Plowing The Field

At this time of year, the first step in preparation for planting is to plow the field. Turn the soil upside down so that it's ready to accomplish it's purpose. Same thing today in gold. Plow the field. Turn the market upside down so that it's ready to accomplish its purpose. And what's the purpose?

Option expiration, of course! We are now just 2+ days from the expiration of options for the front and delivery month of June. With Monday being a U.S. holiday, there's only today, Friday and Tuesday left before expiration. Looking for an explanation as to why gold is down and not up today, even with all of the supposedly gold-positive headlines and a mini-spike at the PM fix? Look no further than the June gold open interest numbers and you'll have your answer.

Here is the list of open interest for the June call options. As you can see, there is very little incentive for The Banks to allow a Tuesday settlement price above $1200. In fact, if they can nudge price just a shade below $1200, they'll save A LOT of money as there are currently 9,183 open options at $1200 alone.

On the flip side, there's not much incentive to break price down below $1200, either. As you can see, there are also 8,449 open $1200 puts still open. Therefore, any steep drop below $1200 also costs The Banks quite a bit of money.

Obviously, this can change between now and Tuesday as positions are moved and contracts are closed. However, rarely do you see such a clear line of demarcation and it very likely has a lot to do with price having spent so much time close to the round number of 1200.

So, in the end, when you see that gold is actually down a few dollars today...with a last of $1205 after a low of $1201...recognize what is going on here. The ground is being plowed. Expect volatility these next 2+ days as positions are rolled and anyone short calls or puts gets squeezed/fleeced as they always do. In the end, though, any Tuesday close outside of a $1200+3 range would be very surprising. Very surprising, indeed.

And what are those headlines today that should be gold positive? Here are just four from ZH:

For the rest of the day...and while keeping in mind all that is written above...let's continue to watch those MAs that we've been following all week. The 100-day in the June gold is $1211. The 200-day in the July silver is $17.13. That silver is clinging so tightly to that level as support is really quite encouraging. Regardless of the nonsensical "analysis" out there by paid, sell-side shills, I still strongly believe that silver has bottomed and that it is tracing out a massive "W" on the chart that will soon be recognized by folks outside of Turdville. As this happens, upside momentum will grow and a virtuous cycle will develop.

Just two other links for you this morning. This from Koos is extensive and well-written. Please be sure to check it out:

And this other link I found at ZH is, sadly, terrific. What an awful commentary on the current state of affairs:

Again, life has become nothing but a big pile of double seasonally-adjusted lies...and those who pillage and steal off of this corrupt system are allowed to walk free and even exalted in the financial "media". Ugh. But I'll state it again. The Truth wins. It almost always does. And we are on the side of Truth. Relax and be happy, knowing that you are not complicit in the lies and fraud.



goldcom's picture



Age Zilverstra's picture


vote early and often...

Age Zilverstra's picture


vote early and often...

Edit: fat finger double post, that obligates to vote again. 1339

Danforth Coxwell's picture


two ????

SE's picture

So far...

Turd, it looks like my guess of silver not hitting $50 before Fall 2015 is beginning to come true.  I really wish I wasn't right.  I have my cataract surgery, my Jeep note, and my school loan to get rid of.  I'm attempting to find another job this summer to help "delete" these bills for good (pay off).

And no, I will not say that I'm "second."

canary's picture

How is Corzine doing?

Somebody is trying hard to keep gold down and S&P up regardless of any economic data today.

Turd Ferguson's picture

Gold shall not rally


As mentioned in this post, even today's PM Fix mini-spike was immediately beaten lower.


vonburpenstein's picture


....because you're not

coin collectress's picture

And the latest vote count

joeblack's picture


thanks for the options expiration update.

Janet Yellen speaks tomorrow at 1 PM.

boomer sooner's picture

Anyone familiar with this group?
A recent convert (hard money) sent me this link. I know nothing about them.

Barfly's picture

About those layers of the onion

The other night, replying to infometron about an article written in 2004 about the silver ponzi coming to a close, I mentioned layers of the manipulation onion that I know are not widely understood in the scheme. I thought I might elaborate a little bit to get some concepts out there. These goings on happen all the time and are not necessarily measurable, but their foot prints are visible from time to time.

These events are basically collusion that takes place between players in the cartel. They act as a team, as has been observed by many, and not as individual players that are following their own incentives. For the sake of illustration, imagine the following example (I happen to have first hand knowledge of this particular event). Imagine that there's a tech company that makes some fantastically sophisticated products. This company is going to miss it's earnings projections by $400 Million dollars. It's a week before the end of the quarter. Fortunately, this tech company has a client that conducts large scale projects in the energy sector. So, one CEO calls up another CEO and tells him that they're going to be short $400 Million on their revenue this quarter and can he help them out. So, the client CEO negotiates a little and gets a promise of a sweet deal in the future with deep discounts and some extra bells and whistles on service for the next contract. They hang up the phone, and the client makes 2 calls. The first is his stock broker, where he loads up on the tech company stock. The second is to the purchasing department, instructing them to cut a $500 Million purchase order to the tech company (which will allow them to beat their number). The quarterly numbers get published, the stock pops, the order gets cancelled the next quarter, the shareholders are happy, the officers are happy, the insiders make money, and everybody in on the scheme is happy.

Now, imagine that those purchase orders are commodity trading contracts, the revenue is gold bars in a vault, the stock is gold contracts bought by hedge funds or retail speculators, and you begin to get the picture of how a commodity price suppression scheme would work in regards to the comex gold "market." I am virtually certain that events like this one happen with a regular high frequency behind the scenes. And people are repeatedly amazed how price comes in at just the right sweet spot, the deliveries still get delivered to the minimal number of people possible at the very edge of the timeframe to avoid a breach of contract, and precise amounts of gold change hands in just the right quantities to make the numbers match (making it appear there is much more than there actually is).

So, when you look at that scenario and you think about what happened in 2008, you understand that the game of musical chairs broke down. This resulted in Lehman being thrown under the bus buy the other participants during the sub-prime mortgage crisis. That kind of event will unfold when the comex gold and silver "markets" finally break, and somebody is not going to have a chair when the music stops and is going to lose big. My money is that it will not be JPM. I'm thinking it's more likely Scotia or Morgan Stanley. Well, whatever. We'll see.

perdman's picture

Commodity Index & HUI

Looks like the Commodity index is back approaching its Feb lows again thus multi year lows as well...

Also HUI finally on the bottom of the most recent trend channel.  Perhaps time to dip the toe...

surfeitndearth's picture

Vote 1401

WalletHub vote TFMR ... 1401!

Turd Ferguson's picture

Well, this seems important

Angry Chef's picture

Thanks Guy's

One of the added benefits of being a member of Turdville is the input from all the members. For this I thank thee. Here in Canada I spent our long weekend, Victoria Day ( That would be Queen Victoria the largest dope dealer ( opium ) in the History of man at the time ), hanging out far away from the maddening crowd. Peace and quiet. And what does a devoted Turdite do with his limited spare time. Why he reads of course. I had the pleasure of reading " A History Of Central Banking And The Enslavement Of Mankind " by Stephen Mitford Goodson, a former Central banker from South Africa. I highly recommend it and I would like to thank Turdville for suggesting it. I can't remember who it was but it was recommended by someone here.

That being said I got to thinking. We should have a section for " Recommended Reading ". Turd had recommended last year Ferdinand Lipps book " Gold Wars ". I picked it up at the time and I would recommend that as well. The other book I would recommend is " The Secrets Of The Federal Reserve " by Eustace Mullins.

So I want to thank-you all and suggest that we start a seperate section for recommended reading material.

Just a suggestion.

braincramps's picture

Kyle Bass on Gold

NW VIEW's picture

One Block at a time!

Yes Damascus is becoming a heap of blocks, area after area.  Most thought that Isaiah 17:1 would be from a nuke by a foreign power but it is being completed locally:

realitybiter's picture


B Ladin had a pretty good reading list!
• “The 2030 Spike” by Colin Mason

• “A Brief Guide to Understanding Islam” by I.A. Ibrahim

• “America’s Strategic Blunders” by Willard Matthias

• “America’s War on Terrorism” by Michel Chossudovsky

• “Al-Qaeda’s Online Media Strategies: From Abu Reuter to Irhabi 007” by Hanna Rogan

• “The Best Democracy Money Can Buy” by Greg Palast

• “The Best Enemy Money Can Buy” by Anthony Sutton

• “Black Box Voting, Ballot Tampering in the 21st Century” by Bev Harris

• “Bloodlines of the Illuminati” by Fritz Springmeier

• “Bounding the Global War on Terror” by Jeffrey Record

• “Checking Iran’s Nuclear Ambitions” by Henry Sokolski and Patrick Clawson

• “Christianity and Islam in Spain 756-1031 A.D.” by C.R. Haines

• “Civil Democratic Islam: Partners, Resources, and Strategies” by Cheryl Benard

• “Confessions of an Economic Hit Man” by John Perkins

• “Conspirators’ Hierarchy: The Committee of 300” by John Coleman

• “Crossing the Rubicon” by Michael Ruppert

• “Fortifying Pakistan: The Role of U.S. Internal Security Assistance” (only the book’s introduction) by C. Christine Fair and Peter Chalk

• “Guerrilla Air Defense: Antiaircraft Weapons and Techniques for Guerilla Forces by James Crabtree

• “Handbook of International Law” by Anthony Aust

• “Hegemony or Survival: America’s Quest for Global Dominance” by Noam Chomsky

• “Imperial Hubris” by Michael Scheuer

• “In Pursuit of Allah’s Pleasure” by Asim Abdul Maajid, Esaam-ud-Deen and Dr. Naahah Ibrahim

• “International Relations Theory and the Asia-Pacific” by John Ikenberry and Michael Mastandano

• “Killing Hope: U.S. Military and CIA Interventions since World War II” by William Blum

• “Military Intelligence Blunders” by John Hughes-Wilson

• “Project MKULTRA, the CIA’s program of research in behavioral modification.” Joint hearing before the Select Committee on Intelligence and the Subcommittee on Health and Scientific Research of the Committee on Human Resources, United States Senate, 95th Congress, first session, August 3, 1977.

• “Necessary Illusions: Thought Control in Democratic Societies” by Noam Chomsky

• “New Pearl Harbor: Disturbing Questions about the Bush Administration and 9/11” by David Ray Griffin

• “New Political Religions, or Analysis of Modern Terrorism” by Barry Cooper

• “Obama’s Wars” by Bob Woodward

• “Oxford History of Modern War” by Charles Townsend

• “The Rise and Fall of the Great Powers” by Paul Kennedy

• “Rogue State: A Guide to the World’s Only Superpower” by William Blum

• “The Secret Teachings of All Ages” by Manly Hall (1928)

• “Secrets of the Federal Reserve” by Eustace Mullins

• “The Taking of America 1-2-3” by Richard Sprague

• “Unfinished Business, U.S. Overseas Military Presence in the 21st Century” by Michael O’Hanlon

• “The U.S. and Vietnam 1787-1941” by Robert Hopkins Miller

• “Website Claims Steve Jackson Games Foretold 9/11,” article posted on article posted on (this file contained only a single saved Web page)

SilverX3's picture

Kyle Bass thought gold was

Kyle Bass thought gold was low at the time this video was recorded. On the screen it says gold was trading at 1587. Every word he said still applies to gold and the macro-economic picture. If he was perplexed why gold was low at 1587, well imagine how he feels today (words like: cost of production, overt manipulation, incredible value spring to mind).

Gold is not a commodity, as Bass claimed. Gold is a currency. Gold = Money.

Turd Ferguson's picture

More on Syria ISIS etc

koan's picture

Thimply dethpicable but...

...infinite voting loop if anyones bored...

IN CHROME (shortcuts will vary with browser):

1. copy this to the clipboard:

2. ctrl-shift-n

3. ctrl-v enter

4. ctrl-f t f m

5. click vote

6. ctrl-w

7. goto #2

usk's picture

Like pre-1789 France

Max Keiser is right: "The U.S. economy, and indeed the global economy, is much more similar to pre-1789 France than any other historical period I can think of."

The entire global economy is one gigantic ongoing crime scene. It’s an economy in which fraud is rewarded and never punished. An economy where the rich, powerful and connected concoct unimaginably lucrative crony deals knowing the law doesn’t apply to them. To hedge their corruption, they feed scraps to the poor, not out of altruism, but so that the growing underclasses have just enough not to rebel.

NW VIEW's picture

Craig, from your article above:

So what is really going on? Simple: all these latest developments and the unexpected and successful ISIS "offensive" is merely another attempt to justify a US land incursion into Iraq (and of course Syria), this time "appealing" to the populace not using fake chemical attack YouTube clips as "evidence", but with a noble crusade to save an ancient cultural artifact.


We do not want to go "in" to save the lives of the Christians, nor to save the lives of those in the wrong sect of Islam but we are looking to save the "ancient cultural artifact" of which most, if not all, are idols.  What has this world finally come to?   It is like seeing a family drowning in a overturned boat in the middle of the lake, swimming out quickly, and saving the boat.   We seem to be experts on being on the incorrect side of events.  Let them destroy all idols but save the families.    Jim

tyberious's picture

Disband Congress

Gun Registry Bill Introduced in the House New Gun Bill Would End Private Sale Of Guns!

The constitution is being torn apart piece by piece and big brother is gaining strength. America is being destroyed from within, thanks Tyrant O.

Rep. Carolyn Maloney (D-N.Y.) introduced a bill that would effectively create a #firearms registry by forcing private sellers at gun shows to report sales to the Attorney General and by requiring #gunshow organizers to register with the Justice Dept

Believers do not fear what’s coming and the non-believer should! Your personal “believer invitation” is below the videos.


lakedweller2's picture


Time to join the Bloods or Crips.  I don't think they report their stolen gun sales or would warm up to it very quickly.

Boatboy's picture

@koan Go for it

I bin votin and watching. At about mid morning we were separated from our nemesis Personal capital by 57 votes. After a bout of voting I checked them out and think their website touting their technological trading reminds me of the Bernie Madoff video posted recently where he was telling the "marks" that he had eliminated traders and had computers doing his fabulous trades. PersonalCapital  recommends buying good stocks which can be found with programs they sell, or, you can just give your money to them they can't have a lot of satisfied customers. Aimed at kids with plenty of Apps for sale

When I next voted this evening I saw PF with 2000 votes and TF at 1611, a 400 point gain in a couple of hours! Their customers can not be casting these votes. My best vote rate is one a minute,  so I think they must have half a dozen people laying it on. Save the Children from that Blog and vote hard

joeblack's picture

CME Cut Gold and Silver Margins....

Almost never a bullish sign, unless it's different this time.  

tyberious's picture

Bloods or Crips

And biker gangs.

4 oz's picture

Thanks for voting! 1659 Votes

Thanks for voting! 1659 Votes

Syndicate contentComments for "Plowing The Field"