The Fiat-Conversion Price

Tue, May 8, 2012 - 10:15am

And this matters how? And why, exactly, do you care? Seriously. You need to ask yourself those two questions.

Look, never forget that the point of of this entire endeavor is "preparation for the end of the Great Keynesian Experiment". Part of that preparation is the accumulation of physical precious metal. Gold to protect your worth and wealth. Silver to protect you ability to acquire everyday necessities.

Do you believe that the current global financial system is now so malignantly flawed that it will not survive? Do you believe that beacuase the U.S. government is so overwhelmed with debt, current and future, the U.S. dollar is doomed as a global reserve currency? Are you fearful that global governments, in their futile attempts to maintain power will stop at nothing, economically and militarily, to avoid collapse and that these efforts will ultimately lead to war, insurrection, massive price inflation and civil unrest? If you answered "YES" to any of these three questions (and I suppose you did), then you should continue to BUY precious metal. Selling metal and converting it back into fiat is simply out of the question. Most of all:

If you answered "YES" to any or all of the questions above, why in the world do you care right now if gold is $1610 and silver is $29.50?

I ask this with all sincerity. Again...why do you care? You should be rejoicing at the opportunity to add metal at these prices. Last spring, it took nearly $5000 to buy just 100 ounces of silver. Today, that same $5000 will buy you 170 ounces. Hooray! How fortunate are we?!? The absolute sham of the current Comex/LBMA system has allowed everyone this extra time to buy/add metal. Please don't waste this opportunity! Also, please take delivery and store your metal somewhere safe.

Please indulge me to state this as clearly and unequivocally as possible:


I provide technical analysis of the gold and silver markets solely to draw attention and readers to this site so that I might warn as many as possible. I will continue to do so, regardless of the criticism of TA in general. Though the current precious metals markets seem to have been fundamentally changed by the MFGlobal disaster, underlying demand for physical metal will continue to make TA a useful tool. To that end, I present today these two charts only. In gold, the long-term trend is still intact and, as you know, I'm a big believer in the long-term trend. In silver, you can plainly see that the "right shoulder" is being carved in a pattern similar to the "left shoulder" last fall.

Now, before you leave my site today, I want you to read this extremely important piece of analysis and then come back:

You should also read the latest from Jim Quinn:

And this nugget from Mike Krieger:

I'm going to stop here. After being out all day yesterday, much stuff has piled up on my desk and demands my immediate attention. I'm sure I'll be adding thoughts to the comments all day so please be sure to check them from time to time. Hang in there. Keep the faith and go add to your stack. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


May 8, 2012 - 10:16am


Have a good one Turd!!!

May 8, 2012 - 10:18am

I'll tell you why

Because some of us have lost our jobs and trying to hang on to the wealth we have left and live. Been killed in PM shares and now I have to sell at the worst of time.

It just is thank you Blythe and the dark forces.

Fr. Bill
May 8, 2012 - 10:18am

Thurd Turdlet

Thurd Turdlet

Edit: Oh well. Just doo doo I guess.

May 8, 2012 - 10:20am
May 8, 2012 - 10:22am


Why am I always third? (I just want to scratch off 'Furst' on my bucket list for once!)

Anyway, this is what it feels like in the wide world of PMs, today:

"Sgt. Elias, end of the movie, Platoon"

Sgt. Elias [Platoon]
May 8, 2012 - 10:23am

We will win

Do not be disheartened. We will win and the sociopathic vampire squid bankers will lose!! Long live the shiny!

Good Stuff.


May 8, 2012 - 10:24am

Rallying call

Excellent writing.

If I had the money, I would be buying.

Rejoice not weep when you see sub 1600/30!

May 8, 2012 - 10:24am

Spot on

Totally agree, let them smash paper to as low as they can, there's no way I'd sell physical & all they're doing is helping us with time to prepare more. Thank you BM xxx

May 8, 2012 - 10:25am

Everything is going down, BTW

It's not just gold - everything is being sold.

Paper price will "matter" until it doesn't and then the paper price won't matter at all. Conversely, the physical price won't matter until it does and then it'll be the only price that will matter.

And the way things are going, the paper markets will probably close on a Friday and then on Monday, they won't matter.

They're buffering up and delaying everything to be dumped out in one big ginormous packet, most like over some weekend.

Until then, be patient and wait for the bear interlude to end. These bear interludes last as long as they want to, and it's not obvious until several weeks after they've ended that they've actually ended.

May 8, 2012 - 10:26am

I am holding lots of physical

I am holding lots of physical and shorting paper. Is there anything wrong in that ideologically?

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