The Fiat-Conversion Price

And this matters how? And why, exactly, do you care? Seriously. You need to ask yourself those two questions.

Look, never forget that the point of of this entire endeavor is "preparation for the end of the Great Keynesian Experiment". Part of that preparation is the accumulation of physical precious metal. Gold to protect your worth and wealth. Silver to protect you ability to acquire everyday necessities.

Do you believe that the current global financial system is now so malignantly flawed that it will not survive? Do you believe that beacuase the U.S. government is so overwhelmed with debt, current and future, the U.S. dollar is doomed as a global reserve currency? Are you fearful that global governments, in their futile attempts to maintain power will stop at nothing, economically and militarily, to avoid collapse and that these efforts will ultimately lead to war, insurrection, massive price inflation and civil unrest? If you answered "YES" to any of these three questions (and I suppose you did), then you should continue to BUY precious metal. Selling metal and converting it back into fiat is simply out of the question. Most of all:

If you answered "YES" to any or all of the questions above, why in the world do you care right now if gold is $1610 and silver is $29.50?

I ask this with all sincerity. Again...why do you care? You should be rejoicing at the opportunity to add metal at these prices. Last spring, it took nearly $5000 to buy just 100 ounces of silver. Today, that same $5000 will buy you 170 ounces. Hooray! How fortunate are we?!? The absolute sham of the current Comex/LBMA system has allowed everyone this extra time to buy/add metal. Please don't waste this opportunity! Also, please take delivery and store your metal somewhere safe.

Please indulge me to state this as clearly and unequivocally as possible:

DO NOT CONVERT YOUR METAL BACK INTO FIAT CURRENCY. BY DOING SO, YOU WILL SACRIFICE THE ONLY FINANCIAL INSURANCE AND PROTECTION YOU HAVE AGAINST THE COMING COLLAPSE. CONTINUE TO USE THIS AND ALL FUTURE PERIODS OF PAPER PRICE WEAKNESS TO PURCHASE ADDITIONAL METAL AND TAKE DELIVERY.

I provide technical analysis of the gold and silver markets solely to draw attention and readers to this site so that I might warn as many as possible. I will continue to do so, regardless of the criticism of TA in general. Though the current precious metals markets seem to have been fundamentally changed by the MFGlobal disaster, underlying demand for physical metal will continue to make TA a useful tool. To that end, I present today these two charts only. In gold, the long-term trend is still intact and, as you know, I'm a big believer in the long-term trend. In silver, you can plainly see that the "right shoulder" is being carved in a pattern similar to the "left shoulder" last fall.

Now, before you leave my site today, I want you to read this extremely important piece of analysis and then come back:

http://www.alt-market.com/articles/765-economic-alert-if-youre-not-worried-yetyou-should-be

You should also read the latest from Jim Quinn:

http://www.theburningplatform.com/?p=33800

And this nugget from Mike Krieger:

http://libertyblitzkrieg.com/2012/05/07/watch-bill-gates-stutter-like-a-moron-on-gold/

I'm going to stop here. After being out all day yesterday, much stuff has piled up on my desk and demands my immediate attention. I'm sure I'll be adding thoughts to the comments all day so please be sure to check them from time to time. Hang in there. Keep the faith and go add to your stack. TF

167 Comments

GoldMania3000's picture

EURO-USD cross rates

Also watching this closely.  Rickards said you know when QE3 is close.  Euro @1.29.  I think he said in this area or lower would be a sign of QE. That's if you believe his thesis of Feds want weaker USD to help with exports.  

tmosley's picture

When I talked about silver

When I talked about silver being the path to oligarchy (ie the next set of world financial oligarchs would be those who bought and held physical silver before the silver event), I also discussed the pressure to sell, that it would be incredibly intense, and come from all directions.  I suggested the anti-PM trolls would be out in full force, and even go so far as to declare victory as the dollar price of paper silver shrunk towards zero.  

Everyone can't become oligarchs.  Relative super-wealth can by definition only be held by a few.  Hold on to your silver, despite all the wailing and gnashing of teeth, and you will come out on the other side on top.  Even a small stash, say 100oz, will give you the purchasing power of between one and ten million dollars today, AT LEAST.  Silver WILL become more valuable than gold (for a time), and the blow off top of the industrial panic could easily see it FAR exceed the price of gold for a very short while.  Look for that blow off top, and trade your silver for gold.  Don't be surprised if industrial buying pressure pushes it to 10X the price of gold, just so they can use 1/10th of a gram of silver to make their products work.  They won't mind raising the price of a $1000 television to $1200 to cover the cost of that 1/10th of a gram of silver.  It's better than shutting down production, anyways.

My opinion, of course.  I could be wrong.

bullwhip29's picture

@ NWVIEW

Re: DOW

You mean "has" not "had", right?

Turd Ferguson's picture

Let's see

MODERATOR

You can hope for some type of fiscal sanity (though I doubt you'll ever see it), or you can vote with Cher:

http://twitchy.com/2012/05/08/cher-doesnt-want-to-breathe-the-same-air-as-romney-and-his-racist-homophobic-women-hating-tea-bagger-masters/

OK, so now I have to ask: Who, in their right mind, gives a rat's ass what Cher thinks? Seriously?? How fucking delusional must a washed-up, old whore from the 70s be to send out rants like this? Amazing.

Puck T. Smith's picture

FWIW Lear has ASE's for

FWIW Lear has ASE's for $31.83.  Just ordered a little stack.  That's a good price.  Wish  I had more cash.

http://www.learcapital.com/store/coins/details/180.html

The Springbok's picture

every week now

seems every week there is a huge sell order. I wonder what genius excuse will come from the monkey pit this week. Fat Finger last week, hhmm perhaps it was a summer intern hit the sell button....

I must thank Blythe & Co for giving me the deal of life time. Keep it up, and yes we know you have your mignons reading this site (and others) so you can have a rib splitting laugh during your Friday afternoon strategy meetings.

As the saying goes "good on ya Blythie!"

GoldMania3000's picture

and this

zerohedge @zerohedge

sure enough: RT : Gross: Risk markets need more ammo if they are to stay up. QE3 getting closer.

GoldMania3000's picture

and this

zerohedge @zerohedge

EURUSD 1.2985 LOD

Bobbejaan's picture

The ancient European martial-art .....

The ancient European martial-art ..... of Shotgun Weddings :-

Quote:
Eurozone elections:

Events in France and Greece have unsettled the markets. Voters, given the chance, have turned against austerity. Cutting budgets has been Germany's main remedy for solving the debt crisis. Francois Hollande's election challenges that by making growth his priority.

In one of his victory speeches, he pledged to "finish with austerity". Today Germany was ruling out any significant shift in its approach.

There would be no renegotiation of the treaty enforcing budgetary discipline as Francois Hollande had called for.

http://www.bbc.co.uk/news/world-europe-17983012

GoldMania3000's picture

and then theres this

zerohedge @zerohedge

Heeeeere's Goldman... With Renewed Calls For A June QE Announcement

Bugzy's picture

There is huge demand for physical

The magicians are trying to trick you into thinking that fiat is the only real thing. They really want your precious.

The effort put on the media in the last few weeks to knock Gold has been huge. Buffet et al do not have your best interests at heart. So when he says something, it is for the benefit of pushing the price down. Of driving folk away.

I am holding. 

Listen to John Williams, this week, on Financial Sense with Jim blah blah blah. Hyper inflation by 2014.

Hold the line boys, hold the line.

I can think of nothing and I mean nothing else, to reserve wealth going forward. (Maybe as per Jim Rogers - food - is the only other option).

On another note. ALRIGHT ALRIGHT which bastard on this site just sneaked an order in for some phyz yesterday. LOOK WHAT YOU JUST DID. Let me go back and find this culprit...... 

Snort!!!!!

Patience peeps. ALL will be well.

Bugzy.

Be Prepared's picture

Like a Thief in the Night....

The day shall come, without warning, that there shall be a Great Reset!  It is inevitable as tomorrow's dawn shall rise in the East.  This Tipping Point has and will continue to throw off signs of its coming, but there will also be hawkers and tramps that will try to lull you back into the drone of the sleepy masses.

Yes, you've heard this before, but this is a March and it shall be this generation's trail of tears.  It will take great fortitude to hold fast to a belief that few support or understand, but it doesn't alter it's validity and makes it all the more harder to endure.  I have no faith in Central Bankers (I am happy for Victor that he does), but their actions are clearly self-serving and designed to ensnare more people into their delusion.  A bad and corrupt system should fall and burn to ashes.  Yes, it will cause strife and hardship, but much less so than the slow and gut wrenching knife that has been shoved into the bellies of all the world's peoples.

Many of us are looking for comfort that each step of the way will be clear as to what will be achieved at the end.  That just isn't going to happen.  You will be whipsawed in an ever increasing economic storm and the violent moves up, down and sideways will try to break you and throw you from your place..... This is by design, my friends.  They will try to convince you are walking off a cliff with your beliefs because they want you to really walk off the cliff with the rest of our fellow citizens.  This road absolutely sucks because it is wet and full of rocks..... our feet are wet.... and our clothes are thin, but we can survive and, more importantly, thrive by clinking tightly to the light of clarity.

There are no promises of becoming rich or having a great windfall, but a higher degree of freedom and an ability to start with more than most is blessing for all those that walked through the storm and came out the other side.  Know what you know... and breathe it as the air you take within you now... you are here to prepare for an end of an Economic Cycle and to move through its havoc to its successor.  We are here to help each other and, for as long as they allow such sites to exist, enrich our knowledge until the day when the internet can only be accessed with the id chip they plant in your wrist (*smirk*).

We are the Turd Brigade and we will charge into this Endless Night, as friends and comrades, to do battle with a foe that seethes around ever root of this once great society!  

ivars's picture

What else would a PM long wish?

I guess all these accelerating stock dips, EUR dip, economy dips, political mess leading to more deco ordination in trying to fight with crisis all across the board (world)  should be bad for life as usual, but in rather not so far term getting good for QEs and PMs.

I mean, what else would one wish (which we as PM longs definitely should wish) to get more printing announced/executed ? Exactly that what is happening. Selloff in equities. European crisis revived. etc.

Its taking PMs along for some time, but not for too long.

I hope everyone has noticed that AAPL is not resistant to these things and is now 12,8% below its peak-was it 644? , so nearing a predicted crash of 20%.

Kenscott's picture

Vicims Suffer Here - Nobody Will Likely Read This...

I have tried to hold on to my silver and gold based on the fundamentals. I have read Turds posts and even donated to this cause.

Yet, now I do not see a squeeze and I see silver and gold falling further than I ever thought they would fall. Also, I do not see
anything in the future that is going to overthrow the manipulation of the markets. The government, the media, and the banks
have pretty much won this battle in my opinion unless something changes soon.

I am also a person who lost my job and who has tried to preserve some money in the market, but today is just too much
for me. I know this post will be ignored and everyone else will continue on with their "hold on" speeches.  Just wish people
would realize that everyone here is not rich  and cannot afford to hold on while what little they have is being taken away in front of their eyes.

You know, there are victims in this manipulation but it seems nobody wishes to address this issue. If anyone else out there is in a similar situation, I can honestly empathize with your situation. Is is sad. It is depressing. It is hopeless.

Patrancus's picture

Me tinks

Me tinks up till now it has all been a cavalcade of charades, we are all now approaching our own arenas in which the gladiatorial spectacle featuring worldwide monetary battles will commence in earnest, resulting in the eventual death of paper currencies worldwide. Keep stacking

StevenBHorse's picture

Riddle me this

Caught this 5 minutes ago at 11:03.....anyone care to take a stab?

NW VIEW's picture

@ Mr. T.F. & Cher

One must discount her views because of her track record in life.  From "I got you babe", to the dumping of Sonny and the outcome of her offspring.  Her track record needs a makeover.   jmo

ClinkinKY's picture

@ TF--Let's See

Thank you for saving me the timewink

Eric Original's picture

Yuck, what a mess

Time to go mow the lawn...crying

bam's picture

Faber

Can't find the link, but Faber expected one more big down draft (to test the lows) before moving upwards.  Looks like he's in the right here.    

We'll see if the December lows hold.   If not, what a buying opportunity it will be. 

Xty's picture

Kenscott

Hopeless is a terrible word -  I do feel for you.  But do you really think nobody here cares about the victims of manipulation?  You are far from alone, and many have posted their stories.  But the solution is still the same - hang onto physical as much as possible - despair is their goal.

a_guy_in_hainesville's picture

@pforth

Great post.

I care as well when fiat is being held in metal.  So when you go on vacation you want to get as much fiat back as possible.

I also agree, and have been saying it all the time when I come to this site, that the fiat price is going to $0.  I don't have ANY doubt about that.  I mean think about it.  It is on the way now.  Who would buy "paper gold".  What is that worth to anyone here?

I think TF and Santa need to look at this market as a dying market and dying markets don't put gold at 5000K etc.  The PHYSICAL metal will be very valuable, but a market driven price discovery is going to be tough to come by. 

Anyway, nice post pforth.  QE3 and beyond will happen and no one will ever say it.  Why should they.  I made a post months ago on IV about have they "captured gold" after the 1900 smack-down.  I was laughed at.  Now with MFG and all the comments about gold "needs" QE3, well the COMEX is dead man.  That dawning is happening.

Get physical now.

tpbeta's picture

dammit dammit dammit

So of course as soon as I take my money out of Penson, obviously Silver goes to $28 faster than greased lightning. By the time it clears to my other account it'll be back to $34 for sure. F#@k my luck.

apex101's picture

@ pforth why i care about the price of gold

I agree with him in  a way. Im young 27 and i too have 70% of my money or more in gold/ silver and related assets. I still live at home and want to buy a house one day all i can say is this blow off top better happen sooner rather than later. I just cant believe how long this system can last. Any thing past 2015 im going to get itchy.

proton777's picture

bam

What's Faber's call for the low to retest?

StevenBHorse's picture

Riddle me this part 2

11:14 am est.  A profit maximizing long would NEVER sell into this kind of order book.  Do the margin math for those two lots ~1600 contracts......this is a market maker order.

Marblesonac's picture

RE: Victims suffer

I read it and I like it...capitulation..hopelessness...sounds like the bottom of a market :-)

(sorry about your personal problems though)

SaratogaPrepper's picture

Interesting Morning

Slept in a little late on my last day off before returning to work after 2 1/2 months. I was sure shocked to see the prices. May have to sell some Puka shells and pick up some shiny.

Real bad news heard on TV. O'Bummer is going to be just down the road in Albany today. Good day for a ride over to Vermont to pick up some raw cheese.

Turd - Cher is still alive?

bullwhip29's picture

@ ivars

Re: What else would a PM long wish...

I completely agree with you. It is simply the timing of all this that remains unclear. Believe me, the Fed needs to do something massive and shocking to move the needle. It is obvious that more of the same isn't going to cut it anymore.  The problem is that there is not nearly enough blood on US streets right now to justify such action. For the time being, we better get used to more days like this (with the odd wrench thrown into the mix here and there to blow some more of the "equity" shorts up along the way).

Fortinbras's picture

Because today could be a lot worse...

You could be dead at age 47... Cool Coldplay cover tribute to the Beastie Boys from last Friday night.

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