The Assault Continues

Wed, Jul 20, 2011 - 10:01am

Seemingly not content with the havoc they wrought on the Globex yesterday, The Cartel continued their evil ways overnight.

Silver was actually trading around 39.30-40 at around 4:00 am EDT but then The Monkeys began to arrive for their morning shift on the desk and, just like yesterday, down she went, reaching a low of 38.32 by 5:20. Nice work, boys. Gold was hammered, too, but global demand is creating a "compressed spring" look to the gold chart. As gold approaches 1580, the amount of bids increase and it gets more and more difficult for the Forces of Evil to drive it lower. Crude and copper both look fine, too, which is further complicating matters for them. Look for this to continue. If it doesn't, we'll have a problem. Until then, so long as gold stays above 1576-78 and silver stays above 38, all we have is a protracted Cartel raid that will run its course in due time.

Now, here are a few other items to help you kill time while the storm passes. First up...I found this last night while flipping through the channels, trying to fall asleep. Recall yesterday that the cover used by The Cartel to begin their raid was the "deficit deal" proposed by the "Gang of Criminals" in the Senate. As you recall from civics class and Schoolhouse Rock, a bill must be drawn up and passed by both houses of Congress before it can be sent to the president for signature. Watch this clip of Congressman Ryan of Wisconsin and ask yourself if passage of both houses sounds likely:

Just for fun, I lifted this chart from an article on ZH this morning. Pretty much says it all:

Ambrose Evans-Pritchard is back from and better than ever. You'll enjoy this:

Lastly, my buddy Gonzalo in Argentina has typed up an excellent summary of the current state of decline. None of this is any fun and it is certainly disturbing but the truth hurts. We are where we are.

He asked that I add this, too. An invite to his free webinar:

OK, that's it. Hang in there and keep your chin up. Watch those levels closely and have a great day! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Vernon Wormer
Jul 20, 2011 - 10:03am

Turd Rules

Keep up the great work. I appreciate it. Thanks.

Jul 20, 2011 - 10:08am

QuickDraw McSilverTree -- "."

Thanks Turd -- you're the man. It's more than a little amazing that I can read your post without a dictionary . . . and there's no way that would happen without the community you've created. Can't say thanks enough.

Let's get the bastards!!

Jul 20, 2011 - 10:13am

I hope this is not a repost.

Turk has presented this before, I feel it is well worth a reread, and very relevant for our times. It is said that over 50% of our population( US ) is a government employee. Either employed or receiving benefits from the government. So we truly are at an epic turning (decision) point. This is why the push is on to create more "employees" as this is the moment of truth for the EE to gain total control. It is much more difficult to complain about an overarching government when they put food in your mouth and clothes on your back.

Jul 20, 2011 - 10:14am

Why would anyone sell now?

The great crescendo of the precious metals bull market run is coming. To look at a chart of silver or gold over the past 12 years should make perfect sense why.

Since this market began we have seen nothing but grave financial “miscalculations” throughout the world. With each passing near emergency gold and silver have appeared more and more appealing.

Now I have a question for you.

Why would anyone decide to sell them NOW? Minutes from Midnight on what everyone has feared can happen in the blink of an eye sinceLTCM, then reminded by dotcom, and then being slapped in the face with a “lay off” of your job and home in the credit bubble. So now we are left just staring at a few precariously swaying dominos (and by a few I mean Greece, Italy, Spain, Portugal, Syria, Yemen, Iraq, Iran, Afghanistan, Egypt, Tunisia, Japan, The USA, China). So why we wait for the next strong breeze to blow through I am going to be stacking metal.

We tried leaving our money in the hands of our banks and our leaders and they ended up spending all the money on themselves. Now it’s gone and I am not going to rely on them the second time around.

Jul 20, 2011 - 10:14am


Can we really have a real takeoff before QE3 is announced ??

Jul 20, 2011 - 10:15am
Jul 20, 2011 - 10:19am
Jul 20, 2011 - 10:21am


OE in Gold coming up what next Tuesday? If you go on Jesse Crossroads site you see where he has plotted the strong tendency for Gold to sell down into OE and then bounce strongly. That would seem to be the setup here. Small trades off lows for bounces maybe but until next Tuesday I think the criminal racketeers want the price lower. This is because they want to vaporize all those retail calls bought a while back.

Just my two cents but I always respect the OE trade no matter how irrational the price movement at the time because it is criminally motivated. Reversals of momentum often happen about a week out from OE as we had suddenly yesterday.

Jul 20, 2011 - 10:23am

A Bill Named Bill

Thanks for the thread and info TF.

This is pretty much what they are doing to the process and our country.

Family Guy's I'm just a bill song
Jul 20, 2011 - 10:25am
Captain Hank Murphy
Jul 20, 2011 - 10:27am

On a Happier note

I am getting married in 3.5 weeks! The fiancee' is slowly coming around on her understanding of what true money is and the state of our nation. Once the shackles come off there is much pain at first. Ignorance truly is bliss, I suppose.

Urban Roman
Jul 20, 2011 - 10:29am

They'll test support levels

They'll test support levels this week. As Jesse has remarked, you tend to see these shenanigans around Option Expiry.

gold bug-ger since 2001
Jul 20, 2011 - 10:29am


To go along with what SilverWealth has stated, there must be a lot of us that have been trading OE for quite a while which in turn makes it more self-fulfilling. If we all start to bail around the 15th to 19th, and then jump in at OE, it makes the drop and bounce bigger.

Jul 20, 2011 - 10:38am

@ SilverTree

Re: Game Over

Bay of Pigs
Jul 20, 2011 - 10:38am

Picture tells a thousand words

That's a great chart Turd (US debt ceiling/gold). Pretty much shows what happens when a currency is debased over time. So nothing has changed and nothing has been solved. The US Debt Can will be kicked again. All is well for gold.

Here's a great quote from on of the biggest experts in the gold world (courtesy Ed Steer's daily)

"When Bernanke was asked if gold was money, he answered "No." When Bernanke was asked why the US held the largest hoard of gold of any nation on earth, he answered, "Convention." My take -- Bernanke is either dishonest, a liar or ignorant. Take your choice. My pick -- he's up against the wall and dishonest. The Federal Reserve is all about fiat money. Is it any wonder that the Fed Chairman had to deny that gold is money?" - Richard Russell

PS The Bernank actually said "tradition" but you get the drift.

Jul 20, 2011 - 10:38am

Why read Mr. James Turk...

when you can sit back and listen...

Turk: Expect a Tidal Wave of Buying & Short Covering in Gold

Jul 20, 2011 - 10:43am


All these raids are gifts if one's perspective simply shifts. My opinion only. I would not stand in front of this Market when it is overbought and at highs. Thats like standing in front of George Foreman.

Raids are Sales. Its just another way of thinking but thinking positively about it. Granny is down at the grocers after she heard they put everything in aisle 2 on 3% sale. She's not sure if the sale will drop to 7% or if Mr Wiggly will end the sale today so she is buying judiciously and even hoping that some items are red and purple tagged for lower release. Especially the Metamucil and super flush FlaxSeed powder.

Muhammad Ali vs George Foreman Knockout
Jul 20, 2011 - 10:51am


Says screw that, we go higher.

Thanks for the update Turd

Jul 20, 2011 - 10:52am

Send this to

Dear Representative Paul:

I agree with you that gold (and silver) are money. Bernanke is denying the history of human civilization to say otherwise.

Many people are attempting to conserve their wealth by investing in precious metals, with silver acting as the poor man's gold. Yesterday a blatant and illegal manipulation of the Comex silver market occurred late in the trading day at about 2:30 EDT. To summarize the event, 250 million paper ounces of silver, $10 Billion dollars worth, was sold into the market in one minute. This proves without a doubt that the Comex is a completely and utterly corrupt market. Please take the lead in investigating and stopping this blatant criminal activity and prosecute those responsible.

Jul 20, 2011 - 10:53am

Thanks Turd

Good Morning All!!

Jul 20, 2011 - 10:57am

Show Turd's chart to the top callers

Right on BoP. When anyone attempts to argue that gold has "topped", they're really way out on a limb. In order for this notion to have any credibility, anyone arguing that gold has peaked must also make the case that fiat paper has bottomed and is on the road to recovery.

Any takers for that one? [cue the Crickets]

As the chart so elegantly demonstrates, the ongoing debasement of the USD and the rise of the PoG are 2 sides of the same coin. One is the inverse process of the other. This is what I like to call "The Mother of All PM Fundamentals". And Mama didn't raise no fool.

Jul 20, 2011 - 10:59am

Ron Paul on "World Fiat Standard"

Floor Speech on Debt Ceiling July 19 2011
Bay of Pigs
Jul 20, 2011 - 11:11am


Thanks so much for that. All this evidence piles up. I'm sending it to Chris Powell of GATA right now.

I'm going to slap this on Mish's board as well.

Jul 20, 2011 - 11:17am

PM's Snapping Back

A nice FUBM or just the reality sinking into the markets that the U.S. kicked the can down the road and did not do the right thing. At least it looks that way as of right now.

How do you raise the debt ceiling possibly by $3.7 trillion dollars over the next two years and pledge to cut the deficit by $6 trillion over 10 years? Really???

Because of the bad IEA crude inventory numbers this a.m., look for a IEA and SPR crude release in 5...4...3...2...

Jul 20, 2011 - 11:18am

Big time short covering?

Don't tell me that was it and everyone is scrambling to cover already. Or did the EUR/USD teeter totter flop back over in the other direction...again. Like a game of hot potato...I don't want it, you take, I don't want it either...aghhh!

There is a drug for this and it is called Abilify.

Jul 20, 2011 - 11:23am


(repost from previous thread)

tesla, have you ever seen a mexican silver "onza?" they are a semi official mintage from banco de mexico, and some of the nicest artwork i have seen on a coin. one troy oz, .999 silver. beside them, canadian coinage looks positively victorian.

there are also gold "onzas," but they're a little pricier.

duckwomanloulou BlackHawk
Jul 20, 2011 - 11:24am


How many of us frequent this board? How many emails would Ron Paul start to get if we all sent this in? I've done my bit. Here's hoping that it makes a difference


Jul 20, 2011 - 11:27am

@blackhawk, i read your post


i read your post just after i finished sending my own version of the letter to rep. paul. i think i covered the same points.

Eric Original
Jul 20, 2011 - 11:31am

Straight up

So, I get back from the dentist to find metals going straight up again. WTF? I didn't even get a chance to buy something this morning!

Well at least I got no cavities, so I got that going for me!

Jul 20, 2011 - 11:31am

Bought the dip

As I said yesterday, win some, lose some. These dirty rat bastards peeled a little hide off yesterday. Doubled down within 20 cents of the bottom in SLV today and got the stops snugged right up there now. Today, I win, period. And for those who expressed concerned, I have all I need in physical. I use the trading account for "gambling". Have some physical at my sons overseas, have some in goldmoney in Europe and have some buried where even I can't find it here at home.

For anyone interested in what I consider a funny story, now, I bought my first gold in an 80 ounce assortment. I had some Palladium and Platinum in there too. The box was small. I was taking a medication for something or other and decided I didn't like it so I simply stopped taking it. At the same time, we were leaving town for a long weekend and I decided to hide the stash really good. Unfortunately, stopping the medication was not a good idea. My wife said I got wierd(er) and I had to go back on it and eventually reverted to my normal self. Unfortunately, I hid the gold when I was my other self. I searched for two months for that stash. Two freaking months, everyday. I cleaned every square inch of a 1600 square foot basement containing 25 years worth of accumulated junk. I had to got through every freaking box, twice. I was at my wits end and now starting to get paranoid. Who was in the house? Who had I told? Had I told anyone? Did the guys laying the carpet find it? Did the cleaning lady get it? Was my wife having an affair and she and her boyfriend took it? Two months later I come home from work one day and there sits the box on the kitchen counter. My wife, the queen, had found it. I asked here where. At first she wouldn't tell me but then she said " you hid it in an extremely secure spot. It was in the second drawer of the vanity in the guest bathroom, right next to the toilet." If they do wind up confiscating gold, all I have to do is go off my medication and hide the shit. They could water board me and still not get me to give it up. Not a great plan but not a bad one either.

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