An Interesting Day Awaits

Tue, Aug 16, 2011 - 9:13am

Well, what an interesting day we have ahead of us. The markets are once again in "risk off" mode as the S&P and commodities are down while gold is up. We've also got this Merkel/Sarkozy luncheon date taking place. Don't stray too far from your computer today as the action will be significant.

Here are some updated charts for you. I've moved the scale to two hours so that we can see the pop and rise off of the downgrade reaction last weekend. Both metals are in a very interesting position this morning. Gold looks primed to challenge the 1800 level again but it first needs to close above 1775. Silver is once again driving everyone crazy. Is it a commodity (down) or is it money (up)? I know what you and I think but that doesn't really matter at this point. If silver is going to move higher in the short term, it must break through and close above $40 first. It then must break through and close above the 8/7 evening highs of 40.40.

A couple of other things. Lots and lots of ridiculous talk these days about gold being in a "bubble". I think I refuted that pretty well back on Sunday but here are a couple of other items for your consideration. First, a guy named Brent sent me this 10-minute presentation that he's crafted for his firm. I don't know who "Baker Ave Asset Mgmt" is and I certainly don't have any connection to them. However, this presentation is pretty well done and all they ask for is your first name when you sign up to play it. Pay particular attention to the final 4 minutes or so where Brent shows the value of gold versus the U.S. money supply. It's pretty compelling stuff.

Along the same lines, ZH posted this morning the latest missive from one of my favorite "analysts", Egon von Greyerz. This guy really gets it. He writes very well and, unlike the author of the article I posted yesterday, he does it in an easy-to-understand manner. I highly recommend you take the time to read this.

That's all for now. I've got lasts of 1780 and 39.65. Let's go get em! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 16, 2011 - 9:18am



Aug 16, 2011 - 9:24am
Aug 16, 2011 - 9:26am

and at the bell...

and at the bell the EE lands a haymaker to Silver.

down goes silver.

it struggles to its feet and gets the standing eight count.

luckily its early in the bout and silver still has it's legs underneath.

now circling and jabbing... staying clear of another roundhouse...

Aug 16, 2011 - 9:31am

Look at them pound miners in

Look at them pound miners in the futures as well. This has become all to predictable.

Great theater for sure, I look at it as a desperate man at the end of his rope.

Check it out

Aug 16, 2011 - 9:31am

Thanks TF! I posted this last

Thanks TF! I posted this last night, but it was caught at the end of a page and not many saw it. Any advice would be greatly appreciated. My grandma recently received a decent amount of money from my great grandmother when she passed away recently. She gets her social security check and annuity of $500 a month. This mostly covers her expenses except for taking me to eat on occasion. What do I say to convince her to get gold and silver as the older generation seems harder to convince to get PM's?? What percentage should she put into Au/Ag if I can convince her to? Idk if i can convince her to go "all-in" I highly doubt, but would love for her to do so. High dividend paying stocks maybe?? Any advice would be very much appreciated. This community is an awesome one and I have learned so much.

Eric Original
Aug 16, 2011 - 9:31am

Don't really want an interesting day

Busy on the home front today. Going to be go go go all day starting shortly. Would really prefer a quiet day in the markets instead. Probably ain't going to happen...

Aug 16, 2011 - 9:34am


sustained thus far

Aug 16, 2011 - 9:34am

One Ring

"One Ring to rule them all, One Ring to find them,
One Ring to bring them all and in the darkness bind them."


Aug 16, 2011 - 9:39am

and silver fights back near

and silver fights back near the end of the first round.

bobbing, weaving and counter-punching, silver takes advantage of the EE's arm weariness to score some points before the bell.

or is the EE just reserving strength for the next onslaught?

it's shaping up to be a great bout, but the old champion EE won't be going down easily.

silver will need to continue to press forward in order to go from contender to champion. And it won't want the decision going to the judges - rumors are they are in the EE's pocket.

off the stools for round two...

Aug 16, 2011 - 9:41am

Ron Paul - SOOO 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.

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