Wed, Sep 7, 2011 - 9:13am

I think it's quite clear now why gold responded yesterday in the opposite direction from what you would have expected. With central banks actively managing a debasement of their currencies, we are now seeing them also attempt to actively manage a debasement of gold, too. Be careful. Be very careful.

We all wondered yesterday why gold would plunge on the SNB news. Now we know. In an attempt to mitigate the "negative" effect on francs priced in gold, the SNB sold a massive amount of gold futures at the same time. How do we know this, because it appears that the same thing earlier today. Check out this chart that posted in the overnight comments of the previous thread (thanks, pmahler!):

Yes, that's 7,000 contracts (700,000 ounces) (nearly 22 metric tons!) dumped on the Globex while London and NY are closed! This should also raise your deja vu spidey senses regarding silver in May. The $ drop in silver was greater because the silver market is considerably smaller. However, it's the same strategy. Maximize the downward impact and collateral damage by executing the attack at a time of minimal liquidity.

This all wreaks of malicious manipulation. If you are trading, be prepared for anything. If looking to buy, throw all of the charts I gave you yesterday out the window and wait for at least 1725 in gold, maybe even a gap-filling 1650. Since silver is not the object of attack, it shouldn't drop as far but it looks almost certain to drop to the bottom of the channel we've been following, near $40.

Also, it appears likely that we are entering another 4-6 day downshaft in the Continuous Commodity Index. You'll recall we found this pattern last month and it was one of the factors that allowed me to correctly forecast $44 silver by Labor Day. I asked my pal Trader Dan to send me an updated chart and he obliged. Thanks, Dan!

Count the days between moves. Peak early April. Nine day decline. Peak early May. 9 days down. Peak mid-June. 12 days down. Peak early August. 4 days down. Peak early September. Next decline takes it back down to 620-630?

By the way, I just looked at Dan's site. Looks like he agrees with me. I suggest you read this now:


So, look, you've been warned. If you're not trading, just sit back and enjoy the free fireworks show. Maybe use the next central bank raid to accumulate some more physical. If you are trading, my advice is to avoid being a hero. Do not try to get cute and "catch the knife". The next few days are going to be extremely volatile. Save your powder for after the dust has settled, when we can all see a bit more clearly.


12:00 noon EDT UPDATE:

Turdite "Zagio" just posted this chart in the comments of this post. It perfectly explains why anyone trying to "catch the knife" should hold off for a while longer.

If you believe as I do that this current beatdown in gold is being engineered by the SNB, then why would you think they would rest before pushing gold all the way back down to the level it was before the devaluation announcement? That level is around 1500 francs/ounce. Additionally, this is a level that would correspond to my potential target buying point of somewhere between 1700 and 1750. It may take till tomorrow or Friday but confidence is high that gold is headed there.

Patience is warranted here. Also, it's now noon EDT which is the hour when follow-through selling usually materializes on the Comex. I for one, am not buying the dip....yet. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 7, 2011 - 11:01am

In my dictionary /thesaurus

In my dictionary /thesaurus the word bankers is the same as desktop criminals.

They have taken over the Governments and are destroying the world . I don't think there is any way we get over all this without chaos and revolutions.

Those whom we elected have been slitting our throats.

Sep 7, 2011 - 11:04am

I really have to stand up and

I really have to stand up and Applaud miners here. Nice action, keeps it interesting at least.

Added to my GDX calls.

Check out EXK

Tom L
Sep 7, 2011 - 11:05am

FUBM in Oil

Continuing... $89.25. Wow. DrC $4.14. G&S will not be far behind in this scenario.


Sep 7, 2011 - 11:06am

Breath deeply, remain calm?

Forget that, its spider monkey time!

How are we to remain calm during this flagrant manipulation and disgusting behavior by those who are tasked with acting in the best interest of us who they say they serve. Stalin killed 30 million of his own people. All politicians are the same! Our governments are robbing us blind through inflation. At least the Chinese gov'ts tell their people to buy gold.

There will be blood in the streets before this is over.

Then the very same nutjobs that created this problem now prevent us from protecting ourselves from the consequences of their perverse actions. A pox on their houses!

They are the masters of the paper markets. Let them keep their precious paper!

Buy physical!

Kumanari SilverWealth
Sep 7, 2011 - 11:07am

Because a few  choose to

Because a few choose to attack the messenger I and others post "opposing" views via pm. To be uber bull or bear is to your detriment. T o weigh all possibilities and probabilities is wise. I shared this with a few balanced members last week. I am a raging bull but I hold 1600 dec puts,sold my 1725 sept puts last week (loss), waffled on rolling it to dec puts(fool). Silver Wealth = wisdom won't be seeing him on any bread line. https://goldwetrust.up-with.com/t33p330-silver-as-an-investment#4543

DPH I'm feeling you bruddah

Sep 7, 2011 - 11:10am

Past counter-intuitive raids

We have seen several of them just this year along.

  • Right after Japan earthquake we thought gold should go up due to safe-haven and money printing issues and yet it tanked.
  • Right after S&P warned about US credit risk we expected Dollar to be weak and gold to spike and yet the reversed happened.
  • Now this Swiss Franc fiasco. Gold again behaved the exact opposite to common sense.

We could find out more such cases if we keep drilling it. After several of this we should be familiar with EE's typical tricks now.

Sep 7, 2011 - 11:11am

They are the masters of the

They are the masters of the paper markets. Let them keep their precious paper!

I hear you loud and clear. But in the Matrix, the grocery stores excepts this paper, therefore we accumulate it the same way as physical.

Dr G
Sep 7, 2011 - 11:13am

Fire sale on options and

Fire sale on options and physical today. Get some of both!

Honestly, my hope beyond hope is that we see $1200 gold and $20 silver once again. The dirty things I would do to metals as those prices.

Sep 7, 2011 - 11:14am

Catching the Falling Knife

Turd sez don't catch the knife, so please don't take this as disrespectful, because I have great admiration, love, and respect for you, but I am catching this falling knife all the way to the bottom and halfway up the other side. Easing in a bit at a time, buying more with each dip, and everytime when I get it a little cheaper I'm gonna yell out at the top of my lungs "Thank You, Blythe!!"

This is gonna be a great week!

Sep 7, 2011 - 11:14am


The bankers and all involved will hang for their treasonous and criminal behavior once the masses finally uncover what has been intentionally done to them for decades and THEY KNOW IT ! Because of this, they will desperately hold on as long as possible and will do any and all they can to keep it running. I fear war is in the air, it's the only thing that will keep the sheep looking away at the reality being brought down on them. Prepare yourself and be prepared to help your neighbor as best you can, there will be many in this county caught off guard when this comes down.

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