ебать! 他妈的 !! באַרען !!!

Fri, Sep 23, 2011 - 3:02pm

I'll always remember where I was when silver was crushed for $6 on the Sunday night back in April. I'm sure that I'll never forget the past two days, either. These are amazing times to be alive. Historic.

The main thing that surprises me about all of this is the fact that it is so surprising. I would never have expected a two-day, 25% drop in silver when the open interest on Wednesday was only 111,500 contracts. Similarly, how can gold fall over $200 when the open interest before the fall was under 500,000. The question we need to answer is: Who/what is selling? We'll have to wait to see the Open Interest numbers this afternoon to see where we stood after yesterday and we'll have to wait until Monday for today's numbers. To hear the pundits talk, the PM "bubble" has finally burst as "investors flee for the exits". If that's truly the case, then the OI numbers we get on Monday should show total silver OI of around 80,000 contracts. Gold should drop to something under 450,000. If the OI numbers come in flat to only slightly down, then we've not simply seen a bubble pop. We will have witnessed, over the past 48 hours, a massive manipulative short-selling spree the likes of which we've never seen before. I'll leave it at that for now because it would be useless to speculate further before we see the actual numbers on Monday.

At any rate, the pre-close drop we discussed on the earlier thread did, in fact, materialize earlier as gold briefly touched 1632 about 90 minutes ago. With that behind us, the worst may be over. May be over. The gap on the daily chart from 8/7 has finally been filled and all of this certainly appears overdone. However, do not be surprised by some follow-through selling Sunday night and into Monday. There will be a sharp rebound next week, of that you can be certain, but I would thoroughly discourage you from trying to catch it. In the immortal words of the 70s icons, Paper Lace: Billy, don't be a hero!

The beating that silver has taken is simply preposterous. I'm not even going to try to explain it other than to state again: When the regulators don't care and the market is dominated by JPMs tenuous short position, periods like these are going to continue to happen. Does that mean your physical silver is a stupid investment? Hell no! But if you're going to base your happiness, sanity and willingness to protect yourself financially upon the whims of an unfairly manipulated, 100:1 leveraged paper silver futures market, maybe you should just give up and head back over to Y! Finance and Mad Money. If you truly believe as I do that we are in the death throes of the Keynesian Experiment, you'll use this opportunity to stack even more physical and laugh at the absurd irrationality of the last two days.

That's all for today. Please be sure to check the site tomorrow morning as I will be publishing another TF Metals Report podcast for your enjoyment. It's about an hour long and well worth the listen. Have a great Friday evening and be sure to keep it all in perspective. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 23, 2011 - 5:25pm

Now this is making sense !!

Zerohedge just posted this here is the linK, margin call rumors

Sep 23, 2011 - 5:25pm

Phyzzy Lifting Drinks - Oh hell yeah!

This sums up today, exactly! Wait for the surprise ending.

Wonka's Fizzy Lifting Drinks
Sep 23, 2011 - 5:27pm

Haha, I am so relieved I got

Haha, I am so relieved I got completely out of all my paper at 36$ guys. To expect further sell offs on Monday on the margin hike would be the smart thing to do. Funny, we might as well close the year lower than where we started it.

Sep 23, 2011 - 5:31pm

@ stoneer

Lighten up man, this isn't the end of the world. I would take whatever proceeds you received from the sale of your $36 shorts and buy phyzz!

Sep 23, 2011 - 5:32pm

Buy more physical (now)?

Do you think we will see more downside pressure Monday morning?

Tempted to p/u a couple of 1 oz Suisse gold bars at Provident, but could wait until Monday if it's likely we'll see a modest drop due to margin hike.

Sep 23, 2011 - 5:33pm

Sorry, one more

Let's call a spade a spade. The only ones who lost anything today were the ones holding paper. Physical owners suffered NO loss.

do, dah, do dah

Sep 23, 2011 - 5:33pm

Local Coin Dealers Won't Deal!

Headed to my local dealer this afternoon with one pocketful of krugs and another full of fiat to trade and buy for either 90% or ASEs. He has always been well stocked.

Nothin' doin!

I was told by him that other local dealers are not selling or trading at these prices and despite my many, many ounces of past AG and AU loyalty to him, there is no way he can take the hit with the past two days drop in AG. He said he sold quite a bit of AG yesterday, but when he checked Kitco this morning he did not even bother to open the vault. He said he is also having trouble getting through to his distributor down in the big city to order more, if he can get it at this price.

We commiserated the past two days a bit, checked ZH and this site for updates, cynically laughed it off, went into the back room for a snort of 27 year old essence of Rye...and then I went across the street to the 2nd Amendment related store and swapped some of the fiat for more brass and lead so that the trip down the mountain would not be a total loss as far as metals acquisition.

SRV - ES339
Sep 23, 2011 - 5:35pm


At least there is no doubt now (like there ever was)... another orchestrated, fraudulent takedown! Clearly, the usual suspects were tipped off and jumped on the shorts, making (stealing from average citizens) billions... and like a fool, I didn't think they could possibly do it again after the criminal takedown May 1... that they wouldn't dare!

Clearly, the rule of law does not apply to the wealthy elite in Amerika... they pillage with impunity, irrespective of human collateral damage!

Bay of Pigs
Sep 23, 2011 - 5:35pm


I'm sure nobody knew those margin hikes were coming right?

More salt into the wound of PM holders...

I've never seen such a blatant disregard for fairness, honesty, integrity and the rule of law in my life. The action today in the gold and silver market just takes the cake. Brutal heavy handed manipulation and suppression.

Yeah, a European hedgie did all this? Sorry, but that's about the dumbest thing ever written on this blog.

My Troll Meter is pegged.

Sep 23, 2011 - 5:38pm


These were actually longs (CFDs and FX) I had held for the last 12 months and I got out at roughly 100% profit. I have never been short silver in my entire life. Of course the proceeds to into physical, didn't think you have to add that :)

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

12/2 9:45 ET Markit Manu PMI
12/2 10:00 ET ISM Manu PMI
12/2 10:00 ET Construction Spending
12/4 9:45 ET Markit Services PMI
12/4 10:00 ET ISM Services PMI
12/5 8:30 ET Trade Deficit
12/5 10:00 ET Factory Orders
12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 11/25

11/25 8:30 ET Chicago Fed Nat'l Idx
11/25 7:00 pm ET CGP speech
11/26 8:30 ET Advance Trade
11/26 9:00 ET Case-Shiller home prices
11/26 10:00 ET New home sales
11/26 10:00 ET Consumer Confidence
11/27 8:30 ET Q3 GDP 2nd guess
11/27 8:30 ET Durable Goods
11/27 9:45 ET Chicago PMI
11/27 10:00 ET Pers Inc & Cons Spndg
11/27 10:00 ET Core inflation
11/27 2:00 pm ET Beige Book

Key Economic Events Week of 11/18

11/19 8:30 ET Housing Starts & Bldg Perms
11/20 2:00 ET October FOMC minutes
11/21 8:30 ET Philly Fed
11/21 10:00 ET Existing Home Sales
11/22 9:45 ET Markit November Flash PMIs

Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
11/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 10/28

10/30 8:30 ET Q3 GDP first guess
10/30 2:00 ET FOMC fedlines
10/30 2:30 ET CGP presser
10/31 8:30 ET Personal Income & Spending
10/31 8:30 ET Core Inflation
10/31 9:45 ET Chicago PMI
11/1 8:30 ET BLSBS
11/1 9:45 ET Markit Manu PMI
1/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Recent Comments

Forum Discussion

by NW VIEW, Dec 13, 2019 - 10:14pm
by NW VIEW, Dec 13, 2019 - 8:54pm
by Trail Trekker, Dec 13, 2019 - 1:39pm
by NW VIEW, Dec 13, 2019 - 12:29am
by Trail Trekker, Dec 12, 2019 - 11:05pm
by NW VIEW, Dec 12, 2019 - 10:03pm