Wrapping Monday

Mon, Dec 12, 2011 - 8:58pm

Ugh. Yuck. What an ugly day in paper metal. Almost makes paper metal seem worthless. Hmmm. Now there's a thought...

Anyway, sorry that this was such an ugly day. It certainly wasn't any fun and I don't think the shellacking is finished yet, either. We did, however, find some support today in an old, familiar place. Check out the chart below. Gold stopped and reversed almost right at the "gap open" of 8/7. You remember 8/7, don't you? That was the very fun Sunday evening following the late 8/5 announcement by S&P that they were downgrading U.S. debt. Anyway, having found support there once again, we now have a very clear line of demarcation to watch overnight and into the rest of the week. Gold is certain to test today's low of 1660 at some point. If that area holds again as a double-bottom, some spec buying may return and ease some of the pressure. If 1660 fails...which I suspect it will...it will be a clear signal that gold is headed to 1600-1610 next and, from there, could fall all the way toward 1550. Stay tuned.

A couple of other items that merit your attention. First, "Ranting Andy" published a lengthy missive today. In great detail, he covers the ongoing manipulation and then wraps it up with a solid summary of rehypothecation.


Next, this little gem was tucked away in the "contributor" section of ZH. IMHO, it should have made the main page:


Lastly there's this from the nonsensical CNBS program "Fast Money". James West of The Midas Letter was the guest. In a stunning development, Mr. West was allowed to make claims of central bank intervention/manipulation in the gold market. Of course, the goons that host the program completely ignored his comments and proceeded, instead, to focus on their pre-screened questions about copper, etc.


I'll leave you tonight with this: Many have remarked that I seem a little apocalyptic these days. I've even gotten some emails warning me to lighten up a little bit, otherwise I might scare off some new readers. I don't know if you've noticed but it's not just me. As you click around various PM sites, you'll start to notice that many are getting increasingly dire in their predictions. I can assure you that this is not part of some collusive plan to scare the bejeesus out of you. Simply put...we've all seen the warning signs for years and now those signals are blinking bright red. The latest addition to the House of Horrors is the otherwise calm and unflappable Patrick Heller. I've been reading and posting his stuff for years. I've never, though, seen him write something like this:


Look, maybe this will all pass. Paul Krugman will be proven right for once and we'll all live happily ever after in some type nirvanic eutopia. Let's hope so.

Just in case we don't...Prepare Accordingly. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 12, 2011 - 9:05pm

Possibly looking for the 200

Possibly looking for the 200 MDA Tuesday 1617 on au etc as we have started 11 bucks lower as of typing.

Dec 12, 2011 - 9:05pm


I typed this at 1665 or so and thought today's 1660 low had at least a small chance at holding.

Guess not.

Innocent Bystander
Dec 12, 2011 - 9:08pm

Support Broken?

You jinxed it Turd! That was some coincidence, gold dropped another $12 to a new low within minutes of you posting this.

Edit: Thurd!

Dec 12, 2011 - 9:12pm

Gold drops but the POSX holds

Gold drops but the POSX holds steady?

Also, can someone explain why gaps must be filled exactly? do they always get filled?

Dec 12, 2011 - 9:15pm

lets take a lOOk

yep. the asians are going to let this slide aLL night.

Dec 12, 2011 - 9:15pm

Wait.  Paul Krugman is

Wait. Paul Krugman is sometimes wrong?

Dec 12, 2011 - 9:21pm

Fresh Snow and Paper Gold Lunacy

I took a few days off and went skiing in the Canadian Rockies - lots of fresh snow and some great early season skiing. Didn't read a newspaper, turn on a computer or watch anything on TV .. and it felt great.

I've come to the conclusion over the past while that we are certainly at the end of the financial world as we know it. And - frankly, I'm tired of losing sleep over it - as - I'm sure most of us that have been watching this for a few years are.

So, I'm hunkering down - my preparations are about as far progressed as they ever will be and I'm going to try not to dwell on the train wreck that is our economy. If the PM's fall on paper 50% - I don't care. I will convert more of my fiat to coin and carry forward. The clowns that manipulate this poor excuse for a financial world can price paper at whatever level they want. Makes no matter - the end result will be that "real-money" will win. You can't cheat the laws of nature.

Turd - you are correct to take an apocalyptic tone, IMO. Because the end of this fiasco is coming and people need to be aware.

Dec 12, 2011 - 9:22pm

After 8 years I'm cool with this shit

Hey, I don't care anymore about the dips. I bought my phyzz long ago and never trade it. I sold my stocks 80% of them last week. So I sit and await the mother of gifts from the paper heaven. This is how I made almost all my money. They give me shares at 50% to 75% off. Hell I'll take 3 or 4 times the number per fiat I would have gotten before. Then I get 4x the upside. It's all bullshit but it's what we have to work with. So hey keep some cash aside and double or triple down at the low to your best then just chill out. (remember, without this BS most of us would have been priced out of the market long ago) Be honest about that!

After 8 years of stress here are the keys

Play ball with the kids or call them

Take a walk with your girl, it's fun, it really is or take her out for lunch and just talk.

Plant a garden and watch it grow

Works for me and I hope it works for you!

Fr. Bill
Dec 12, 2011 - 9:24pm

The Dollar is Safer Than Gold

roadtoruin wrote:
Gold drops but the POSX holds steady?

The pricing tells you a lot about what "the market" thinks, what it values, etc.

Clearly, many in the market find dollars safer than gold. So they acquire dollars and ignore (i.e. don't put in buy orders for) gold.

Or (as ZH has reported freuqently in the very recent past), those with gold badly need dollars (i.e. European banks whose store of dollars or euros is getting thin). If they have some gold in the back room (and many of them do), they sell it to get the dollars/euros without which they're going to have Very Large Troubles doing business. Hence, a bunch of sell orders flowing into the gold markets from that quarter.

Result? POSX holds (or, sometimes, goes up some!) and gold drops.

Brotha Bob
Dec 12, 2011 - 9:27pm


FUBM. It's the only answer to this situation. Another Christmas sale. Makes me so happy. Happy I hold actual physical an not paper. If I was holding paper, I would be crying. But each ounce of gold/silver I held Saturday still weighs as much today. And, I can now afford more today then I could Friday. The price goes down, my weight goes up. Woot!

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