Heed The Mavens

I'm not megalomaniacal enough to think that they are responding to me directly and I'm not foolish enough to ignore them.

James Turk and Santa have both forgotten more about the precious metals markets than I'll ever know so, when they issue statements like the ones below, they must be listened to. First up, please take the time to listen to Eric King interview Mr. Turk. It's a wide-ranging interview that gives you more credible information in 12 minutes than you'll get in a week of watching CNBS. I particularly like it when he describes the central banks as "barbarous relics"!

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/16_James_Turk.html

Next, Eric also posted an interview of Santa. He, too, is expecting a summer rally. Check it out:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/16_Sinclair_-_Youre_Out_of_Your_Mind_If_You_Sell_Gold_Assets_Now.html

That said, we should know in the next two days whether or not the "dome" pattern we noticed yesterday is going to serve to send gold down toward 1500. I still think that this is going to happen. There is no question that further quantitative easing is coming, not just here but globally. The Fed/EE will take any opportunity at this point to push PM prices lower so that they start their next, QE-induced rally from a lower point. 

paper_6-16amgold.jpg

Lastly, just a quick comment on the Greece situation. Right now, it appears that the Germans are trying to buy some time.

http://www.zerohedge.com/article/greek-cds-hits-ridiculous-1900-bps-total-chaos-over-what-happens-next-ongoing-greek-ruling-p

IMHO, they are buying time as they, the Finns and other "Nordic" countries frantically scramble to conclude negotiations on the formation of a new "Nordic" euro. Countries such as Greece, Portugal and Italy will be left to fend for themselves. These countries will be forced to cover their debts in drachma and lira so that the "new" euro can be relatively unaffected. Ultimately, the Nordic Euro will become one of three, regional reserve currencies along with an Asian/Australian SDR and a revamped dollar/amero. More on all of that at a later date as I don't have the time to get into it now.

Have a great day and watch that gold very, very closely. TF

196 Comments

MetalMike's picture

Chart too small

Need to fix that graphic chart Turd, no can read. Good morning and thanks

Aronnax's picture

Your trademark charts are not readable, TF

Thanks for the update, Turd. When/if you get a chance, pls. take a peek at how your charts are being embedded in your posts - they are getting too small to read. While this is getting repetitive, thank you again for the site.

Urban Roman's picture

Gold at 1500

Still, if it  sends gold to 1500, compare that to a few years ago.

In the long term, what does everybody already know?

Shill's picture

Weiner

  1. Rep. Weiner plans to step down: NY Times

  2. Anthony Weiner tells friends he'll quit: Report

bernard's picture

I've been gobbling up all the

I've been gobbling up all the 1964 silver I could get my hands on :) at these prices i'm buying all day baby

maple's picture

Yes, I could see a summer PM

Yes, I could see a summer PM explosion to the upside if certain events occur, but on the other hand I also see a significant chance of a major pullback (gold 1450, silver 30) if those events do not come to pass.  We know what's coming but making a call on timing is essentially guesswork.

caramel's picture

probably last chance to get

probably last chance to get gold around $1500 before it takes off.  May go lower but concerned about the ounces.  Amazing to think this will be considered cheap in the medium/long run.

treefrog's picture

it would be nice if the

it would be nice if the charts were clickable/enlargeable as they were on the old blogsite.

bensgone's picture

You could not be more correct Turd

I totally concur with everything in this post. Great analysis Turd, considering the diverse opinion and experience of some of the most prestigious players and advisors in this PM bull. It seems that there is a convergence of negative factors that are negative in the short term for the PM's. Boy, we just can't wait until this month is over.  I hope that the bull renews it's march to new highs starting at least by the middle of next month. The question is when will the perception change with respect to the fact that QE really will not end at the end of this month. What a fictitious head fake and game these rotten pukes play with the market psychology. But, this recent divergence in the price of PM's and the rest of the markets is very encouraging. Dollar up, Stock market down, copper down, oil down, euro down, yet the PM's are not being crushed and even advance a little. It means that no matter what inflation or deflation PM' march higher. We seem to be repeating yesterdays bullish divergence. This month will tell if and how soon the resumption of the PM bull will begin this summer.

bernard's picture

(No subject)

SilverWealth's picture

buy the dips

Buying the dips, buying the gap downs, selling the gap fills, selling the 'strength', keeping it simple. Also trading in the very early morning when all the textbooks tell you NOT to trade for liquidity concerns. But price moves directly and abruptly then with fortitude and algos don't haunt the landscape on every tick.

just me and that's about all. In a Market where so many of the charts are painted I cannot get terribly excited about weakness or strength, just trying to respond as best I can by counterpunching, always counterpunching. If I chase the leads I become a mark for the banksters and I telegraph my punches.

Cleburne61's picture

Interesting TF, as this is

Interesting TF, as this is the first time I can remember you referring to the Nordic Euro.  Jim Willie was the first person I can remember talking about it, and with each passing day it appears more certain that he and you will be right.  Why sacrifice financially solvent countries for bankrupt ones?  This can't last.

What do you think will happen with Spain and Ireland?  Same as the others? I appreciate your ongoing work for us.

Captain Phelps's picture

Normalcy Bias

Jim Turk is right on. 99% of the minions in the EE and Wall Street are infected with the normalcy bias and are only surfing the next best wave to come along only concered about the next fat bonus. Some day this house of cards will do something nobody has ever witnessed, as Turk says, and we'll have our moment. Don't question what you are doing or why you are doing it. Just keep reading good sites like Turd, Zero Hedge and others. Listen to Turk, Chapman, Trader Dan and others....keep focused and for God's sake don't sell your PM's.

pmbullish's picture

Euro exit ?

Yes, they can do a currency for 4/5 countries...but the kicked countries will exit from all the Euro environment not only monetary (regulations, limitations), they will devaluate and  restabilish their old economical and financial barriers and recover competitiveness (adios globalization, adios chinese products @ 1€). I think it could go better for them.

admin's picture

The charts now work the same

The charts now work the same way they did on the old blogspot site.  Just click them.

bigmark99's picture

wow

2 good interviews, Keep stacking, gold or silver  just keep stacking,  now onto the US Open. 

FriedEggs's picture

Hang Tight Turdites... I'm

Hang Tight Turdites...

I'm not a trader - don't really know how to or have the real interest to gamble with trading (maybe thats a good thing?:) but i can imagine the stress levels of following the daily charts for those that do some trading...tough game in these volatile market conditions(stating the obvious).

Anyway - just keep on accumulating physical to your stockpile...like a pirate:)

Fried(e)

Mary's picture

Silver

Wondering about Silver charts and your thoughts?  Thanks :-)

Harald's picture

  Jeez...I noticed the "dome"

Jeez...I noticed the "dome" pattern a couple of days ago.  I'm actually learning a little bit about TA thanks to TF.

Kumanari's picture

JackAss Rides Again

Jim Willie's been callin for the Nordic Euro play for bout a year or more. He seems to to have a knack for making what may see to be wild calls at the time, but usually pan out. His last letter see's major sea change behind the scenes as Merkle is denied airspace and O'bottom and the Missus get protocol diss on recent euro trip.  The Wanta Fund lurks.

bernard's picture

Volatility in silver is way down

If you look at the most recent COT out of the CFTC, you'll see that both traders and commercial hedgers are buying up silver futures at this market price. This insinuates that the so called "speculators" which bought silver up to nearly $49 are now gone, and that all hands left on deck are holding their positions with a vice grip. Good for silver as I read it to mean that the metal is gaining functionality and acceptance as a "store of value" akin to gold

Dr Bob's picture

Charts

just click on it, it gets huge when you do that.

HonestJohn's picture

Chart

I have no problem with the chart, just click itenlightened

tpbeta's picture

Its not the what it's the when

Personally  a bit skeptical about James Turk. Like many, he makes his money from people investing in Silver irrespective of what happens to the price. To paraphrase the great Hugh Hendry, I don't care what they think, I only care where they get their money. And every PM bull has an excellent track record by definition, because it's a bull market. Doesn't mean their reasoning is sound. I'll stick with Turd for my predictions.

Seems to me that silver collapsed within days of Bernank giving out that QE3 was not on the table back at his 27 April presser, with the Comex doing their bit to ensure the message was received loud and clear.  That suggests that the PM  market doesn't price the possibility of QE in in advance but rather responds to it when possibility becomes probability and certainty.

I would test this hypothesis by seeing what happens when POMO ends for real at the end of the month.

A_MacLaren's picture

Config Tweek or User Error?

Turd,

I really like the new website and thank you immensely for stepping up the professionalism and environment to the next level.

I'm not sure if it has to do with the configuration or the image that was used, but the graphic in today's post is tiny, I thought it might be a thumbnail, but attempting to click on it didn't increase the image size to a more viewable scale.  Can this be tweeked to increase the "viewability" or is this a feature to get us to draw our own darn charts?  wink

A_MacLaren

Post Script - Nevermind - issue addressed...  blush

Seacap81's picture

"Barbarous

"Barbarous Relics"............Classic!

HonestJohn's picture

Max and James Turk

Nice mini documentary on Fiat money inflation in France with Max and James.

http://maxkeiser.com/2011/06/16/fiat-money-inflation-in-france/

Shill's picture

Weiner pulls out ......

SilverWealth's picture

john law

Great stuff on MaxKeiser.com about John Law, the early 18th Centuries version of the money pig printer Alan Greenspan, hands down the greatest financial terrorist of all time.

for now the charts tell me its up, then its down, then its up again, then its down. What to do? Buy the dip. Buy the dip. Buy the dip in grains. Buy the dip in Silver,Gold,GDX,GDXJ, buy the fear, sell the big spikes,the euphoria, the 'breakouts', the this-time-its-different mania. Staying alive, just staying alive.

Seacap81's picture

He pulled out Prematurely.

He pulled out Prematurely.

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