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

TomMack
May 23, 2012 - 6:03pm

Good to post comments again

I missed reading the comments yesterday, all of them (no IU here). I guess Turd was exercising his cult/dictator role as: owner, manager, barmaid, dancer, bouncer, and janitor of HIS site (sarc just in case). I like the idea of Turd's cess pool forum (mudsharks's i think), sort of like taking the fight outside. Generally though I think we need to give each other the benefit of the doubt writing is much harder than talking when trying to communicate. Zhedge is available if your feeling spunky and go a few rounds. Just my opinion.

stack stack stack they will crack

opticsguy
May 23, 2012 - 6:12pm

any LCS news?

any reports on how this craziness has impacted LCS sales?

Fr. Bill Prize Fighter
May 23, 2012 - 6:22pm

She asked you what??

Prize Fighter wrote:
[while you were making a wire at your bank] She then asked the required wire question, "What are you purchasing?" 'Sound money' was my answer. Cricket cricket.

Interesting. Required question?

I ask because I've made several wires this year, maybe a dozen (I'd have to go across the room to a filing cabinet to find out and I'm too comfortable right now in this chair!). Anyway, I have never been asked what I am going to do with the money (coming in or going out), nor what I was purchasing.

Sheesh, I might not be purchasing anything! Maybe I'm making a big payment against principle for a loan. Or, maybe I'm an absent minded old coot (instead of just an old coot), and I've let myself get too close to some payment deadline to use the postal service. Or, maybe it's time for my daughter to plunk down several Large for tuition for this semester. Could be any number of things.

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

Number 47
May 23, 2012 - 6:24pm

Repost from end of last thread.

A lot of talk about selling last year. I actually sold some, mainly due to The Plant Guy over on kitco. A true curmudgeon of a man but he correctly called that 50 would be a ceiling for silver. I agreed. I believe he sold his entire stack, (forklift sized if you believe what you read)

fast 07-Oct-11 21:26
2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120773368102) EUR 128.00
Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 23-Sep-11 11:43
1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120773368896) EUR 37.00
Great transaction, well packaged and as described 21-Sep-11 10:11
1 oz generic silver bar. 999+ fine silver. Mint sealed (#120773227865) EUR 38.00
Good ebayer++ 09-Sep-11 14:33
1 oz generic silver bar. 999+ fine silver. Mint sealed (#120772093879) EUR 34.00
100% satisfied. Thanks. 15-Aug-11 01:27
2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120749548296) EUR 125.50
nice coin ++++++++++++++++++++ 08-Aug-11 17:55
1996 small date silver panda 10 yuan. Double sealed. (#120752090416) EUR 57.63
Everything perfect. Highly recommended. Thank you. 05-Aug-11 13:30
1986 Silver chinese coin set 5 yuan. Historical figures (#120752291482) EUR 204.50
Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 28-Jul-11 10:51
1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120749549442) EUR 51.50
Excellent 19-Jun-11 18:31
1964 kennedy half dollar, 90% silver coin. (#120712853591) EUR 11.10
Excellent 19-Jun-11 18:31
1952 Liberty bell half dollar, 90% silver coin. D mint. (#120713052206) EUR 11.27
Excellent 19-Jun-11 18:31
1964 kennedy half dollar, 90% silver coin. (#120713050758) EUR 12.49
really a super coins, thanks! 13-May-11 04:34
5 x American dimes 90% silver coins. Assorted dates. (#120713054583) EUR 12.50
good thanks 12-May-11 11:59
2 x silver threepence UK coins. (#120707173273) EUR 0.99
Thank you great service 10-May-11 08:29
1925 south africa 3 pence silver coin (#120707128178) EUR 0.99
great product, swift delivery, hope to do more business here in the future. 04-May-11 15:40
1943 mercury dime 90% silver coin. (#120712861390) EUR 2.00
GREAT SERVICE LOVELY COINS 03-May-11 14:41
1964 kennedy half dollar, 90% silver coin. (#120712855063) EUR 15.02
Great EBayer very prompt service !!!! 03-May-11 14:39
1964 kennedy half dollar, 90% silver coin. D mint mark. (#120712854187) EUR 12.99
Great Seller, quick delivery, item as described, would definitely buy again 01-May-11 22:48
1954 Washington quarter dollar 90% silver coin. (#120712857705) EUR 5.15
Fantastic ebayer. Great item. Well packaged. 30-Apr-11 08:31
1940 mercury dime 90% silver coin. (#120712860981) EUR 2.59
nice coins 29-Apr-11 21:11
1964 kennedy half dollar, 90% silver coin. (#120712652396) EUR 11.00
Super fast delivery... thanks 28-Apr-11 18:32
1953 Roosevelt dime 90% silver coin. (#120712862739) EUR 1.57
Great ebayer. Recommended A+++++ 28-Apr-11 18:31
1964 Roosevelt dime 90% silver coin. (#120712862189) EUR 1.57
Super fast delivery... thanks 28-Apr-11 18:31
1967 Austrian silver 25 Schilling coin. (#120712666560) EUR 7.70
Perfect transaction, prompt delivery. Thanks. 28-Apr-11 17:17
Sterling silver teaspoon inscribed 'Toronto'. (#120712864214) EUR 5.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
1964 kennedy half dollar, 90% silver coin. (#120712854565) EUR 11.40
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
1943 Washington quarter dollar 90% silver coin. S mint (#120712858315) EUR 5.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646880) EUR 38.03
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712647027) EUR 38.53
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646687) EUR 40.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:31
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646530) EUR 40.00
delighted with the coin and the prompt delivery good service, Many Thanks Rachel 27-Apr-11 21:02
1943 walking liberty half dollar, 90% silver coin. (#120713051392) EUR 13.05
Great coin great service great price, Many Thanks. Rachel 27-Apr-11 21:02
1964 Washington quarter dollar 90% silver coin. (#120713049060) EUR 5.09
Delighted with coin Great service Many Thanks Rachel 27-Apr-11 21:02
1935 5 reichsmarks, Silver Third Reich coin. A mintmark (#120712663010) EUR 12.57

That is one page of my feedback from the last run up, I've highlighted a few. Talk about selling into mania, I have 4 more pages from the same time. I made off like a bandit and reinvested into gold and numis. I was really just clearing out a lot of crap I had accumulated, some of the coins were nearly smooth, (I didn't con anyone, very good pics) I would post the rest but it takes ages removing all the usernames of buyers. Needless to say, I didn't pay anything like this for the bits and bobs, sure did well afterwards on purchases though.

GoldMania3000
May 23, 2012 - 6:25pm

hard and fast

I’m Buying Silver - Mike Krieger

libertyblitzkrieg.com
MAY 23, 2012


« Previous News ItemNext News Item »
As of a few minutes ago, I put in my largest order for physical silver since 2010. I am not trying to be a hero or call the bottom, but because many people do ask me for my opinion on the precious metals I decided to make the buy public. The rationale for me is extremely simple. First, I find silver under $30/oz to be a total steal as I expect it to trade well into the hundreds of dollars an ounce in the years ahead. Furthermore, I think the Central Planners of the world will be forced to act sooner rather than later. As someone that did the vast majority of his buying years ago, I have been much more patient with my buys in the last few years. I suspect there are many others out there just like me. The minute these markets turn they will be in there bidding for physical silver, which I believe cannot be bought in serious size. The market will turn hard and fast. That’s my story and I am sticking to it.

Best,
Mike

printmemoney
May 23, 2012 - 6:27pm

Silver Trade

I just sold all my silver and bought Facebook!!!!! I am so smart...smrt....I am so smart .....smart.....smrt

up .32 cents in after hours

The tide has turned, facebook stock is the only safe haven left.

May 23, 2012 - 6:31pm

re..quired question

I too have been asked that question - surprised me. I was honest, and proceeded to explain to the young teller what was going to happen to fiat currency. Ended up writing down this website, too.

I have either given myself away (for the millionth time) to the Canadian secret world of domination through random data collection, or created a young gold bug. He had emigrated here as a kid from Lebanon, and was not at all resistant to the idea that things can crumble fast.

printmemoney
May 23, 2012 - 6:33pm

@Xty

I wish I lived in Canada for the collapse. I think it'll be much easier to get along than what used to be known as the greatest country in the land.

Number 47
May 23, 2012 - 6:43pm

My bank too.

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'.

In 2007 I had 15000 euro in my current account that I took from the credit union, (they don't do payments) and when i went in and asked to make a payment the guy behind the counter got a real glint in his eye and tried to get me to take a loan. I was honestly shocked, 'why would I need a loan?' I asked him. 'Maybe for a holiday or a new car' was his reply. I pointed out I had cash for both and he looked at me like I was stupid.

That was the day I realised things were very wrong somehow and started reading. I'm getting close to the day of reckoning now, the day I get to go around all the people who laughed and mocked my warnings from 2007, 2008, 2009. I gave up after then. Too many blinkered eyes. Looking forward to getting to say 'I told you so'. It looks to be nearby.

RTMoney
May 23, 2012 - 6:44pm

Electricity

A little off topic...

First I came across this:

https://www.foxnews.com/opinion/2012/05/22/obamas-war-on-coal-hits-your-electric-bill/ I don't know much about the electricity and I have a source inside a public power district so I decided to contact them to see what they knew. The immediate response was this really hasn't been on our radar but I'll ask around. About an hour later I find out they contacted their power suppliers analyst and he confirmed that the price for 2013 is likely to be 5-10 times what it has been for this year on the spot market (it is a small power district). When I asked what that would mean for consumers, the reply was that the power cost is generally 50-75% of the bill in today's market, the rest is delivery cost, profit (except for COOPs and PPDs), billing, etc. Here's some scary math: A person has a $100 electric bill today - $50 is delivery costs, $50 is power cost Deliver costs increase generally with inflation, so lets "say" 3% making deliver cost $51.5 next year Lets say conservatively power costs increase 5 fold, making power cost $250 Next year that same $100 electric bill is now $301.50, a 10 fold increase would make it $551.50 Could this be the straw (bale?) that breaks the camels back?

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