A Wild Week Begins

So, with Cyprus "fixed", investors everywhere are selling their gold. That's what the MSM and CNBS will tell you. Of course, nothing could be further from the truth.

You likely noticed that gold fell considerably more than silver this morning. That's unusual, huh? It paints a rather clear picture, though.

  1. The playbook for this sort of thing can be traced back to the wee hours of September 6, 2011. (Rather than spell all of that out again, I'll leave that to you, my dear reader, to explain what I mean.)
  2. Option expiration for the April13 contract is today and the steep drop also allowed The Cartel the opportunity to fiddle around with anyone foolish enough to be short some $1600 puts.
  3. Silver has recently seen extremely strong support on every dip to $28.60, as you'll see on the chart below.

And this is just the beginning. This week is also a holiday-shortened venture, it's the end of the first quarter and First Notice Day for the April13 is Thursday. All in all, if you were made uncomfortable by this morning's action, I strongly suggest that you turn off your computer and take the rest of the week off.

For those willing to stick around, here's what we'll be looking at. Let's start with the hourly charts. First, here's gold, which is clearly rolling over and, having failed to hold $1600, looks likely to fall back toward $1570-1580 sometime this week.

And look at this hourly silver chart. Not only has silver been stuck between $28.40 and $29.40 since February 20 (A streak of nearly five weeks which you won't be able to find anywhere else on the charts unless you go back to at least 2010), for the past two weeks it has essentially been stuck in a 40¢ range. Unprecedented, unbelievable and incredible. A virtual flatline. But...like the proverbial duck analogy...what appears calm on the surface belies great turbulence underneath. On this chart, you can see considerable capping effort being expended at $29. However, you can also see significant bursts of buying every time silver drops to/near/below $28.60. Eventually, one side will win, but, which side will it be???

The longer-term, daily charts continue to show that, for all the short-term hoopla, nothing has really changed. Yes, the metals have been in protracted and forced declines since October BUT all they have done is simply move from the top to the bottom of their current (now 18-month!) ranges. The next "event" we'll be watching will be the interaction of price with the downtrend lines within the ranges. Even that appears to be several weeks away, however. The only truly interesting thing on the gold chart is the incredible similarity between the current time and mid-Dec/mid-Jan, circled in red. Move along, now. Nothing to see here. I'm sure it's just a coincidence.

Just a couple of other things. First, our pal Paul Coghlan is hosting another FREE webinar at Noon EDT today. I highly recommend that you attend. You can register here: http://www.coghlancapital.com/node/5499

The Sprott folks just put out an interesting piece on silver, which I found at ZH: http://www.zerohedge.com/contributed/2013-03-25/silvers-investment-demand-conundrum

Alasdair Macleod has this terrific write-up on money supply and velocity: http://www.goldmoney.com/gold-research/alasdair-macleod/money-supply-accelerating.html

Brent at Santiago Capital has a great new presentation. Just click the link and enter your first name: http://play.goldmail.com/ehlflm5vu00p

And I was on with Dr. Janda again yesterday. You can listen to it here (I always chuckle when he call me "a force in the internet blogospherecool): http://www.davejanda.com/audio/TurdFerguson032413.mp3

Have a fun rest of your day!

TF

227 Comments

huiaid's picture

First

First

marakai's picture

Yayyy

Another top ten for me.

treefrog's picture

thurd!

gold is back over 1600!

ndb's picture

Thanks Turd. Should be a

Thanks Turd.

Should be a crazy week.

Just bought some Au Buffs.

silver66's picture

Third

sweet....what a way to start the week

Silver66

edit oops....I mean 5th

556nato's picture

top ten

Third?

sengfarmer's picture

top ten?

yeah baby.

Nana's picture

Wild Times

Attention: It's now government sanctioned to steal fiat from any and all sources deemed open season on...

===

8th Amendment: Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

philly's picture

Must keep stacking...must

Must keep stacking...must keep finishing in the top ten...must keep the faith...

Larry L's picture

Silver Ladies

Where are those Silver Ladies? I feel a buy coming on!

tmosley's picture

I would only turn off the

I would only turn off the computer if you want to miss all the European hilarity.

May the farce be with you.

Edit: right after i posted this comment, I went over to ZH and had a laugh out loud moment with this:

A Word Out Of Place Sends Europe Tumbling
Submitted by Tyler Durden on 03/25/2013 - 11:07
Perhaps the best example of a "word out of place" comes from the new Eurogroup head, Dijsselbloem, also phonetically known as Diesel-BOOM, who just may have ushered in the next, next wave of the Eurozone crisis:

"Cyprus a Template For EU"

We will ignore the rather hilarious Freudian slip, and focus on what he was explicitly talking about with Reuters, what Cyprus allowed was the effective usurpation of democracy - the only reason the Cypriot bailout "passed" (at least so far) is because it was structured as a bank restructuring, a financial system "resolution", not a tax, and thus not in need of a parliamentary, democratic vote. Because as Cyprus also showed, votes to deprive depositors of cash, whether insured or uninsured, simply won't fly. Hence the shift.

billhilly's picture

FIAT...

Found
In
A
Toilet

AlexCojones's picture

Huge Gold Mine Discovered On Cyprus !!

"Mining experts today discovered a huge gold mine on the island of Cyprus. History buffs expressed shock and amazement but were pleased that the discovery presented every Cypriot with the opportunity to strike-it-rich. Not surprisingly, the price of gold fell $12.60 with the announcement. Experts predicted a further debasement of the ancient and barbaric relic, as any discovery of gold, however small, signals an end of gold's usefulness in the modern world."

"In other surprising news, the University of Cyprus Strikers advanced again in their bracket, for the Sweet 16, and will play the winner of the Florida vs Florida Gulf Coast game."

Excellent insight today, Mr. Ferguson, re Gold & Silver.

Nana's picture

BTW

It's their fiat and it's our gold and silver.

achmachat's picture

FYI

kitco's feed is dead and flatlining.
it shows 28.72 for silver, when it already went to 28.9

edit: they found their data feed again ;-)

alan2102's picture

notes from sinclair meeting

just posted at end of last thread, if anyone is interested:
http://www.tfmetalsreport.com/comment/286827#comment-286827

alan2102's picture

notes from sinclair meeting

just posted at end of last thread, if anyone is interested:
http://www.tfmetalsreport.com/comment/286827#comment-286827

Finnish warrior's picture

Euro showing some weakness

Euro showing some weakness ....i tought europe was fixed.

jonathanmarktaylor's picture

Sinclair meeting notes

This is the same person who said that Gold and Silver were going to breakout much higher by 29th March?!!

dgstage's picture

Cyprus a Template For EU

http://www.zerohedge.com/news/2013-03-25/word-out-place-sends-europe-tumbling

THis is most likely what took gold back over 1600

Ten_of_Swords's picture

Reposted from the last thread.

I have come to the conclusion that not only can Cyprus happen in the US, but it is, in fact, baked into the cake. I offer up the following for your consideration:

http://www.eutimes.net/2013/03/russian-leader-warns-get-all-money-out-of...

http://www.zerohedge.com/news/muddle-through-has-failed-bcg-says-there-m...

http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm

The first is an article from March 21st discussing Russia issuing an alert to citizens and corporations to begin divesting funds from western banks including the US. The second is a ZH article from 2011 about a BCG memo referenced in the first article. The third link is a speech from Ben Bernanke in November of 2002 where he discusses some options for the Fed including:

1. Lower interest rates to zero.
2. Buy securities from the banks to expand the Feds balance sheets
3. Increase the money supply.
4. Buy our countries debt.(and foreign debt too!)
5. Devalue the dollar.

achmachat's picture

so?

my calendar shows March 25th.

ancientmoney's picture

A snippet from great article by AGXIIK . . .

"To my ears Austerity is code for “DIE” and be quick about it. We, the banksters of the world are on a mission. World wide domination. We will do it by any means at our disposal and humanity is disposable.
This is the Big Tell. We saw it with all its radiant stench and wretchedness, laid on the people of Cyprus. It does not matter the whys and hows, the reasons the people of Cyprus find themselves in this jam. It’s the way they are being treated and the end results of the destruction planned for them and their country.
This Big Tell is also a clarion call and if you’ve tolerated my long essay, then you’ll see that clarion call is pretty simple.
GET THE HELL OUT OF THE GAME.
Take your stack, push away from the table, cash in the chips, tuck them away, bid adieu to the players, wish them good luck as they will need it and exit as fast as your feet can carry you out of the casino and down the road. It does not matter if you are ahead of the game, breaking even, or losing a bit, the big stacker players are coming for us, every one of us and the best thing we can do is get out.

They made the most serious mistake a player can make. They told us how they play the game. It’s a ‘no win’ if you stay. The only way to win is leave. I’ve been there, done that and lived to tell the story. And I am an amateur to that game."

http://www.silverdoctors.com/cyprus-wealth-grab-the-big-tell/

Bollocks's picture

Gold and silver sales are up 400% in the UK...

... over the last 2 weeks because of what is going on in Cyprus.

Also, buyers are very worried about what's going on there.

This is from a credible source - right in the thick of it, so to speak.

Bohemian's picture

USD

From the last thread --

The fact is that the USD is up 1.0-1.2% against some EU currencies and the Euro itself, in just 6 hours, while gold is not down so much; silver being flat for now. These are huge moves in currencies and the EU bonds and stocks of financial institutions are really hammered.

Groaner's picture

ECB raid on Cyprus banks and look who got whammied

http://www.zerohedge.com/news/2013-03-25/cyprus-church-loses-eur100-million-curses-those-responsible

The Bible states the UN, (governments) will go after Religion.. Babylon the Great and devastate Her.
the 10 horns represent the governments.. the wild beast is the UN, Note that at the right time, God will motivate the governments to devastate the world empire of false religion.. this will occur during the Great Tribulation

Rev 17:15 “The waters that you saw, where the harlot is sitting, mean peoples and crowds* and nations and tongues.+ 16 And the ten horns+ that you saw, and the wild beast,+ these will hate the harlot+ and will make her devastated and naked, and will eat up her fleshy parts and will completely burn her with fire.+ 17 For God put [it] into their hearts to carry out his thought,+ even to carry out [their] one thought by giving* their kingdom to the wild beast,+ until the words of God will have been accomplished.+ 18 And the woman+ whom you saw means* the great city that has a kingdom over the kings of the earth.”+

The women, which has a kingdom over the kings of the earth is Religion.. But they will burn her with fire.. a symbol for complete destruction.

REV 18: 1 After these things I saw another angel descending from heaven, with great authority;+ and the earth was lighted up from his glory.+ 2 And he cried out with a strong voice,+ saying: “She has fallen! Babylon* the Great has fallen,+ and she has become a dwelling place of demons and a lurking place of every unclean exhalation*+ and a lurking place of every unclean and hated bird!+ 3 For because of the wine of the anger of her fornication* all the nations have fallen [victim],+ and the kings of the earth committed fornication+ with her, and the traveling merchants+ of the earth became rich due to the power of her shameless luxury.”+
4 And I heard another voice out of heaven say: “Get out of her, my people,+ if YOU do not want to share with her in her sins,+ and if YOU do not want to receive part of her plagues. 5 For her sins have massed together clear up to heaven,+ and God has called her acts of injustice to mind.+ 6 Render to her even as she herself rendered,+ and do to her twice as much, yes, twice the number of the things she did;+ in the cup+ in which she put a mixture put twice+ as much of the mixture for her.+ 7 To the extent that she glorified herself and lived in shameless luxury, to that extent give her torment and mourning.+ For in her heart she keeps saying, ‘I sit a queen,+ and I am no widow,+ and I shall never see mourning.’+ 8 That is why in one day her plagues+ will come, death and mourning and famine, and she will be completely burned with fire,+ because Jehovah* God, who judged her, is strong.+
9 “And the kings+ of the earth who committed fornication with her and lived in shameless luxury will weep and beat themselves in grief over her,+ when they look at the smoke+ from the burning of her, 10 while they stand at a distance because of their fear of her torment and say,+ ‘Too bad, too bad, you great city,+ Babylon you strong city, because in one hour your judgment has arrived!’+
11 “Also, the traveling merchants+ of the earth are weeping and mourning over her,+ because there is no one to buy their full stock anymore, 12 a full stock+ of gold and silver and precious stone and pearls and fine linen and purple and silk and scarlet; and everything in scented wood* and every sort of ivory object and every sort of object out of most precious wood and of copper and of iron and of marble;+ 13 also cinnamon and Indian spice* and incense and perfumed oil and frankincense and wine and olive oil and fine flour and wheat and cattle and sheep, and horses and coaches and slaves* and human souls.*+ 14 Yes, the fine fruit that your soul desired*+ has departed from you, and all the dainty things and the gorgeous things have perished from you, and never again will people find them.+
15 “The traveling merchants+ of these things, who became rich from her, will stand at a distance because of [their] fear of her torment and will weep and mourn,+ 16 saying, ‘Too bad, too bad—the great city,+ clothed with fine linen and purple and scarlet, and richly adorned with gold ornament and precious stone and pearl,+ 17 because in one hour such great riches have been devastated!’+

Urban Roman's picture

@ Dr. Jerome

I think I recall the video you were looking for, it was posted a year or two ago. I think the guy in the above video was in it, but it visited some other permaculture farms in the English countryside. Useful stuff.

Mickey's picture

fdic

remember fdic has 25 billion to cover 9.2 trillion in deposits

also, we used to be able to open accounts around town and be insured. new rules are tied to total related to one social security account number-

they are planing ahead to stick it to depositors

I assume checking account depositors are included--think about business checking accounts and the float of checks outstanding-you could have a situation where more gets taken than there is there..a company could have a sweep account--which would be swept into overnight treasuries which the government would like.

lots of moving pieces but if Italy and Spain are next for having trouble the US will get a huge whiff of that.

ancientmoney's picture

Another important snippet . . .

"As of 1 April 2013, ABN AMRO will switch over to another custodian for precious metals gold, silver, platinum and palladium.
Therefor we will handle and administer your investments in precious metals differently. In this letter you can read more about this.

What will change?

With the transition to the new custodian, the following will change for you as of 1 April 2013:
• You can no longer request physical delivery of your precious metals from us"
------------------------------------------------------------------------

http://www.silverdoctors.com/dutch-bank-abn-amro-halts-physical-gold-delivery/

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