By All Means, Sell Your PMs!

Thu, Jul 21, 2011 - 3:04pm

Word of a pending "deal" between The Regime and The House sent the metals reeling this morning. This once again proves that WOPR does not have actual, human least, not yet.

Of course the debt ceiling is going to be raised in a package with some phased-in spending cuts and tax increases. That was never in question. The only question has been whether there would be a "plan" such as this or whether O'bottom would simply raise the ceiling by executive order. It's quite clear now what will happen. As partially discussed back on Monday, here's how this will play out:

1) The House cast a vote last night on a "Tea Party" package. It passes overwhelmingly but has zero chance of passing the Senate or receiving O'bottom's signature. No matter. It's all about "political cover". More on that later in point #4.

2) A "plan" emerges, brokered by The Regime and the Republican "leadership". 50 or so "safe seat" Repubs will vote for the plan in the House. Those 40-50 votes plus all of the Dem votes will be enough to pass the plan. All of the Senate Dems plus one or two Repubs will approve the plan in the Senate and O'bottom will sign it.

3) Problem solved.

4) "Tea Party" Repubs are able to claim that they did their best. They'll be "on the record" as having voted against O'bottom but voting for their own plan. This is known as "having your cake and eating it, too". On balance, they will be safely re-elected next year and Boehner will keep his job as SOTH.

5) Every politician wins! You lose. Again.

So with that behind us, let's cut to the chase. The debt ceiling is going to be raised again by another $2T or so... (Don't forget about this chart!)

...And it will only take about a year and a half to hit the ceiling again. With the passage of this "deal", all that will have happened is a kicking of the can down the road until early 2013. Hmmm. Early 2013. Why would that be significant?? Let's see, what happens in late 2012? I know it's something but I can't put my finger on it. Let me get back to you on that.

At any rate, the question you need to ask yourself right now is: "From where will this $2T be coming?".

I know! China! (Nope.)

Russia? (Nope.)

Japan? (Sorry.)

The EU and ECB! That's it! The owe us a few favors! (Negative.)

We'll raid pension plans and IRAs! (Someday soon but not yet.)


So, by all means, today's news means you should sell your gold and sell your silver. NOT! I sincerely hope all of you are wise enough now to not continue falling for the manufactured SPIN and MOPE of Washington politics.


About the Author

turd [at] tfmetalsreport [dot] com ()


Violent Rhetoric
Jul 21, 2011 - 5:10pm

Well I hope they beat the

Well I hope they beat the hell out of gold and silver tonight so I can pick up a little more tomorrow.

Jul 21, 2011 - 5:10pm

Eric, Eric, Eric...

Tsk, tsk, my friend. That's like saying you watch the yin but not the yang, the tide but not the wind, Fred Astaire but not Ginger Rodgers, Kim Kardashian but not... er... well, one of the other Kardashians. Silver is the harmony to gold's melody.

Without oxygen, hydrogen is just some stuff you can make bombs out of. But hydrogen and oxygen together make up most of a beer! Its magical- they need each other. Just like silver and gold ;-)

Bay of Pigs
Jul 21, 2011 - 5:16pm


So Freeport (FCX) doubles their profit YOY, and the stock falls?

Sounds about right for the miners these days. Gold/XAU @ an eye popping high of 7.30

I don't get it. How much money do these outfits need to make to catch a bid? Seems no matter what they do the market yawns or even worse, sells them off.

WTF is going on?

Dr G
Jul 21, 2011 - 5:23pm

Family story

Up 7 down the POS/POG go. That's what it is. They aren't going to pry it from my strong hands. So here is my family story:

My mother, nearing retirement age, won't invest in PMs because she feels as though she doesn't have much fiat (she probably doesn't, but who ever feels that they do?) and she watched the spot prices for a month and only noticed that the price occasionally went down. She equates that with losing money. No-go for her.

My brother, is a young guy, and develops apps for iOS. He makes good money, sometimes $50k+ a month. He won't touch metals. He'd rather have it in the bank in a SAVINGS account!! One of his concerns is that he wouldn't find a buyer if he needed to sell PMs. He also has no clue about money and thinks the fiat is all that matters. At last count he had $240k in checking and $90k in savings. Not one single oz of gold or silver. Not a one.

Then they both have a common concern, which stems from that idiot Dave Ramsey. I agree with what he says about getting out of debt and owning your finances like a responsible adult, but that crap about "don't invest in gold...sell it!" has put up a major barrier for my family. They ask me why they should invest in gold when it's at an all-time high. I just sigh.

I've even told both of them that if they invest, they can keep a log of their costs and I will buy back their metals at the exact price they paid for them if they desire to sell. I'll pay for postage or shipping or whatever needs to be done to get them to me. Still a no-go.

Strike a win for our mainstream media.

Nick Elway
Jul 21, 2011 - 5:23pm

RE: RE: Rob What is this coin/bar worth

"I don't want to hassle with anyone."

I've found my local coin club to be a great resource. Plenty of knowledgeable, helpful people willing to buy and sell with a small buy/sell spread. I can often buy 90% there at the coinflation melt-value price.

There are very few youngsters or tech-savvy people at my club, so they don't know from blogs. Many there would fit right in Turd's world. We have home-dealers, refiners, and often a coin manufacturer at our meetings.

Visit a few clubs in your vicinity (each one is different), bring a few of your bars and coins along. Show them around and you will learn a lot.

Find a coin club:

Dr G
Jul 21, 2011 - 5:26pm

I'll add

I'll add that that article linked from is the biggest piece of crap I've read in a long time. Our country is going down the tubes.

Jul 21, 2011 - 5:26pm

@ Pining 4 the Fjords (4:27pm)

Everyone's radar has been on 24/7 since the beginning of May. The type of storm you describe is only catastrophic if everyone is completely oblivious to what's going on and haven't made the necessary preparations in advance, which I believe is not the case this time around. If anything, I feel many have been a little too cautious (maybe even fearful) in recent weeks and have been overly preoccupied about what the EE may or may not do next. It is unclear how much of this sentiment is currently priced into the market. There will undoubtedly be trading opportunities next week (like we have seen so far this week), but I have my doubts as to whether or not a collapse of "epic" proportions is in the cards. No matter what happens next week, the underlying fundamentals will not change. Remember, we were all here last summer talking about pretty much the same things and look how the rest of 2010 turned out.

robov Eric Original
Jul 21, 2011 - 5:31pm


Posted it there and then noticed we had started a new thread so moved it over here as well.

Jul 21, 2011 - 5:32pm

@ Bullwhip- same page

Yup. We're on the same page- and for the record, I do not think things will be catastrophic or that there will be an epic collapse of price next week. I think there is a very high probability for beatdowns and waterfalls, but generally I suspect things will proceed downward in an orderly fashion. My excitement stems from the fact that after they are done with the games next week (presenting us with outstanding entry points) I think the next stage of the managed retreat begins. Price will move ahead significantly since, as you said, the fundamentals are simply overwhelming. They are fighting a losing rear-guard action and we are about to move the battlefront significantly forward.

Best of luck! Pining

Jul 21, 2011 - 5:32pm



FogHorn LegHorn
Jul 21, 2011 - 5:34pm


These are the players on their team,We The People comprise Our team.Bit of a David and Goliath deal, I'd say. They will do the seemingly impossible,those 20,000 GC 1600 contracts will expire otm or atm. Never under estimate the EE, It's Their ball, Their court, Their ref, Their ump. The only thing they don't own are the Fans. Eventually the Fans will become tired and bored watching shifting goal posts and cheap shots.The games outcome always a foregone conclusion.Anger will grip the Fans. Enraged throwing beers and hotdogs, ripping seats out of the stands. Foul, Filthy lying cheats, They will scream. Pouring on to the field, the Fans will change the game and the story. The new story will be titled Gullivers Golden Noose.

Jul 21, 2011 - 5:53pm


This is where you dig in......pullback max on PM miners is 1 pts were given to you two days ago....IF they do it then hit it will feel like you're gonna puke

Jul 21, 2011 - 5:54pm

Sell Ya Silver???

Dog gone it, silver raided again! Now I have to go buy more Phyzz!

FogHorn LegHorn
Jul 21, 2011 - 5:55pm

Savvy bunch o turds

@bullwhip pining4fjords I agree,I think the metals are in strong hands it will take huge effort just to land under the main pain threshold tuesday.The peckerheads gotta realize ever dip is bought strong and phys is only gonna get more scarce. Eric O shame on you not checking on the gray mare.No soup for You!

Jul 21, 2011 - 5:58pm
Jul 21, 2011 - 6:02pm

@Larry What Butler article

@Larry What Butler article are you referring to? That is the only thing I really get upset about with Butler. He thinks Gensler is going to fix things. Way to much faith in the Gens and CFTC. Jury is still out on Chilton.

Did anyone send that silver video to Chilton?

FogHorn LegHorn
Jul 21, 2011 - 6:03pm

Gots them puts kliguy38

Dry powder check.Puts check.Middle Finger left hand up for JPM check.FUBM!!!

FogHorn LegHorn
Jul 21, 2011 - 6:15pm

Nick Elway Coin Clubs

Big hat tip to you NE. Excellent Idea! Cheers.

Economical Disaster
Jul 21, 2011 - 6:25pm

Another STUPID article by the

Another STUPID article by the talking heads. A MUST read ( GOOD LAUGH) OWNING GOLD IS A HEADACHE! Best line EVER!

Pawn stars: Guy sells his care for GOLD COINS. Dummy says that's a BAD DEAL! LOL

Are Gold Coins Worth the Money?

People get dumber by the day.

Jul 21, 2011 - 6:27pm

Just a thought

It's all about resources.

Life/Countries battle for them through time. Rome, Britain, Germany. The USA won the battle with USSR when the soviets went bust.

Oil is the ultimate resource. It is the engine of our modern world. It is starting to run out, about to get scarce, and hence expensive.

He who has oil wins the world. All oil is (supposed) to be bought with USD, there is thus a world need for USD. However there is another currency which appears to be re-emerging as a preferred store of wealth: Gold.

Did Iraq and Libya start to ask for Gold for their oil and reject USD? Did this seal their fate?

It seems like acts of desperation by the West. To officially declare a rag tag bunch of Libyans as the official rulers and to steal the sovereign wealth of $billions and then hand it to them along with weapons and air support etc......... You just cannot make this stuff up!

So it would appear that the West (mainly USA) are getting very aggressive over resources. No Longer are they satisfied to buy oil on the world market. The west is broke. It now seems to rely on military might for its position in the world.

So back to Gold. If the US loses AAA and inflation takes off and interest rates go higher and and........ The $ and military are their grip on world oil. So why hold down the price of Gold and Silver? Because the people rule and if the people move to Gold and reject $ then it is game over. It feels as if they are in a race against time, to take over the world before their $ is rejected.

So what can China do - poor thing. Cannot compete militarily. Even though they are legitimately buying Oil going forward, they cannot compete with this outright theft. However, if Gold were to find its proper level and the masses moved away from $ and the $ crashed and hyper inflation and .......... Then things would get interesting.

Perhaps China should open a Gold exchange and allow for price discovery.

Please do not think me anti West. The elite no longer care about the quality of our lives. We need some sort of reset. Painful as it may be.

Gold may not just be the Canary in the coal mine. It might be the pivot point which decides the freedom of the human race on planet earth.

Jul 21, 2011 - 6:29pm

Remember when $36 silver was key?

that's where they'll try to take it to

Turd is 100% correct about the importance of 39.50, gotta get past that soonest!

Jul 21, 2011 - 6:35pm

DC Craps, Benny Polishes Them

Yep DC were only ever going to raise the ceiling for yet another Pigfest for their vested interests (corporate parasites) feeding frenzie at the nations expense

And Benny prepped us all last week, readying QE3 "only if the economy needs it" ...Yes of course Bernank, you're only doing it for the economy and we were all born yesterday

Bernanke is a crone led by the nose by his 2 masters, the bankrupt crumbling criminal empires of WS and DC. Take a look at what these two Super-Crooks did to the US property market.

But BS Ben can't be seen to be just a snake oiled cog in the rotten establishments wheels. He has to sugar coat the big turds of bailing out the dumb and fraudulent WS bankrupts and endless greed of the obese glutenous pigs in DC

Bernank has an arsenal of ready-to-roll total bullshit to trip off his forked tongue he's doing it for alturistic reasons, for the good of the country and economic stability. Of course you are Ben, or course you are

Matters not that 3 programs, QE1, QE-Lite and QE2 did absolutely fuck all to 'stimulate' GDP or employment or exports or anything for that matter. That'll be because it was all pissed down the toilet on the biggest tossers/bankrupts/frauds in America: Wall Street and Washington

Now the debt ceiling is at a new high are we all seated comfortably for Peak Bullshit to spew from the mouth of Ben 'BS' Bernanke?

You know what's coming ...pass the sick bags

FogHorn LegHorn
Jul 21, 2011 - 6:40pm

Murf lol

Re: Eric Os, fessin up to his disappointing silver chart surveilance.------"If I had Your gold I wouldn't watch silver either" lol. ---someday when Turds master plan is unveiled, I would enjoy siffting back a few cold ones with the "class acts" here in turdsville. Cheers turds.

Economical Disaster
Jul 21, 2011 - 6:44pm

Cool Site look at what a

Cool Site look at what a trillion dollars (and up) looks like next to the Empire state building..

Jul 21, 2011 - 6:44pm

Hong Kong Metals Exchange Opens Silver Contract 7/22

"The HKMEis starting its silver contract this Friday July 22nd! This officially breaks the Anglo American monopoly on silver. This will be the first time that Asians can buy and take future delivery of silver in Asia. No longer can the CME raise margins close to 100% in 8 days...."

FogHorn LegHorn
Jul 21, 2011 - 6:48pm

Bookmarked Your Blog --kliguy38

Great blog! I'm goin to go back and spend more time tonight.Entry is half the battle.

I Am The Unknown Comic
Jul 21, 2011 - 6:54pm

@ Pining

Pining I concur with your assessments regarding the treasury auctions next week, and most of what else you have said here today. I have one thing to add:

Wouldn't tomorrow just be a perfect day for them to raise margins on silver again??? Talk about a smackdown!

Kuchek OC15
Jul 21, 2011 - 6:56pm

Sorry my sarcasm did not come

Sorry my sarcasm did not come across in the words that were typed. LOL. Stack PHYZ BABY!

Jul 21, 2011 - 7:03pm


The Butler article Bay of Pigs pasted and I commented on was from yesterday’s Market Update. The gist: "Silver is manipulated. CFTC doing nothing. Hope springs eternal." Well written and knowledgeable (with copious detail) but nothing new.

Another Ted report came out today, “A Nervous New World”. Nothing new there. More JPM, CFTC, silver price manipulated… (more copious detail) and so on. I’d clip and paste a portion if these things were not already known.

Jul 21, 2011 - 7:03pm

Follow up on coin shop ID story

Agora Financial news letter did a fine follow up these two days of an unofficial survey. Here's the readers' feedback:


“I bought silver yesterday, July 18, without ID in Washington,” writes a reader, kicking off a series of replies to the reader in Omaha who must now produce his driver’s license when buying gold or silver from local dealers. “Must be a state law, and not federal.”

“According to my friends who invest in gold and silver,” writes another, “the requirement to show ID and have your info recorded while buying/selling gold or silver is definitely true in Austin, Texas, and has been the case for months now.”

“Just this week, in a mid-Florida town, I purchased some silver eagles. No request for ID. However, the posted sign said all transactions over $2,000 required a photo ID (to thwart terrorism).

“So in my case, I simply made two transactions. Bought some for under $2,000, went out to the parking lot and came back in and bought some more.”

“I’ve been buying gold and silver for some time from two different online dealers, but with my last order (a few days ago), I received a voice mail and an email indicating that they would cancel my order if I did not contact them by phone within a day to verify the order.”

“The phone call consisted of being transferred to their ‘Verification Department’ so that I could regurgitate my name and address for their records (which already contain my name and address). Apparently, all credit card orders now require verification. I will be making future purchases overseas, as suggested.”

“When I sold some silver recently,” says a reader on the other side of the transaction, “I needed to show ID and a police report had to be filled out, ‘in order to make sure the silver wasn’t stolen.’ Apparently, all sales required that.”

“I checked my usual local coin store,” writes a reader from the Tri-Cities area of Washington state, continuing our informal survey of ID requirements around the country to buy precious metals. “They do not require ID to purchase from them, but do require ID if you sell to them.”

“I just bought three gold eagles last week in El Paso, Texas, with no ID request,” writes another. “Almost $5,000, all cash.”

“I went to my coin shop to sell some gold. The dealer told me he could not buy more than $10,000 worth if I wanted to be anonymous.”

“He’s very worried as, apparently, there is a threat they could just come in with handcuffs and no warrant and take him away and close his store if he violated that rule. Talk about your police state.”

“After reading The 5 yesterday,” writes a California reader, “I decided to stop by my bullion dealer and buy junk silver with the cash I had in my pocket. I grilled them on ID requirements and asked if any such requirements are on the horizon. They weren’t asking for ID and were not eagerly looking forward to such a thing.

“The owner of the shop said, jokingly, on my way out, ‘We do, however, send in video daily.’”

“It might be a good time,” writes one more, “to remind readers of the best (if not purest) idea I’ve heard in a long time from one of your readers.

“Sure, give officials your name when you buy gold and silver. Then, if it all goes to hell in America someday, report your coins stolen to local authorities and keep it safely buried in the backyard for the ‘Day of Reckoning.’”

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