Antidote For Manipulation

Monday, February 11, 2013 at 1:47 pm

Though, admittedly, it's anecdotal.

So, let's see...The Cartel uses the Chinese New Year holiday to jam price through the 200-day moving average. This trips a bunch of sell-stops and here we are. The gold chart now looks lousy and it is below each and every relevant moving average. Once again, if the LegHounds are going to go to work on ya, you'd better just let them finish their business. This too shall pass, though, and the opportunity to trade some paper may even present itself very soon.

So, what's this anecdotal antidote, you ask? Well, here's just a sample:

Once again today...and even though it's a Chinese holiday...the Comex drop sparked enormous allocations of physical in London. This continues the trend of paper-bashing in front, deliveries out the rear.
And this story certainly got a lot of play over the weekend: http://www.bloomberg.com/news/2013-02-10/putin-turns-black-gold-into-bullion-as-russia-out-buys-world.html. But what a joke it is that this MSM story opens with this paragraph:

"Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty."

Are you kidding me, Mr. Rose & Ms. Tanas? "A quarter more than runner-up China"? Did you somehow miss this story?: http://www.zerohedge.com/news/2013-02-05/china-imports-record-amount-gold-december-price-drop. Note the source material for the ZH story is this article, also from Bloomberg: http://www.bloomberg.com/news/2013-02-05/china-gold-imports-from-hong-kong-gain-to-all-time-high-in-12.html
But again, no sense alarming anyone. There's no way that China could be moving toward transforming the yuan into a reserve currency...at least according to The Economist: http://www.economist.com/news/leaders/21571442-rise-chinas-currency-will-change-way-world-does-business-yuan-money
And, of course, this from Bloomberg and BusinessWeek should just be ignored: http://www.businessweek.com/news/2013-02-09/china-passes-u-dot-s-dot-to-become-the-world-s-biggest-trading-nation
But my favorite is the notion that "gold is in a bubble" and that "everyone who wants to buy has already bought". A few days ago, we shared a post from SilverDoctors concerning first-hand evidence of extraordinary individual demand in China: http://www.silverdoctors.com/first-hand-account-of-gold-silver-mania-in-china-black-friday-style-mobs-scrambling-for-bullion/. Over the weekend, a Turdite reported a similar situation, this time in Thailand:

"Hi Turd. Just got back to my apartment in Bangkok. Went to china town, its Chinese New Year today. WOW. Talk about quite the time. I am here for a month exploring the city and trying to drum up some international business contacts. Anyways on to why I emailed you. The gold buying was freaking NUTS!!! Stores were packed. I walk by a huge horde of people and a big announcement, I weave through the line to see what the commotion is. It is Disney announcing a new line of gold coins and jewelry they are launching, people were going berserk. I thought I would mail you some pics. Thought the Turdites might enjoy."

So, take it all for what it's worth. However, it certainly seems that if The Monkeys insist on jamming price lower in NY, there's an unlimited supply of physical buyers around the rest of the globe, from Central Banks to ordinary citizens. The question is: On whose side do you want to be on, the paper sellers or the physical buyers?

Lastly, I was honored to be on with Dr. Janda again yesterday. Here's a link if interested in listening: http://www.davejanda.com/audio/TurdFerguson021013.mp3

Have a great day.

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Comments

First.

Submitted by Mr. Fix on February 11, 2013 - 1:50pm.

Who would have thunk it?

(Sorry, I didn't intend a double post.)

Sometimes you just get lucky.

Submitted by Mr. Fix on February 11, 2013 - 1:51pm.

Demand is high everywhere

Submitted by BIGNASTY on February 11, 2013 - 1:53pm.

Demand is high everywhere but the price keeps dropping, BTFD looks like my tax refund just got spoken for. Kind of crazy when the soviets are leading the way to structural fiscal /market integrity. Thanks Turd for more great info.

furth!

Submitted by treefrog on February 11, 2013 - 1:53pm.

happy monday! is that a bounce off of 30.82/1645-6? too early to tell. here's hoping, anyway.

huh?

Submitted by Bollocks on February 11, 2013 - 1:54pm.

It's a thread-frenzy day!

Wow, Turd Busy today.

Submitted by ag1969 on February 11, 2013 - 1:56pm.

And he has not even gotten to the Petrus Romanus post yet!

And I doubt I will

Submitted by Turd Ferguson on February 11, 2013 - 2:03pm.

MODERATOR

Maybe sometime soon but not today.

Anyone wishing to read upon their own, this wiki page pretty well sums it up:

http://en.wikipedia.org/wiki/Prophecy_of_the_Popes

Response to: Wow, Turd Busy today.

6th

Submitted by acer rubrum on February 11, 2013 - 2:06pm.

If fix is first with double post, and Turd's post doesn't count, them I would be the 6th... like the soon to be released wood bison http://silvergoldbull.com/1oz-2013-canadian-wood-bison-silver-coin

Come on now Turd...

Submitted by Kcap on February 11, 2013 - 2:09pm.

It is indeed true that...

"everyone who wants to buy has already bought".....

BUT, what they are not telling you is that all the people who "don't know they want to buy have yet to buy"....

The smart people have already bought. The sheep will follow...they have to, they always do. CB's, SWF's, BB's....they are loading to the gills despite paper machinations.

The whole thing just warrants a big 'ol LOL!

Kcap

I hope that everyone in the

Submitted by Turd Ferguson on February 11, 2013 - 2:10pm.

MODERATOR

I hope that everyone in the U.S. NE is ready for another massive snowstorm.

http://ready.arl.noaa.gov/ready2-bin/javaanim.pl?id=GFS&mdl=grads/gfs&file=panel2&nplts=33&width=800&height=700

The Fed is Yellen.. Not so loud please,, that

Submitted by Groaner on February 11, 2013 - 2:10pm.

low prices allow unemployment focus..

so we get a pop.. on what?

I wear bifocul contacts and have a very hi res 17" Macbook pro so my vision looking straight at the screen stinks, plus my typing and spelling is even worse.. so there you have it..on my constant goofs.

Interesting status on Facebook from Mike Maloney

Submitted by The Green Manalishi on February 11, 2013 - 2:12pm.

Mike Maloney

Facebook friends, we have a major announcement coming up. Hint, hint => The Federal Reserve won't like it :-)

Might be nothin'

"we have a major announcement coming up"

Submitted by Bollocks on February 11, 2013 - 2:17pm.

The Green Manalishi: " Might be nothin' "

LOL. You eternal optimist.

That would be me Turd

Submitted by ag1969 on February 11, 2013 - 2:20pm.

Not only did we get over two feet of snow with another one coming, but it is snowing right now.

Bollocks

Submitted by The Green Manalishi on February 11, 2013 - 2:22pm.

After listening to KWN for a few years you get like that.

Sylvia failed breakout

Submitted by Turd Ferguson on February 11, 2013 - 2:22pm.

MODERATOR

And now could easily fall to 1660 or even 1600 before consolidating and trying again.

SI

Submitted by rtabit on February 11, 2013 - 2:23pm.

SI Daily: 30.55 area at the lowest floating parallel (same as old green trend line) should offer strong support, if that fails lower parallel line is currently about 30.00 area, never been support before but I'd really like to see a nice bounce off that to further validate fork. I currently have no SI positions.

http://www.screencast.com/users/RandyTabit/folders/Silver/media/c9bfee40...

SI 240: Looks like currently 30.74 area may get support, but chart best for used for resistance, currently around 31.87 area, to either take off profits or open possible short position.

http://www.screencast.com/users/RandyTabit/folders/Silver/media/632990c1...

fuck that

Submitted by Turd Ferguson on February 11, 2013 - 2:23pm.

MODERATOR

...but I'm sure it's beautiful in the fall, when the leaves are changing...

Response to: That would be me Turd

blizzard!

Submitted by treefrog on February 11, 2013 - 2:24pm.

currently 74 and cloudy at treefrog manor, behind the spanish moss curtain.

to quote sleazy willy, "ah feel yore pine." (not).

Thanks, rtab

Submitted by Turd Ferguson on February 11, 2013 - 2:25pm.

MODERATOR

On your top chart, I think we're going to hit that bottom fork blue line.

Response to: SI

Chinese new year

Submitted by Strongsidejedi on February 11, 2013 - 2:29pm.

The party is still on in China.

Last year, the same thing happened...remember?

The markets in PM went flat line for a week... then pow.

Brutal Paper Trading Today

Submitted by Texas Sandman on February 11, 2013 - 2:31pm.

Almost completely trendless in the NY session. One sort of ok bearish trend to short, but aside from that, chop-chop-chop.

I traded my little heart out to eke out a gain of a mighty $75 (loss of $25 after commissions).

Very hard to make a buck in a market like this.

Thanks for the weather report,

Submitted by Mr. Fix on February 11, 2013 - 2:32pm.

I would not have seen that one coming. It looks like a trend. Might be a lot of storms.

I just listened to the Jim Willie podcast, there is some new news in there, particularly as it relates to all of that “non-monetary gold” that the US exported recently.

Seems like things are moving quickly.

Thanks for all you do Turd.

Back to work for me.

Nah, platinum is not going back to the 1600's

Submitted by tobydaniel on February 11, 2013 - 2:34pm.

You can sell the platinum phyzz for around 1800 right now or more online. The 1oz platinum maple leaf is actually going for 3000 dollars in England. Eff the paper price. Who cares!!!!

Fed says focus still on job creation...

Submitted by Groaner on February 11, 2013 - 2:41pm.

Maybe they should take the focus OFF job creation and then we might have some jobs.

With their interest rate manipulations, bubbles and busts have caused job destruction so thats what they need to work on..
Let someone else set interest rates...

Newest winter storm:)

Submitted by ClinkinKY on February 11, 2013 - 2:42pm.

Fox news announcing Obama will announce another round of fed $

Submitted by Nephi on February 11, 2013 - 2:55pm.

Sorry can't find the link, but it was just announced that Obama in tomorrow's State of Union Address will ask for more federal spending on infrastructure and education blah blah blah.. Could this also be a reason for today's blatant manipulation?

If you're in the UK, grab some popcorn...

Submitted by Bollocks on February 11, 2013 - 2:56pm.

BBC1 8.30pm tonight:
Panorama - Inside Barclays: Banking on Bonuses

Financial repression rules . . .

Submitted by ancientmoney on February 11, 2013 - 2:58pm.

The markets are all geared for financial repression. ZIRP means fixed investments like CDs, MM, etc. are negative after taxes and inflation (by a long shot after real inflation).

Nobody will be allowed to get rich in paper silver and gold. Even if it moonshots from these levels while holding paper representations of the PMs, the dollar depreciation will mean the fiat gains will quickly be meaningless.

There are almost no ways to beat inflation in paper investments without huge risk (and tons of pure luck) in the house-owned casinos called stock and bond markets.

The only way to beat the FR policy is to keep as little as possible in fiat to pay the bills; sell any paper asset available, and use proceeds to buy food, water, protection, and physical PMs.

ARe your kids bored playing old Extremely Violent video games?

Submitted by Groaner on February 11, 2013 - 3:01pm.

then run them down to Drones are Us.

Yes, we have the latest real flying Drones that carry safe, M80 fire crackers which they can target their kids at school who bully them all the time..

They will learn first hand from experts who use them to murder people who they think are enemies, with out do process of course.

Yes Drones are Us..10% off sale going on now! Fly American!