All The Fuss

Tue, Aug 30, 2011 - 9:36am

The PMs shot higher this morning after the Chicago Fed Goon was interviewed by LIESman on CNBS. The metals catapulted higher when The Goon admitted that more QE is likely because the economy is in such terrible shape. Really? NO! Whodathunkit?

Because this is a full-service PM site, here is a link to the full "interview":

Could LIESman's head get any shinier? In a sort of Pinocchio fashion, LIESman's head gets more more shiny the more he shills and pimps for The Fed. Maybe we need to develop some sort of "Shiny Head Index" to help us all calibrate the degree to which LIESman is propagandizing? I can see it now. "Today's LIESman SHI is a 9. Be very cautious and take everything with skepticism". Hmmm. Have to give that one some thought.

Anyway, back to business. Gold is attempting to hold its gains but is already about $10 off its highs. I'm inclined to do some buying today as I expect the metals to be firm the remainder of the week, ahead of the BLSBS on Friday. Signals that the NFP (non-farm payroll) number will be lousy are already appearing. Namely, this "interview" today and the fact that President O'bottom pushed back his historic "jobs speech" to next week. Again, the logic is: Lousy job report = lousy economy. Lousy economy = more QE. More QE = much higher PMs.

As you know, I'm very excited about silver but I'm trying to pick my spot to enter. Open interest tumbled all of the way back toward 115,000 yesterday which is extremely bullish and pushing me to act in haste. The area around 41.25-41.50 would seem to be the right price as silver looks primed to mount an assault on 42.30 again. Once through there, it will spring toward 44 and, beyond there, 46.

Here are a couple of other interesting items to ingest. First, this guy does an excellent job of summarizing my thoughts toward Venezuela and its gold repatriation. Though El Commandante would certainly and understandably prefer to have his gold in his hands, at its heart this is an act of "financial war", a move to further destabilize the financial system of "the West".

Here's more on "The End of The Great Keynesian Experiment":

And here are two, interesting reads from KWN. First, here is John Embry of Sprott Asset Mgmt:,_Premiums_Exploding.html

Eric also interviewed Louise Yamada. There are lots of amateur chart-readers in the world, myself included. Louise Yamada is a professional. As a general technician, she has no peer.

OK, that's all for now. Gold is 1828 and silver is 41.38. Let's see where we go from here. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 30, 2011 - 12:04pm


...just got 500 filled on SVM @ CAD$8.36

Good luck all!

Ferd Torgerson
Aug 30, 2011 - 12:04pm

Major Time Out Coming for Griffith?

Did I just hear Griffith say something like, "Money doesn't grow on trees but it can come out of the ground"?

Bernank must be burning up the phone lines to CNBS about right now.

Aug 30, 2011 - 12:06pm


see above article from ZH regarding Israel

Aug 30, 2011 - 12:07pm

Feds May Confiscate Privately Held Gold and Silver Coins

Should this start happening...God help us. From the looks of this article they are beta testing the public right now.

Aug 30, 2011 - 12:10pm


If I'm correct it reads that they will retire 10 million outstanding shares and they have 9.6 million shares that have been shorted currently.

In a 3 week period from 6/29/11, the short interest grew by 6.3 million shares (wow!) until recently.

SVM pretty much sent a FU to all the shorts and announced it. Gotta love that!

Aug 30, 2011 - 12:14pm
Aug 30, 2011 - 12:14pm

Speculating About The Fed Minutes


"With Bernanke’s Jackson Hole speech re-igniting hope for further easing, traders are going to be looking for more hints in today’s minutes as to how did the Fed arrive at such conclusion. If we see sufficient evidence for the Fed to justify its stance, adding the fact that the September meeting has been extended to a two-day event, market could be looking to SELL more USD. Let me also clarify why that is the case, because when the Fed extends a scheduled meeting, it is a sign that they may be planning something. Analysts are guessing that Bernanke will use this event to gather consensus for more measures to stimulate the economy, and he would need the extra time convincing the 3 dissenters from last meeting."

Aug 30, 2011 - 12:16pm

Feds May Confiscate Privately Held Gold and Silver Coins

This refers to the so called "liberty dollars." They're not coming after Eagles and Krugs...for now.

Aug 30, 2011 - 12:17pm

CME Group

Nobody has forgotten?..............Coming September 12, 2011, the E-micro Gold futures contract (Commodity Code: MGC) will offer the added opportunity of a 10:1 offset with the 100 oz. benchmark Gold (GC) futures contract.

The implementation of fungibility will occur in all contracts months starting with the October 2011 contracts.

Since inception in October 2010, the E-micro Gold futures contract has traded an average daily volume of more than 1,100 contracts reaching a daily high of 8,574 contracts on August 9, 2011. Open interest currently stands at more than 1,600 contracts.

Aug 30, 2011 - 12:17pm
Aug 30, 2011 - 12:19pm

Should this start

Should this start happening...God help us. From the looks of this article they are beta testing the public right now.

Confiscate all that gold from the 3% that actually own any how ghastly!. I drive by the local Cash for Gold outfit and there is always 10 too 15 cars deep cashing in what ever it is they own. We have a long ways to go before the knock on the door arrives.


Gman: Knock knock knock.

Me: Yes

Gman: Yes I am here from the Federal Government do you own any gold or silver.

Me: Sure I have this nice wedding ring, why? want to buy it.

Gman: No, Gold bars, Silver bars

Me: No sir Platinum and Palladium only. good day. :) ( slams door. )

Aug 30, 2011 - 12:22pm
BostonMatrix backseatdriver
Aug 30, 2011 - 12:23pm

@ backseat driver

that article only refers to the specific coins manufactured by Bernard Von NotHaus - let's keep things in perspective here.

i don't see a shift to confiscating coins on general sale, as someone else pointed out - that would be a trigger for social unrest.

surprise surprise another COMEX waterfall wiping out most of the day's gains. No doubt Ag will be back up above 41.50 tonight. And will prob get hit again tomorrow. yawn. Be interesting to see the OI numbers tomorrow.

Aug 30, 2011 - 12:23pm

Reason for running the PM stops just disclosed

CNBC had "breaking news" that a voting Fed member who dissented at the Aug 9 mtg just made comments that he could be persuaded to move towards QE3 and bring himself in line with Fed consensus.

BillAuAg BagOfGold
Aug 30, 2011 - 12:23pm



You are coming off like Truther

It looks like facts mean little to you. Not all genetic engineering is bad, in fact it has prevented widespread famine. Start dealing in facts and not emotion and irrational fear.

Tecumseh Tesla
Aug 30, 2011 - 12:23pm

If there is no Creator, there are no Rights

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Once we murdered God, we made it possible for any monster to do what monsters tend to do. From the Paris Commune to Marx and Engels to Lenin and Stalin to Hitler and Mussolini to Mao and Ho to the current U.S. Government, it all boils down to taking measures necessary to secure control over the useful population while disposing of those who are not worth the effort of controlling. This has been, since at least the French Revolution, the way civilization has been headed, and it will continue down the path to totalitarian destruction until God is resurrected in our culture. This will never happen, as the last vestiges of the Christian God are smacked down daily (witness the vile attacks on Perry and Bachman recently--even if you don't agree with their views, they should not be subject to baseless attacks on their religious beliefs, particularly while the same crowd ignored the despicable Jeremiah Wright's obvious influence over Obama and continues to ignore the violence of Islamofascists). So, don't look for Life, Liberty, and the Pursuit of Happiness without God. These are pie-in-the-sky without Him. Interesting that the Founders understood this, but the geniuses, 200+ years later, don't.

Aug 30, 2011 - 12:25pm
Aug 30, 2011 - 12:26pm

Gold OI down, but silver OI

Gold OI down, but silver OI approaching the absolute lows for the year at 113,9k. Seeing that this happened into a price rise and after the big 5$ smackdown of last week I'd say maybe this is the final short covering before the big liftoff.

Aug 30, 2011 - 12:27pm

QE3 is in the bag now and everyone knows it

with this last Fed official's announcement. Dovish speeches by 2 voting Fed members today is no mistake. They are setting the table. The run of the PM stops was to give the EE one more cheap cover before it all breaks loose. I sound like a broken record today but I really think the game is over and this is where the EE control breaks for a substantial period of time. I can feel it and and I see the set-up coming with the Fed speak today.

Aug 30, 2011 - 12:29pm

Silver 8 hour

Hey guys I'm looking at the silver 8 hour chart and I'm seeing an interesting pattern forming.

Look at around June 16-23rd and August 8-15. Both areas look like silver formed a wedge pattern to me and then the following week sprung up $4-5 in each instance. Looks like we are getting to the point of another weekly wedge starting around August 25th? My guess would be a $4-5 explosion into next week if I am reading that right and there is no Tomfoolery by the EE.

Aug 30, 2011 - 12:29pm

Happy Endings

My mother's bedroom being in the least structurally sound part of the house (it was an add-on), she decided to be ready for any eventuality from Hurricane Irene. In the process of putting together her valuables and moving them to another part of the house, she found 5 lbs. of old silver dollars (she weighed it). That's a nice find!

BagOfGold BillAuAg
Aug 30, 2011 - 12:32pm


If my freedom to grow organic foods is interfered with...or taken away...then emotion & fear...are the least of my worries!!!...

Bag Of Gold

coolmonk OC15
Aug 30, 2011 - 12:37pm

Nice catch

Yep, the pattern does look similar, I've got a boatload of September silver calls, so I hope it plays out the same.

BillAuAg BagOfGold
Aug 30, 2011 - 12:38pm


There will always be a substantial market for organic food. Cherokee tomatoes are my absolute favorites, tasty and juicy. I like organic farming too, but without the work in agricultural genetics the world would be much poorer and far hungrier.

No one is going to take away your right to grow organically.

Keep Stack'in

Aug 30, 2011 - 12:39pm

Interesting morning so far

Silver gets slammed (as usual) Gold holds it's ground (mostly.) Gotta love the yellow right now. Will silver ever have it's day again?

Hackswell ¤
Aug 30, 2011 - 12:39pm

If I'm correct it reads that

If I'm correct it reads that they will retire 10 million outstanding shares and they have 9.6 million shares that have been shorted currently.

In a 3 week period from 6/29/11, the short interest grew by 6.3 million shares (wow!) until recently.

SVM pretty much sent a FU to all the shorts and announced it. Gotta love that!


You wanna know how to make your stock completely unappetizing to shorts? Issue a dividend. And issue it in the form of FRN$ OR the product you make. Shareholder choice. In this case, the right to some of SVM's silver. What short wants to take on that kind of risk.... that they'd be the one to short the "nutter" who wants physical silver dividend? :)

Aug 30, 2011 - 12:42pm

If people let the government

If people let the government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." ~Thomas Jefferson


Keep it up Bag of Gold, this is not just about precious metals. This is about educating and preparing for the end of Keynesian economics, and all of the corruption it has breed alongside of its horrid creation.

Aug 30, 2011 - 12:48pm

I decided over the years  to

I decided over the years to always go with my instincts. Well I double loaded up on EXK this morning and doing quite well. If the FED comes out and says what I think they are going to say. Someone loan me a wheel barrow.

If not oh well I'll cut my losses and hopefully break even and dump out before the bell.

2:00 PM will be my win or fail moment.

BagOfGold BillAuAg
Aug 30, 2011 - 12:50pm


Please do some research on Codex Alimentarius...& you will understand how our freedom is being taken away...not only in regards to the right to grow organic food...but also many other aspects of our life!!!...

Bag Of Gold

Jake Shill
Aug 30, 2011 - 12:56pm

Congrats, Shill, You Got Guts!

It's a Crapshoot, But What the Hell, Right?


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Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
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4/25 8:30 ET Durable Goods
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Key Economic Events Week of 4/15

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Key Economic Events Week of 4/1

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4/5 8:30 ET BLSBS