An Encouraging Thursday

Thu, Sep 8, 2011 - 5:10pm

It what can only be construed as encouraging action, gold flew back higher today, nearly to the level it was before the blatant manipulation of Wednesday. I'll be very interested in the OI numbers tomorrow to see if today was primarily due to continued short covering by The Cartel.

I'll find it quite amusing if it was. To think that the SNB deliberately tried to manipulate gold lower only to be thwarted by the greedy, frightened, short-covering Cartel is wonderful to consider. Sort of like having your two worst enemies declare war upon each other. I'll stay happily on the sidelines while I giggle at my good fortune. At the end of days, survival instinct kicks in and everyone turns on each other. Perhaps that's what we're seeing here.

Regardless, The Turd is quite pleased with where we stand at this moment. Absent margin hikes or further intervention, the PMs look certain to trade higher this evening and into the overnight. (President O'bottom discussing the idea spending more money that we don't have should help provide the bids.) IF they can survive the usual 3:00 am LBMA beatdown, they will be poised for a stellar day tomorrow. Perhaps they will even finish with a green candle on the chart.

And if you haven't read this yet, I suggest you do it now. There's no sense in me commenting on it as I would imagine you can easily envision what I would say. (Something like "duh" or "ya think?" comes to mind.)

Have a great evening! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 8, 2011 - 11:10pm

New Terror Report Warns of

New Terror Report Warns of Insider Threat to Utilities

Sabotage by an insider at a major utility facility, including a chemical or oil refinery, could provide al Qaeda with its best opportunity for the kind of massive Sept. 11 anniversary attack Osama bin Laden was planning, according to U.S. officials.

A new intelligence report from the Department of Homeland Security issued Tuesday, titled Insider Threat to Utilities, warns "violent extremists have, in fact, obtained insider positions," and that "outsiders have attempted to solicit utility-sector employees" for damaging physical and cyber attacks.

From ABC news, date July 20 2011. I've been waiting for this to "appear" again. . .

thanks for letting us know about San Diego pbreed, take care & update when you can.

and great post ScottJ, as always!

emmetrope Economical Disaster
Sep 8, 2011 - 11:14pm

@economical disasster -- Obottom picture

Economical Disaster.....loved the picture. O'bottom looks like that guy "Sloth" that starred in the Goonies. lol

Sep 8, 2011 - 11:14pm

re: SoCal power outage

reading a forum thread that says "the Coachella and Salton Sea power plants had explosions."

Sep 8, 2011 - 11:15pm

Santelli vs. Fat Head

Just saw the cut of Santelli vs FriedHead on SS being a Ponzi scheme -

Maybe we have it all wrong folks. Forget Ron Paul -

Santelli For President

Sep 8, 2011 - 11:19pm

What else can take the place of cash???

Okay, I goofed and put the wrong link in the post. By the time I caught it I could not edit it out. Sorry Turd.

Reviewed this long but interesting take on why cash may go by the wayside, but what is coming is considerably scarier if you consider the consequences.

Some plans are years in the making.... And they are just around the corner from completion. Predictive Programming and the Human Microchipping Agenda Its not like they have been keeping this a secret, on purpose.

Thank you Turd for your continued take on the metals reality.

Sep 8, 2011 - 11:26pm

The power outage

Occurred at what time?

And it was right after the speech and the DHS alert about a possible attack? Hopefully it's nothing.

Sep 8, 2011 - 11:34pm

An outage originating in

An outage originating in Arizona and extending throughout Southern California, parts of northern Mexico and Arizona has left 1.4 million customers without power.

The outage was triggered after a 500 kilovolt high-voltage line from Arizona to California tripped out of service.

At about 5 p.m., the San Onofre nuclear plant announced it was shutting down because of the power outage; officials say that it's a routine procedure and that there is no danger.

if anyone's interested, this next link has more information - it's a pretty massive outage, and affects water service among other things:

Sep 8, 2011 - 11:39pm

The whole western power grid is incredibly fragile

I remember something similar like this happened in '96 in Northern California. Some people didn't get power back for a whole week.

These things happen every so often. Probably happen more frequently as the power companies cut back on maintenance to stretch their budgets.

Sep 8, 2011 - 11:39pm


figured out how our country got into this mess, considering all of the "great" Keynesian economists we have out there. They must have went to the same prep school as Lou Costello, will see what I'm taking about.

Abbott And Costello 13 X 7 is 28
Prize Fighter
Sep 8, 2011 - 11:39pm

Every man for themselves!

Video unavailable
Sep 8, 2011 - 11:50pm


He reportedly wore a gold tie for his speech this morning.
Vewwy Intewwwesting!

Sep 9, 2011 - 12:03am

size matters

Subject: FW: Europe’s problems

Pythagorean theorem: 24 words

Lord’s prayer: 66 words

Archimedes’ Principle: 67 words

Ten Commandments: 179 words

Gettysburg address: 286 words

US Declaration of Independence: 1,300 words

US Constitution with all 27 Amendments: 7,818 words

EU regulations on the sale of cabbage: 26,911 words

– Europes Problems Summed Up from Rob Symons - robspharmacy[at]11net[dot]net[dot]au

atarangi ChicksDigIt
Sep 9, 2011 - 12:04am
Turdle GG
Sep 9, 2011 - 12:11am

Gold Poised for Weekly Decline on Obama Plan

"Gold headed for a weekly decline on optimism a plan by U.S. President Barack Obama will create jobs and spur growth in the world’s largest economy, trimming demand for safer assets."

so says Bloomberg...

Turdle GG
Sep 9, 2011 - 12:13am


well that was the headline and the opening paragraph. If you read a little more you find that they actually do know how to find a quote from someone who knows what's going on:

"The plan reflects the government’s deep concern about the economy, raising the real possibility of another round of quantitative easing, which is supportive of gold,” said Duan Shihua, head of corporate services at Haitong Futures Co. and the top-rated gold analyst this year in an annual poll by the Futures Daily and Securities Times. “We’re just getting some book squaring today as investors digest the news, but that just represents to us a good buying opportunity.”

Sep 9, 2011 - 12:44am

Confiscation Suspicions

While we all cheer the come back of Gold today and the apparent failure of the EE to suppress the price Gold, I am beginning to wonder if confiscation can be too far off.

There is no way that the EE will be able to continue fighting the metals IMO. The politcians squabble about who is to blame... conservative or liberal and claim that only THEIR policy is the solution to save the planet. You know the game. No real solution. Just spin the problem onto the other guy and hope to get re-elected. Indeed, apart from a collapse of the current economic system I believe most readers here believe there is no possible solution to our current economic and political malaise. That is what we expect to happen is why we expect the metals to go parabolic in the not so distant future.

It occurred to me today that the EE will never accept a competing economic system, namely the metals. The metals are outside their scope of total control. Therefore, I tend to believe that when the metals do go parabolic, they will be a quick end to it by confiscation. I can see the rationale. "How can the stimulate the economy when Trillions of dollars are being siphoned off by Gold and Silver? They are evil hoarder and speculators operating outside the scope of economy causing rampant increases in all other commodities in the process and must be stopped." And, how better to stop a parabolic increase than taking away the motivation of the buyers?

Do not get me wrong. I am a trader and a stacker. But, I am very suspicious that just as we think we are approaching PM nirvana via higher prices, the EE will realize that the only way to the end to this competing monetary system is via confiscate. If you disagree with this assessment, I would be interested in understanding your rationale. Guess I just do not believe that the EE will allow a proliferation of a competing monetary system that weakens their control over all us.


Sep 9, 2011 - 12:46am

Stephen Leeb - Expect

Stephen Leeb - Expect Enormous Gains in Gold & Silver

When asked about the implications for the gold market Leeb replied, “What this says is that the rally in gold has just started. We haven’t had the inflation yet. What we’ve had right now is an appetizer for what’s to come in the gold and precious metals markets.

Gold is going to go much, much higher and silver is headed into triple digits, that’s just the way it is. Gold is going to become the asset of choice in this country and right now it is not even considered to be an asset class (by the mainstream). It will be ‘the’ asset class in the next several years. You’re looking at things you don’t even want to think about because if you say what could happen, people look at you like you’re a lunatic.

We did a calculation and we valued all of the gold shares that are available to buy today, from Barrick to GoldCorp, even including GLD (the gold ETF) and we came up with a number that is maybe a little bit higher than the valuation of Apple. One stock basically matches the value of all of the gold that you can buy on the public market in the United States.

The potential (for gains) is enormous, simply enormous, and for these junior gold stocks, the ones that have the wherewithal to increase production, you don’t even want to put targets on them. You just want to say you are looking at a multi-bagger.”

Prize Fighter
Sep 9, 2011 - 1:05am

Iowegian, it does seem like

Iowegian, it does seem like "they'll" never let us get away with this. Too good to be true for those with the audacity of hope, to borrow a phrase. Perhaps it's a disbelief similar to how Iraqis felt until they could actually see Saddam's body; I'll believe it when I see it.

I think we are trying to describe outcomes which only exist within our current sphere of freedom/control. I believe once the metals reach their rightful place in mathematics, there will be such a paradigm shift that these thoughts of confiscation will be moot.

Another anyone else seeing gold in the background of commercials with increased frequency? Maybe marketers just use what is hot at the moment but I can't help but notice when the Old Spice guy has gold coins falling from his pockets, Jim Sinclair says Bernanke's gold tie is a signal, etc...

Turdle GG
Sep 9, 2011 - 1:10am


First step will most likely be a "super-profits" tax on gold miners.

Merely the expectation of such a tax will, unfortunately, cap the upside for those stocks...

ipreferPHYS Iowegian
Sep 9, 2011 - 1:14am

I agree with your Confiscation Suspicions

if I were to guess, when the global economy hits bottom, stackers will be labeled gold hoarders or economic terrorists. Aren't some lib's already saying that about PM investors - Just warming up the rest of the public to the idea? And the rest of the public will gladly support it as we transition to a new global currency that will save all...

Turdle GG
Sep 9, 2011 - 1:14am

for the coin lovers

got my gold Dragons today!

my first ever coins!

I love the fact that the Chinese theme of these 2012 coins will tie in with the introduction of PAGE. Gold/China/2012.

Sep 9, 2011 - 1:24am

Prize Fighter

The only way I can see it happen would be if the EE decides to incorporate Gold/Silver into a new basket-style currency. The EE does not seem to be embracing this, though, as manifested by their ever increasingly blatant attempts to stifle the price of Gold.

Even if it is incorporated into a new currency... that does not imply that individual control over metal will be tolerated, especially as that would imply less control by the EE over our individual actions.

Prize Fighter
Sep 9, 2011 - 1:40am

Well, you don't make it to

Well, you don't make it to Turd's site with your full faith in the government still intact so it stands to reason we would still be wary. I go back and forth with physical in hand versus allocated overseas accounts. With GoldMoney I would be able to pick up the goods outside of the country but it would be totally traceable and all that implies. By keeping the money in hand I'm stuck in the black market but my only counter party risk is my mouth.

I heard aliens like gold. How many ounces do you think it is for a one-way ticket?

Turdle GG Iowegian
Sep 9, 2011 - 1:43am

Iowegian re gold-backed currency

China's view:

"The American financial crisis has caused the loss of the U.S. dollar's credit. Therefore, American financial strategists seek to use the gold standard system to maintain the global financial system led by the U.S. The reason that the U.S. and Europe choose to use gold standard is the fact that the most of gold reservation in the world is in their control. The restored gold standard system will not be the original gold standard system, but instead a 'partial reserve system' partially based on gold."

I will add that this is consistent with views expressed by Jim Rickards in his interviews with Eric King.

Turdle GG
Sep 9, 2011 - 2:10am

Can't keep a good currency down

Gold price back to the level it was pre the flash crash just 48 hours ago.

Sep 9, 2011 - 2:32am

Congrats Turdle

That's a beauty!

Feel good to take delivery? It's a good feeling.

I just woke up to look at the PM prices and I'm squinting at a very bright screen right now and a huge dragon coin. Nice!

Sep 9, 2011 - 2:33am



Sep 9, 2011 - 2:36am


In the President’s speech tonight, he made everything sound as if it’s a new idea that has never been tried before nor did he make any reference to past stimulus.

For those who may not remember, Congress passed the American Recovery and Reinvestment Act of 2009, an $830 billion stimulus bill, in February of that year. Its primary purpose as stated within the bill was to “To preserve and create jobs and promote economic recovery.”

At the time, according to the Bureau of Labor Statistics, the national unemployment rate was 8.2%. Two and a half years later, the unemployment rate stands at 9.1%. Since the stimulus was passed, the unemployment rate has never been lower than 8.6% and reached as high as 10.1% in October of 2009.

After a brief improvement following the stimulus, economic growth, according to the Commerce Department, has slowed with GDP gaining .4% in the first quarter of this year and 1% in the second. This is hardly a robust economic recovery.

The numbers lead to only one conclusion: in the current economic environment, government spending does not create jobs nor does it lead to economic recovery.

So why does the President think that The American Jobs Act that he proposed this evening and estimated to cost $450 billion will be any different?

Insanity, as defined by Albert Einstein is “doing the same thing over and over again and expecting different results”.

Turdle GG ¤
Sep 9, 2011 - 2:44am


yep, i felt like a 5 year old boy on Christmas day opening my presents

Sep 9, 2011 - 2:48am

Insanity: Leads to only one conclusion...

Startthepurple said: "The numbers lead to only one conclusion: in the current economic environment, government spending does not create jobs nor does it lead to economic recovery."

Well, there is another possible conclusion. That is that the stimulus although not appearing to lower the jobless rate, actually may have prevented additional job losses and an even worse unemployment rate. I'm just saying...

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