Three Overnight Items

Mon, Aug 15, 2011 - 10:08pm

Gold and silver performed exactly as expected today. Now that we're moving higher again, where do we go from here? The charts below will help.

I mentioned back on Friday that I was going to be participating in an interview of Clif High, the founder of the WebBot Project. Here's a link to Clif's Wiki page and site:

The full interview has now been posted to YouTube. Yours truly primarily appears in segment number one but I'd encourage you to listen to the entire interview.

Lastly, The Golden Jackass sent me a terrific and detailed email earlier today. He has also given permission to post it here. As you know, Jim is one of the few good guys who isn't afraid to speak his mind. He's also a Turdite. His website and subscription service can be found here:

Jim Willie CB to me

Hey you big Turd-bag
this is the Dirt-bag, aka Jackass Extraordinaire

interesting how Silver is negatively correlated with the USDollar
but so is the US stock market, which grew dependent upon weakness perversely
strange how over the last 18 months the S&P500 stock index became part of the USD Carry Trade
very interesting, almost recognized by the mainstream monkeys too
they failed to realize that the DJIA and S&P indexes merely preserved purchase power, not a bull market
but it means that Silver falls with the S&P500 stocks unfortunately
it will take a couple months to separate the two

the Global QE will in my opinion replace the US QE
it will take the heat off the USFed and the clueless Bernanke
has Ben gotten a single analytic perspective correct in four years ??
I think not
in fact, the Jackass and Big Ben are always on opposite sides, and Ben is wrong every time
with the Bank of Japan buying the USTBond and the Swiss Natl Bank pulling down the Franc currency,
we have the makings of a Global QE
all it needs is a G-7 Meeting with the confused broken central bankers to join hands and sing together

my thinking is that Silver has toyed around and dithered under $40 long enough
it has built a strong base, and shows absolutely zero interest in going below 38
that means the only trade is on the long side, which means over 40
the Weak USDollar trade will be replaced by a Weak Western Major Currency trade
see the USDollar, Euro, and British Pound, all of which all circling the FOREX toilet
the objective of the major central bankers will be to keep the exchange rates calm controlled contained
they can then claim FOREX is stable, mission accomplished, even though the commodity prices will rise again

some money will move from Gold profits to Silver buys, a big new upcoming factor
this is the next important phenomenon along with Large Commercials covering their short positions
I have stated many times that Gold fights the big important political battles
but Silver rides through on a white horse and take triple sized gains
this time is no different and Gold has broken a wide gap in their criminal fortress wall
to be sure, some claim Silver has too much of an industrial component
it does, but it is a staple with stable demand
the big added demand is from investment demand, a powerful new global factor led by the Chinese and Indians
Silver demand is still nearly equal in US$ volume as Gold, an amazing fact

my solid reliable experienced Gold trader contact reports that investment grade Gold bullion comes with a price premium of 25%
and that Silver bullion comes with around a 20% price premium, both versus the COMEX paper prices
he calls the COMEX almost completely irrelevant, but still watched by sheep
translation: Gold is now at $2000 and Silver is almost now at $50

please post this note on your weblog if you wish
any quick thoughts in reply would be appreciated and valued, never depreciated, surely not deprecated
best wishes to you and all the other Turd-lets
greetings from the Land of Jackass Wannabees
/ jim

Have a great overnight/early Tuesday. See you in the U.S. a.m. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


lazytrader Endzeit
Aug 16, 2011 - 8:36am

@endzeit I was in the mint.


I was in the mint.

Aug 16, 2011 - 8:37am
Eric Original
Aug 16, 2011 - 8:43am

Jim Rickards caught repeating a Big Lie

I'm a huge Rickards fan. I hang on pretty much anything he has to say. But in the recent KWN interview he spewed forth one of the favorite Big Lies that you so often hear in political/economic discourse. If you repeat the Big Lie often enough it becomes fact.

He was giving the history behind Nixon going off the gold standard, and how everything was horrible afterwards, ending in Carter's defeat for reelection. All true. But then he drops The Whopper.

"It only ended when Ronald Reagan and Paul Volcker, sort of, ah, restored the strong dollar."

Huh?? Let's step away from republican theology for a moment and check some actual facts. The instrument of getting a strong currency is to hike interest rates high enough and fast enough to swing the real rate, the after inflation rate, from negative to positive. Sharply positive.

Volcker was appointed by Carter in August of 1979. By October he had embarked on huge interest rate hikes. This process lasted throughout 1980. Volcker created a positive real interest rate, also a lot of economic pain, and eventually (these effects all have a lag time) broke the back of inflation. But the benefits of all that bloodletting came too late to help Carter get reelected. These are facts.

By the time Reagan was sworn into office in 1981, the heavy lifting had already been done.

Aug 16, 2011 - 8:43am

You are no better than the

You are no better than the banks shuffling contracts and paper around if you playing in this paper charade.. in fact you contribute to keeping this paper scam afloat

I buy metal with their paper. and sleep well doing so.


Aug 16, 2011 - 8:47am

What Jim Willie wrote to TF

What Jim Willie wrote

to TF was in his recent NL sent out Sunday night. Here is the context of what was shared with TF. Agree or disagree with it, it is what it is. You decide.

A well connected contact from the banking world with intimate familiarity with many background events offered an opinion last week in response to the rapid rise in turmoil. He is privy to numerous activities of hidden variety. In recent weeks his tone has changed, to indicate a profound perception of the the United States having entered a dark chapter with almost no chance of recuperation.

He mentions how executives in foreign lands are bracing to protect themselves from a certain US shock wave, as many regard the US as a rogue nation. Many foreign corporate heads consider the US even a failed state. He has cited several stages of deterioration leading to a certain collapse. Public awareness seems to be growing that the US has no structural mechanisms to treat or remedy its flaws and fractures. The nation is strangled by its large banks. The political apparatus is totally broken. Its imbalances worsen by the month. The fraud persists in many corners without restraint.

He wrote, "If I would tell you what is next, then I would take the fun out of it for all of you. The Boyz are not as powerful as you think they are. They have lost control. That does not mean that they will go quietly. I reckon we shall see an extreme event in the Persian Gulf sooner or later. They cannot hide any longer since they set all on fire. The great cleansing is only at its infant stage. There will be order in all the chaos. The system already has broken down. Power does not come with weapons. Real power is shown when people do not want to find out how powerful you are, and your power need not be used. The moment power is used, it is lost. This is poorly understood and this is why nations fall. The Roman and US empires are prime examples. It is about purchasing power, not the price of Gold in US$ terms. The purchasing power of Gold is the same whereas the fiat currency tanks.

The guys trying to escape through the back door are all getting shot. It is incredible to see these arrogant bankers break down in visible ways, as they realize that things are coming apart. The Boyz, who thought they had things well planned and engineered, are getting buried by the avalanche they did not see coming. The real crash will come this autumn. By June next year many extreme pivital events will have occurred. The current USofA is now a failed nation which is not understood by most people. There is enough backbone and will power left in the majority of the American people to pick up the pieces to at least get their lives back. The country is already foreign owned. What a great opportunity if you know where the hard, self re-pricing assets are to be found.

Germany's new Bundesbank leader and minister of finance have slammed the brakes. It is game over. The chancellor is isolated and will be without any power within two to four weeks. Enough is enough. The hammer dropped. They are ready to let things crash and burn in order to rebuild the Day After.

Lastly, with respect to the fast moving precious metals prices in reaction to the USGovt dysfunction and US-led global recession. There is a disconnect now. Investment grade Gold is already selling at a 25% premium to spot prices, and Silver is not far behind. The listed paper prices are all bull. It is showtime, bigtime."

Read that last item clearly. Gold is already at $2000/oz, and Silver near $50/oz in the real world where metal changes hands.

By the way, an American subscriber living in Argentina reports that a coin dealer is charging 32% premium over the spot gold price last week. His sister just sold a 50 peso Mexican gold coin (37.5 grams) for $2800, which translates into about US$2320 per oz. That is a hefty premium. More reports across the land would surely confirm. The COMEX price discovery is increasingly irrelevant, as a grand divergence is in progress between paper gold and physical gold. Soon it will be shut down, or become a Cash & Carry operation without any metal in inventory. To purchase gold under $2000 per ounce might already be a thing of the past.

Aug 16, 2011 - 8:50am

Eric ...There IS a lag time

Eric ...There IS a lag time in policy and effect. ....That is why it is rediculous how Clinton soaks up all the 'boom' times accolades of the 90s. Besides the more conservative congress keeping Clinton in line... he (Clinton) clearly reaped the benefits of the Reagan year policies. ...It goes both ways.

For ME: This is what it comes down to. All of our politicians on both sides have let us down. ALL of them. I think we agree there. I no longer will tow the party line for any candidate. I like some things under Reagan. I hated many things under Bush. Obama wins the prize of the century however. Bush1, Bush2, Carter, Clinton, Obama ...I've sadly had to learn that I was part of the problem in supporting (blindly) my party for years ...thinking they had our best interests at heart. I no longer believe that.

(Not arguing with you.. ...just taking it a bit further) ;)

Aug 16, 2011 - 8:59am

Agreed. Rickards has been too cute by half lately

His recent KWN interview where he basically assumes that all of our 8k+ tonnes of gold is intact and exactly where it ought to be really perked up my ears.

Not saying Jim is wrong and I'd love it if our nation's gold is really there. I know the dude knows many "interesting things" and has some serious sources. I just find it more than a bit odd that such an ordinarily skeptical guy would actually hold this as a foundational belief. I was really surprised by that. Also bear in mind that Rickards is a long time insider. You don't stay one this long without making a few compromises along the way. That he's allowed on CNBS so frequently is not necessarily a point in his favor either.

Oh, and Jim, please cut your hair in the back, it's not nearly as cool as you may think.

Until further notice, Rickards is on double secret probation.

beemer Eric Original
Aug 16, 2011 - 9:02am

Jim Rickards

My little antenna is very aware when I hear Rickards ,although I think he is extremely intelligent ,and he has been dead-on when he comments on what the fed will do,I am as well aware that his firm is a consulting firm oft hired by the government.

Being interviewed by Becky and Joe about a week ago ,at the end of his interview he said"I am not a goldbug".I was stunned because he is seemingly pro gold.If he thinks as he says that gold will be revalued to 7k why would he not be a goldbug?

The very video was posted here but the end statement was not there when I watched it...

Eric Original
Aug 16, 2011 - 9:08am


Agreed. There are always lag times. The schmoe who happens to be sitting in the oval office at the moment when things are perceived to be good or bad always catches the credit or the blame as the case may be, whether they deserve it or not. Might have been the previous schmoe's credit or fault. And this is the basis for most political arguments and campaigns. Applies equally to the Blues and the Reds.

Aug 16, 2011 - 9:08am

His recent KWN interview

His recent KWN interview where he basically assumes that all of our 8k+ tonnes of gold is intact and exactly where it ought to be really perked up my ears.

If said Gold is still intact and accounted for, I'll eat a Yellow hat live on the I-net. As noted " The US is mostly Foreign owned now " Said Gold has been leased, loaned, melted down and so on and so on.

If I were China and said gold was still intact I would be screaming and yelling for delivery immediately, this is why I have my doubts that it's there.

Ned Braden beemer
Aug 16, 2011 - 9:08am

Double Secret Probation

"Whatever that is" - LOVE IT - From Animal House, Robert Hoover being admonished by Dean Vernon Wormer !

Aug 16, 2011 - 9:09am

Watcher, now that's what I'M talkin' about!

Thanks very much for posting that GJ blurb, great stuff.

As usual from Jim Willie.

Aug 16, 2011 - 9:09am

Ah.. ...My Tuesday Thomson.

Ah.. ...My Tuesday Thomson. ...Been waiting since ...well, last Tuesday for another of his commentary. Worth the wait. I've read alot about gold revaluation this past week and was somewhat confused as to how this would help or hurt the public.. ...Thomson explains ...and it's not good for the regular person who is not yet awake:

Ned Braden ginger
Aug 16, 2011 - 9:14am

Tuesday Afternoon

1970 Isle Of Wight festival

Moody Blues - Tuesday Afternoons (From "Threshold of a Dream" DVD)
Aug 16, 2011 - 9:16am

EricO ....dead on right.

EricO ....dead on right. ....It always drives me crazy in political discussions..debates.. etc.. when the politicians take credit for something they had very little to do with. At some point they do own the outcomes of their administrations ..but all too often they want to claim only the good (which could have just as easily been the credit of the previous admin's policies) ..and they always want to blame all the problems on the previous administration. .....I finally said ENOUGH ................. Now.. I just blame all of them now for everything equally ....and really ..myself for not being on to them before the last year or so. "/

The Jim Willie stuff about the Fall collapse is indeed scary. I had hoped we had a bit more time. ...I do need more time. "/

Frontal Labottleme
Aug 16, 2011 - 9:18am

John Stewart on Ron Paul

I'm sure somebody has already posted something about the bit John Stewart did on how the MSM ignores Ron Paul so I apologize in advance, but just in case here's a link to it (it's crappy video but it goes straight to the part of the show that matters):

Video unavailable

Unbelievable. Those MSM jackasses deserve to get their shit handed to them in the worst of ways. Their arrogance makes me want to puke.

Aug 16, 2011 - 9:24am

G'mrng all.....

....waking up a bit late but just in time. (I hope)

I have this feeling from last night that today is going to be one of those days, either way.

Lots of green luck your way today.

Aug 16, 2011 - 9:27am

Ned my man!

"Hey, you fucked up.... you trusted us"

What I learned that summer: NEVER trust the shiny black Caddy to ANYONE.

Eric Original ginger
Aug 16, 2011 - 9:28am


Good stuff from Thomson there. You'd be doing us all a great service if you would post that every Tuesday.

I know, we can go there ourselves. But I'm lazy! I like all the good stuff to be right here on Main Street.

Aug 16, 2011 - 9:29am

Re: the Jon Stewart bit..

Re: the Jon Stewart bit.. ...Hilarious ..and sadly true. ...My thoughts are that the MSM tells you EXACTLY who they do want running against Obama and that would be Bachmann, Romney, Palin, Perry, etc. ...They push those candidates names over and over again simply because they want to make certain the names are ingrained into the publics' collective consciousness. They want to make sure that those are the only names that come to mind when considering this presidential election. Ron Paul scares them to death and they do not want him to be the nominee. They will say that he is a joke and they will say that a Paul nomination would be an 'easy win' for Obama. .....That really couldn't be further from actual truth though and they know it so they must put out the propaganda to marginalize Paul ..or ignore him altogether. Ron Paul being the nominee would constitute an enormous threat to the power that they desperately want to hang on to.

Aug 16, 2011 - 9:31am

I've just joined the Turdites :-)

Greetings of Thanksgiving for your website Turd. I surfed over from a link on Dan Norcini's a week ago and your blog has been on my reading list every day since...actually multiple times per day since. I reckon its time to continue having fun while skinning (peeling) some of those pesky cartel shorts out of their shorts ;-) Peace Be and glad to be reading ya'll from where I reside way down yonder in Oz.

Aug 16, 2011 - 9:32am

What about the Deutsche Mark?

Germany's new Bundesbank leader and minister of finance have slammed the brakes. It is game over. The chancellor is isolated and will be without any power within two to four weeks. Enough is enough. The hammer dropped. They are ready to let things crash and burn in order to rebuild the Day After.

Blogger Blankfiend2 offers an alternate path forward out of the Euro morass and bank crisis there, commenting on the Soros opinion piece printed in the FT yesterday entitled "Three steps to resolving the eurozone crisis." To me it makes sense, but what do you think? How would PM's fare in this scenario?

1. Germany exits European Monetary Union.

2. Bundesbank issues Deutsche Marks, which rapidly appreciate, rendering German exports uncompetitive.

3. Bundesbank does QE to recapitalize bank losses on sovereign debt for holdings, which devalues DM making German Exports competitive again.


Aug 16, 2011 - 9:33am

You got it EricO.. ...I camp

You got it EricO.. ...I camp out at 321gold on Tuesday mornings ...just waiting. ....

How pathetic am I. :D

...I get much from him though and I've tried to find other online interviews or videos or other news sources for Thomson.. but this is it so far as I know. ....I'll subscribe to his stuff soon hopefully. ......Meantime..'s pitch my tent on Monday night and wait like a groupie outside 321gold.

Aug 16, 2011 - 9:37am

New Thread.

New Thread.

cpnscarlet Frontal Labottleme
Aug 16, 2011 - 9:38am

Ron Paul - SOOOOOO Conflicted

We all know that Ron Paul has alot (not everything) of what this country needs right now. And we're all mighty PO'd by the way the press ignores him (beng mistreated would be a step up!), but I still can't stop thinking about his other campaigns. His supporters were always energetic and on-the-spot in those straw polls and caucuses. BUT...when push came to shove and the primaries got rolling, where were the votes?

I'm not optimistic about the future simply because I remember that those of us on forums like this feel all nice and warm and "powerful" when we chat, but we are such a small group relative to the size of the unwashed ignoramuses that pass for average America. I'm ready to put up some Ron Paul signs and vote for him if he's on a ballot, but I'm really wondering about keeping my powder dry for the next (far from) best thing. Unfortunately, since Cain looks like he can't draw flies to syrup, I don't know if that candidate exists.

silver foil hat Watcher
Aug 16, 2011 - 9:49am

re: What Jim Willie wrote to TF

"There is a disconnect now. Investment grade Gold is already selling at a 25% premium to spot prices, and Silver is not far behind. The listed paper prices are all bull."

I don't know if this is the canary in the coal mine, but very recently (for those of you who remember I made a comment earlier this month about stacking Cu/Ni 1965 and after coins as they will be worth more in metal than cotton Fiat Reserve Notes)

...I went to a local bank and asked for a roll of coins and was told that I had to have an account to get 'any change' for my FRN. In a meltdown, I'd rather hold metal coins for 'cash' than FRNs.

I couldn't even get a roll of quarters for a 10 FRNs unless they had a record of who I was.

Things are gettin' real scary when you can no longer redeem a Foney Reserve Note for US Treasury copper / nickel without having to disclose who you are.

Anyone else having this problem?

Better shuddup now before Janet sends the gestapo after me.

Aug 16, 2011 - 9:59am

Walgreens sucks

No pig meat for me, email notification that order was canceled, out of stock, no back orders. Tough luck.....

Boycot Walgreens! End the Fed ......and Walgreens!

Ex customer

Aug 16, 2011 - 10:00am
Aug 16, 2011 - 10:14am

Physical prices not computing. . .

Price of physical Monday at California Numsmatics. Price may be slightly higher today.


American Eagle Gold Coin (1.000 oz.)

American Eagle Gold Coin (1.000 oz.)
$1,887.12 each.
Symbol: GCAE100
Weight: 1.000 oz. actual; 0.075 lbs. shipping
Condition: Uncirculated
Denomination: $50 face value
Content: 91.6% pure gold
Diameter: 32.700 mm.
Thickness: 2.870 mm.

Price at Bullion Direct today.

So, why is anyone paying $2200 per ounce?

Animal Sacrifice
Aug 16, 2011 - 10:16am

Canned Hams

So far I've received no cancelations from Walgreens so I expect to get my 110 hams in a few days. If not I'll throw a curse and temper tantrum at them.

Ogun de dun

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