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Gold and Silver Fun and Games

234
Wed, May 23, 2012 - 4:00pm

This is just getting to be far too predictable.

Let's see, first it was the April12 gold. Then it was the May12 silver. Today it was the June12 gold. What do I mean? Today was, once again, one day prior to option expiration and today, once again, we get a round trip in the metal as the poor losers who are left trading and hedging get their arses handed to them by the controlling powers of The Cartel.

As a refresher, what we saw in March and April, we saw again today. Namely, the handful of poor saps who had sold put options on the front month, thinking they had free money (Wouldn't you have thought that selling the June 1550 put looked like a safe bet back in February? Heck, maybe even late last week?) Lo and behold late yesterday, with just two days left before expiration, gold gets smoked on the Globex and is driven below its 10-day MA. WOPR selling ensues and before you know it, gold is near 1550 and headed lower. YOU, the poor sap that is short 100 June puts, have no other option but to sell short 100 June12 contracts, just to hedge yourself. Your selling (and everyone else caught in the same vise) sends gold even lower, toward 1535. All of this selling is gladly soaked up by The Cartel until...snap, boom, bang...they spring the latch on the trap and begin rallying gold back higher. Your new short hedge is suddenly squeezed and you eventually cover. This is particularly likely once price rallies back through and above that personally dangerous 1550 level. With gold back at 1560, you are now left with your original 100 naked puts that will expire worthless at 1:30 tomorrow as scheduled, however, you were just lightened of some considerable funds by the coercive, manipulative power of The Gold Cartel. Wash, rinse and repeat next month in July silver if prices continue down at these levels.

The selling of yesterday and today has established the basing/trading ranges that we began to discuss here yesterday. See this for a refresher: https://www.tfmetalsreport.com/blog/3818/not-so-happy-tuesday Of that post, this line in particular is the most relevant:

"Now, please don't misunderstand what I'm telling you here. I'm still extremely excited about where the metals are headed, particularly silver. The ranges I've described above are for the short term, maybe the next week or two and into early June."

Here are your charts that show these new ranges:

Here are some other nuggets that I've picked up as I've gone through the day. First, Jesse had this little ditty about KosherDakota who, as you know, is one my favorite Fed douchebags. This guy is a complete clown. Anyway, the speech Jesse references is not the first time KD has muttered this current bit of nonsense. I actually saw a headline on ZH about a week ago where this buffoon said the same thing that he said today. I was going to write about it at the time but by the time I doubled back to C&P it, the ticker had moved on. At any rate, enjoy the nonsense. https://jessescrossroadscafe.blogspot.com/2012/05/feds-kocherlakota-i-reject-your-reality.html

Trader Dan has a good comment today on commodities, in general. He also made an appearance on KWN. I highly recommend both: https://www.traderdannorcini.blogspot.com/2012/05/continuous-commodity-index-fed.html & https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/23_Norcini_-_Central_Bank_Gold_Buyers_Battling_Hedge_Funds_Today.html

If you haven't yet, you should speed through this. I often listen to Coast-to-Coast as I'm shuttling LT#1 back and forth to ballet class. I caught part of this episode the other night. The stuff with Peter Schiff is definitely pertinent and well worth your time.

Video unavailable

And this is interesting. With the FB/silver spread now at just $4 or so, can the closure of the latest Hat Contest be very far away? https://www.marketwatch.com/story/how-facebook-could-destroy-the-us-economy-2012-05-22?pagenumber=1

Have a great evening! TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  234 Comments

MrSteed · May 23, 2012 - 8:29pm

It's getting to the point *everything* is illegal. How often are statutes actually *removed*? They just keep piling up and up and ... Here's a new law: All elected officials shall now be fined $100 for every new statute passed, in equal amount remunerated for every old statute removed. I think that would give them the correct kind of incentive.

Brian Cooke · May 23, 2012 - 8:33pm
Grateful Dead - China Cat Sunflower / I Know You Rider (5-3-72)
Bob Private Number 47 · May 23, 2012 - 8:34pm
Quote:
Number 47 said :-

They ask in Ireland too, I used to tell them and try to convince them we were headed for a shitstorm, now I just say 'payment of invoice'.

They sometimes ask in the UK as as well, and they usually try to bullshit that it's a "legal requirement" (it isn't). ... and their arrogant nosiness really annoys me.

.

Whenever they've tried springing that on us, the standard answer I've always recommended my family to give is :-

"Well, you can tell any nosy & impertinent ()ankers who insist upon an answer that my current plans are to probably invest as much as I can into wine, women, and song as that's an infinitely better life-investment than this toilet paper .....<PAUSE for their GOLDFISH-LOOK>..... and IF I survive that AND still have anything left over, then I might possibly buy an unusual pussycat as a pet, ...<Quietly Muse for a few seconds>... probably something like a cheap secondhand lion."

... Wait a few more seconds while they're trying to figure out how to respond & what to say ... & then ADD :-

"Of course, I MAY change my mind later & decide to do something completely different ... I've not made a final decision yet" [+ ADD Sardonic/Wistful smile]

.

The personnel at my local banks stopped asking me such impertinent & intrusive questions years ago ... I wonder why? wink

.

TexasStacker · May 23, 2012 - 8:36pm

As some may recall, I was on retreat with my company last week in Georgia so no posting, but on the bright side, I was able to bring home the "big prize" at the Awards banquet. So I was able to splurge at little and bought a Samsung Galaxy Tab, with which I was trying to type my last comment. It took 30 minutes to type that little bit, so screw it, I'm on the laptop now.

Anyhow, great inventory as always at LCS. I got a tube of maples, $10 face franklins, and 1- 1/4 ounce gold maple. Added 32 ounces to the texas stack today. Goal of xxxx ounces grows ever closer. The LORD has done great things for me, and HOLY is his name!

-TStacker

TexasStacker s dewald · May 23, 2012 - 8:36pm

Heres my LCS report from today. I love my LCS and the way I'm treated there. As a kid I was a stamp collector and always hated how the store owners made me feel like a thorn in their side. Some small shop owners really suck, but I digress. My current LCS is in the Rice Village section of Houston.

Owners told me selling/buying has been about 50/50 except for a guy who hit big at the casino and turned a wad of frn into real money. Let me do something and then continue this post.

TexasStacker Ian · May 23, 2012 - 8:40pm

....just piss me off.

Y'all ever been to Cleveland? Throwing money on the ground could be construed as urban beautification!

Big L · May 23, 2012 - 8:45pm

Where have I seen that number before?devil

Rob Lewis · May 23, 2012 - 8:52pm

I've done two wire transactions recently, and was questioned by the tellers at both banks; Navy Federal Credit Union and the despicable Wells Fargo, who charged me $30. No problem, great excuse to introduce people to the idea of fiat and tangible assets.

One of those wires was for my first ever purchase of junk silver - $100 face of dimes...is it considered normal to receive two dimes dated after '64? Also one dime that is absolutely destroyed. It seems trivial, especially considering the postage costs to get replacements, but I need to know for future reference. Is there an "average"?

An article by Peter Schiff

"If the U.S. government were a private company being audited by standard practices, it would be considered much further in the red than official national debt figures show. It would, in fact, be shut down and its key executive prosecuted for fraud. All federal tax revenue in 2011 was $2.2 trillion — less than one sixth of the total national debt. The $15 trillion debt amounts to $133,000 per taxpayer. The richest person in America, Bill Gates, has a total net worth of $59 billion. If he donated every dime to the U.S. Treasury in order to pay down the national debt, he couldn’t even retire one half of one percent of the debt. Put another way, he could pay two months’ of interest."

https://www.thefiscaltimes.com/Columns/2012/05/22/Why-America-Should-Dec...

Xeno silverstax · May 23, 2012 - 8:53pm

In response to silverstax "first" post in this thread;

The end is now.

The end is a process and we are right in the middle of it.

Prize Fighter Fr. Bill · May 23, 2012 - 9:06pm

"Is there some statute requiring her to ask you this question? Is my bank derelict in NOT asking me this question?"

That surprises me that you aren't asked. Have you done any in the past few months? I'm fairly certain it is required but is relatively new. I hate it for all the obvious reasons but I don't put up a fuss because the recipient name alone makes the purchase obvious to anyone with google. What's more, my friend runs a local gun shop and makes wires several times a week for various firearms and parts. Has to tell them that every time.

I wouldn't sweat it but I am surprised they don't ask. And jealous. My bank is Regions.

2x2 · May 23, 2012 - 9:10pm

Hello all,

Just a quick question: does anyone here have any experience with the subscription service of Phoenix Capital (Gains Pains & Capital)?

Worth getting? Anything for non-US folks?

ps. Thanks as always for the site, Turd. Thanks also to everyone who posts with sound intentions. 

fnord TexasStacker · May 23, 2012 - 9:29pm

My current LCS is in the Rice Village section of Houston.

It was busy in that little shop today.

Magpie · May 23, 2012 - 9:29pm

https://barnhardt.biz/

It is getting very ugly very quickly. Given everything that has happened (MF Global), is happening (Facebook IPO ripoff), and is going to happen (JP Morgan clusterbungle), if you think that you are somehow "safe" and "everything will shake out okay" and "no worries", you're simply out of your gourd.

TexasStacker fnord · May 23, 2012 - 9:42pm

No line like there usually is. Just love going there, drive past a few to get there.

¤ · May 23, 2012 - 9:45pm

Video unavailable

(*7)

Roark · May 23, 2012 - 9:46pm

I've been asked both these questions (ie, "do you need a loan?", and "what is this wire transfer for?"), and I finally discovered a way to blow-off both of them in one easy go: "I'm paying-off a mortgage judgment I defaulted on a couple of years ago".

No more questions.... of EITHER variety! :)

fnord TexasStacker · May 23, 2012 - 9:51pm

There was a line when I got there. But I've never had to wait for long.

Fr. Bill Prize Fighter · May 23, 2012 - 9:57pm
Prize Fighter wrote:
That surprises me that you aren't asked. Have you done any in the past few months? I'm fairly certain it is required but is relatively new. 

Oh, I've been making wires, never for less than $1k, usually ten times that amount, a few times several multiples of ten times, all since late 2010 up to three wires this month. I've just about made Bullion Vault my savings deposit site, stacking silver in the Viamat vault as the rent and SS checks land in my local bank checking account. I have never been asked what I was sending that money off to do. Nor, in the few cases when I repatriated some of my stack in order to pay intermitent bills (a wedding, college tuition, annual property taxes) was I ever asked where the money had come from, much less what I was going to do with it!

It's none of their business!

Prize Fighter wrote:
I hate it for all the obvious reasons but I don't put up a fuss because the recipient name alone makes the purchase obvious to anyone with google.

Well, maybe, maybe not. If you were wiring money to Ampex, for example, they'd probably not know. At any rate, my bank has this form the wire clerk needs to fill out. The info I print out and hand to her from the BV site help screen has more data than she needs to fill out her form. And, no where on that form is there a blank for "What is the money paying for?" or anything like that. And, as I said, she (several different ones) have never asked.

Prize Fighter wrote:
I wouldn't sweat it but I am surprised they don't ask. And jealous. My bank is Regions.

Mine is Vintage Bank in a small North Texas town. It's only got three branches, all of them within 15 miles of one another -- all three in small towns. Tee-totally locally owned, not part of any state-wide, much less nation-wide system. My general physician and opthamologist are board members. All the board members are local professional people.

Whether the size/locality of my bank has anything to do with their persevering avoidance of asking me impertinent questions -- well, I just don't know. They're exceedingly friendly and helpful folks. Best customer service I've seen anywhere. Ever.

Big Gene · May 23, 2012 - 9:59pm

Should there be a separate forum for stupid questions, or can we just ask them here? Assuming we can just ask them here, here goes.

Stupid question #1: I notice that the 2011 ASE's carry a slightly higher premium than the 2012 ASE's, at least at the couple of places that I looked. Why would that be?

Stupid question #2: How many countries are represented on this site as commentators. For definitions of what constitutes a country, Eurpoe can be classified as one, and Texas as another. (That ought to start some sxxt).

Stupid question #3: See above Stupid question #1.

L · May 23, 2012 - 10:09pm

Here are the results of a poll I posted in the comments a few days ago. Gives you a good idea of what your average turdite is stacking. Approximately 20 tonnes of physical silver held by 267 people.

murphy TexasStacker · May 23, 2012 - 10:09pm

When's the last time you were in Cleveland?

https://www.cleveland.com/business/index.ssf/2011/07/billions_of_dollars...

But with big-ticket projects popping up downtown and in University Circle, the repositioning of Midtown as a possible health-technology corridor, major investments by Cleveland's hospitals and expansions of homegrown business from Miceli Dairy Products to Great Lakes Brewing Co., he sees Cleveland at a turning point -- one where detailed planning and public investment are finally bringing more private dollars to play. .... Amid chatter about big investments in the region -- the Greater Cleveland Partnership estimates about $7 billion is being spent on major real estate, corporate and business-development efforts in Cleveland and its suburbs - The Plain Dealer looked at the landscape of some of the most notable projects, with price tags of at least $5 million.
Number 47 · May 23, 2012 - 10:11pm

Slinging some sxxt your way from here in Europe, where we can name most countries in the world and possibly capital cities. I've found most folks from over the pond to be lacking geographically. wink

On a side note now the poo slinging is over, I am considering starting a 'cost of living' thread. Prices for everyday goods eg. toilet paper, energy, milk, bread etc. It would be interesting to see the variations country by country, we are a diverse bunch here. Also it could act as our own real life inflation watcher over the years to come. Anyone got any suggestions in what to put in the basket? We could price it in dollars and local currency and note exchange rates.

Interesting to anyone? Suggestions?

Oh yes, bloody yanks! cheeky (had a cling-on, thought I'd flick it before I left.)devil

¤ · May 23, 2012 - 10:17pm

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence

Give it 5 minutes

AMERICA — From Freedom To Fascism (Full Length Documentary)
Jimmy James · May 23, 2012 - 10:18pm

I've got a question I thought I'd throw out regarding an investment I've been thinking about. If anyone has any thoughts, I'd appreciate hearing them (except for brainless ministrations to the negative). I'm looking for factual, rational/logical thoughts. Long and short:

I'm considering taking out a $50,000+ loan, that I can finance at a sub 5% fixed rate. I'm going to pump it all into physical gold/silver. Without going into details, I've got a steady (damn near guaranteed) source of income from another country. Meeting the monthly payment obligation would be a snap.

Everyone is always saying don't go into debt, but that seems to me to be the wrong advice in our current situation. I've thought about a bunch of different possibilities, and all of them seem manageable. 

Where is the downside to this?

Big Buffalo · May 23, 2012 - 10:23pm

How do most of you guys/gals track your metals as far as dollars/euros are concerned? Personal accounting.

What I mean is: If you buy a GOLD Eagle for say $1620 (including shipping, etc), and spot is at $1562, and you could sell it at a LCS for $1585, and maybe on ebay for $1618 (after fees). What would you say the actual value of the coin is to you at the time?

This is not a trick question. Please do not reply saying you would never sell it, or the value is infinity, blah blah blah. I'm inclined to think it's either what you can get it for at a LCS or spot at a minimum. (bid vs ask)

Brian Cooke · May 23, 2012 - 10:24pm

why not take out 5 new credit cards and max them with PM's.......that way the debt is unsecured! No personal garranty

TexasStacker murphy · May 23, 2012 - 10:25pm

Yeah, that was a tongue-in-cheek cheap shot. I was there in the 90's for the Grand Prix at Burke Lakefront airport. Nicer than I expected. And would love to visit the R&R Hall of Fame, would be like spending a day with IndigoStar7.

Bob Private Big Gene · May 23, 2012 - 10:26pm
Quote:
Should there be a separate forum for stupid questions, or can we just ask them here? Assuming we can just ask them here, here goes.

There is NO such thing as a Stupid Question .... Only Stupid Answers cheeky ...

Q1 ... I'm not into ASE's, so bear in mind that any answer I give would be stupidly ignorant, but my stupidly ignorant guess is that people who weren't stacking in 2011 (but are now) are stupidly willing to pay more for an "Antique 2011" bullion coin that's no longer being minted in this modern era of 2012. blush

Q2 ... Eurpoe (or even possibly Europe) is ONE COUNTRY ??? ... Now that's just plain silly wink devil crying ... Also, I was under the impression that Texas was really just a Mexican State that just hasn't been reclaimed yet, so doesn't that fall under "Mexico" as a single country ? wink

Q3 ... Could you repeat the Question, please. laugh

Big Gene Number 47 · May 23, 2012 - 10:26pm

I like the idea of a cost of living chart to include basic necessities, and obviously the items you list should be included. How about beer? Also, I'll bet if we included government taxes and fees that would add up pretty fast as well. The water bill and garbage collection fees seem to be good places for the local politicos to hide huge fee increases, and we also have items that have never been itemized before such as fire department services and the like. Even a trip to the zoo is now expensive. Think I might work up a chart just for the stuff I routinely buy, but I've also noticed quite a bit of "downsizing" in the products being offered which is just another way to hide the increase in price. Might be difficult to establish a baseline and track.

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Key Economic Events week of 6/11:
6/12 Trump-Kim summit
6/12 8:30 ET CPI
6/13 8:30 ET PPI
6/13 2:00 ET June Fedlines
6/13 2:30 ET CGP presser
6/14 8:00 ET Count Draghi presser
6/14 8:30 ET Retail Sales
6/14 10:00 ET Busi.Inv.
6/15 9:15 ET Ind. Prod

Key Economic Events week of 6/4:
6/4 10:00 ET Factory Orders
6/5 9:45 ET PMI Svcs
6/5 10:00 ET ISM Svcs
6/6 8:30 ET Intl Trade and Productivity
6/8 10:00 ET Wholesale Trade

Key Economic Events week of 5/28:
5/30 8:30 ET Q2 GDP 2nd guess
5/31 8:30 ET Personal Income
5/31 9:45 ET Chicago PMI
5/31 10:00 ET Pending Home Sales
6/1 8:30 ET BLSBS
6/1 9:45 ET PMI Manu Index
6/1 10:00 ET ISM Manu Index
6/1 10:00 ET Const Spend

Key Economic Events week of 5/21:
5/22 10:00 ET Richmond Fed
5/23 9:45 ET PMI Composite
5/23 10:00 ET New Home Sales
5/23 2:00 ET May FOMC minutes
5/24 10:00 ET Existing Home Sales
5/25 8:30 ET Durable Goods
5/25 9:20 ET Chief Goon Powell speech

Key Economic Events week of 5/14:
5/15 8:30 ET Retail Sales and Empire State Fed
5/15 10:00 ET Business Inv.
5/16 8:30 ET Housing Starts
5/16 9:15 ET Industrial Production
5/17 8:30 ET Philly Fed

Key Economic Events week of 5/7:
5/9 8:30 ET PPI
5/9 10:00 ET Wholesale Trade
5/10 8:30 ET CPI
5/11 8:30 ET Import/Export Prices

Key Economic Events week of 4/30:
4/30 9:45 ET Chicago PMI
4/30 10:00 ET Pend Home Sales
5/1 9:45 ET PMI and ISM Mau Idx.
5/1 10:00 ET Const. Spending
5/2 2:00 ET FOMC fedlines
5/3 9:45 ET PMI/ISM Svcs.
5/3 10:00 ET Factory Orders
5/4 8:30 ET BLSBS

Key Economic Events week of 4/16:
4/16 8:30 ET Retail Sales, One Fed Goon speech
4/16 10:00 ET Business Invt.
4/17 9:15 ET Industrial Prod., Four Goon speeches
4/18 Two Goon speeches
4/19 8:30 ET Philly Fed, One Goon speech
4/20 Two Goon speeches

Key Economic Events week of 4/9:
4/10 8:30 ET PPI
4/10 10:00 ET Wholesale Trade
4/11 8:30 ET CPI
4/11 2:00 ET March FOMC minutes
4/12 8:30 ET Imp/Exp Prices
4/13 Fed Goon Speeches...Rosengren 7:30 ET, Bullard 9:00 ET, Kaplan 1:00 ET

Key Economic Events week of 4/2:
4/2 9:45 ET PMI Mfg Idx
4/2 10:00 ET ISM Mfg Idx and Construction Spending
4/4 9:45 ET PMI Svcs Idx
4/4 10:00 ET ISM Svcs Idx and Factory Orders
4/5 8:30 ET Intl Trade
4/6 8:30 ET BLSBS

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