Mon, Aug 22, 2011 - 10:37am

At approximately 5:05 EDT, the Sep11 silver contract reached the $44 level. A few minutes later, it traded as high as $44.09. Thereby, another Turd prophesy has been fulfilled:

I'm just glad that's over with. I was in no mood to take another rash of sht from the losers at Kitco.

OK, back to business. The Forces of Darkness are in deep trouble in silver. This morning, silver is above all of its upwardly-pointing moving averages. This, when combined with the very friendly chart, is serving to bring all sorts of TA-oriented longs back into the pit. In a desperate attempt to contain the runaway, the EE predictably beat down silver in the wee hours of the morning. They were trying to close the gap on the chart from last night's open and they succeeded. Hurray for them. What did they accomplish? They're short a fresh boatload of silver contracts and the Sep11 is now back above 43.50. Whatever. Wait until tomorrow at this time. Or even Wednesday. I think we could see $45 before the shenanigans surrounding option expiry on Thursday begin.

As you can see below, gold has been subject to its traditional manipulation, as well. The seminal study of this phenomena was written by Adrian Douglas and it was posted to ZH about a year ago. If you have the time, I highly encourage you to read this:“fixed”-it’s-rigged

In its present form, the manipulation discussed in the link above looks like this:

Like I said above, relax and smile. The PMs are headed higher today. Tomorrow, too. Gold came within a whisker of $1900 overnight. It will break that barrier soon, probably overnight tonight.

Have a fun day! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 22, 2011 - 11:03pm

Ginger and Kumanari

Ginger thanks for the Opvest suggestion. Also, concerning natural gas. There was a large purchase of about 90,000 shares into one of the energy companies who was behind a new law supporting natural gas. That law was being pushed this week. George Soros was a major purchaser of stock and behind the push of the bill. I know the other energy company behind the bill is Chesapeake. There are several large companies in PA,OH and NY that are signing people up left and right. They are signing people for decent amounts (according to landowners feeling) but it nothing compared to what they are getting per acre and the natural gas play will be huge. China is shopping.

Kumanari-- I am so sorry for your loss. I know how deeply it affected my husband and still does when he lost his dad. I pray you and your family find peace and comfort through this time.

Aug 22, 2011 - 10:08pm

TRX Short- Soundpost Partners in NYC

Lifted from the TRX yahoo message board.

Trxinvestor posts...

The fund is named Soundpost Partners in NYC. The manager is Jaime Lester. He is a loser who lost 55% in 2008, made 5% in 2009, 4% in 2010 and is down more than 25% (even before TRX is squeezed) in 2011. He's down hugely over the last 4 years. You can see his fund holdings in his 13Fs and his performance on Bloomberg.

Is this the correct fund?

This is why they paying an average borrow rate of 24%, a borrow rate of 54% on new shares, have a 100% utilization, are regularly failing to deliver shares, and when you combine their publicly reported short position alone on the AMEX and TSE combined, you get a days to cover of over 30 days. Based on TRX's existing resource base alone it will perform well against its peers when strength comes back to gold shares this fall. If it increases its resource base or gets closer to production it will do better. For this short to break even, gold needs to correct to $1,000 and a nuclear bomb needs to annihilate Buckreef and Kigosi. The company's success heretofore alone assuming a $1,300 share price is enough to justify a $1bn market cap.

That said, the short has proven very successful at scaring longs and delaying the inevitable. Clearly, it is tactically adroit, but I've never seen fundamentals lose in the end. When that happens depends how long weak hands continue to flee.

Vernon Wormer
Aug 22, 2011 - 9:59pm

Coin shop


There are three shops I have done business with. The guy 5 minutes from the house is a dick and I will never go back. The guy 1/2 and hour away is dirty and I can do better at Provident with a credit card and shipping. The guy an hour from the house is fantastic (of course). I can get silver for about spot +1 and gold for about spot +5%. Last weekend there were tons of people selling gold and even more people buying silver. It was crazy.

Just today, Mrs. Wormer had a small gold necklace that was beat to hell and wanted to take it to a "we buy gold" place to see what she could get. We went to the local jeweler. While the Mrs. was taking care of her business, I asked the owner if people were coming in with gold coins. He rolled his eyes and said he had too many. People were coming in all day every day with these one ounce coins. I played dumb and asked what he was talking about. He came from the back with a very large handful of gold coins. He told me that he sends them to a guy in LA who melts them down and then the gold gets used in jewelry. I said that it sounded like a pain and he agreed. Spot at that moment was at $1911(I peeked at my phone). He said that he had a really old coin and showed me a 1908 $20 double eagle. I asked him what he would sell it to me for right then. He kind of shrugged and said $50 over spot. I asked him what spot was and he said very matter of fact that it was $1880 and I could have the coin for $1930. I shit my pants, went home and changed my drawers, stopped at the bank and am now the proud owner of a $20 double eagle.

I think I have a new coin guy.

Aug 22, 2011 - 9:27pm


Just catching wind of your loss by others posts mentioning it.

I'm really sorry about your dad and your post earlier today made my eye's go a little moist. Love and appreciation of life and everyone within it is what it's all about.

Sounds like you had all of that and so did your dad.

Peace with you and yours<

Aug 22, 2011 - 9:19pm


I have no way of knowing but I suspect the EE and other banker types might be shorting the crap out of it.

JS can't be a popular guy in those EE type circles.

However, on here it's a love fest for the guy...and rightfully so. He's been incredibly smart about all of this and it sounds like he truly cares about people he doesn't really need to. Pretty cool.

TF's doing the same thing and will be a JS in his own right with the passing of time (as we go through this historic gold/silver surge) if he wants to be. He's creating that type of legacy with every passing day as we enter this period. (jmho)

This PM explosion that is going to happen will leave the same indelible mark of PM market education on TF ( and us) that it left on JS back then.

Just think of all the resources at our disposal and how smart a lot of Turdites are on here and some of the other people we read and listen to everyday. Day after day. We know more about PM's and the PM market then some of the college educated brokers and traders do. ( I'm talking about the AGA type's who don't want to to trade PM's or believe in them so they remain ignorant of them)

We're part of the 1% that knows what's going on and we have a man like TF helping us out because he not only wants to, he "needs" to. That sounds like a JS jr. to me in the making.

Thanks T

Aug 22, 2011 - 9:11pm


Condolences for your loss. I'll ditto the comments of Ginger and ewc58. God bless.

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Aug 22, 2011 - 9:00pm

Ripping the rug out from under...

...the recently installed gold floor? Sounds like logical thinking on your part.

That's what I'm expecting also. The big difference this time around is that we are talking about gold and it's place in the monetary system or at least the beginning of the recognition of the need for it to be. We aren't there with silver yet as a monetary backstop the same way that were seeing gold trading and reacting this past month.

So even though it seems likely that a smack down is going to happen (it will) I can't help but think that a smack down will be shorter in duration (unless it's historic and really disproportionate like the Ag one was) because the debt situation in the EU and the U.S. is growing more desperate by the day and they are looking for a "solution".

I think gold at this point almost needs to be valued higher by everyone, including the EE eventually. It's that "eventually" part their trying to control at a certain pace. They may need to accelerate their plan a bit.

To me, gold looks like it will just linger around $2000 for awhile. $1950- $2050 for 3-4 weeks sounds about right once it gets close to $2K. That's my guess.

However, if something becomes totally disconnected in the paper and physical market due to a supply shortage or some other market disruption (Chavez) then anything is possible including shooting right up to the high $2K's. What if the EU/Euro situation just breaks right down or some MENA situation gets hot again? The high $2K's is very possibly if the right (wrong) set of circumstances starts to domino.

JMHO...I think once Chavez gets his gold secured and it's all checked out for authenticity etc. that he'll eventually cut off oil exports to the U.S. and start using another currency for his other oil exports besides the dollar. I could envision him actually asking for gold for his oil exports from some countries. I don't think Venezuela would have any trouble finding a buyer somewhere else or among China, or Russia or Iran etc. to pick up the excess.

If he did so, oil would shoot up on supply concerns and he would make more money in the long run by cutting us off and profiting from the increase in crude caused by himself. I think it's part of his plan and China's, Russia's and Iran's also. If you're them, it makes alot of sense. We're vulnerable economically and oil is our main crutch . Kick it out from under us or change the petro-dollar strength equation and it serves the same purpose.

Gold is the other crutch we hope to control and keep away from others for as long as possible. VeneChRussia knows this also. If I'm them, I do exactly what I laid out. High oil prices are not in China's best interest but something tells me that China and Russia have made agreements along those lines and any oil the U.S. doesn't get I would bet that China does.

Does that make sense?

Save_ America1st....Nice pick up on that St. Gaudens earlier. I have one with a 19098 D mint mark that I'm actually holding right now. It's not graded but still a beauty and worth almost $1900 as we speak .

I picked it up when gold was just under $1500 ( or was that $1400?) It's been moving so quick I don't really care what I bought them at because their all worth more at this point and I'm not selling.

Aug 22, 2011 - 8:53pm


Just catching up on all these posts...

Respects to you, your dad, and your family. Peace to all.

It is a pleasure to share this space with you.

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