April Gold Option Expiration Day

Tue, Mar 27, 2012 - 10:58am

Just a brief update this morning as I have a very full schedule today. Additionally, The Wicked Witch has a few things that she'd like to share with you and I know she'd like to get that done today, too.

So let's get right to it. Today, of course, is March 27 which is the expiration day for the April12 gold options. This expiration occurs at the Comex close of 1:30 EDT. To understand the significance of this, you must think like The Cartel and the last thing they need right now are inspired longs taking delivery through the Comex. Therefore, The Cartel "checks the books" and determines the price at which the minimum number of option holders will stand "in the money" and, potentially, convert to an April futures contract and take delivery. Sometimes (most of the time), The Cartel is able to manage this effort quite successfully. For this month, I defer to our new friend, "Winston" as he's been right on the money (no pun intended) this past week.

First, price was gunned down last week. Winston told me that the primary reason for this was to squeeze the folks who had sold April puts, a few weeks back, thinking that this was easy money. As price dropped, these option "shorts" were forced to hedge by shorting an actual futures contract. Once these "weak hands" were sucked in and short futures, gold reversed last Thursday and is up nearly $60 since. Mission accomplished for phase #1. Phase #2 is intended to minimize the potential damage described in the paragraph above. In this regard, we also heard last week that The Cartel would attempt to pin gold below $1700 at the close today. So far, mission #2 is looking good, also.

As you can see on the charts below, gold is showing fine strength here and not giving back any of the gains from yesterday. However, you can also see that The Cartel has instituted, at least for today, a hard cap just below $1700. Can this change? Of course it can. There are always headline events that can sway momentum intraday. For now, however, let's just be content today to consolidate yesterday's gains and get ready to fight the remainder of this week. Once gold option expiry is behind us, I expect gold to be cleared to move through $1700 and it will likely drag silver along with it, through $33.


Again, The Wicked Witch has a few things on her mind so please check back later today for a possible visit from The Wicked One and her trusted sidekick, Ruprecht. In the meantime, please click the link below and read the latest missive from Bill Gross. Though I think he's a weasly, little political insider who uses his connections for the profit of his company, this report is helpful simply because he's a weasly, little political insider who uses his connections for the profit of his company. The guy is chairman of the "Good Old Boy Club". If anyone has the ear of The Bernank, it's Billy. Therefore, heed what he says. It cuts through some of the SPIN and the MOPE.


Have a great day! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


silver bullett · Mar 27, 2012 - 11:01am

2 nd


proformatrillionaire · Mar 27, 2012 - 11:03am


It's a shame that options expiration is today. That means we have two traditional beatdown days in a row. Just opportunities to keep stacking!

fnord · Mar 27, 2012 - 11:03am



· Mar 27, 2012 - 11:04am


I finally got lucky! On the last dip, I bought a batch of Mercury dimes. Last night while going through them with my magnifier (old eyes are hell), a certain dime floated up out of the group! A 1931 D in "good" condition. I suppose I should have it graded.

First time I have ever found a key date just searching through a bunch of random coins. It can still happen! (looks like the one below)

¤ · Mar 27, 2012 - 11:07am

Thanks T-Bone

Bitter Money Fights Shaped US History Pt. 1 & Pt. 2

Go here for that story and other news...


proton777 · Mar 27, 2012 - 11:07am

If you actually READ the

If you actually READ the blog, you would have never been first. Besides, who cares?

Dr G · Mar 27, 2012 - 11:09am

And down we go, into Comex

And down we go, into Comex close, just as anticipated. Never fails. You can set your watch, or remember your wedding anniversary, or numerous other things, by this stuff.

BagOfGold · Mar 27, 2012 - 11:13am


I am reposting this...as it is very important you & everyone makes one...& puts it away for a "rainy" day!!!...

You may want to weld one of these together...very soon!...Very inexpensive to make...& may be a life saver!...


Actually...if you would make one for me...I will pay you for doing so!...

All's "weld"...that ends "weld"!!!...

Bag Of Gold

ACM · Mar 27, 2012 - 11:13am

Bill IS Gross!

I have a hard time believing much of what this trillion dollar fund manager "shares" with los peones. He was the guy as I recall back in the early days of the Obongo nightmare who was trumpeting the need to create at least a half trillion to a trillion per year in new money. He certainly got what he wanted.

spotgoldprice · Mar 27, 2012 - 11:17am

M2M party


Also March 31st is quarterly M2market party time at the ECB..... and April 1st was the date everything went to hell in a hand basket for silver and gold longs a year ago.....repeat this year or the polar opposite??!!!!!



P.S Did you not ban the tw*ts from posting 1st, 2nd etc yet??

dmanson · Mar 27, 2012 - 11:24am


They are beating it up now. We'll see how far down it goes. Watching to buy today.

NW VIEW · Mar 27, 2012 - 11:27am

@IndigoStar7- the Welder

Thanks for the words. My mom had a lot of motivation to work through the war. One of my older brothers was a P.O.W. in Bataan and another was a gunner on a ship in the Pacific, shooting down Kamikaze's and he was only 16 when he joined the service. He had a welders certificate also and was told he would work as a welder but landed on the deck of a ship pulling the trigger.

The country was not divided in those days as it is today. It is difficult to know who the enemy is as they seem to be under every rock. jmo

notmessenger · Mar 27, 2012 - 11:29am

Viewing live charts on an iPad

I've gotten used to using the live charts from NetDania.com on my computer, but it turns out that Java is not supported on the iPad. Before I go about implementing a technology alternative on my iPad, I wanted to see what other resources the rest of you use for monitoring live charts in the iPad. Thanks!

worldend666 · Mar 27, 2012 - 11:31am

>>I've gotten used to using

>>I've gotten used to using the live charts from NetDania.com on my computer, but it turns out that Java is not supported on the iPad. Before I go about implementing a technology alternative on my iPad, I wanted to see what other resources the rest of you use for monitoring live charts in the iPad. Thanks!

I use Logmein and remotely control my PC. I have the PC logged into my trading account :)

​From Android you can use Teamviewer 

DavidSilverSwe · Mar 27, 2012 - 11:33am


for posting Turd, always appreciated! :)

currently trying to figure out what time EDT is, never heard of it before.

it's gmt -5 currently, daytime savings etc is messing things up for my brain.

comex exp close would be 5 hours + 1:30 PM then. will be interesting to follow. (for those in gmt)

Gold Five · Mar 27, 2012 - 11:36am


Can someone give me tips on how the shopping cart at Provident's site works? Once I "add to cart" at a certain price, I'm locked in until I check out, right? Is there a certain amount of time that is allotted to purchase at that price before the cart is automatically emptied?

Mudsharkbytes · Mar 27, 2012 - 11:36am


Geez, two low-on-the-tolerance-of-'firsters' comments early on this thread.

Why so serious?

Why give two hoots about 'first' posts anyway, or music videos, or any of the other 'unrelated-to-the-end-of-the-Great-Keynesian-experiment' posts? It's called 'scrolling'. I use my scroll bar all the time when I see something I'm not interested in reading.

I'd hate to be so thin skinned.

BigChief · Mar 27, 2012 - 11:48am

I just came back from the

I just came back from the market, prices have sky rocket. Cattle prices have gone through the ceiling. Corn over a dollar a cob although still not in season. Paid my bills, purchased some new underwear and the wallet is empty! My stack is brimming with shiny gold and silver and portfolio filled with a variety of mines. The truth is in the last two years, my investments have not kept up with the rate of inflation.

And if today was the first day that I discovered the value of gold and silver, I'd probably be stacking at prices better than most of you. The problem with keep buying the dips is the dips are the rule, not the exceptions. I'm with you all on the future of gold but let's face it, it ain't moving as fast as most of us expected or the experts predicted. Reality never matches expectations. 

I'm going back to sleep. Somebody wake me up at $2000.00.

Straying From the Flock Gold Five · Mar 27, 2012 - 11:49am


I use them quite a bit, but I must confess that I never paid attention to the cart times. I can say that items have been left in my cart "overnight" and remained there the next morning. Again don't take this as gospel but I think 24 hours is close. RGD

¤ · Mar 27, 2012 - 11:57am

fresh water and desalinization plants

One thing I can't get my mind wrapped around is why the U.S. doesn't put an emphasis on salt water desalinization plants wherever they might be needed.

What are they waiting for? Are they waiting for the ocean currents to push a wide area of radioactive water from Fukishima towards the west coast first? Of course not because it will be too late by then to use that sea water.

Are they waiting for the aquafir to become contaminated by all the fracking chemicals and processes that are being injected deep into the earths soil? Of course not because they'll never admit there is a problem in the first place.

When the glaring need and emergency arises from just those two unnatural scenarios I laid out is when the proactive knee jerk response will be considered. Too late by then.

A series of desalinization plant projects should be a 'no-brainer' priority as it would create thousands of permanent jobs after they are set up. The infrastructure cost vs. benefit can't be denied. The initial job surge across all sectors of supplying the equipment and servicing and pipelines etc. would be sizable and permanent. 

So why isn't there a conversation nationally about the lack and dwindling supply of fresh water and why aren't they being proactive?

I don't know why. I don't think they know why either because their basic priorities are messed up. 

It appears that being short sighted will leave us with fewer options when it actually becomes a national emergency and by then the ability or time frame for building these desalinization plants will have passed.

Imho, they should make this a priority and store as much fresh water in the same manner that they do with the strategic petroleum reserve. 

Were being lead by clueless, reactive idiots. Period.

opticsguy · Mar 27, 2012 - 11:58am


I use firefox with script blocker and I always get a quantity of 1 in the cart when I choose something. I then have to go to checkout, modify the quantity, then go back to shopping.

BagOfGold · Mar 27, 2012 - 12:03pm

Don't count on your government to do anything for us!...

We are only "useless eaters" of TPTB's resources...& they would rather see you dead!...George Carlin has always said it best!...

George Carlin - It's a big club and you ain't in it

Do things for yourself...& by yourself!...Self reliance is the only thing you can count on!!!...

Bag Of Gold

Wizard · Mar 27, 2012 - 12:05pm


Water Filtration

Did a couple of months research and this is the best one I could find, Portable,No need to replace clogged filters just back flush with clean water. One unit can do up to 300 gallons a day. I have been using one on city water for about a month now for my drinking water. The difference is immediately apparent.

Hope this helps


BagOfGold Wizard · Mar 27, 2012 - 12:08pm


WOW!...That is great...I see that you can buy one of those sawyer water filtration systems at Walmart!...I will go & get one!...

Thanks so much!!!...

Bag Of Gold

littlepalm · Mar 27, 2012 - 12:17pm

Gold bottomed last week...

Gold bottomed last week and is now on its way to new highs for the year, probably to at least to 2100...

Look at the weekly continuation chart with the 55 week moving average...

pforth · Mar 27, 2012 - 12:20pm

We're now in the lull

We're now in the lull in which we find out if this was a single shot raid or the more common two part waterfall. If we don't fall further in the next 20 minutes or so we should be safe.

¤ · Mar 27, 2012 - 12:20pm

Jim Sinclairs latest......

Today legendary trader and investor Jim Sinclair told King World News that gold has taken a major step towards becoming the currency of choice when it comes to international trade. Sinclair also said the US has launched an economic war against key Asian countries and it is having an immediate impact on the gold market. Here is what Sinclair had to say about the situation: "Wall Street goes to war and the weapon is money. There was a day when we went to war and the weapon was an armada of ships. It was landing on Iwo Jima, mano y mano, it was bravery and honor. Today it's dollars."

Jim Sinclair continues:

"We go to war, challenging the other side to do the same because whatever you use as a weapon, the other side is going to tend to use as a weapon. The weapon that's being used is the interbank transfer system, the way money is sent from bank to bank.

We've already seen that Iran has been basically shut out of the SWIFT system and the SWIFT system is what this is all about. The SWIFT system doesn't take any money for the money that goes through it. The SWIFT system is like the old telephone company. What it does is charge for the use of its communication.

Believe me the SWIFT system works for the West. It's located in Belgium and you would think the US had no power on it. It's never discussed as being a US arm, but it is a US weapon.

But we've already taken Iran and put a big X on it....


ClinkinKY Mudsharkbytes · Mar 27, 2012 - 12:27pm

@ Mudsharkbytes--Firsty-first

I think it's because they "know what's best for us". Some call them "elitists".wink

Nick Elway · Mar 27, 2012 - 12:28pm

commercial non-electric water still

I googled "non-electric stainless steel water distiller"

The WaterWise 1600 looks good to me:


Or with a bit of work this kit:


Welding stainless is non-trivial

greenham64 Doctor J · Mar 27, 2012 - 12:32pm

1931-d Dime

RE: That coin is not rare, it is just slightly better than average. It would retail for about $8, it is definitely not worth getting graded. Nice looking coin though.

Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

Become a gold member and subscribe to Turd's Vault


Donate  Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events week of 12/10

12/11 8:30 ET Producer Price Index
12/12 8:30 ET Consumer Price Index
12/13 8:30 ET Import Price Index
12/14 8:30 ET Retail Sales
12/14 9:15 ET Industrial Prod. and Cap. Utilization
12/14 10:00 ET Business Inventories

Key Economic Events week of 11/26

11/27 9:00 ET Case-Schiller home prices
11/27 10:00 ET Consumer Confidence
11/28 8:30 ET Q3 GDP 2nd guess
11/28 10:00 ET New home sales
11/29 8:30 ET Personal Income and Spending
11/29 10:00 ET Pending home sales
11/29 2:00 ET November FOMC minutes

Key Economic Events week of 11/19

11/20 8:30 ET Housing Starts
11/21 8:30 ET Durable Goods
11/21 10:00 ET UMich Sentiment
11/21 10:00 ET LEIII
11/21 10:00 ET Existing Home Sales