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 ()


Jul 21, 2011 - 7:14pm

Visualizing clearly 1 Trillion

The debt ceiling is going to be raised again by another $2T. This is a lot of $100 bills. We can easily visualize $100 or $10,000. Maybe even $1,000,000.

But can you really visualize 1 Trillion?

This will help.

Jul 21, 2011 - 7:14pm


Yep, I have sold my [half] of what I normally sell on a high ($1602), now I am waiting for the next cycle so I can do it again. Makes me a little more nervous each time I do this - but so far so good. I can pretty much see them doing a waterfall once a 'deal' is made. Then I will swoop in on a low in Aug, and likely repeat again in Sep/Oct.

I started doing this is 2000, but have not been aggressive about it until the past year.. so far so good ;)

Got to love volatility.

bobby Lakshmi
Jul 21, 2011 - 7:32pm


as if you will ever have a sniff of even the smallest stack

JoeKa Violent Rhetoric
Jul 21, 2011 - 7:37pm

Gold is not money - The

Gold is not money - The Bernanke Gold is money - the guy laying my bathroom tile. Gold? It's a piece of the road - God

donnojackshit TheGoodDoctor
Jul 21, 2011 - 7:45pm


@TheGoodDoctor I'm with you. Anyone who still thinks Bart Chilton or Gary Gensler have any Credibility left is pissing in the wind!

Jul 21, 2011 - 7:52pm

Time once again to....

"Hide your kids, hide your wife..........and hide your husband, too. Cuz they're raping everyone...."

Jul 21, 2011 - 7:52pm

@ unknown comic

You devious bastard. A surprise margin increase just when they need it most. Brilliant thought.

Joy on Maui
Jul 21, 2011 - 7:54pm

Suggestion for Ron Paul

I'm one of those who recognized our White House Trojan for what he is too late - during his victory celebration.

Just wrote to Ron Paul that I will likely give him my vote this go-around. My suggestion to him was to select

Sheila Baer (former head of the FDIC) as his running mate. I think she would be great in shining the spotlight on how our financial ruling elites are quietly effecting the largest transfer of wealth this country has ever known.

And she would greatly expand the appeal of the ticket to women who might find RP a bit stuffy.

If any of you guys are up to doing the same, here you go:


Jul 21, 2011 - 8:09pm

Turd lol

I was just thinking Turd, "By All means sell your PM's"...Sell them? Hell I can't even give them away.

Yes the sheeple are that dumb.

Pale Green Horse
Jul 21, 2011 - 8:11pm

Iraq asked for Euros for oil


This sealed Saddam's fate. Libya has a large storage of Gold and Italy an even a larger one. Force is being used against Libya, the IMF will be used against Italy as they are a NATO country, and if that does not work they will send in the Jackals.

See "Confessions Of An Economic Hit Man" - Perkins.

Jul 21, 2011 - 8:12pm

Taking you up on your offer

Shill/Bill - I'll take them pm's off your hands, no problemo. K pardner?

Jul 21, 2011 - 8:13pm

WOPR is your best friend!

Do you know why? 'Cause no rational trader would sell their long PM position on such ridiculous political theatre. BUT, a nice convulsion in the market from such stupid 'bots is a grand opportunity to buy long options CHEAP!

Yes, yes, my pretty little WOPR. Good kitty.

Jul 21, 2011 - 8:13pm


I forgot, nice fresh tube of the shiny is on the way. Some say run and sell, I say buy the fucking sale.

Joy on Maui
Jul 21, 2011 - 8:15pm

Excellent read

About the historic changes in the world-wide economic landscape happening before our eyes:

Jul 21, 2011 - 8:18pm

Joy on Maui

Fantastic read Joy, read that already...***** 5 stars.

Jul 21, 2011 - 8:26pm

Not sure why we should be

Not sure why we should be listening to the Dalai Lama who is a proponent of Marxism. But, whatever.

I Am The Unknown Comic
Jul 21, 2011 - 8:27pm


Pining, thanks Buddy! It's the tinfoil hat...and of course, the very nature of being a cool cat. :>)

I really do think they will stop at nothing to whack PMs down in the next 3 trading days. I am loaded on puts but still have many of those nagging calls hanging out (I've built quite a strangle at SLV 38). Frankly as of tonight it doesn't matter much to me which way the silver price goes as long as it goes big in either direction.... and preferably big in one direction and then slingshot with an overshoot in the other direction. That would make my month.

So, I think Blythe, the DeathStar and the EE will pull out all the stops, and that could include a surprise margin hike. I really do. Long SLV calls are just loaded up through to 42 (with a bump in volume on 45). Puts pale in comparison on volume and open interest pretty much falls off at 34 (with a bump on 32). This tells me the calls are ripe for the picking and a smackdown would likely shake out a lot of them, many of which are probably naked long (shame, shame, shame!).

Worst case scenario for me is that all the "news" headlines/programming cancels each other out and we don't get any volatility. Then I would just have to ride my position out until expiration on 8/20....yeah I think I could do that! Volatility and a real shitstorm is on the horizon. I can see the clouds. I see a bad moon a-rising, and I hear thunder and lightening. Here's a clip starring Blythe's Evil Monkeys:

Creedence Clearwater Revival - BAD MOON RISING

Good luck trading to all, and remember that my thoughts are worth exactly what you paid for them. Trade on your own.

Jul 21, 2011 - 8:27pm

Gold, Silver, Oil ratio's 40:1 16:1

I've been loosely paying attention to this and it's not exact nor does it necessarily have any significance that I know of.

With gold at $1600 and and silver at $40 and crude at approx $100 is it possible that the EE needs to keep some type of ratio within all 3 of those or things might really spiral away from them?

The Au at 1600 and Ag at 40 is obvious. The 40:1 ratio that TF or that article mentioned from his previous thread hasn't moved much lately. The historical gold/silver 16:1 ratio now seems to be a approx. oil to gold ratio. Track oil backwards and gold and you get a approx. 16:1 ratio give or take a little bit.

It does seem the EE is trying really hard to hold all three price levels right now at those ratio's. These ratio's might be more important then we realize or they may be meaningless but they do seem to consistently apply to the approx. prices as they have been adjusting up and down.

Is it possible that the gold to oil ratio is the one that rally scares them a bit? I believe like most of you that the silver ratio to gold is super important. But what about the gold to oil ratio? Keeping oil under $100 ($96 is more like it in TF's analysis, no arguments here) seems pretty critical to them.

I notice during the day that they don't attack both PM's and oil at the same time very often or with the same amount of energy and money to subdue the prices at the same time. It's usually the PM's getting hit hard or oil and the other is left to naturally rise for awhile and then they attack the other.

Any thoughts on the ratio's or their significance? Silver is obviously significant to the EE but the oil to gold ratio must have some meaning also I think.

Jul 21, 2011 - 8:31pm

for common sense in washington

ignore the first 2 minutes and 40 secs. please watch till the end. in the end the pm was talking about a good life and a meaningful life. he wasn't pronouncing the word meaningful clearly. for those who could not get it.

Jul 21, 2011 - 8:33pm

Sell your PMs

Here's what the MSM is telling the sheeple regarding gold. Oh well, just leaves more for us. per Wikipedia: SmartMoney The Wall Street Journal Magazine of Personal Business was launched in 1992 by Hearst Corporation and Dow Jones & Company. In 2010, Hearst sold its stake to Dow Jones. SmartMoney's target market is affluent professional and managerial business people needing personal finance information. Regular topics include ideas for saving, investing, and spending, as well as coverage of technology, automotive, and lifestyle subjects including travel, fashion, wine, music, and food. I never considered myself an affluent professional but there was a time years ago when I used to pick up and read a copy occasionally. To think I ever gave that rag any credibility gives me chills.

Jul 21, 2011 - 8:43pm


Does anyone know of a dealer with a lower markup than Gainesville Coins on Silver Eagles? Thanks.

murphy FogHorn LegHorn
Jul 21, 2011 - 8:47pm


Right back at ya. As a matter I fact I posted on the Admin forum some ideas that had the future in mind just yesterday.

BTW, you were always one of my favorites on Saturday morning.

I Am The Unknown Comic ¤
Jul 21, 2011 - 8:53pm


DeepPH I do think you are on to something there, especially as of late, and I would throw in a DXY (that's the US dollar for the noobs) range of 74-76.

It seems the central banks are really trying to keep one of the fiats from busting out/breaking down versus the others. The two biggest in the DXY basket (USD & EUR) are both basket cases. If either or both falls, then the whole evil central banking empire that we all love to hate will be screwed....that is, until they've sold us on a replacement currency (what's it called - the "World0" SDRs?).

Since gold, silver, and oil are priced in dollars, it's probably easiest to manipulate the dollar price (and hence the Euro and Yen) through manipulation of these. Man I could go on all day and night about this. I best leave it up to people who know better than I. Any currency traders out there in Turdland?

I also would encourage all to keep in mind the correlation between SLV and JPM prices. JPM needs SLV price to remain below their share price.

StychoKiller Violent Rhetoric
Jul 21, 2011 - 9:05pm

@Violent Rhetoric...

Surely you've fallen off your barstool by now! Hang onto the floor to keep from falling off the World!

Jul 21, 2011 - 9:14pm


Been away all day, see no one else posted the #s

+337 total silver contracts (gold #'s here)

Daily Settlements for Silver Futures (FINAL)

Trade Date: 07/21/2011










Prior Day

Open Interest

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Last Updated 07/21/2011 06:00 PM

NCdirtdigger Violent Rhetoric
Jul 21, 2011 - 9:21pm

Explains alot

Well that explains why all the liquir stores are out of Jack!

Jul 21, 2011 - 9:29pm


I also agree that you may be on to something. I remember reading something on FOFOA's site from Another regarding the price of oil. I can't locate it now but will try. The essence as I recall, was some kind of under the table gold transfer to the oil producers in order to keep the prices of oil very low. In addition, the Saudi's would also keep buying our trash bonds. This is a very simplified memory on my part.

While I was looking I did come across this snippet that makes sense to all the Turds in Turdville.

FOFOA said...

Every currency made in imitation of Gold goes hand in hand with the financial architecture that supports it right into the trash bin of failed efforts, and are logged into the collective wisdom of those who vow not to be fooled again. Based on the "conception, care, and feeding" of the various currencies and their supporting architectures, the life span--or timeline--of predictable rise and fall milestones may vary in length from one currency to another. They may serve a purpose while they last, but they all suffer the same eventual demise at the hands of inflation. Remember, these currencies are man's artificial attempt, time and time again, to imitate Gold for use in modern commerce. They are built for speed--built to be borrowed specifically, and spent rapidly! They are not suitable for saving. For that you must turn to the master--the near-wealth proxy upon which all currencies must bow down in inferior imitation.

So you see, learning how the world works is all about each man coming to the understanding about the real wealth we all require to best ensure our survival. Knowing that Gold is the master proxy for our life's day-to-day and year-to-year shifting requirements for food, clothing, shelter, and energy, it simply makes more sense to gather in Gold for later use than to gather in clothes (that we may outgrow,) food (that may spoil,) houses which are more than our needs, or energy (that we can't store.) You see, time bears witness to this undeniable fact: Gold can be called wealth because it is an enduring wealth proxy in exchange for our life's needs. Currency, on the other hand, serves a specific modern economic purpose--to be borrowed and inflated in placation of man's immediate desires. It is not wealth, it fails as a proxy for the Gold it tries to imitate. Do not confuse the two.

Jul 21, 2011 - 9:29pm
Jul 21, 2011 - 9:40pm


Found them. Way too long to put in a synopsis.

On the relevance of oil to Freegold:
GOLD & MONEY: More Than Meets the Eye

The King and his Gold

It's the Flow, Stupid

humbleprofits SilverSerf
Jul 21, 2011 - 9:40pm

Lower markup

For some silver eagle items, when considering shipping to my address, is cheaper. Have not bought from there yet. You can also send personal check and avoid wire fees, according to there site.

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