Three Great ZH Reads

Tue, Sep 6, 2011 - 5:06pm

As most of us "met" each other through ZeroHedge, it's probably unnecessary for me to point out articles from there which you need to read and study. However, many Turdites are unfamiliar with ZH and most Turdites are often so busy that some of the days events are easily overlooked. Therefore, I present to you these three, terrific articles for your review and consideration.

First up, here's a fantastic summary of the impacts of today's move by the Swiss National Bank to peg their currency to the euro:

We were all a bit disgruntled today by the PM market's inexplicable response to the move by the SNB. The post below explains things quite well:

This lengthy missive by Charles Hugh Smith gets a number of things right about the long, sad decline of the "Western", Keynesian economies.

Lastly, Trader Dan no longer has the time to post every day but, when he does, it's a MUST READ. As is the case today:

Here are your updated charts. Both silver and gold turned in very disappointing days today but all is not lost. Both are heading into a critical 24-36 hours where the next short-term trend will be determined. On Friday, I was 90% certain that the next trend was UP. After today, I've dropped to about 60%. In any event, we'll know very soon.



Have a great evening. Be sure to watch the overnight action as it promises to be interesting. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Vincent · Sep 6, 2011 - 5:11pm

Thanks TF!


tsuiwilliam · Sep 6, 2011 - 5:11pm


first? Thanks turd! see if i can time and make some fiat..

buzlightening · Sep 6, 2011 - 5:15pm

I suppose there's one other thing German fiat wonks could pull

Just pull the plug on the euro at Wednesdays vote. What! Germany bring down the fiat ponzi world? My you'd think the 3rd world war would be left for another nation to take the lead. I see euro print to infinity. EU/USDinker swaps mean the EU need no printing press. AmeriCON'd foot the whole bill in all bad debt/worthless bond purchases worldwide. dead head feds say so.

Hoping to learn · Sep 6, 2011 - 5:19pm

Pan Asian Gold Exchange

I really enjoyed the videos of James Turk about the PAGE and it made me wonder:

If they are going to have their gold contracts backed by 100% physical,won't that cause investors in the other exchange where they are leveraged, to pull their investment and thus expose the shortage in actual physical.

margaritatime · Sep 6, 2011 - 5:23pm

UP Trend

Turd, I think that your uptrends are still valid, the CHF monkey wrench is just creating a short term segue. Although, I do have to say, the CHF long term is very concerning.

Patrick Wright · Sep 6, 2011 - 5:23pm

I think we have a correction

I think we have a correction on our hands, $37 silver and $1650 gold coming Sold my logs yesterday and went short today

Hoping to learn · Sep 6, 2011 - 5:23pm



cpnscarlet · Sep 6, 2011 - 5:25pm

@Mikey - Sorry, can't let

@Mikey - Sorry, can't let that go. Even if you're 70% right, you're still 30% wrong.

If "Southern Independence" meant a continuation of chattel slavery, it had to be stopped. There is no honor in pursuing the preservation of one's God-given rights if it is done while denying the same to others. Please correct me if I'm wrong.

Dr G · Sep 6, 2011 - 5:26pm

@Hoping to learn

As Turd said, "exactly."

It was laid out nicely in a KWN interview from today with Andrew Maguire. He says:

"In the previous example, they (LBMA bullion banks) would be forced to buy at today’s prices at around $1,900, forcing the banks to crystallize a $200 loss on the previous ten tons of gold, which was a ledger entry at $1,700. Simultaneously, the Pan Asia Exchange will actually be purchasing this ten tons of gold that the LBMA bank never did, forcing the price higher and creating more derivative stress on the LBMA system as this accelerates. This obviously has the effect of exposing the bullion banks to massive derivative losses and risk exposure."

All of this leads to REAL price exploration. I would encourage you to read the entire KWN interview here:
coolmonk Patrick Wright · Sep 6, 2011 - 5:29pm


Are there any technical or fundamental reasons you are choosing those price targets?

Bay of Pigs · Sep 6, 2011 - 5:30pm


Shorting gold in this environment is pure insanity. Corrections are lasting hours and days now, not even weeks. 

Greece defaults/implodes on Sept 9th I wouldn't expect gold to go down on that news.

Dark Matter · Sep 6, 2011 - 5:30pm


Dang! Why a correction (1650/37) AFTER that silly Swiss SNB move? I don't get it.

The SNB has said that they will do "whatever it takes". Sounds like they are willing to destroy their currency. Yet nobody talks about it. There is NO uproar whatsoever. Strange indeed. And Gold is going to drop in that situation? Why on earth?

Hoping to learn · Sep 6, 2011 - 5:33pm

Now a little conspiracy thinking

If the PAGE gets stronger and through the Chinese government control and help eventually controls(holds) a major portion of the world gold, won't that strengthen their position as far as what the U.S. owes them from their bond purchases ? They are already buying up as much rare earths as they can along with all their domestically mined gold. Does this strike anyone else as too convenient ?

Dr G Patrick Wright · Sep 6, 2011 - 5:34pm

@Patrick Wright

Data to back that up in any way, or simply a gut feeling? 

The EE still raids, this much is true, but there are so many buyers that the raids seem to have a lesser effect than they previously had.

OI is strong in both metals. There's got to be a $hit load of shorts running around out there as well, and they'll have to cover at some point I would imagine.

The market is all about psychology. There are people watching their DCA, and others who have "numbers" in their head at certain points that make them buyers. The opposite would be those looking to take profits in the paper market, etc.

So, $37 silver means there aren't a slew of buyers waiting to get back in at $40, or even $39?

I don't see $37 happening unless the EE drops us directly $5 all the way there.

A $1650 gold correction is almost absurd at this point. Gold takes the raid head-on and gets $40 drops. You are seeing a $220 correction from the spot price right now? If you are looking to trade that you had better be sitting at your computer all day, because a 1650 POG isn't going to last more than 25 seconds. Too many buyers.

What we are seeing now is an EE raid and short-term selling/profit taking. Nothing more. This is a consolidation of NEW HIGHS for gold, not a downdraft retreat.

margaritatime · Sep 6, 2011 - 5:36pm

Dark Matter

There is speculation one of two things will happen; 

1. SNB has figured out a way to export their inflation via buying EUR. Probability states that will inflate the POSX, in turn bearish PM's.

2. The above will happen, but be short lived, because those seeking refuge in the POSX is parable to choosing between the Lusitania and the Titanic. 

Hoping to learn · Sep 6, 2011 - 5:37pm

Thanks DR. G

I appreciate the headsup and the link.

commentary was a bonus

Bay of Pigs · Sep 6, 2011 - 5:37pm

Gold short covering

From Ed Steer's column today,

As I have been reporting, not only does the commercial short covering account for the gold price rise, it also accounts for the dramatic increase in price volatility. I can’t emphasize enough how unprecedented the commercial short covering on higher prices has been. Whereas the commercial shorts have never even blinked...and have only added to short positions on previous gold price rallies...this time they have rushed to cover for the first time in history. - Silver analyst Ted Butler...September 3, 2011

Dark Matter Dr G · Sep 6, 2011 - 5:37pm


Didn't TF say that there is still a gap at 1650 to be closed? Maybe that's the reason the poster came up with that number.

Dr G · Sep 6, 2011 - 5:38pm

Yet another great KWN

Yet another great KWN interview with Ben Davies. He says silver to $65 in this final quarter of the year, and gold will surpass it's highs. He also points out the blatant manipulation in the price of gold right before today's junk with the Swiss franc announcement.$65_%26_Gold_to_Soar.html

Bay of Pigs · Sep 6, 2011 - 5:44pm

Gartman on the BlowHorn

"Sadly, cash is the only safe haven". Then, "Gold moving $60 in one day is hardly a safe haven".

Oh, but he's "long gold in Euro's". Has been "for months and months and months".

WTF kind of "analysis" is that? LOL.

Epic Fail Dennis.

Dr G Dark Matter · Sep 6, 2011 - 5:47pm

Gaps don't always have to be

Gaps don't always have to be filled. August is a slow month for gold...but it wasn't. Who knows what will happen. Consolidation may continue but I don't think it will continue for long. Too much crap hitting the fan. An actual retracement of 25% in gold down to 1650 seems highly unlikely.

Besides, we've reached manipulation saturation. As Shill says, go ahead, manipulate the market. Keep tempting us with lower prices.

Boardwalk · Sep 6, 2011 - 5:48pm

Re Post


Submitted by BwlkMillionaire on September 6, 2011 - 4:53pm.

I think you'll find us all here in T-Town to be pretty receptive to abolishing the Fed. What form of money/banking do you propose? Pure gold standard and private banking? Or perhaps a more "of the people, for the people" a la State Banking?

Perhaps government created hard currency a la American Monetary Institute?

Goofy · Sep 6, 2011 - 5:55pm

How economic theory came to

How economic theory came to ignore the role of debt
by Michael Hudson is a great economic history lesson!

Its about how the TPTB came to ignore the role of debt repayments in economic modeling and policy and got away whit it!

exiledbear · Sep 6, 2011 - 5:57pm

Looks like gold spent most of today in a triangle pattern

Usually a triangle resolves in the same direction as the previous trend. Well, I guess there's the Chinese night trading and of course tomorrow. 

ReachWest · Sep 6, 2011 - 6:06pm

Re: Gaps don't always have to be filled


I agree - I've heard heard this from a few differing sources of late - namely, that the gap in the Au chart (around $1650) must be filled and that the price always comes back to fill the gap. I didn't know what that term meant (fill the gap) and had to look it up.

Anyway - it just made no sense to me. (Having said that, I certainly don't pretend to understand the technical ins and outs of chart reading) - but the idea that the price must come back to fill the gap seems very odd to me - especially given the fundamental problems in the economy and the wild-cards that seem to come from each direction on a daily basis.

While the charts are a great tool to try to gauge future price direction - I think they are only a piece of the puzzle and there are simply too many other unknowns piling on in an accelerating pattern.

Vincent · Sep 6, 2011 - 6:07pm
Eric Original · Sep 6, 2011 - 6:11pm

Have you looked at the price

Have you looked at the price of gold in Swiss Francs today? We've all heard the news but seeing it on a chart is a hoot! 1500 to 1615 in a heartbeat. The Shape of Things to Come.

Eric Original · Sep 6, 2011 - 6:14pm

That gap ain't going to get

That gap ain't going to get filled.

EDIT: I was talking about the US gap back to 1650, but the Swiss gap won't get filled either.

GoldMania3000 · Sep 6, 2011 - 6:20pm

David morgan said there

was a gap at 1650 and it was going to get filled...but just because there's a gap doenst' mean it needs to be filled.

question · Sep 6, 2011 - 6:21pm

US Savings Bonds

Are they, Series E from the '70's due in 2015, any "better" than other Treasury bonds? They pay ~5% but what's 5% of FRN's worth really?

Could cash them and buy pm.


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