Well...

228
Wed, Dec 14, 2011 - 9:37pm

...that was interesting, wasn't it? A long and crazy day but I do have a few things to add.

First of all, I thought I should re-post this in case you missed it earlier. Thank you to "Pining" for the fantastic piece of Photoshop art:

My two favorite parts are Atlee giving everyone the finger and the hot chick jumping off the bow.

In case you missed the updated charts I posted at about 4:00, here they are again. I can re-use them because prices haven't changed much in the time since. However, I have a feeling that that's about to change.

You may have seen this earlier at ZH. Its a new technical summary from Citi. In it, they claim that gold should bottom at around 1550 but still trade to around 2300 next year. Gee...where have I heard that before???

https://www.zerohedge.com/news/citi-predicts-gold-3400-next-two-years

ZH also posted the stock market section of the same Citi report. It included this vehwy scawey chawt. Yikes!

Next....Never fear, the CFTC is here! What a Cartoon Corral these morons are...

https://www.reuters.com/article/2011/12/14/us-mfglobal-cftc-idUSTRE7BD20L20111214

Ole Eric King was hard at work during the downdraft today. First, he interviewed Santa and then he tracked down Egon von Greyerz. Both will be required listening when they are finally posted in their entirety. Until then, here are links to partial transcripts:

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/14_Jim_Sinclair_-_Why_Gold_Was_Smashed_Today_%26_Whats_Next.html

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/14_Von_Greyerz_-_Currency_Collapse,_Hyperinflation_%26_Social_Unrest.html

Jeff Nielson has chimed in with a terrific column that discusses negative lease rates and Libyan gold. I find all of the attention today to negative lease rates rather interesting as I'm pretty sure TFMR was this first place to notice them and warn of impending doom last week. Not that that's any great honor. It's kind of like being the first White Star lookout to have seen the iceberg.

https://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=23385:the-bankers-new-gold&catid=48:gold-commentary&Itemid=131

Lastly, just a word or two about today's open interest numbers. (Remember, the numbers we got today reflect the changes from yesterday.) Two very important items.

  • The Feb11 OI only fell by about 500 contracts. When added to the 1500 contract decline of Monday, Feb11 OI is only down 2000 contracts while Feb11 gold is down about $53. I would have expected a much greater drop in OI. What this confirms for me is that there are very few human holders of Feb11 contracts. Almost all of the Feb11 contract holders are WOPR on one side and the sub-human EE on the other. If this is true, the likelihood of finding a bottom near 1550-1560 just increased quite a bit. What I'm driving at is: I feared that the MFGRAP would permanently scare away buyers of paper Comex contracts. However, if the spec long position is almost entirely WOPRs, they'll simply flip back over to "buy mode" as soon as the technical picture improves. IF gold bottoms as I hope, we should soon be able to buy paper with confidence and expect a handsome rally.
  • Dec11 gold continues to get new open interest. We added 137 brand new contracts yesterday...all in the face of a selloff? When added to Monday's gains, we've got almost 650 new contracts this week! That's amazing!! There is clearly an effort afoot to jump the queue and get some gold delivered this month and not wait for February. No, I don't think that the gold Comex will collapse from the weight of this. Not this month, at least. However, this potentially speaks volumes about the utter lack of bulk, physical gold available in the world. Very, very interesting and must be watched.

OK, that's all for now. Be on the lookout for some sharp volatility overnight and tomorrow as the metals search for a bottom. Let's see how today's lows hold up and keep our fingers crossed. Regardless, keep the faith and be happy. You have chosen to sock away savings in real, true money. Do not be discouraged by the blatant and shameful price manipulation tactics of The Cartel. The precious metals are going to have extraordinarily strong, fiat-relative performance in 2012. Soon, the pain of today will be long since forgotten.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  228 Comments

Shill
Dec 14, 2011 - 9:41pm
TheGoodDoctor
Dec 14, 2011 - 9:44pm

Interesting.

Interesting.

Dec 14, 2011 - 9:46pm

someone posted this earlier

I meant to include it:

Christmas Silver: Cheap Holiday silver courtesy of MF global and the Euro
survivalwstyle
Dec 14, 2011 - 9:55pm

pining

wiNNing. i am in humble awe of your mad photoshop skiLLz. came and read through 6 pgs of main st tonight to sEE how we tOOk this biAtch slap and sEEing that pic stiLL has my chEEks hurtin'...muito brigado amigo!

aside from a yahOO who shaLL remain nameleSS, my first ignore user...as only the members of project TFMR get named, i am glad to read aLL the positive perspective. mrF as our captian, thanks so much for your honest perspective. kEEp them coming, aLL of you. many here do not post so much, if at all, but, like me, enjoy reading such paSSion from the band...i baited the hOOk this afternOOn. nothing crazy, that powder was spent over the last 6 months and my SCA is above 25 we are geTTing close to becoming totaLLy underwater in paper. F paper..continue to try to re-establish my phyZZ.

now about my next boat trip...i sure hope i have beTTer luck, last trip that iceberg of fiji reaLLy meSSed us up. lost everything....but i am not scared..shEEt haPPens, and that caNNot haPPen again can it???? everything is loaded up as the misses and i are headed to brazil for a month or so...haPPy sails! may your sea remain calm, wind always at your back, when you get the oPPortunity to castoFF...set the hOOk. this is not a 1/2 day boat. the seas may get rough. hang tough!

peace

puTTin this here as mrF just opened this 1 up ;o)

Urban Roman
Dec 14, 2011 - 10:02pm

Good news, Turd!

Good news, Turd!

Jill says she knows where your money is!

(but she's playing hard to get)

.. Jesse's been on a MFG roll today ..

[edit]

Oh, I see that you already know that story. Don'tcha just love the way they say "commingling", as if sometimes, by mistake they leave too much of their money in the customer accounts. Yeah, happens all the time I bet.

bernardTF
Dec 14, 2011 - 10:04pm

you really have to ask

you really have to ask yourself, who in their RIGHT mind is on the bid side of the futures market for these silver contracts now? It's a wonder the price isn't already at zero! Thank those brave souls // ETF Rebalance algos!

Compare Gold Prices

Colonel Angus
Dec 14, 2011 - 10:05pm

Doing my part...

Just bought me a good amount of junk silver to support the prices around here. If we all do our part, then maybe Max Keiser and the Turd will be shown to be the true geniuses that we all know them to be.

exiledbear
Dec 14, 2011 - 10:05pm
silverwood
Dec 14, 2011 - 10:06pm

Silver and Gold

Silver and Gold
SILVER AND GOLD Silver and gold, silver and gold Ev'ryone wishes for silver and gold How do you measure it's worth? Just by the pleasure it gives here on earth. Silver and gold, silver and gold Mean so much more when I see Silver and gold decorations On ev'ry Christmas tree.
Graveworks
Dec 14, 2011 - 10:13pm

White Star

Give yourself a little more credit Turd, at least you gave us plenty of lifeboats, which is more than can be said for White Star Lines.

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Key Economic Events Week of 10/14

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