Party Likes It's 2009

Thu, Mar 22, 2012 - 10:53am

I don't know if anyone else feels this way, but I've been having a strange feeling of deja vu and I couldn't seem to place it. I was standing there this morning, making some coffee, when it hit me. This is late 2009 all over again. If you were trading and stacking back then, I'm sure you'll recall that painful period. If not, let me give you a little refresher.

Where were you in late 2009? Were you listening to this:

The Black Eyed Peas - Boom Boom Pow
Avatar Movie Trailer [HD]

I know where I was...I was making some serious cash. In July of 2009, gold was trading in the low $900s. By Thanksgiving of that year it was near $1200 and Turd was flush (no pun intended). And I will never, ever forget where I was when gold peaked. I was reading ZH and watching Fox Business when I saw gold trade at 1225 and read a headline on ZH that the Bundesbank was going to be announcing a huge gold purchase in the morning. My personal sentiment indicator went to 10+. Unfortunately, that didn't work out so well. Beginning the next day, gold began to roll over, instead, and by the first Friday of December, I was doomed. The BLSBS report came out and was spun into good news. Dreams of "green shoots" and a "recovery summer" soon took over. The POSX shot higher and, over the next 3 months, rallied nearly 10% from 74 to 81.

The resulting decline in gold was brutal. First, it had peaked at $1226 and Santa had promised an "angel" at $1225 for years. The fact that I'd let greed overcome me and consequently didn't sell at $1225 was crushing and when gold rolled back down through $1100 in January, I was seriously depressed. All of the same old AGAs were claiming that $1225 was a blow-off top and that gold was soon going to be trading back below $1000 and was probably headed back toward $800. I was sick, Mister Hyde was furious and it seemed like all was lost.

But we didn't quit, we didn't give up. I knew that the whole "recovery summer" thing was a joke. The U.S. economy wasn't going to recover, the best it could do was stagnate and limp. The MOPE and the SPIN were so thick, I could barely breathe and when gold bottomed at $1052 in February of 2010, there was hardly anyone around who noticed or even cared. And that's the funny thing about bottoms, you rarely, if ever, notice them in the present as they are only visible in hindsight. With hindsight, we now know that the "green shoots" of 2009 became the dead weeds of 2010. All of the breathless proclamations by LIESman et al not withstanding, the facts, the math and reality took hold again by mid-2010 and gold finally surged back to the $1225 level in May and through $1225 in September.

My point is simple: We are currently in an identical situation. Gold surged to $1925 last September and, on 9/6/11, gold was ready to rocket higher on news that the SNB was going to devalue the Swissie by 10%. Again, sentiment was at the 10+ level and, again, we were within a few dollars of a Santa "angel" at $1936. Well, we all know what happened next and now, after six months of this brutal "correction" where gold has again fallen 15% while the POSX has rallied 10%, we are once again staring into the Pit of Despair. LIESman et all are screaming from the rooftops that the economy is improving and The Bernank is desperately implying that QE is over. Well, I call "bullshit" and I'm standing tall against them. Will you join me?

As I type, gold is at $1632 and silver is at $31.43. I've been maintaining all month that gold would likely bottom between 1600 and 1650 and that silver was headed to 31, maybe even 30. Why would anyone panic now when we are so close to the bottom. Always remember and never forget: THE ONLY WAY YOU WILL CONSISTENTLY MAKE MONEY TRADING GOLD AND SILVER IS TO BUY WHEN EVERYONE ELSE IS SELLING AND SELL WHEN EVERYONE ELSE IS BUYING. Period. Why is this true? Because this strategy essentially puts you on the same side of the trade as The Cartels, which as you know post-MFG, are exerting an increasing level of influence on the paper metal markets. It is clear to me that now --right now-- The Cartels are buying and covering not selling and adding. I discussed this yesterday in two, separate comments to the previous thread and they are reprinted below:

Submitted by Turd Ferguson on March 21, 2012 - 11:59am.

Back at the last highs of 2/28, total gold OI was 479,044. As of Monday's close, it had fallen to 434,226 for a drop of 9.35%. The last time gold total OI was at this level was 2/14/12 when price closed at $1718. Additionally, even back in January, we find higher total OI numbers. The week of 1/16 averaged total OI of about 439,000. Gold began 2012 with a price near $1600 and a total OI of 420,000.

Back at the price highs of 2/28, total silver OI was 115,866. Total OI was actually higher on 2/24 at 118,204. As of Monday's close, it had fallen back to 108,268 but actually bottomed back on 3/15 at 106,723 or a drop of 9.71%. The last time total silver OI was below 107,000 was 2/17/12 when price was $33.28. Total silver OI averaged about 103,000 in January after beginning the year at almost exactly this level, near 106,000.

Clearly, any "excess" open interest brought about by the early year rallies from 1600 to 1800 and 28 to 37 has now been wrung out. Again, this is just another signal that we are very near a bottom.

Submitted by Turd Ferguson on March 21, 2012 - 3:48pm.

Crazy silver OI report basis yesterday.

Yesterday, gold was down $20.20 and total OI was down 3,200 contracts. Perfectly normal.

Silver, however, was down $1.12 yet total OI expanded by 3,154 contracts. ​ The July12 alone went from 12,404 to 14,018. The only deduction that can be made is that a significant amount of new shorts entered the silver pit yesterday. What we don't know is whether it was Cartel or spec shorts. The CoT on Friday will provide some clues but it is highly likely that these are spec shorts. Why? Because The Cartel typically only adds shorts to:

  1. Cap price OR
  2. Attempt to start a waterfall/cascade selling event.

If only now we are seeing a huge run-up in spec shorts then we truly are very close to a bottom as the late-coming spec shorts will soon be fleeced just like the late-coming spec longs were fleeced on 2/29.

Total silver OI is now back to where it was two weeks ago, when silver was almost exactly $1 higher.

Ahead of the CoT on Friday, here is what we know:

Gold for the week 3/13--3/20 saw the total OI fall from 442,319 to 431,039 while price fell by $47 (2.77%).

Silver for the week 3/13--3/20 saw the total OI only fall from 111,730 to 111,422 while price fell $1.75 (5.2%).

Likely Conclusion: This week's CoT will be slightly bullish for gold but will show a significant improvement in the CoT picture for silver.

Anyway, the point is that is is always darkest before dawn and we are very deep into the wee hours. The global economies have not and will not improve to the point where we can "grow our way out from under the debt". No way, no how. In 2010, it took 6-8 months before logic, math and facts finally prevailed over hope, MOPE and SPIN. The truth will win again in 2012, you just have to be patient.

One more thing, I received some communication from "Winston" this morning and he provided some very helpful information. He is of the belief that the down move that began Tuesday evening and continues this morning is almost entirely related to April gold option expiration. Again, the Comex is now almost completely controlled by The Cartel as the only participants left are Cartel monkeys and HFT-WOPR momentum chasers. This allows The Cartel, which has full knowledge of the order books for both futures and options, the ability to swing price at their leisure and position price in such a way as to maximize pain for option holders upon expiration. Winston believes that the current target of their malice are not only the call buyers but also the out-of-the-money put sellers for April. Remember, gold was near $1800 just 4 weeks before expiration of the April options. A lot of traders believed that there was easy money to be made by selling out-of-the-money puts, the April 1650s and the April 1600s. Those that did are getting seriously squeezed right now and they are being forced to short actual gold contracts to hedge themselves. Winston thinks that the 22,000+ contracts between 1600 and 1650 are the true target of The Cartel here and that their ultimate intent may be to drop gold as close to 1600 as possible before expiration at the close of business next Tuesday.

What's interesting about this is how it fits right in line with all of the other "bottom signals" we've been discussing here as of late. A low near $1600 tomorrow or early next week would:

  1. Complete the drop to stout support at 1600
  2. Complete the right shoulder of a massive reverse head-and-shoulder bottom
  3. Bring silver down to 30-31, just like we'd envisioned
  4. Drop gold open interest levels all the back to early January levels
  5. Put the RSI and MACD indicators into deeply oversold territory
  6. Drive sentiment and our new TITS indicator to record low levels. Even Mister Hyde is once again suicidal and ready to simply cash out his IRA before it goes to zero. He'd like to take it in cash and go to Vegas where he can blow the rest on blackjack, Jack Daniel's and hookers.

And don't forget that lease rates have clearly bottomed and have significantly reversed. In September and December of last year, lease rates reversed about two weeks before price.

So, in the end, hang in there. I know it's tough and painful to watch everything go down when you know you are on the right side long-term. But let me assure you: This, too, shall pass. Soon...very soon...the metals will bottom and resume their inexorible march higher. Of this, you can be certain.


About the Author

turd [at] tfmetalsreport [dot] com ()


Mar 22, 2012 - 2:24pm
Mar 22, 2012 - 2:25pm



I have been reading a great deal of information in just about all areas on the internet. I just listened to Lindsey Williams interview on Goldseek. Let me say this before I call out Lindsey on several things... I like the guy a great deal. On the other hand, it is hard to listen to his full interview as his information could be told in 10 minutes... not the nearly 1 hour he took to get it out in his last interview.

Willams states that he is TAPPED into the ELITE. I believe him, but I have begun to notice a certain trend taking place on several websites and talk shows. I used to listen to ALEX JONES several years ago. I stopped when I started to realize he did not believe in PEAK OIL whatsoever. Jones invites Williams on his show several times a year. Anyone who listens to Lindsey Williams knows he wrote a book called the ENERGY NON-CRISIS with information from what he calls the BIG OIL FIND on GULL ISLAND located by Prudhoe Bay, Alaska.


Before I get into why I think we got no more than 1 year before the SHTF, let me discuss some of Williams inconsistencies:

1) Williams believes there is 200 years worth of oil to supply the United States in Gull Island

2) The Keystone Pipeline was supposed to go from Alaska to the Gulf of Mexico.

3) There is no ENERGY CRISIS

Gull Island has not been drilled commercially due to the fact that the exploration wells drilled in the 1970's and 1992 revealed that there was only approximately 300-500 million barrels of recoverable crude. Williams believes Gull Island has over 200 years to supply the United States.

First, he says that when they bring Gull Island online, it will supply 2 million barrels a day. If we just take this 2 million barrels a day, and not the total amount of 10 mbd that would be needed to supply ALL OUR CURRENT needs without any imports, it would be the following:

GULL ISLAND = 2 mbd X 365 days = 730 million barrels a year

GULL ISLAND = 730 million barrels X 200 years = 146 billion barrels of reserves

There is no 146 billion barrels of oil in Gull Island. Prudhoe Bay, Alaska had 25 billion barrels of oil in total resources, but only 13 billion are recoverable. So far, 11 billion barrels have been extracted and only 2 billion remain. Prudhoe Bay's peak was 1.5 million barrels a day and now is only supplying 600,000 bd.

Gull Island is being drilled currently, because IT IS NOW COMMERCIALLY VIABLE to do so with the current higher price of oil.

Williams went on to say that OBAMA is in trouble because he did not allow the Keystone Pipeline to be finished. For some strange reason, Williams thinks the Keystone was to start at Alaska, run across Canada and then come down to the Gulf of Mexico. The Keystone pipeline was never intended to run to Alaska for a connection from Gull Island. The Keystone pipeline was intended to only deliver TAR SANDS oil from Alberta to the U.S. and Gulf of Mexico. How he confuses this makes his credibility doubtful.

Williams focuses our attention on the BOOGYMAN called the New World Order, instead of the real threat to the global economy and that is PEAK OIl.


I now believe that Alex Jones is a hired DIS-INFORMATION tool. When CoasttoCoastAm was run by Art Bell, he believed in Climate Change as well as Peak Oil. George Noory, who took over for Art Bell, does not believe in Peak Oil. George and Alex always bring on guests that support this ideology. Don't get me wrong, they do bring on guests that give information on Peak Oil, but they are on less frequent. The one guest that I cannot stand is JEROME CORSI who wrote BLACK GOLD STRANGLEHOLD. His commentary on peak oil is so pathetic, I am surprised anyone believes the man.

Anyhow.... Alex Jones and CoasttoCoastAm are the biggest ALTERNATIVE NEWS sources on the radio and internet. What they have done, is to focus the listeners on the BOOGY MAN of the NEW WORLD ORDER and not on the reality of LIMITS TO GROWTH by the Peaking of Global Oil Production.

People don't realize that when PEAK OIL finally arrives and heads down exponentially lower, the NEW WORLD ORDER folks are OUT OF WORK. Why? Because the largest entities are the ones that suffer the most in a Peak Oil environment. For instance, Wal Mart business model only is possible with cheap and abundant supplies of oil. Wal Mart makes a little bit of profit on millions of goods. When shortages and extremely high prices of oil hit the market, WAL MART's business model disintegrates virtually overnight. Hardly anyone understands this principle. Multiply this by all the huge conglomerates in the world and you see they have the most to LOSE when the world understands PEAK OIL.


To be able to understand the wisdom that is out in the world, one has to be able to PICK and CHOOSE what information is more based upon good wisdom and that which is merely distractible knowledge. I don't know if anyone has listened ED DAMES (who comes on CoasttoCoastAM), but his last show really slammed the reality across my forehead. I do believe we will have HUGE SOLAR FLARE activity that will take down a great deal of the electric grids across the world. Dames believes that it won't be just one BIG FLARE but a continuous barrage increasing in strength and peaking in 2013.

Dames sounds like a LUNATIC if you don't spend a great deal of time listening to his past work and his projections based on remote viewing. Take or leave it, but this SOLAR FLARE activity is no new thing. Our economy and market is run by technology that is extremely fragile.

Take a shovel and drop it from your roof and more than likely, nothing will happen to it and you will be able to use it immediately. Take your LAPTOP and do the same thing and you will realize that it is not as STURDY as a shovel. We can't forget that a shovel is also a form of is just a more simple form of it. Also, a good quality shovel will last decades and maybe a few generations if taken care. A LAPTOP computer becomes outdated or breaks down within 3-6 years.

If we do get these massive SOLAR FLARES and they do take out the Satellites, Cell Phone Towers, Internet, Electric Grid and many other electronics... we head into the DARK AGES in 3 days.... as 3 days is the maximum supply that is contained in the retail stores and warehouses.

When we add all the factors taking place now in FUTURE WAR in IRAN, the DERIVATIVES MONSTER, the PEAKING OF OIL, the MANIPULATION OF MARKETS, and SOLAR FLARE activity... we got 1 year TOPS before it all comes down.

Today is a GREAT TIME to exchange FIAT NOTES for SILVER & GOLD.

Mar 22, 2012 - 2:28pm

Peak Oil?

Seriously now...


I now believe that Alex Jones is a hired DIS-INFORMATION tool. When CoasttoCoastAm was run by Art Bell, he believed in Climate Change as well as Peak Oil. George Noory, who took over for Art Bell, does not believe in Peak Oil. George and Alex always bring on guests that support this ideology. Anyhow.... Alex Jones and CoasttoCoastAm are the biggest ALTERNATIVE NEWS sources on the radio and internet. What they have done, is to focus the listeners on the BOOGY MAN of the NEW WORLD ORDER and not on the reality of LIMITS TO GROWTH by the Peaking of Global Oil Production.

***OH C'mon now! You mean your not believing everything you hear on Coast to Coast AM??? HERETIC!!!***

(My way of saying: Ignore the blather - follow your own common sense)

Mar 22, 2012 - 2:30pm


Silver has been bouncing about between 28 and 34 ever since the September smackdown, with very brief excursions above and below. So I'm not finding this action very exciting, though certainly worth buying a bit of.

The big question you should be asking is - will Bernanke dare to risk overt QE, given that if he does and the Republicans win, it will be curtains for him and the Fed?

I think he probably will, personally. But it's not assured. And without QE3, I think silver will struggle to get past £37

Anonymous Dr G
Mar 22, 2012 - 2:38pm

Removed comment

Removed comment.

Mar 22, 2012 - 2:41pm


Lindsey also said that US citizen should only own US government minted coins, LOL, and that they should be minted prior to 1933, lol.

I like Mr Williams, and I think he speaks the truth, as it been told to him, but sometimes he gets off base and discusses things he knows little of.

Mar 22, 2012 - 2:41pm

GOLD prediction reality comparison chart and extension to July1

One month has passed since posting the previous one. It is also for permanently stationed here:

Try right click, View image , may be it helps.

Better quality of enlarged picture here:

Mar 22, 2012 - 2:45pm

Gold Bear

I see the local rag (Globe and Mail - Canada) is running the story about Gold Stocks being in a bear market as compared to gold. You would think that this would be a great buy signal and the writer would let investors get the jump. However they will recommend these stocks at the top - they always do.


Anonymous tyberious
Mar 22, 2012 - 2:49pm

Removed comment

Removed comment.

dmanson Mickey
Mar 22, 2012 - 2:51pm

Tax form 8938

I also have some questions on this. I started a topic in the forum hoping some others would chime in and give advice. I do not know the answer to your question but I have similar ones.

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 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Key Economic Events Week of 7/1

7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 10:00 ET Construction Spending
7/2 6:35 ET Goon Williams
7/3 8:15 ET ADP June employment
7/3 8:30 ET Trade Deficit
7/3 9:45 ET Markit Services PMI
7/3 10:00 ET ISM Services PMI
7/3 10:00 ET Factory Orders
7/4 US Market Holiday
7/5 8:30 ET BLSBS

Key Economic Events Week of 6/24

6/25 10:00 ET New Home Sales
6/25 1:00 pm ET Chief Goon Powell
6/25 5:30 pm ET Goon Bullard
6/26 8:30 ET Durable Goods
6/27 8:30 ET Q1 GDP final guess
6/28 8:30 ET Personal Income and Consumer Spending
6/28 8:30 ET Core Inflation
6/28 9:45 ET Chicago PMI

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Recent Comments

Forum Discussion

by Boggs, 51 min 28 sec ago
by Scarecrow, 6 hours 5 min ago
by Scarecrow, 6 hours 23 min ago
by Scarecrow, 7 hours 47 min ago