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???


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...


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:



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.


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.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 14, 2011 - 10:45pm

What do WOPR and EE mean?

Could anyone please clarify what those two acronyms mean?

Bay of Pigs
Dec 14, 2011 - 10:47pm


That writer doesn't know Nadler, Gartman or Christian very well if he's taking shots at Grandich. He is absolutely correct, those guys are the Three Stooges on gold.

Dec 14, 2011 - 10:47pm

might as weLL

Sublime - April 29, 1992
So It Goes
Dec 14, 2011 - 10:49pm

The clueless


Just got back from a couple days of travel and missed all this volatility. Thank goodness really - I lived without the stress.

Was talking with some bright folks - well trained - PhDs and MDs - know their fields.

Alas - none have even heard of MF Global - let alone know the potential consequences of that bankruptcy that we - who read Turd, Sinclair, Willie et al are exposed and understand.

These bright people are busy and rely on the mass media for information - so sad really - it seems almost too difficult to try to bring them up to speed. They are going to be slaughtered for sure. Even my quote from the late but still brilliant Howard Katz - "If you don't buy gold at $1500, you certainly will when it is $3000" - brings the deer in the headlights stare.

Good calls Turd - the bottom is probably in or very near.

My .02 - Just prepare for the collapse and the ensuing chaos - food, water, emergency supplies, defense, and an alternate currency - gold and silver.

Keep stacking - forget the short term volatility.

Dec 14, 2011 - 10:56pm

To Strongesidejedi and Shill


To StrongeSideJedi wrote:

"Therefore, my conclusion is that the MF Global bankruptcy is a financial 9-11 event.
MF Global has taken out the entire agricultural industry's financial structure.
MF Global is much worse than 9-11.

MF Global has essentially interfered with the planting season for 2012."
Shill quoted from the Minn. farmer tells of losses in MF Global failure | StarTribune.com:

"A Minnesota farmer told a Senate panel Tuesday he wants to know what became of $253,000 of his money that's gone missing in the collapse of commodities trading firm MF Global Inc.

Dean Tofteland, who raises corn, soybeans and pigs near Luverne, told the Senate Agriculture Committee that whoever was responsible for the disappearance of money from client accounts like his must be held accountable."


From what I can see is, a deliberate campaign to get small farmers off their land for pennies on the dollar. The big US agribusiness farms are vertically integrated; they don't need recourse to the COMEX.


And, the amount of lobbying done by big agribusiness will ensure that their interests will be covered in any federal investigation.


To me, it is like the dustbowl/depression of the dirty 30s all over again, where the big shits can squeeze out the honest folk for pennies on the dollar.

Best to you.


With all these farmers losing their positions, you can expect the price of just about everything grown in the US to go up next year, i.e., Monsanto yields are decreasing, herd size of hogs and beef are decreasing, etc.

Good luck to my neighbours to the south.

Dec 14, 2011 - 11:02pm

Thanks Turd


managed the dreaded last post again


Blazing Saddles - We Must Do Something! Harrumph!

so ill re post here.....

CNI in Cali Inglewood had everything available today in the morning and phones were off the hook

1oz silver maples +2.75 spot...2012

10z gold pamp sussie bars +40 spot

cash and carry, great LCS


Katie Rose
Dec 14, 2011 - 11:09pm

I bought my first silver

I bought my first silver when it was $10.70. The last silver I bought was SAE's @ $46, including premium.

I've added along the way. One large order I actually canceled as I was sooooo afraid I was doing the wrong thing. That silver was $15 + premium.

I've had 1/3 of my silver stolen and received exactly $1000 from the insurance company who then canceled my policy. First pay out in over 30 years, and they canceled my policy!!!!!!!!

I wish I had more silver. I didn't have the TURD to help me along. I was doing this purely by instinct. Didn't know what zerohedge was; I really didn't know anything. I just had some college economics classes and things didn't feel right.

What I want to say is, "This too will pass."

It might take awhile, but silver will regain its loses. So will gold.

If I had any fiat I would be loading up big time. Who cares if it goes down another dollar or two? Premiums will just go up as the metals go down. Dealers have to make a profit.

I have lots of regrets about being so afraid and not buying more when I was able to do so. The money got spent on "professional clothing" and other silly things.

Now I tend goats and make cheese and lead a very quiet lifestyle. It is very rewarding.

TURDVILLE is an awesome resource! Please pay attention to the wisdom offered up here. Hindsight is always 20 20.

I believe those holding off purchasing will regret their inaction, just as I regret my canceled order.

Thank You TURD and all others for your daily insights! I wish you were around when I was beginning this journey with PM's all on my own.

Eric Original
Dec 14, 2011 - 11:10pm

Mrs. O saved my bacon again...

When I get all pissy like this, Mrs. O slaps me upside the head and says:

This is long term money! Do you need it tomorrow? No! Then stop being such an idiot!

To which I reply:




yes dear.

Eric Original
Dec 14, 2011 - 11:13pm

Katie Rose

I love your posts. They are so from the heart it takes my breath away.

Dec 14, 2011 - 11:15pm

DragonPunch: FYI

Welcome friend.

To answer your question, WOPR is from the most excellent 80s movie Wargames, Turd uses it as an synonym of sorts for HFT/Algo computer trading

EE can be found at the top of the page under Turdisms.


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