Gold and Silver Fun and Games

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: 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.

Trader Dan has a good comment today on commodities, in general. He also made an appearance on KWN. I highly recommend both: &

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?

Have a great evening! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Be Prepared
May 24, 2012 - 8:43am
Be Prepared
May 24, 2012 - 8:45am
Be Prepared
May 24, 2012 - 8:47am
Be Prepared
May 24, 2012 - 8:50am

May 24, 2012 - 8:57am

John Mauldin on Greece, recession and maybe what to do

Having trouble with embed, but a quick 5 minutes with a positive end - not so Maudlin!

Here is the video, I hope.

May 24, 2012 - 8:58am

Just an observation

I go to Apmex daily and check on 100 oz. silver bars and generic bags of silver and noticed that they are not out of them buy there inventory is a lot lower than I have seen in months. Instead of 100s of 100 oz. bars on hand for each item, they are down to under 400 / 100 oz. bars vs. 1000s that were on hand just a month ago. And they don't seem to be restocking the items. When I sold my bullion off to purchase 90% coin. It was the 10 oz. and 100 oz. that had the most appeal on large orders.

Hopefully this is another sign that supplies are drying up.

Eric Original
May 24, 2012 - 9:05am
May 24, 2012 - 9:05am

Another wake- up call- America

USDx stays at 82,06, silver up at 28,5. GSR 55,36. Right direction.

Sorry, its already past wake up time I guess.

May 24, 2012 - 9:08am

Afghanistan Strategy...looks eerily familar....

That cartoon is dead on. Last weekend I was watching a documentary series on Vietnam. Although I love history I tend to avoid that era, just too many bad memories. But as I watched this documentary I was astonished how closely the two wars are alike. We started in Vietnam with "advisors" similar to how we helped the northern alliance. War ramped up. NVA hid in Laos and Cambodia (can you say Pakistan). Our troops could be attacked from a village and they would not know who the bad guys were. South's government was corrupt. Nixon started "Vietnamization" of the war turning over the fighting to the South Vietnamese but they were not capable. Although the scale was much greater, the parallels are there. The only chapter remaining in Afghanistan is the part where we the US military leaves completely, Ford cuts financial aid speeding up the collapse, and we evacuate what is now the largest US Embassy in the world.

Had Afghanistan been on the scale of Vietnam and/or there was a draft, I don't think the people would have allowed it to go on this long. But we should be ashamed for allowing it go on as long as it has.

Be Prepared
May 24, 2012 - 9:16am

New York State moves to remove anonymity from Internet


The New York State Assembly (S06779) has put forth a bill requiring that if you don't identify yourself... in a completely verifiable way... your comments are subject to being removed simply because they are anonymous. The U.S. Congress just passed an amendment which allows...

The amendment would “strike the current ban on domestic dissemination” of propaganda material produced by the State Department and the Pentagon, according to the summary of the law at the House Rules Committee's official website.

The tweak to the bill would essentially neutralize two previous acts—the Smith-Mundt Act of 1948 and Foreign Relations Authorization Act in 1987—that had been passed to protect U.S. audiences from our own government’s misinformation campaigns.

The new law would give sweeping powers to the State Department and Pentagon to push television, radio, newspaper, and social media onto the U.S. public. “It removes the protection for Americans,” says a Pentagon official who is concerned about the law. “It removes oversight from the people who want to put out this information. There are no checks and balances. No one knows if the information is accurate, partially accurate, or entirely false.”

So let's put this into perspective....

The Government, starting with State Government, wants to remove your right to Free Speech by eliminating your ability to post anonymously. Why? Because they want the average citizen to be afraid of the power of the state... to quell any comment or dissension. The Government, though, wants to the ability now to level their full blown propaganda machine at its citizens. You won't know what's the truth and no one will be able to tell you. Places like zerohedge and tfmetalsreport will cease to be bastions of free speech and thought. The journey of slavery starts with all the little cuts, which build the metal of your shackles.

May 24, 2012 - 9:24am

Be Prep - serious yikes!

"upon request" - those are terrifying words. A 'request' that cannot be refused is indeed a 'little cut' - and a complete abuse of language. And you can just imagine the fleet of nincompoops they would send out to scour the internet for signs of unconventional thought.

May 24, 2012 - 9:25am

Warning non politically correct humour-somemayfindofensive

Please scroll by if ethnic humor sensitive!

Financial "Crisis" in Greece

May 24, 2012 - 9:29am

@ Keg

Those parallels between Vietnam and Afghanistan striking. One would think that if we indeed learned lessons from Vietnam, that the current war would NOT have unfolded as it has. Or perhaps the agenda of TPTB are not what is stated in the media?

May 24, 2012 - 9:30am

@ Orange

"Orange" posted a link to Harvey's site which had a new Jim Willie release. A hundred hat tips to you. Everyone should take the time to read it. Although the whole article is awesome, how about this part?

One must ask a preliminary question, of why with national security exceptions, the JPMorgan loss had to be admitted at all. It could have been swept under the rug, doctored on the balance sheet with the help of the USDept Treasury and USFed. The regulators would look the other way as they always do. Something unusual in the parental rules has occurred, and it is not certain. My guess is a new sheriff is in town, fresh off a jet from the East, who read the riot act to its wayward debtor, and did so recently. What else has changed? To be sure, the big US banks are operating under big illiquidity problems from European sovereign debt, along with troubles in FOREX currencies, drainage from mortgage bonds, even litigation costs from bond investor lawsuits. They suffer from a panoply of losses. A private source reports the big money center banks in New York are all under great strain from lack of cash, as in they are broke. The trouble with standing as insolvent structures is the grand risk of an illiquidity bout. The longstanding rule in banking is that INSOLVENCY plus ILLIQUIDITY equals BANKRUPTCY. Last and hardly least, the JPMorgan losses and financial strains admitted confirm something for a Grand Jury. They scream out a Prima Facie case for the MFGlobal client fund thefts, establishing a motive. ....

The final losses will be in the hundreds of $billions in the next several months, eventually possibly to top the $1 trillion mark by next year. My source from Europe wrote, "An event driven chain reaction has been triggered deep inside the system, with Interest Rate Swaps at the center. This has already gone viral. They will have to trigger some mega-crises, most likely in Europe & Greece, as a diversionary tactic. They need to have something to blame things on. Once Greece implodes, so will the big French banks and likely some Italian banks. It is all so obvious and predictable."

Look also for losses to London banks, enough to topple one or more. Hats off to Rob Kirby for correctly concluding the Interest Rate Swaps were at the center of the mega mushrooming JPM losses. It is coming to light slowly. Many analysts naively believe the USFed can monetize whatever ails the system. Not so, when the biggest credit market in the world (USTBonds) is involved.

May 24, 2012 - 9:31am


If battlefield medicine was the same today as it was in the '60s, we'd easily have 50,000+ dead in Iraq and Afghanistan. Brain injuries were a death sentence back then.

May 24, 2012 - 9:31am


"the act of asking for something to be given or done,especially as a favor or courtesy; solicitation or petition: At his request, they left." ​That is the first definition from - as a noun, and here as a verb: "to ask for, especially politely or formally: He requested permission to speak." ​You are meant to be able to decline a request - it infuriates me when language is co-opted to fool people. Even the legislators probably feel this is somehow okay because it is a request, not a requirement - fuzzy logic everywhere on the road to serfdom. ​​

Dr G
May 24, 2012 - 9:33am

Wowzers, nice ups by both

Wowzers, nice ups by both metals. Gold looking tepid though and silver seems like it can't get over 28.50. I think that will change during Comx. Question is, can they get past 1600 and 29?

Be Prepared
May 24, 2012 - 9:34am

It could so easily become like this...

There is a reason why we have those laws from the 1940s. It was to prevent the U.S. Government from using Taxpayer Money to quell the people through the control of information and how the message is angled.... This proposed bill, which is sailing under the cover of another defense bill, guts our protections against the information machinery.

Be Prepared
May 24, 2012 - 9:42am

@Xty... Upon Request...

The way the language is crafted... it is meant to allow anonymous requesters to be able to remove any anonymous comments for any reason whatsoever. It doesn't say that the requester has to identify themselves in a verifiable way.... so the CIA sets up a dummy corp. and hires an Indian Service Center to start blasting any and every comment that doesn't "meet" the objective of keeping the serfs in line. New York state.... next Congress will take this up.... and hide in a defense bill on page 2,421 so that no one knows its there until it's too late... good times.... good times.

Double Bogey
May 24, 2012 - 9:50am

To Eric O in reference to earlier post

Whole thing is funny, but go to the 3:20 mark...

Tim Hawkins - On nursery rhymes
May 24, 2012 - 9:53am

Steve LIseman is a dick*blog*&par=RSS&utm_source=t...

His CNBC headline says no QE for now. but read the transcript. that's not what this guy is saying. What's up with that bald headed fuck

May 24, 2012 - 9:57am

re Upon Request

Indeed, in a bill so long that those who pass it will not have read it, and if history is to be our guide, will be offended at the suggestion that they should attempt to read something 2000 pages long. That is for lawyers, they say, and yet expect citizens to be able to obey it. WTF? The tax code here in Canada is thicker than a phone book (an ancient relic - sorry young turdites), and when Obamacare (is he going to personally come to your bedside?) was 'passed' it struck me as a new low, given that nobody had read the whole thing because a) it was too long, and b) it hadn't actually been written yet.

Douglas Adams would have had a field day - I miss him.

May 24, 2012 - 10:17am

The New Geography of Jobs

Had a listen and would make me ponder a move if I didn't live near a thriving cluster. Jim Willie's 'tower of bablel' will fall eventually and with luck it will be a financial system collapse and not a complete societal make-0ver. Does it mean we stop commuting to work, mowing our lawns, etc? Will a post JPM society have a semblance of normalcy? Just wondering out loud.

May 24, 2012 - 10:20am

Jimmy and Gorby ! vs Laurel and Hardy !

Comic duo for the NWO.....except they aren't very funny ? Monedas 1929 Capitalists Have More Fun

May 24, 2012 - 10:33am
May 24, 2012 - 10:34am

South Africa !

How soon will SA fall over the Victoria Falls into the Zimbabwe abyss ? President Zuma (?) wants white artist killed for unflattering portrait ! Monedas 1929 There's your racism....not my jokes ! PS: Got SA miners ?

May 24, 2012 - 10:41am

Goodbye Blue Sky HD

Video unavailable
May 24, 2012 - 10:52am


Stone Temple Pilots - Vasoline Lyrics
May 24, 2012 - 10:53am

Professional Traders Question

Please take the time to read the Jackass article. Many Turdittes of lesser experience in the markets would appreciate your insight into how to invest prior to this situation coming to pass.

Repost from Page 4 of this thread:

This is a must read and reread. IRswaps are way above my head, although I understand the implications from the article. I really do not care any more what the paper price of gold is anymore. Things are happening more quickly now, especially since China is openly stating they they will become the reserve currency.

The article can be found at the bottom of Harvey's site. The jackass also mentions the Turd.

After you have read and absorbed it, I would love to hear how we might profit/invest reasonably safely in this occurring. I don't mean physical PM's more on the lines of betting the subprime will blow up where Paulson made his billions.

USTBond Tower of Babel Teeters

By: Jim Willie CB,

May 24, 2012 - 11:20am

and speaking of Douglas Adams

just a random moment - my son was just appropriating my computer, and I happened to see the words 'Free Towel', as he was closing down his tabs, and remembered stumbling upon Towel Day ages ago and it was way in the future (the knowable future, within reason) - well that future is almost upon us:

"Towel Day is an annual celebration on the 25th of May, as a tribute to the late authorDouglas Adams (1952-2001). On that day, fans around the universe proudly carry a towel in his honour...."

And silly though it may seem, there are many moments when it actually is good to know where your towel is. And, come to think of it, to eat peanuts and drink beer.


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