Tue, Aug 2, 2011 - 5:43pm

The feeling I have today is something akin to being long crude when war flares up in the Middle East. You're making money but since its on the back of such sad and tragic news, a lot of the fun is sapped out of it.

Though many of us are rejoicing as the naysayers and permabears are once again proven wrong, the fun in being right has its limitations. I'm sickened by what has happened to The United States of America. I'm nervous and, frankly, a little scared of what the future holds. However, the mental image of Mister Die-mon, The Wicked Witch and Ruprecht, all screeching from having a giant golden auger shoved up their collective butts for once sure makes me smile. HAHAHAHAHAHAHA!

As you know, gold and silver are screaming higher. There is a high likelihood that they will not stop here as the gloom of a truly lousy BLSBS number on Friday will overhang the markets for the next two days. That said, the best way to make money in the PMs is to always sell a little when everyone is buying and you must always buy a little when everyone else is selling. IF this rally continues into the morning, I'll be looking to lock in gains on my December gold spreads and then use any weakness to re-establish the same position, though I'd like to move my strike prices up to 1700 and 1800.

Here are a couple of charts. First up, take a look at corn! As you know, I've been dying to buy corn but I haven't had the liquidity to do it. Then, all it did was go down to the point where, by last Friday, it looked terrible. (Again, the key is to buy when everyone else is selling.) Now, corn stands within pennies of an all-time high. IF it trades through the highs of early June, look out! Remember, too, that corn is by far the most important grain. Yes, it's food, like wheat, but it's also a very important as a sweetener (think high fructose corn syrup) and as animal feed (think chickens and cows). Corn at all-time highs is very inflationary. Watch it closely!

Next is your silver chart. It's had a great day and I have a last of 40.86 as we head to intermission before the 6:00 Globex re-open. Watch the action around $41 very closely overnight. IF it can get through the highs of last week at 41.46, it will accelerate toward expected resistance between 42 and 42.50.

Gold is far and away the champ today. This is great news and proves us all correct again. However, it is terrible news for the U.S. and the world as gold at 1660 is signaling that the end of The Great Keynesian Experiment may be approaching even faster than we might think.

What I really want to focus on, however, is the weekly gold chart. Do you recall this chart I posted over the weekend?

I've been thinking about this chart all day...wondering if I could draw it accurately enough to draw some conclusions based off of today's action. Thankfully, Trader Dan posted almost the same chart this afternoon so I just lifted it off of his site. Thanks, Dan! I hope you don't mind.

The only thing I would change is that I would take off the red lines. Look at the longer-term, blue lines, instead. IF gold were to penetrate and rally through that top blue line, currently near 1680, its advance will accelerate and the effect will be breathtaking. Conceivably, gold could rapidly move through 1700 and 1800 and maybe even make a run toward 1900 before pausing. Again, I'm not saying it will happen, I'm saying it could happen. The more likely scenario is that gold approaches the top blue line and then flattens out for a bit before making a run toward 1800 by late October/early November. However, watch that top blue line very closely as it will be a clear indicator of future price trend in the near term.

OK, that's it for now. I'll be watching things closely this evening and if I see something interesting, I'll be sure to let you know. Also, this site is growing rapidly but please continue to spread the word. The world is rapidly changing and we all need to affect/help as many folks as possible. Thanks again for all you do! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 2, 2011 - 5:49pm

Thanks Again Turd

What a day!

Aug 2, 2011 - 5:49pm



Aug 2, 2011 - 5:50pm

Removed comment

Removed comment.

Aug 2, 2011 - 5:51pm

Jim Sinclair

Is vindicated!!!!!

Aug 2, 2011 - 5:51pm

I afraid to believe it

After the crap we've been seeing I'm just going to keep watching. Not getting excited yet.

Aug 2, 2011 - 5:51pm

Removed comment

Removed comment.

Aug 2, 2011 - 5:52pm

A serious question

What are the chances of a margin hike(s) in gold like they did with silver in May?

Aug 2, 2011 - 5:52pm

1% rule eh.. we definitely

1% rule eh.. we definitely did more than that today EE :P

Thanks for all the content Turd.

- Markus

Aug 2, 2011 - 5:55pm

Mr TF, you managed to capture

Mr TF, you managed to capture my feelings pretty close. I'm happy gold is up, but a better part of me is very far from happy. Not happy at all. This debt-ceiling bill I think is a monster and I fear greatly for things in this country...

Aug 2, 2011 - 6:03pm

I am getting scared. I am

I am getting scared. I am long XAU with Swissquote but their share price is falling like a rock

With the bank as the counter-party I am out of luck if a new banking crisis hits all of a sudden.

Economical Disaster
Aug 2, 2011 - 6:11pm

Nothing to be sad about.

Nothing to be sad/scared about. There are HORRIFIC changes that have occurred over the past few years. MOST, 98%, believe that America is strong and will pull out of it. Hogwash. EVERYTHING comes to an end, one just has to learn to adapt. From huge weather changes to the current economic collapse you must prepare for the end of what we used to have. Once you prepare you can sleep easier. BUY A FARM, GUNS, GOLD and SILVER. Get off the grid, ditch the banking system, get rid of all debts, credit and make yourself ANONYMOUS. Its called CHANGE start TODAY and NOW.

Bay of Pigs
Aug 2, 2011 - 6:12pm

Keep trying friends...

All we can do is reach out and try to help and educate the people around us. I assisted a friend over the weekend on what he could/should be doing investing in the gold and silver markets. He was gracious and thanked me for my help.

Don't get down. Keep the faith. Persevere. Press on...

Aug 2, 2011 - 6:14pm

Everyone is inheritely the same - Divided by Perception

"It was curious to think that the sky was the same for everybody, in Eurasia or Eastasia as well as here. And the people under the sky were also very much the same--everywhere, all over the world, hundreds or thousands of millions of people just like this, people ignorant of one another's existence, held apart by walls of hatred and lies, and yet almost exactly the same--people who had never learned to think but were storing up in their hearts and bellies and muscles the power that would one day overturn the world."

- George Orwell, 1984, Book 1, Chapter 10

Aug 2, 2011 - 6:16pm

What, me worry?

We have the new (unconstitutional) Super Congress. This bold new approach is sure to get it sorted out, right? Steven Colbert has a few ideas on that:

Stephen Colbert Explains the Debt Ceiling Deal & the Coming Super Congress

Aug 2, 2011 - 6:19pm


This is panicking Europeans with very few places to go, The Swissie is all well and good, its wildly overextended, there is nothing quite like Europeans on a bank run. They have a long memory, they have been there a very long time. And they know how to hotfoot it. Practise at grandads knee. They know the stories, so the hyperextended currency of cheese and watchmakers and yodellers...not me thanks.

Its probably just begun, just the first movers, but 1650 gold , this teeny weenie coin, its hard not to have the sense what am i getting for my money. It seems a hair trivial.

Whats most interesting is they have no readily acceptable destinations, Brazil? Canada? maybe.

Other bank runs had clear and obvious PLACES TO GO, this one , if it is one, is odd, just exactly what do you convert to? Silver could could get rather interesting rather soon.

Whats an ounce of that other one cost me , this silver??? 40 US you say? So i can buy 40 times the weight, its a pretty coin too, one looks like the sun, for 1650 US and another that looks like the moon, is almost as good in a crisis , maybe not as versatile admittedly, but its money too, particularly in a crisis... and it was 10 dollars higher 31 years ago, not to mention 90 days ago. And its 40 bucks.

So if Europe burns, and the lineups form at their hopeless banks , we may be trying 50 dollar silver sooner than we think. One persons opinion.

Aug 2, 2011 - 6:20pm

Gold's Brown Bubble

What do you think this guy is smokin'?

Titus Andronicus silverwood
Aug 2, 2011 - 6:24pm


The question is who is paying for what this guy is smoking.

Aug 2, 2011 - 6:29pm


Me, I'm just going to keep buying, until I get enough, then wait for the right price, then sell it all.

Then start all over again.

Thank you, TF for all the help.


Aug 2, 2011 - 6:32pm

Asian beat down!

Gold and silver getting an opening kick in the teeth.

Wonder what that's all about?

Aug 2, 2011 - 6:32pm
Aug 2, 2011 - 6:41pm

CNBS knew it all along.

OK, I'm a glutton for punishment. About an hour ago I watched a few minutes just to see how the gold and silver naysayers and resident experts that have dissed, ignored or blew off gold as a commodity bubble would get the bright golden egg off their faces. Truly cringeworthy. Loved it.

Pee Wee's Big Adventure - Bike Flip
Aug 2, 2011 - 6:46pm

I think it was Turd who said,

I think it was Turd who said, "when PMs take off it will be like the first time you stuck it in the pink".

Aug 2, 2011 - 6:46pm
Ned Braden SilverTree
Aug 2, 2011 - 6:50pm

I don't think

The Great and Powerful Turd said that, however I'm sure He would concur.......

Aug 2, 2011 - 6:50pm


“Gold and silver getting an opening kick in the teeth. Wonder what that's all about?”

A decisive battle was won today by the good guys, but the war goes on. Central Banks all do the bidding of each other and slosh money back and forth. All evil. They are desperate. It will become more intense as they become more desperate with their loss of power and influence. There will be blood.​

Aug 2, 2011 - 6:51pm

Gold's New High

Does anyone see a pullback or pause on gold before it continues it's run to $1700, $1800 and beyond? Seems like there's always a little profit taking, at least, before running to new levels. I am shifting a few silver dollars to gold and I need a slow down to hitch a ride! Thanks.

Aug 2, 2011 - 6:51pm


"screeching from having a giant golden auger shoved up their collective butts"

I had to look the word "auger" up. Did you mean one of these? :-)

Dr G
Aug 2, 2011 - 6:55pm


Another great post. And I'll add, that the kick in the teeth comes in the form of the Globex, which is light volume. Let's see what our friends in Australia and then Asia have in store for us later this evening.

Aug 2, 2011 - 7:01pm

Slight Profit Taking? (no volume)

I think w/o volume (like a raid) the selling isn't necessarily a bad thing is it?

Jan Roos
Aug 2, 2011 - 7:07pm

@ Shill or anyone else

A few days ago one of you guys and I think it was Shill posted a great link (as a refresher) to some guy's website where he explains why Silver is going to go to the moon and why it is the investment of the century and why he is all in etc.

Could you pls post that link again?




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