wonder what that old greaseball Buffett and his pal The Bernank think of this. What a strange new use for an otherwise barbaric and worthless relic ( http://www.telegraph.co.uk/finance/financialcrisis/9298180/Europes-debtors-must-pawn-their-gold-for-Eurobond-Redemption.html)

And this is fun. Part 2 of a 3-part series from our pal Jeff in Canada. ( http://www.bullionbullscanada.com/gold-commentary/25549-the-three-trends-which-rule-the-precious-metals-market-part-ii)

Lastly, our new buddy John Butler was on RT with The Lovely Lauren yesterday. I would imagine that John found this particular interview to be considerably more stimulating than the one he conducted with me back on Friday. 

Alright, that's it for now. Have a fun day but beware the volatility and keep your eyes on the prize. I, for one, am going to post this note and head off to buy some more phyz. This time I'm thinking some 5-oz silver bars. We'll see. More later.  TF

 

308 Comments

thisismynewname's picture

I read it and I'm first?

Can't be...

Katie Rose's picture

First??????????

Is it possible??????

Edit: Guess not.... sad wink sad

This is the information I came here to share.

The latest Crop Progress Report from the Dept of Agriculture is out, and for small hobby farmers like myself it is saying loud and clear that grain prices for our livestock will probably be going up again. Most of us feed our animals something called Sweet Cob, which is corn, oats and barley sweetened by molasses. It comes in 50 and 80 pound bags.

The report states the following:

- planted winter wheat acreage is 88% of 2011 levels

oats are 62% of last year's levels

barley just 71% planted compared to last year

- corn (almost all of it is GMO angry ) is 92%

- and rice is at 100% of 2011 planting levels

I've been asking local farmers what the prices will be for their new crop of alfalfa this Summer. None are willing to give me a price. One told me that last year his diesel bills ran $1200 + a week during the Spring/Summer. He can't give me a price because he has no idea what diesel is going to cost him this Summer.

Regular gas is $4.1999 at the local pumps. Diesel much higher.

He also added that fertilizer and seeds are much higher priced this planting season.

Just more dots to consider when "Preparing Accordingly..."

Lightning's picture

3 ?

How could it be?

Patrancus's picture

Liquidation

I try to liquidate some measure of dependency on government everyday, hope to be off the grid very soon.

Steinbacken's picture

Fufth!

Best post in the last thread reminded us of how nice it is to buy physical silver on Tuesdays.  Today we get an extension.  Stackers are cool, like me.

Have you guys searched YouTube for all the stacker collections?  What cracks me up about them is that it takes them 14 minutes to show what they could in 30 seconds!  I guess that's when you know there is an unhealthy psychological component.  Here are a couple of shorter ones:

Zzz...More fun piling up my own and running my hands through it.  Not enough to swim through, yet.

P.S.  I am going to have to take 'be Furst on TFMR' off of my long-term bucket list.  There must be some conspiracy keeping me off the 1st position!

bam's picture

Someone linked this article in the last thread...

...but I can't remember who.   So apologies ahead of time, but I wanted to highlight an interesting passage from the article.   This information plays into the Gold potentially becoming Tier 1 at some point.  The likelihood of this is high, as top quality assets are few and far between these days. 

That is a big swing in debt % highlighted in bold below.

http://www.bloomberg.com/news/2012-05-28/dollar-scarce-as-top-quality-assets-shrink-42-after-stimulus.html

The five economies with default swaps trading at less than 100 basis points have a combined $14 trillion in debt, with the U.S. accounting for 75 percent, according to CMA data compiled by Bloomberg as of May 25. A year ago, when there were eight nations, the total was $24 trillion, with America making up 38 percent. German credit-swaps rose to 100 basis points today from 99 basis points last week.

TitanAe's picture

UP!!!

Gold and silver now in green !

Dr G's picture

Liquidity in

Liquidity in colors (these tiles update automatically, so they may not be all red when you read this post!):

Indices...

fut_image.ashx?ym.png&rev=63473975199692fut_image.ashx?es.png&rev=63473975199692fut_image.ashx?nq.png&rev=63473975199692fut_image.ashx?er2.png&rev=6347397519969fut_image.ashx?nkd.png&rev=6347397519969

Energy...

fut_image.ashx?cl.png&rev=63473975199692fut_image.ashx?ng.png&rev=63473975199692fut_image.ashx?ho.png&rev=63473975199692

Metals...

fut_image.ashx?gc.png&rev=63473975199692fut_image.ashx?si.png&rev=63473975199692fut_image.ashx?pl.png&rev=63473975199692fut_image.ashx?hg.png&rev=63473975199692fut_image.ashx?pa.png&rev=63473975199692

Grains...

fut_image.ashx?zc.png&rev=63473975199692fut_image.ashx?zl.png&rev=63473975199692fut_image.ashx?zm.png&rev=63473975199692fut_image.ashx?zo.png&rev=63473975199692fut_image.ashx?zs.png&rev=63473975199692

Soft commodities...

fut_image.ashx?cc.png&rev=63473975199692fut_image.ashx?ct.png&rev=63473975199692fut_image.ashx?jo.png&rev=63473975199692fut_image.ashx?kc.png&rev=63473975199692

Meats...

fut_image.ashx?lc.png&rev=63473975199692fut_image.ashx?fc.png&rev=63473975199692

Currencies...

fut_image.ashx?6e.png&rev=63473975199692fut_image.ashx?6b.png&rev=63473975199692fut_image.ashx?6c.png&rev=63473975199692fut_image.ashx?6s.png&rev=63473975199692fut_image.ashx?6a.png&rev=63473975199692fut_image.ashx?6n.png&rev=63473975199692

And the US dollar...

fut_image.ashx?dx.png&rev=63473975199692

apex101's picture

Gold hammers

Gold is about to produce 3 hammers may 16, 23rd and today. Everytime it hits that 1530 level it creates a hammer. It just cant rally after the hammer is made.

Fulgurite's picture

FarceBook

Come on Turd don't be so negative, not everything is down today...

Look at Facebook, it's UP! laugh

Dr G's picture

No volume or interest to

No volume or interest to create any rally after a hammer. QE is the only thing that will move it. This is a deflationary episode, a constriction of the monetary supply.

Mickey's picture

One of these days Alice, one of these days, to the moon

need combative strategies and armament in this business

Nico Romanov's picture

Gold bottom

Posted on last thread gold bottom this morning at 1532.10 basis Aug. CMX.   Romanov quadruple buy signal.

obiwan's picture

Turd's physical

Turd, 

What percentage gold and what percentage silver comprises your physical stack?

Anyone else car to share their percentages?  I'm 90% silver 10% gold and thinking to ramp-up my gold percentage.

Punk-Assets's picture

I'm impressed with the metals

I'm impressed with the metals in relation to the broad markets. This is why I buy on the dips often because those lower levels might not come after all. Who knows?

I'm 80% gold and 20% silver yet I know full well that silver will see the larger percentage gains against paper. Its an issue of concealment for me. 

TechTrade's picture

New low for Platinum / Gold Spread

$160 under!  Either it's pointing the way lower for gold (as Dr G believes), or Platinum is an incredible bargain. 

Just a week ago, the spread was around $110-120.

peckerwood's picture

liquidation

please hold off on dumping/shorting FB until tomorrow, and if you can wait on adding to  your stack, please do so also until tomorrow.  thank you for your cooperation in this matter.  oh, one more thing, and i have mentioned this before - who is buying all the "cash for gold" gold?  could it be that Fort Knox is being refueled?  RP won't get his audit, until then btw.

Hrunner's picture

Real Cost of Owning Gold

An interesting picture-story on the "Real Cost of Owning Gold"

http://www.bloomberg.com/consumer-spending/2012-05-30/the-real-cost-of-owning-gold.html#slide1

It raises a few points I had not thought of.  The most interesting one to me is about the cost and side issues of insuring gold.

I take delivery of physical, and take responsibility for it, frequent boating trips etc (not on site, for you predator-trolls).  

Does anyone here get insurance on locally-stored?  Count me as one who is circumspect about the government.  The statement "IRS can supoena insurance records" was interesting.

Punk-Assets's picture

re: platinum

People kick platinum to the curb in a debt crisis. The ratio to gold will get ever larger. I'll bet money on it - ebbs and flows notwithstanding. 

sevin's picture

Ag/FB Spread

We may have a winner soon with the contest. Today could be the day. The spread is currently at $0.72.

50sQuiff's picture

DrG

DrG, some debt is being marked to market and debt itself as a store of wealth is failing. The money supply, on the other hand, is not being constricted. In fact it is being expanded exponentially to replace debt at par.

The "it's 2008 again" thesis doesn't hold, unless governments and central banks deliberately want to obliterate the financial system and create a global depression. You do not demonetize gold and implement 'elastic currencies' only to choose such an outcome. Understand that with a flexible currency, deflation is a choice.

lostinspace's picture

(No subject)

tmosley's picture

Idiots will flood into the

Idiots will flood into the "safe havens" of the COMEX gold and silver contracts.  Soon they will see that they have merely fled the frying pan to find themselves in the MF Global vaporization ovens.

Roark's picture

@Katie Rose

Where the heck are you located? I am paying $3.48 for OTR diesel, and about 16 cents less for red dyed ag diesel on permit. That is outrageous!

Btw: deep south Texas here

ivars's picture

EUR/USD prediction chart compared to actual May 30th 2012

Repost

I made this trend prediction in October 4, 2011, here: http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=600#p34394

Then squeezed a bit along time axis without changing trends or amplitudes. I am not ashamed of it, in fact, quite the opposite (prediction-red line, actual-blue line) :

I see here a clear trend that has broken all resistances before next at 1,20. No turnaround in sight.

Still, do not worry about silver prices in USD. As Dr G has pointed out few posts above, some of EUR money is flowing in silver FASTER than in USD.

Hrunner's picture

@obiwan

I'm 50-50.

I'm equally compelled by the distinctive pro's for each, aside from the common, shared "pros" we all know.

Gold- will be the bedrock of the next-gen, government and institutional system of precious metals linked currencies (I'm not sure if silver will stand alongside gold in this way), more compact store of wealth.

Silver- greater upside.  Consumed by multiple uses.  As the endgame approaches, will end up being owned by a greater percentage of the population due to affordability, circulation of 90% silver coins, etc.

Turd Ferguson's picture

ivars

MODERATOR

please post an updated silver chart of yours. Thanks.

peckerwood's picture

don't know who said it, maybe it was me...

people stack gold to protect their life savings, people stack silver so that they can buy bread and milk.

OC15's picture

I feel

As if I'm watching the Jim Willie #2 podcast happen real time.

PaullyMoore's picture

Perfect

Anyone thinking the BOS timed his purchases of G & S perfectly this morning into a falling Dow and rising USD?  Forces MSM to ask some hard questions.

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