The Return of The Comiskey

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Just a bit ago, I was able to track down our old pal, Jim Comiskey. Given the current state of affairs, I thought it might be fun to get his take on everything from the S&P, to the metals to the latest report of Mad Cow Disease in California.

Ole Jim didn't disappoint. To listen to the podcast in its entirety, just click the microphone icon to the left. While you're listening, here are some other items that I found relevant as we passed through the day.

First up, a story from late yesterday about China bypassing the dollar and using gold to purchase Iranian oil. Santa's pretty worked up about it and rightfully so. He discussed this situation and more during his latest with Eric King. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/24_Sinclair_-_Shorts_Now_Trapped_%26_Gold_Could_Gap_Up_to_$3,000.html. The article that brought all of this to the fore can be found here: http://www.forbes.com/sites/gordonchang/2012/04/22/the-best-reason-in-the-world-to-buy-gold/. And here are my thoughts from last night:

"The question you need to ask is: If true, what will the Iranians do with the gold they receive in exchange for oil? They'll most likely convert it into some type of currency which they can then exchange for gasoline, food, etc. Which currency would they convert it to? Dollars? No. Euro? Doubtful. Pounds. Not a chance. Yen? Be serious. Maybe they trade the gold to Russia in exchange for wheat, fuel and weapons?
I dunno. Maybe this story has it all wrong and they don't take gold at all? Why not just take renminbi for your crude and begin building reserves in it instead of dollars? Much easier than shipping gold around and an account at the PBoC is a lot safer than storing your gold at home. Ask Gaddafi or Saddam about that one."

As a follow-up, you should also read this interesting note from Izabella Kaminska at the Financial Times:

http://ftalphaville.ft.com/blog/2012/04/23/970271/the-unwitting-move-towards-a-global-gold-standard/

Next, there were two items I found today from Charles Hugh Smith. This first piece is about the "disappearance" of money. You've likely heard me state before that gold provides protection for your wealth and the silver provides you protection to purchase basic necessities. This article is along those lines:

http://www.oftwominds.com/blogapril12/when-money-vanishes4-12.html

This second piece comes via Chris Martenson's blog and it follows on the theme of fudged and manipulated government data. As we barrel toward another BLSBS report next week, I thought this was timely:

http://www.chrismartenson.com/blog/what-data-can-we-trust/74361

Oh, and this is fun. Santa posted this link earlier. It's a map of every U.S. police department that has the authorization/capability to launch and use aerial drones. How nice. God Bless the U.S.A. Land of the Monitored and Home of the Surveilled.

https://maps.google.com/maps/ms?msa=0&msid=214769660919529725423.0004bde31d74fe6eb1ece&hl=en&ie=UTF8&t=m&ll=45.336702,-110.039062&spn=58.987964,112.5&z=3&source=embed

Next, here's a video from Paul Coghlan. Paul is one of Andrew Maguire's business partners and he operates his own trading service. He publishes these updates daily for his subscribers and offered this one to all Turdites as an introduction to his services. Pretty good stuff!

http://www.coghlancapital.com/node/3039

I owe you some charts, too, so here they are. First up, let's look at gold. We are still being pressed lower by the downtrend line but we are getting close to what should be very strong support between 1600 and 1620. We might have bottomed yesterday but I don't think so. My gut tells me that there is at least one more thrust lower to test and confirm a double bottom. From there, a move higher that takes gold back UP through 1660 and then 1680 will confirm that this nasty episode is behind us.

paper_4-24pmgold8.jpg

In regards to silver, I thought we should start with a chart of crude. HUH? That's right, crude. Do you recall last week when I mentioned that the silver chart looked a lot like the crude chart from late March and that silver was subject to "getting its stops gunned"? Well, guess what happened? And now what? Note that immediately after the crude stops were gunned a few weeks ago, crude bounced back but failed at the old support line, which had now become resistance. It then sold off further to a deeper low before consolidating and turning higher.

paper_4-24pmcrude.jpg

Note that silver may be following this same, classic pattern. The stops got gunned yesterday and down she went. A rally today failed right near where the old support had been and now it has since turned back lower. Will we next see a lower low, perhaps near the $30 level that we've all been waiting for? Probably.

paper_4-24pmsilv8.jpg

Lastly, silver open interest rose again yesterday to a new 2012 high of 122,727. Again, for reference, back on 2/24 with price $5 higher, total OI peaked at 118,204 before falling along with price to 106,723 on 3/15. Since that date, price has fallen another $1.50 yet OI has risen by over 15%. The spring is obviously being coiled for a dramatic move. Which direction will it be? I imagine you can guess what I think.

Have a great evening and overnight. Get ready for a volatile rest of the week.   TF

168 Comments

SaratogaPrepper's picture

First and only

First and only time I'll do this

gatortrader's picture

#2

nice

Steinbacken's picture

Turd!

Turd!

I have a private inventory-tracking index of over 20 assorted species of silver bullion at a major retailer, and from Sunday night 9PM PDT until now, it is down around 8%.

This is the 2nd biggest drop I've observed since a 16% drop between two data points on the 26th and 29th of February.  I began quantitative tracking on 2/3/12 for my own investment purposes, and generally do not track daily, but maybe 4x per week.

Thank you very much.

Picabo's picture

Thurd

Thurd

SRSrocco's picture

WHAT A TREND.....AYE?

THE FED & MEMBER BANKS:  PUMPING THE BROADER STOCKS WHILE KILLING GOLD AND SILVER

This chart says a TRILLION WORDS:

Now that DENNIS GARTMAN has announced that "THE END OF THE GOLD BULL MARKET" is here, the rest of the MSM nitwits bring on more bearish news about gold and silver.  Here we can see that since FEB 29th, gold and silver have been taken down.  While this is bad enough, the HUI relative to the DOW JONES has received a royal enema.... courtesy of the BERNANKE.

Thank God for folks like JIM SINCLAIR who knows when to call a SPADE a SPADE.  Looks like fireworks are coming shortly for those who hold large amounts of FIAT NOTES in their sweaty palms.

Dr Jerome's picture

I'm sick and tired!

I am sick and tired of the manipulation. I am sick of the rigged markets. I got into investing because I figured I could retire more quickly, that I was smart and could learn to invest wisely and build a future for my descendants. And now, I discover that the system is doomed and my best investment is in PMs, PB, land and stores of food.

If only I were 100 feet tall and could tear down the system like Godzilla... or were a multi-billionaire like Soros or Buffet who could bring down the whole system by cornering the market on AG and bankrupting  all the manipulative, hubristic, sophistic, self-serving, unethical institutions that are leveraged to the gills in this non-sequiter banking system, then I would sing this song!

Edit: SRSrocco,  Right now I am thanking the banksters for this engineered dip so I can get some cheaper gold and silver. One day, when I am an old fart, I'll tell the story to my grandkids. We will all laugh and take another sip of sweet iced tea on the veranda in our country home in the new system that rises from the ashes.

Full version of the song and explanation at: http://soundcloud.com/zefrank/whipass

2nd edit... Yes, I did have a hard day at work today with my manipulative, sociopathic bosses!
SE's picture

The drones situation is

The drones situation is exactly why I'm warning everyone to get out of everything paper.  Buy up every damn ounce of gold/silver you can.  The sooner you do this and coordinate this effort with the Indian and Chinese public, the sooner that the Federal government looses its ability to keep things in place when nobody accepts the US dollar in payment for anything.

BUDDHA PRINCESS's picture

The Swiss are helping Iran get around the embargo

​This Is How The Swiss Are Making The Oil Embargo 'No Big Deal' For Iran

The Swiss Foreign Ministry has dismissed the U.S.-led oil and financial industry embargoes against Iran and will allow the Iranian Central Bank to conduct business activities there despite Western concern over Iran's nuclear development program.

It also will continue the import of Iranian oil, according to Rudolf Christen of the Swiss Federal Department of Foreign Affairs.

"The Swiss decision to allow transactions by the Iranian Central Bank undermines the U.S.-driven financial sanctions," according to Hague-based Heinrich Matthee. "Swiss-based actors will benefit from the decision." Switzerland's decision puts it at odds with other European countries.

Posted on businessinsider.com website  and the link is here.

I Run Bartertown's picture

Great Links

Thanks, TF. Drones? 

We've seen the Mossad enough to know that you don't play rough with the toys, but you play rough with the toymakers...or with our silly bureaucracy so hung up on its silly papers, just 'pencil in' the clerks that would need to sign off. LOL. Imagine that...the whole mess brought down for want of a bold clerk.

It's worse than market manipulation though. It's been a wholesale dismantling of everything (culturally, economically, etc.) that was the traditional strength and independence of America. It's older than us, but its fruits are very ripe now. Here is a glimpse of the engineered poverty, told to us by ABC as a disarmingly feel-good prom story (Alice, Mr. Rabbit, is this Wonderland?):

http://abcnews.go.com/US/slideshow/impoverished-appalachian-community-pulls-prom-16202563

"Owsley County has the lowest median household income in the country.

Booneville, population 5,000, struggles with a lack of jobs due to the decline in the coal, tobacco and lumber industries. "

An Appalachian County's Community Overcome Challenge Of Poverty
What happened to each of the above mentioned industries?

Each of them was systematically and methodically destroyed at the hands of the .gov.

Appalachia (and similar regions around the country) are to the Federal .gov what Ukraine was to Stalin. 

Here are the 3 richest counties, for comparison:

"1. Boasting a strong school system and located about six miles away from the nation's capital, Falls Church has for years enticed rich families, making it the nation's richest county.

2. Louden County, VA - The second richest county in the nation used to be a sleepy rural community just a few decades ago, but in recent years it became a technology center and a popular Washington, D.C. suburb.

3. Another Washington county, Fairfax County, Va., rounds out the top three. With 1.1 million residents, this populous county has a massive federal government presence. It is home to companies with strong connections to the government, like Freddie Mac, and intelligence agencies like the CIA and the National Counterterrorism Center."

http://www.forbes.com/2011/04/11/americas-richest-counties-business-washington_slide_6.html

onewileyz's picture

One....

is the loneliest number!  

Stratajema's picture

Sinclair said

"massive paper gold shorts"  

What massive paper gold shorts?  There are two sides to every trade on the Crimex and the current open interest is not "massive".  Is he talking about OTC and the short interest in the gold shares?  Good luck figuring out the short interest on the OTC.  Although gold share short interest is not hard to figure out.

In any case, he said gold could gap up to $3,000.  What a bunch of bull sh-t.  He and Turk are positioning themselves to be the next Laurel and Hardy.  I'm no longer going to be sucked into their rhetoric.  I'm betting my liquidity that gold gets beat down with the overall market.

All we need now is the "mysterious" London Trader to spew his falsehoods on KWN.

¤'s picture

Tashakkur Atu

4759535950_7bca6684c8.jpg

Appreciate the update, efcharisto!

atarangi's picture

Did someone mention cheese - -

cheese2hq.jpg

Dr Jerome's picture

Atarangi

I suppose I hat-tipped your post because of the metaphor.

Cheese is similar to the color of gold. And there is a consuming, pestilent, rodent right in the middle.

Ferd Torgerson's picture

Cheez Whiz, you guys. Gimme a break!

Didn't have a chance to post first.  Maybe fifteenth?

ch25061's picture

Gold vs Yuan Oil Settlement

Chinese want to legitimize gold as the settlement vehicle of choice
to make the most threatening gesture to USD. Santa said this
also I believe.

RobG's picture

@Dr Jerome - Frustration

You're not the only frustrated one here.   I started stacking almost 2 years ago.   The avg cost for my silver stack is underwater at the current price (and I don't mean that terrible boating accident :)  ).  

I would have been better off to keep the fiat in the bank to this point in time.  I'm still holding some dry powder, but I cannot get myself to buy more yet.   Europe is collapsing,  central banks/governments  are buying gold, PM production is down, BUT  I keep wondering how much longer the EE and TPTB can keep doing what they have been doing; another 3, 6, 12, 24, 360 months?  The PMs keep going lower.  They seem to have lots of tricks/power to do as they will.  When will it end?

BUDDHA PRINCESS's picture

Silver Technical Analysis 04.24.2012

By Endlessmountain

Stratajema's picture

Re: Gold vs Yuan Oil Settlement

>>Chinese want to legitimize gold as the settlement vehicle of choice
to make the most threatening gesture to USD<<

IMHO, absolutely not!  The Chinese are not going to start that kind of war until they have accumulated much more gold and pledged more of their U.S. Treasuries as the only collateral for loans...  which loans are being used to buy commodities and mines.   In the meantime they will just enter into currency swap agreements with more nations.

Dr Jerome's picture

RobG

I also am underwater until we reach 35. I am still buying! I have a good bit of AG underthe waves so I am adding to my meager AU holding now. I am also prepping with commodities that will likely be more expensive next year. We are eating last year's prep items now and purchasing new ones. I don't see anywhere else to place my small bounty that will benefit me except food and gold.

JY896's picture

The curse of the last post...

...is that it's almost is never topical on the next thread. Nevertheless, for more notes on cheese and other items related to preparing accordingly, take a look here.

Good to see Jim C. is doing well, I look forward to hearing his thoughts.

From time to time, it is useful to look at how the 'other side' is shaping its "public communications efforts" (***COUGH*** propaganda *** COUGH ***) -- while not exactly new or unsurprising, China and Russia are most definitely gearing up for a shift away from the 'unipolar world' model in place since the nineties.

"Just as Prime Minister Vladimir Putin said, Russia should let the Chinese wind fill its sails," the expert said, adding that "we want Chinese wind to be strong, warm, and friendly."

A powerful China is in the interests of both countries, he said, citing a diplomatic success the two sides achieved on Syria and Iran as an example.

And this is the US-facing, English version... As many before me have mentioned, these former-and-aspiring-to-yet-again-be world powers are willing to wait, and as things currently stand have time on their side to a large degree.

When Forbes publishes a piece highlighting the (marginally) diminishing role of USD in global trade, and almost foreshadowing a rise in the prominence of gold (one way to prevent China and other countries from 'bartering' gold for oil is to designate it 'money'...), it is either a red herring of utmost size, or a way to gradually introduce the concept to the mainstream consciousness.

Patrancus's picture

its unraveling like a skein

its unraveling like a skein of yarn... yawnnnnn

http://search.yahoo.com/search?ei=utf-8&fr=aaplw&p=Unwinding+yarn,+video

Patrancus's picture

Pumping stocks

Pumping stocks, yes, a young ws buck called me today touting he latest stock pics, the probable outcome will be a pump and dump. Loose money old man?, advised the eager lad that I was retired from stock market and to take me off his list as I am preparing for financial and economic chaos. 

RobG's picture

Dr Jerome

Good for you on the continued purchasing.   I'm not sure I could get my better half to give the ok to buy more at this point.  I think we already have more than she is aware of :)  Growing up since the 60's I have a hard time coming to grips with the possibility of food/water shortages in the US.   I just cannot jump on that bandwagon yet.  I may regret that, time will tell.

S Roche's picture

LBMA Price Setting at The Fixes

http://www.chrismartenson.com/page/transcript-paul-tustain

For those that are fixated by this, in case it has not been posted before.

Ed_Phlegm's picture

First!

First Yeah!!!!

Ed_Phlegm's picture

First! Yeah!!!

Whoaa!

NW VIEW's picture

FUTURE SILVER DIRECTION !!!!!

The mood on the TA's this week is DOWN for silver. The thing that concerns us is the numbers on the COT report for the commercial silver.   Long= 145730 and short 321,821.  Since the EE moves the market at will and they have the massive short position, then I ask "how will the silver move upward until the shorts are decreased with some real volume"?  jmo

http://news.goldseek.com/COT/1334950407.php

TheGoodDoctor's picture

Got a job peeps! Let the

Got a job peeps! Let the party begin! cheeky

PS Thanks for the support during this time. It's been a hell of a long slog but it finally happened!

¤'s picture

Doc

Congrats!yes

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