Keeping The Faith

Tue, Aug 28, 2012 - 11:22am

We've had a tremendous rally. We're due to consolidate. Can we extend higher?

It has been a busy morning so I'm sorry for the late start. I'll have to keep this post brief, too. But be confident and happy. We are winning and vindication is right around the corner.

It's Tuesday so you know what to expect. Right now, The Cartels are busily adjusting their public-facing positions in order to "paint" this week's CoT in whichever light they choose. With the likely addition of so many fresh shorts late last week, I was expecting a somewhat "Happy Tuesday" today as The Cartels cover a few of their tracks with buy orders. So far, this is exactly what we've seen.

Yesterday's Globex raid provided them a lower platform from which to launch today's buying program. Gold traded as low as $1659 overnight but I have a last of $1673. The Cartel will be careful not to cover too many more here as they risk tripping buy-stops above 1680. Therefore, I suspect that the current range will hold today. The Globex will likely see active Cartel selling again today as shorts are put back on post-survey. Let's hope the bottom of the range holds again. It likely will and we'll probably stay within this 1660-1680 range until The Bernank speaks on Friday. Only a fool would expect a repeat performance of JacksonHole2010 where The Bernank signaled the QE2 program which was to begin in November. He's held off everything all year, why would he change now? It would be logical to then expect a Cartel-inspired selloff post-JacksonHole. How deep and for how long are the two questions. But, who cares? Just btfd.

Silver seems a little tired after a 10% rally in eight days and some follow-on buying yesterday. However, support between 30.25 and 30.75 held overnight and I still think that 31.50-32.00 looks like a more logical staging zone for EE resistance. But you know doesn't matter. Just keep buying it. Please don't use margin or anything with a tight time limit that might force you to take losses based upon shenanigans. Just keep buying the dips and taking delivery. If attempting to trade , do not over-extend yourself and be sure you allow for plenty of time. Historic shifts in market dynamics can sometimes take slightly longer to play out than anticipated and you do not want to be caught without your oars in the water.

Have a great day!


About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 28, 2012 - 1:07pm

I am still waiting for disorderly to the upside - let's go:

MCX Gold Trading Hits Record Rs 31,091; Silver Prices Rise To Rs 58,445 By | Commodities | Aug 28, 2012 08:29AM GMT MCX Gold trading prices for October delivery shot up in early morning trade to Rs. 31091, a new record high for the Indian markets, with MCX Silver prices for September delivery rising more in % terms to Rs. 58,445 – As alerted on Saturday regarding upside openings for Monday. Silver and gold futures in the commodity trading markets have been on a rise and have consistently been on an upside move from the past 6 sessions.

Silver and gold trading prices opened higher after closing the week with record gains on better physical demand and also on expectations of further easing. Gold prices gained 3.3%, silver prices shot up 9.3% and for the week, the SPDR Gold Trust exchange-traded fund (GLD) is up over 3%, which was the least dynamic of the gains posted by other popular plays in precious metals. The iShares Silver Trust ETF (SLV) is up 9% for the week while the Global X Silver Miners ETF (SIL) is ahead 7.4% for the week. The US Commodity Futures Trading Commission said speculators raised their net long positions in US Gold Trading futures to 140,126 lots in the week ended August 21, the highest since the beginning of May.

Gold Trading along with silver and other base metals can now be expected to remain relatively subdued till Tuesday night and are expected to again pick up momentum from Wednesday onward. Friday, 31 August may witness a very high volatility filled commodity trading session. No major Economic Data also expected to be released in these 2 days, except the German IFO Business Climate Index on Monday and the German CPI (Quarterly and Yearly Basis) on Tuesday....,09...

Aug 28, 2012 - 1:12pm

...aaand we're out to the

...aaand we're out to the downside...

Aug 28, 2012 - 1:20pm

@Reefman - Inconceivable!

What a classic line set! I tried to hat tip you twice but could not

rock collector
Aug 28, 2012 - 1:23pm

Aurcana Reports Huge Resource Increase At La Negra !!

Aurcana Reports Huge Resource Increase At La Negra

Tuesday, August 28, 2012 11:20 AM

Aurcana Corp. (TSXV: AUN) released a recent NI 43-101 resource report and the results bumped the current resource estimate at the Mexican-based La Negra mine by over 100 million ounces of silver. "I am very pleased with the results of the NI 43-101 compliant resource estimate that shows a 50-fold increase from the prior measured and indicated resource estimate of 2.3 million ounces of silver to the current estimate of over 115 million ounces of silver,” says Lenic Rodriguez, president and chief executive officer of Aurcana. “We have already started the certification of the new discoveries on the North West trend where the silver grades are higher and which we expect to report to the public in the near future.” Rodriguez says that the resource estimate also shows significant base metals. Silver in the measured category total 50.07 million ounces while the indicated category shows 65.03 million ounces, the company says. Aurcana is a Canadian-based silver mining and mineral exploration company with projects located in Mexico.

By Alex Létourneau of Kitco News

Aug 28, 2012 - 1:26pm

A possibly useful educational tool

The following is pure basics to the good folks in this community but it struck me as a very helpful tool to communicate with the brain dead zombie sheeple acquaintances we all know. Hope it helps in some small way.

Aug 28, 2012 - 1:28pm
snickRaoul Dusentier
Aug 28, 2012 - 1:31pm


I had problems testing by weight myself ... I had purchased a cheap scale on ebay and finally decided it was crap. Didn't even give consistent readings when weighing the same coin multiple times.

If you're worried it isn't silver, try the magnet test. Use a very small (2.5 x 2.5 mm) but very strong neodymium magnet.

The first test is to verify that the coin is not magnetic at all. put the magnet and the coin on a table and move the coin until it is touching the magnet. then slowly move the coin away. The magnet should not move. If the magnet follows the coin, the coin contains ferrous metal and is a fake.

The second test relies on the very high conductance of pure silver. hold the coin at an angle - lay the coin on a table and put a finger under one edge of the coin to form an inclined plane. place the magnet on the top edge of the coin so that it can slide across the coin face. If the coin is pure silver, the magnet will slide perceptible more slowly across the surface than a non-magnetic object. This is because the magnet will induce eddy currents in the silver that serve to slow down the magnet. You may have to experiment with the magnet and other small objects to calibrate your senses. Under no circumstances should the magnet just stick to the coin.

Alternatively, you can build a magnetic slide. There are how-to videos on you tube, I believe.

wish you luck & may your silver be pure!

Aug 28, 2012 - 1:36pm

@ Larry Nicaragua has Freshwater Sharks

also some gold mines at Bonanza, Siuna, and Rosita.

Aug 28, 2012 - 1:37pm

Safe to go back in the water

xty, you're right about timing and events (and charts and fundamentals) that make smart pm investors look like fools. Yet, taking the opposite or contrarian track is also fraught with peril in Bizarro World. Just when you stay out of the water for fear of Jaws (which is the financial terrorists prime plan), the tide recedes and all of the gold and silver is removed from access.

You know all this stuff, but in my thinking and based on the wide ranging prognostications on price and time, I'd say it's pretty safe to go in now... just no further in than knee deep if you already have a good core position. If not, the water looks great. If the metals fall like some say into the low 1500's/20's (I don't believe but WDIK), we still have a great price today. If they quickly rise we wait for the next dip, which would probably be a higher low. If we wait, the few dollars cheaper would be short-lived (IMO), and when they rebound there will be little difference in whether you paid 1500/20 or 1900/40.

Each of our circumstances is different, but buying anywhere in here is a good deal as long as we're not flipping and such. This is especially true for those that don't yet have what they feel is a comfortable amount for the long haul, the crash and the after-crash scenarios. As far as I know and can see, the PTB & CB's have fooled everyone... all of the pros (maybe a few exceptions but I wonder about them and their inside dope), and the EE has brilliantly and wickedly gamed the entire system, which is against all that is known of monetary history, current market conditions, trillions printed, laws being broken and so forth.

No doubt Jaws is still powerful and still active, but to finish up with the fish analogies, I can't help but think he's missing a few teeth. It'll be quite an event when the inevitable school of Killer Whales arrives as supply and demand to turns Jaws into a big buffet. Before that happens I hope and expect they'll make appetizers out of the mining share Barracudas.

Aug 28, 2012 - 1:37pm


"I do not think that word means what you think it does" (or something like that)

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