Friday Odds and Ends

Friday, June 22, 2012 at 11:00 am

A loose collection of things for you to consider on this fine, Friday morning.

We might as well begin with the charts. Look, I know this stinks. It has now been nearly 14 months since silver briefly peaked at $49. Gold has been under attack since early September of last year. It's painful and it's no fun. In the grand scheme of things, it's also irrelevant. In fact, it's beneficial...at least if you've been using this time to increase your physical holdings. There's certainly a lot of angst and nervousness out there regarding future price. Whatever. I, for one, am getting bored with it all. I know (in general) what is going to happen and I know (in general) how this will ultimately play out. The timeline of getting from here to there is the only thing in question. Please remain patient and resolute. You are doing the right thing. Your physical metal is your only financial protection. Don't let the day-to-day machinations of The Bullion Bank Cartels dissuade you.

So, here are two charts. Gold is still simply contained in the same $100 range in which it has traded for the past 6 weeks. Big deal. Sheesh. A couple of downticks and the world is ending. All the AGAs come out and claim that $1300 is next. It's not. Silver is currently below $27 and out of its $27-29 range but, so what. Two weeks ago it was above $29 and out of the range, too. History would suggest that anything below $27 represents a wonderful buying opportunity, not a horrific panic opportunity. Keep your wits about you, please.

One of the themes I'm going to be pounding for the remainder of this year and beyond is the ultimate removal of the U.S. dollar as basis for international trade settlement. I laid out some of the details here: http://www.tfmetalsreport.com/blog/3866/dot-connecting. Well, ZH has posted this morning an excellent summation of all the recent headlines in this area. You should check it out. Again, I'm no genius. I'm simply paying attention. Even the late Jeff Healey could have seen this one coming from a mile away.

"When the US Dollar is ultimately dethroned as the world's reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic "theories") nobody will have seen it coming. Well, nobody except for the following headlines: ""World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees."

http://www.zerohedge.com/news/usd-trap-closing-dollar-exclusion-zone-crosses-pacific-brazil-signs-china-currency-swap

And this is interesting. Our pal, Chris Powell of GATA was on CNBC Asia overnight and he was actually allowed to discuss gold manipulation. In the brief amount of time he was allotted, Chris did his usual fantastic job of laying out the rationale of why gold is manipulated and by whom.

http://video.cnbc.com/gallery/?video=3000097894&play=1

And, lastly, this is fun. Yours truly was interviewed last evening by Rahul at http://www.altinvestors.com/. It's only about 15 minutes long but we covered a number of topics. I hope you find it helpful and interesting.

Well, that's it for now. The CoTs today probably won't be very exciting but I'll update you with my opinions later, regardless. Have a great day and a relaxing weekend.

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Comments

Operation Twist, liquidity fears, SOMA & QE3

Submitted by S Roche on June 22, 2012 - 12:21pm.

All you need to know: http://www.ft.com/intl/cms/s/0/a8e4fc4c-bba8-11e1-90e4-00144feabdc0.html#axzz1yXTCFxNQ

This makes sense to me, and explains the reason why the FOMC sell-off was delayed this time...worth listening to the 2 minute embedded video.

Good Read from Jeff Nielson ..

Submitted by MollyRatchet on June 22, 2012 - 12:28pm.

Bullionbullscanada ...

http://www.bullionbullscanada.com/bulletin-boards/12-gold-a-silver-talk/17250-the-daily-grind?limit=10&start=140#18772

Being so sure?

Submitted by RobG on June 22, 2012 - 12:32pm.

Turd,

You stated "Silver is going to be much, much higher by later this year."

With all the manipulation going on in silver and gold and all the fiat backing up the cartel, I would like to know how you can be so sure that this year will be that great for PMs? Last year we thought we would be in great shape by now, then the cartel comes out with some new gimmick to drive down the prices. I know PMs are going up, I just can't be so sure of the time table, next month or a few years down the road.

Uh-oh... Syria shoots down a Turkish military jet

Submitted by Irksome on June 22, 2012 - 12:38pm.

http://www.zerohedge.com/news/syria-shoots-down-nato-member-turkeys-military-f-4-jet

This is bad.

@RobG

Submitted by Dagney Taggart on June 22, 2012 - 12:42pm.

You sound like you are in capitulation / despondency mode. Don't you know that signals a bottom? This isn't about when. "When" is for traders. This place is for Stackers. And the fundamentals are too damn good to ignore.

Maybe I'm wrong.

Just how screwed we are

Submitted by Loud Noises on June 22, 2012 - 12:44pm.

Here's a personal anecdote I wanted to share....

I'm a musician and recently got called to play on a project for a new "hobbyist" client. Its not uncommon to have some of the best paying gigs be from really passionate guys that just have money coming out their ears instead of the real artists that are releasing music. This gentleman is the most loaded I've ever seen in this situation. He's hiring LEGENDS to work on his project... paying multiples of the recording studio's daily rate... money is no object whatsoever. And all of these people are happy to do the work because its such easy money. As much as it makes me sick deep down, I am happy to be on it as well.

I began to realize just how deep his pockets went when he would regularly arrive in an assortment of different $200,000+ cars. You would expect as much from someone that earns an annual income that approaches 8 figures. But my jaw dropped when I found out how he makes his fortune.

He is a public official. A government employee. He makes more in a year than everyone in my family, including my parents, have made in our entire lives. I wish I could give more details but that wouldn't be wise. I do know his exact position.

THAT is how screwed we are. There is some serious Alice in Wonderland, backward-ass stuff going on that should never have become reality. There is a LOT that will be changing in our world. This situation showed me just how dramatic those changes will be.

@Irksome

Submitted by Dagney Taggart on June 22, 2012 - 12:47pm.

Wrong. That is great! Who the f*** does some POS BS de facto world police cartel like NATO think they are violating a sovereign country's airspace?

Wouldn't the US do the exact same thing? What do you think we are doing to the banksters when we buy G & S?

EDIT: F-4's are nothing but target drones nowadays. This is staged for the bedwetting sheep. Nothing to see here.

@Urban

Submitted by Bugzy on June 22, 2012 - 12:52pm.

I believe you mean gasoline prices and not Octane prices. Octane and or Iso-Octane (C8H18) only make up about 20% of Gasoline.

;-)

Dagney...

Submitted by Irksome on June 22, 2012 - 12:53pm.

I didn't say Syria was WRONG. I said that this was bad.

Also, I don't know if they were violating Syria's airspace, and I kinda doubt you do. The source is at best somewhat murky from what I can find so far.

But, if true, and if Turkey takes offense, this could be the catalyst for the US warmongers to launch yet another unjustified intervention into 'none of our business'. NATO treaties call for mutual defense. Since Syria, Iran, and Russia are allies with mutual defense treaties, this just can't end well.

Thanks Molly

Submitted by murphy on June 22, 2012 - 12:55pm.

For those who didn't click on the link. He certainly puts things in perspective. I don't get the sense that he is concerned with the current price bullshit.

In the span of three weeks we have gone from being told that bad news means we should SELL our gold and silver, to being told that bad news means we should BUY gold and silver, and now they have flip-flopped again - saying that bad news once again means we should SELL our gold and silver.

Understand that the media parrots have now ALSO telegraphed their OWN deliberate deceit. Previously we could ascribe their drivel to mere stupidity (i.e. they retained plausible deniability). However, when we now see them flip-flopping back and forth on a near daily basis this eliminates the possibility of mere stupidity.

Thus like the banksters, the media have now also exposed their naked manipulation of markets. These are all signs of absolute desperation. And so I see no need to flip-flop MYSELF (lol). I still believe that a Turning Point has occurred here - and expect to see the Big Buyers march the prices back up next week.

Have a good weekend everyone!

http://www.bullionbullscanada.com/bulletin-boards/12-gold-a-silver-talk/...

55k gold (or 5k gold)

Submitted by Mickey on June 22, 2012 - 12:57pm.

the thing is and we all know it, is that if we go high fast and soon some major event occurred and overall society will be screwed up. Consequently while we may be in much better shape than others, we will have to be low key. Then you somehow have to do what folks i 1930's did to parlay the asset preservation in gold and do something with it. In the 1930's real estate and the broken stock market was the way to go.

Just something to remember (cause under a collapse who knows what access there is to internet--might not be an intentional shutdown but I would wager the infrastructure shutdown would change things. where is Al Gore when we need him.

scare tactics

Submitted by justin99975 on June 22, 2012 - 12:57pm.

they drop the value in fiat and everyone sells.

my LCS has been buying, buying, buying.

I just don't get it.

but I don't mind the sale.

enjoy the weekend!

Thanks Turd, and all the Turdites for all the great info!

@Irksome

Submitted by Dagney Taggart on June 22, 2012 - 1:05pm.

Agreed. Sorry for my misunderstanding.

@ Loud Noises

Submitted by John Galt on June 22, 2012 - 1:05pm.

Dramatic changes are indeed on the horizon, but things may not unfold in a logical manner.

This deep pocketed government employee is one of many who will have a vested interest in keeping the current system going, and as things begin to crumble (and their entitlements become threatened) you can be certain that he and the multitude of others who have become hooked on government checks will react accordingly - probably by supporting more draconian and fascist measures on the part of government vis-a-vis the rest of the population.

Bugzy

Submitted by Urban Roman on June 22, 2012 - 1:07pm.

Yeah, I know that. I've been reading The Oil Drum for several years now. Summer blend, oxygenates, lots of variables in the stuff that comes out of the pump. Ethanol is a gigantic boondoggle for the corn farmers.

C8H18 is just a convenient abbreviation, like Au and Ag. There's actually some Cu in some of my Ag as well. Sterling is only 92.5%.

Gold Shops

Submitted by Hard Rain on June 22, 2012 - 1:07pm.

I am about 3 months away from getting a passport from an island in the Caribbean. I was speaking to someone I know down there yesterday, and he said he is now seeing - Buy Gold and Old jewelry - ads in the local newspapers.

Interesting!

Rain

@ Murphy re: Media Parrots

Submitted by John Galt on June 22, 2012 - 1:08pm.

Are they Norwegian Blues?

Question for Turd

Submitted by Cleburne61 on June 22, 2012 - 1:09pm.

Ya know what would give us all a morale boost right now?

Some more info from Winston and Andrew.....about physical tonnage orders that have been filled in the last 2 weeks. That squib of info would reinvigorate this place. Is there a way you could pry that data out of those learned men?

@ JG

Submitted by murphy on June 22, 2012 - 1:12pm.

Beautiful plumage you know

@ Murphy

Submitted by MollyRatchet on June 22, 2012 - 1:14pm.

You bet ... I have been reading more of Jeff's articles on a daily basis. TF interviewed him a while back and struck me as a level headed individual who communicates his thoughts in a very rational/ logical manner.

Re: Bacon

Submitted by Puck T. Smith on June 22, 2012 - 1:15pm.

Bacon

Submitted by thesandbox on June 22, 2012 - 11:03am.

bacon

Bacon is always the answer

@John Galt

Submitted by Dagney Taggart on June 22, 2012 - 1:17pm.

You've read our "book" right? What you are describing sounds very familiar.

Explosive and crazy summer

Submitted by Levon on June 22, 2012 - 1:18pm.

Turd,

You keep mentioning that this is going to be an explosive and crazy summer. Can you please elucidate as to why?

I remember SGS saying there would be two prices for silver

Submitted by exiledbear on June 22, 2012 - 1:22pm.

One for the paper and one for the physical.

I dunno. My opinion is that you'll go to bed on Friday, a poo-bomb will go off over the weekend, and when you wake up on Monday, no paper market will matter anymore. Either they'll be closed or the prices they're "discovering" will be so far off the mark that nobody will be paying attention to them.

I Hope Someone Here Can Answer

Submitted by NancyDrew on June 22, 2012 - 1:27pm.

I hope someone here can answer a question I have. We have some Prudential stock (that we didn't even know we had) & received a letter giving instructions on how to cash it in. When I called to do so, they asked how we wanted to sell - market or group? I didn't have any idea. I now want to call again while I have a day off, although it's probably gone down quite a bit by now. Can anyone please advise me of the difference between selling "market" or "group". I figure no matter what it's worth I may as well get it out now, since we weren't aware of it in the first place.