Cutting Vacation Short

This is relentless and unforgiving...and I'm not talking about MrsF.

So bad that I'm cutting my mini-vacation short. I still don't have time for a full post so here are two items for you to read this morning.

ZH has been doing an excellent job chronicling the consistent, daily destruction. Here's the latest: http://www.zerohedge.com/news/2013-02-20/precious-metals-morning-slam-right-schedule

And here's someone who has noticed some of the same "anomolies" that I have: http://www.zerohedge.com/contributed/2013-02-20/curious-case-falling-gold-and-silver-prices

The charts, of course, look terrible. Having failed at hoped-for support, silver looks like $28 and gold, if $1580 fails, looks headed all the way back to the bottom of the 18-month range, near $1550.

This is all highly unusual and indicative of extreme manipulation and panic-level positioning. At the risk of sounding trite and reading like another KWN pumper, I must say it: THIS WILL PASS. THESE EXTREMES WILL BE RESOLVED SOON AND NEW UPLEGS WILL BEGIN. PLEASE BE PATIENT. THE FUNDAMENTALS ARE STRONGER THAN EVER AND PHYSICAL REALITIES WILL SOON REPLACE PAPER SHENANIGANS AS THE DRIVING FORCE BEHIND PRICE.

More later if possible.

TF

550 Comments

Dr G's picture

yaay

I'm hoping we don't drop much further here, but all signs tell me that we will dip lower. Maybe $1575 or lower eventually for gold and $28.30ish for silver at some point in the near future? My stack is large enough, so I'm still not a buyer here.

I don't disagree with Turd that the fundamentals are strong. But I'm a firm believer that the spot price has no basis in reality and therefore no basis on fundamentals. We know this after years of watching this play out. We should not be surprised as the prices continue to drop lower and we feel the fundamentals are only increasing in bullish nature.

In other words, the PRICE of silver may drop, but that does not correlate to the VALUE of silver.

P.S. Turd's mention of KWN reminded me that I haven't visited that hell-hole of a site in the past 90 days, and it's been the best 90 days of my life. What a waste of time.

Green Lantern's picture

foist?

foist?

OC15's picture

Thurd?

Yes? YES!

philly's picture

4th

4th today feels like 4th and goal from the 50 yard line!!

Fr. Bill's picture

Otay, I'll take anything in the top ten!

So, there.

ag1969's picture

Wow

These guys are getting desperate.  There must be some pissed off coin dealers and miners today. 

6th Amendment

In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defense.[

tyberious's picture

We'll

See if they can shake some of these silver contracts!

sethleon's picture

I think what Turd is hinting

I think what Turd is hinting at is that something epic and historical is about to happen in the market. This isn't the usual "chin up, prices will recover" speech. He must have heard some sort of insider information.

TD's picture

Somehow on topic

NAPLES, FL—Describing it as a “real close call,” a local seagull suffering from an acute case of diarrhea told reporters that he was barely able to make it to a crowded public beach in time to relieve himself Monday. “Oh, man, I really had to go and there wasn’t a sunbather or occupied picnic table in sight—I honestly didn’t know if I could hold it,” said the gray and white seabird, who reportedly uttered a deep, contented sigh of relief upon finally reaching a densely packed group of beachgoers and releasing a voluminous torrent of loose fecal matter. “The last thing you want is to just go right there over the water or a bare stretch of sand. But thankfully I spotted a few families without beach umbrellas and was able to make it just long enough. Must have been some bad parking lot hot dog I ate.” At press time, the seagull reportedly felt another oncoming, urgent bowel movement and was rapidly racing toward the nearest convertible.

http://www.theonion.com/articles/seagull-with-diarrhea-barely-makes-it-to-crowded-b,31354/?ref=auto

tmosley's picture

If it doesn't resolve, the

If it doesn't resolve, the market will break and physical will finally diverge from paper.  Physical will reset to a value that few would believe today, just like they never would have thought that a dollar's worth of silver would be worth $50 a mere 16 years after they stopped minting silver coins in the US.  Only this will happen faster, as the "dollar" in this case isn't even a dollar, but just fraudulent quasi-receipts.

This is why I don't want the paper silver price to rise.  That would at best quadruple my purchasing power over the next couple of years.  My scenario resets my purchasing power upwards by orders of magnitude.

This is the inevitable result of market manipulation.  And the longer they try to keep the market manipulated, the greater the reward.  This instance is probably the greatest example of market manipulation in human history.

The path to the new oligarchy is not an easy one.  Simple, but not easy.

Byzantium's picture

GSR

For those with the means to trade it, the GSR is offering opportunities, as silver is falling faster than gold.

We broke 55 today; I am getting ready to do a little conversion from gold to silver.

Byzantium's picture

The plunge

I would imagine that this is just a raid to farm sell stops. Once the booty is loaded, there might be a frenzy of short covering. We'll see.

CaribSurfKing's picture

4 year trend gone

Now it could go anywhere.
It appears Turd was completely wrong.
Surely a paper phyzz divergence is to be avoided by the Fed?

Bobbejaan's picture

Quote:Dr. G said :- In other

Quote:
Dr. G said :-

In other words, the PRICE of silver may drop, but that does not correlate to the VALUE of silver.

Fixed that statement here ....

In other words, the PRICE of PAPER silver may drop, but that does not correlate to the VALUE of REAL silver. devil

Punk-Assets's picture

I don't think this will pass

I don't think this will pass soon. No way. I'm still a long term bull but I don't see how we're going anywhere but down or sideways in PMs until we have a real crisis. I want very much for this to be the final puke where everyone who cant stand the pain sells...bullion, paper. Whatever. I dont care if gold goes down to $1100 as MA is warning. Lets fricken get on with it. I'll still be buying as much as possible. Actually, I like that we have more time to prepare - as painful as it is. 

Jasper's picture

Yippy; down down down!

Wow!  With this type of action, something is going to break.  Hoping this is the washout day.  Trying to buy some July Silver 34 calls for 26 pennies each.  Almost there!

zinlover's picture

almost at that load the boat moment...

hey, why not?!  of course, it could be the baily's in my coffee spurring me on...

I don't see what is to be gained here, unless some of the shorts get covered.  Otherwise, are they TRYING to break the PM market?

brad_pitts_betterlooking_brother's picture

this has to be one of the

this has to be one of the most bizarre articles in a field of bizarre articles.

http://www.telegraph.co.uk/finance/currency/9881410/China-loves-the-US-dollar-again-as-America-roars-back.html

billwilson's picture

need a catalyst

Just too damn easy. Buy market, short PMs.

Until the market going up (hopium) fades, PMs get killed.

Seriously oversold .. and getting  more so. Fed minutes may do the trick.

Interestingly SPY and GLD are now at the exact same level for the first time in bloody ages.

But for now good data, rising markets spells "no worries", no need for PMs. As phony as it all is.

tobydaniel's picture

Not desperate, just in total control of price

It's their platform. The bankers can do whatever they please. Enjoy your paper games suckers! Serves any of you right for trading paper. I'll keep reminding you from time to time as silver gets stuck at 27.50 for months on end. Looking foreword to my nice Turd hat:)

¤'s picture

Sequestration

One thing no one is talking about is the upcoming budget sequestration on March 1st that will automatically reduce spending by a significant amount.

Is the market looking forward and saying that the automatic cuts happen and hence gives the appearance of cutting our debt and getting serious about our fiscal plight? 

I realize much of the political jawboning is rhetoric and easy to dismiss as ineffective and not to be taken seriously by us and many others.

However, gold has risen over the past decade based on debt fears and USD devaluation etc. that soon might suddenly get tamped down or at least give the impression in a MOPE way that the market and the ratings agencies need and want to see.

While  I believe much of what is going on is in part the overtime effort of the cartel at work I also need to consider that it is also a capital liquidation move by some that is hedging against and preparing for the effects of this sequestration even if much of it is budget slight of hand stretched out over the next decade possibly.

As we have seen repeatedly and daily over many years is that all it takes in this market is effective and believable MOPE. Right or wrong, we see MOPE work all the time.

A sequestration on the scale they are talking about is MOPE but it's also a very real budgetary event that the market and agencies will see as USD positive and potentially negative on gold in this small window of time.

This is what I see and feel needs to be given some thought to at this point. While shorting by the cartel is always in play it appears they are also going with the flow and the overall selling momentum during this pre-sequestration capital liquidation.

zman's picture

I am starting to agree with

I am starting to agree with the fact that paper gold/silver is in BIG trouble, and will not trade normal moving forward.

Even Jim Willie said the paper price and the physical price are going to disconnect, and I think it was already started, the paper price may be done.

TBTB are going to destroy the paper prices for the next few years, and then may go about a currency "reset" at some point, until then there is not likely going to be any rallies or new highs.

Amazing, the physical demand for investment silver is weak enough that they can get away with it.   Not enough investors take physical possession of silver.

Also, Rick Rule on CNBS at 12.

jezfry's picture

Choreographed

I'm sure it's not just PM's that are under the influence of the banking cartel, so are stock and bond markets, inter-country relationships and ultimately war. It would not surprise me in the slightest to see the stock market peak at the same time as PM's bottom at the same time as a major geo-political event causes a rush into the bond market. All in the name of saving the petro-dollar and the wealth of those who benefit most from it's existence....

H - original's picture

Oh boy... sale prices like

Oh boy... sale prices like these have me feeling like this:

Off to LCS :)

EDIT: Couldn't wait... just went online and ordered me up another 40oz AG  - not much I know, but every little counts.

Mad5Hatter's picture

wednesday bottom?

must have been that gold audit ...

El Gordo's picture

Hear that beep, beep, beep?

That's me backing the truck up to the loading dock.  I may have to call U-Haul to reserve another one if this one is not big enough.  Bring it on Leroy, put it right there in the corner and go get another load.

prius_driver's picture

This is horrific

If it doesn't turn around on the beige book, I'm selling a lot of miners.

Urban Roman's picture

Like I was saying yesterday, Turd,

Those of us who are not rending our bodices, are not writing in to complain. Some of us are on the way to a LCS instead. 

Shiny things: 

Krug back Krug front

Strongsidejedi's picture

@DPH - Sequestration

For several days I was eating up that "sequestration" = "huge impact cuts" story.

It's bunk.

The sequestration is rather insignificant because the deficit is so large.

More importantly, the lay offs and immediate impact are due to the cabinet level officers reacting.

The healthcare impact of the sequestration is real.  But, the impact is not due to the lack of money velocity.  The impact IS due to the fear in the c-level offices.  The c-level guys don't want to look like chumps in the next quarter.  That's why the cuts in the jobs are occurring now.

Northern Border's picture

Sub 29 ?????

This is a gift.  Use it to your advantage.

"Back up the truck, load the boat, BTFD, all in"

Whatever floats your boat, just BUY MORE METAL TODAY.

Use this weakness to add to your physical position. 

Oh Yeah, and everything else that is not nailed to the floor.

NB

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