The Week That Was

Sat, Sep 15, 2012 - 12:03pm

I tried to warn you that this week was going to be wild. I expected the pressure and intensity to ramp up with each successive day and it most certainly did. By Friday, everyone was ready for the weekend. That's fine but, come Monday, you'd better be ready.

What a fantastic week we had. Made even more special by the fact that we were set up for a disaster. Recall that I had been warning you for about 10 days that a Cartel Raid seemed on the horizon. They looked like they were once again setting everyone up for a massive beatdown. By the looks of the CoT yesterday, I was exactly right.

The situation, as it turned out, was eerily similar. Let's take a look:

December 2011: The price of gold bottomed late in December 2011 at $1525. The CoT also "bottomed" at a total gross Cartel short position of 325,960 and a net short ratio (gross shorts divided by gross longs) of 1.98:1. The price of silver bottomed at $26.40. The silver CoT bottomed with 55,356 gross shorts and a net short ratio of 1.34:1.

Jan-Feb 2012: The metals then took off on a two month rally, peaking on Tuesday, February 28. Gold reached $1790 (+17%) and silver made it to $37.50 (+34%). The CoT taken that afternoon showed a complete reversal from December. Now the total gross short position in gold was 390,412 with a net short ratio of 2.69:1. The total gross short position in silver had reached 78,395 and a net short ratio of 2.32:1.

And what happened the next day, 2/29/12? Using The Bernank's Capitol Hill testimony as cover, the bid side of the metals was overwhelmed by Cartel manipulation and a 3-month, short-covering beatdown ensued.

Gold bottomed again almost exactly three months later on Wednesday, May 30, 2012 at $1537. Two days later, the employment report for May was released and QE has been on everyone's lips since. On Tuesday, May 29, the CoT once again looked like this:

May 2012: On 5/29/12, the total gross short position of The Gold Cartel stood at 300,917 and the net short ratio had fallen all the way to 1.77:1. In silver, the gross short position was back to 60,151 and the net short ratio had fallen back to 1.31:1.

It had all been a set-up. From the lows in December, spec money flowed into the metals and The Cartels welcomed every dollar. At the peak, The Bernank was rolled out in front of the cameras to put off QE and The Cartels attacked. Over the next 90 days, they covered all of their fresh shorts and then waited all summer to play the game again.

August-September 2011: The final bottom for gold occurred on June 28 at $1552 and silver reached $26.21. The CoT on June 26 was once again at a "bottom", too. On Tuesday, July 10, the total gross short position of The Gold Cartel was 316,165 and the net short ratio was 1.93:1. The total gross silver short position was 62,478 and the ratio was 1.29:1.

As of this past Tuesday, September 11, look how things had changed again. Prices had risen considerably. Gold closed on Tuesday at $1735 (+12%) and silver closed at $33.56 (+28%). The total Gold Cartel gross short position was once again 380,239 and the net short ratio was 2.66:1. The total Cartel gross silver short position was 79,478 and the net short ratio was 2.47:1.

The Cartels had set us up again. The point is this: If the Fed had "disappointed, if The Bernank had put off all new QE until after the election, there can be zero doubt that we would have, once again, seen a massive, manipulative raid on gold and silver.

In hindsight, do you recall the very sharp and brief spike down that occurred about 10 minutes before the Fedlines were released on Thursday? This was almost certainly someone or something with foreknowledge of the raid, attempting to front-run The Cartels. By now, we all know what happened, instead. Rather than being "saved" by The Bernank and using "no QE" as cover to screw everyone once more, QE~ was announced and now The Cartels are trapped!

We'll use the days ahead to go into greater detail on the implications of this but rest assured for today that sharply higher prices are coming. QE~ only serves to increase the global demand for physical metal. This demand will underpin any attempts by The Cartels to start a selloff. Over time, they will be forced to cover at an accelerating pace, similar to April 2011 in silver and August 2011 in gold. There will be panics and you can count on every dirty trick imaginable being thrown at the "markets". This time, however, it's not going to work. With QE~ as a backdrop, every dip will be bought, each successive low will be higher. The overconfident and greedy fools could/should have used this time to draw flat and perhaps even go net long. Instead they arrogantly chose to play their games one more time. This time, however, they will lose. The game is over and the fireworks have begun, even if the players seemingly haven't yet heard the final whistle.

Only one reading assignment this weekend and it's this piece from Brandon Smith at Alt-Market. This is one that you need to read carefully and then print it off and keep for posterity.

Lastly, once again I beg everyone to recognize that this main thread is for the discussion of precious metals and issues affecting such. It is OK to reference events in the MENA as the current situation there clearly has an impact on the global economy, the price of oil and the equity markets. It is not OK to get into pissing matches regarding "radical Islam", "Zionism", "American Imperialism" and the like. There are forums for that and I've even gone to the trouble of setting one up for you: Going forward, I am simply going to delete and remove comments from this main thread that I feel are set to hijack the discussion and turn people away from the education that this site provides. No exceptions. Got it?

OK, with that, I wish everyone a fantastic and restful weekend. Come back on Monday prepared for another wild and crazy week.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dagney Taggart
Sep 15, 2012 - 6:30pm


Since when does a "well-known poster" dictate who/what has value and who/what doesn't? That's the same mental illness people have who let their leaders get away with theft, rape, and murder or when some royal freaks sue a foreign newspaper for treating them the same way the royals treat the commoners. JMO

Green Lantern
Sep 15, 2012 - 6:31pm


Well said Pining!! It takes a very tall person to have somebody invalidate you and instead firing back razor sharp sarcasm, you paused, took a moment of silent reflection, and thought better. That's what I would call an indicator of an enlightened individual! A lesson I learned in the world of music by a master musician, Nobody cares how great of a musician you are if when you are off the bandstand, you're an asshole.

Sep 15, 2012 - 6:31pm

To OOps I'm still here

I check out TFmetals everyday! And thanks for your interest in colloidal silver. I would be happy to participate/answer questions or whatever I can do to help my fellow Turdites

Dagney Taggart
Sep 15, 2012 - 6:35pm

Here comes the leg-humping herd.....

Enjoy the rest of the weekend everybody else.

Sep 15, 2012 - 6:38pm

Mr. Taggert

Please be clear, I am not dictating anything to anyone. I was simply suggesting we might strive for a high quality for posts and a general effort to post things helpful to others. Feel free to ignore this suggestion if you wish.

Sep 15, 2012 - 6:41pm


I love a challenge. I'm in.

beinki Mariposa de Oro
Sep 15, 2012 - 6:41pm

view my test results

Mariposa de Oro here is my video where I perform anti bacteria tests.

Big L
Sep 15, 2012 - 6:52pm


A quick note on TPTB and EE.

They are not a single unit. There is not a single entity, nor a single person at the helm of TPTB.

It's the 'POWERS', that's plural, that's reality.

It would be reasonable to assume that in good times their interests would be fairly in line with each other. They would work in concert with each other and reap many benefits from doing so.

It would also be reasonable that in bad times, there will be factions, backstabbing and underhanded behavior on the part of some if not all of the powers.

When the 'food' dries up, the fights start.

And it'll make for some surprising "incidents and accidents, hints and allegations".

DPH, got a vid for that?

Big L
Sep 15, 2012 - 6:55pm
Green Lantern
Sep 15, 2012 - 6:57pm
Sep 15, 2012 - 7:04pm

Big L

If you scroll down the page at this link you'll find all kinds of vids going forward.


B. Bernanke: "QE is necessary....the benefits outweigh the costs." Jackson Hole ~ 8/31/12

Sep 15, 2012 - 7:06pm

Litter on main street

Lets keep Main Street clean!

I would bet an ASE, that first-timers, newbies and searchers are more likely to be persuaded to stack PMs if Main Street sticks to the pertinent topics and does not digress too far. They just might come back and join. We have back alley bars and other interesting nooks where we can digress and argue. I would also bet that if I sat down and had a beer with someone I disagree with here, we would agree on 95% and could have a solid friendship.

Dagney Taggart
Sep 15, 2012 - 7:09pm

Oops. One more before we do the Kelowna......

A brilliant political move.......

From The Last Sane Person At The Fed: "More Easing Will Not Lead To Growth, Would Lead To Inflation"

I thought Janet Yellen would be the next Fed chairman. Now I'm not sure.

PS. Pining - We were past it. Admiral made reference already on the last page and the point was taken, even though I'm not sure if he was talking to me. You know why political pundits and journalists wonder to themselves why certain issues won't go away? Because they won't shut up about them not going away. Take a hint. Once is enough.

PS2. Once is enough, Jerome. Your post below is unnecessary.

Sep 15, 2012 - 7:13pm

Nice thought Big L (and others). I get it now.

If the jpm and fed are still working together, this is a managed retreat. If they are not working together, it could be interesting watching the big dogs go at each other.

Either way, as Turd sort of said, "the whole world wants physical precious metal to protect against currency debasement. [... as recognition grows...] It may start slowly but price is going to accelerate higher from here in the weeks ahead..."

The silver market is tiny.

Long ago I read somewhere, "Nothing, but nothing, moves like silver."

Sep 15, 2012 - 7:32pm

Silver Colloids - An Overview

For all of you out there that are grinding out an ion soluton at home, here is some good info (IMHO) about the difference between the various types of collodial silver: Ionics, Protein and the true Colloids: LINK

All of these are useful for something, however the real efficacy comes from lower particle size. Once you get to a 1Nm size (which is impossible with home equipment), then the results are orders of magnitude greater.

Myself, I've been using Meso-Silver for over 10 years. For me, I haven't had a cold, flu or anything else during this time (YMMV).

It does not mess up the friendlies in your gut (at 1TBS/day). Seems to be related to particle size, as 1 Nm means a very large surface area (good for bacterial/virus binding) and is also absorbed very early on in the upper intestine.

EDIT: Also unlike an Ionic solution (which you are making at home), a true colloid does not react with chloride (whis is HCL in your stomach), thus not precipitaing and ending up being absorbed by your body. Big difference...

Bottom line, ionic solutions are great for outside the body, Nm colloids work outside and also safe for inside as well.

Big L
Sep 15, 2012 - 7:33pm

Et al ....

Taking the thought process one step further.

How about Deutsche Bank turning on JPM? Or the CME refusing to raise margins for the morgue?

How about those 'euro'peans? They're a happy bunch, I'm sure they're all on the same side.

Etc. etc.

There are many working pieces to this man made machine and they all know who buried what bodies.

Now that the poo is hitting the fan, the mutual admiration society is going to have some trouble with the membership drive.

Sep 15, 2012 - 7:34pm

Slv versus AGQ option

AGQ are not liquid so is you want in or out fast you giver up the vig.

SLV usually at most a couple of pennies.

These all have risk. I usually have OTM puts on Slv and gld.

Sep 15, 2012 - 7:34pm



Like my mom always said "if you dont have something good to say, shut up" and "if you dont know how to fix it, get out of the way" and my personal favorite "shut up, you dont what F@#k your talking about"!

I love my mom :) She is always right!

Mariposa de Oro beinki
Sep 15, 2012 - 7:35pm

Thanks Beinki!

I watched the video but I still don't understand why my solution didn't affect the pathogens. My friend tested it on six different 'bugs' where she works (lab in local hospital). I'm guessing the test consisted of a drop of solution into an established culture. Why won't this kill the critters? Am I missing something?

Sep 15, 2012 - 7:36pm

Conduct of patrons at the "Speak" - - -

The management and patrons over at the "Speak" have zero tolerance for lack of respect (i.e. since certain rabble were spoken to some considerable time back). Mainstreet could learn a lot by observing the social skills of the shadowy underworld over at the "Speak". In fact ever since "Pretty Boy" Floyd has been on the door I can't recall a single punch up.

Sep 15, 2012 - 7:47pm

Net Short

Man I finally figured out what net short ratio meant. Not that you guys were any help... Regardless, I made a quick plot while trying to figure this crap out and thought I'd at least share in hopes of a hat tip.

Big L
Sep 15, 2012 - 7:49pm


Thank you for the link,

I was thinking of Paul Simon, "You can call me AL". Incidents and accidents, hints and allegations. Here I'll have a stab at it myself.

Paul Simon - You Can Call Me Al

Edit, took me three tries but the easiest option worked. Who woulda figured?

El Gordo
Sep 15, 2012 - 7:51pm


It's not the silver particles that kill bacteria, it's the ions. If your silver is not ionizing, it's not working,

Big L
Sep 15, 2012 - 7:53pm

Since you asked so nice

Hat tip! For effort.

thurd aye
Sep 15, 2012 - 7:56pm

@thurd aye "a very

@thurd aye "a very intelligent lady"

Indeed. Great post. Thanks

Sep 15, 2012 - 7:57pm

Hat tip for effort

Sweet. I'll call that a successful day. For effort.

Sep 15, 2012 - 8:02pm


Submitted by Dagney Taggart on September 15, 2012 - 3:49pm.

"Off to the ignore list you go too, cupcake."

Xty, lucky you!

Some can take it; some, not so much.

wax off

Mr. Fix
Sep 15, 2012 - 8:03pm

@ Hobo

Congratulations on your hat tips.

And welcome to the club!

Mr. Fix
Sep 15, 2012 - 8:07pm

@Dagney Taggart

I find your posts quite thought provoking,

and if others do not like it, that is of course their problem.

I really enjoyed the banter here, I personally would not change a thing.

I hope my two cents worth adds value to this thread,

but that is not my motive for being here.

Now, back to my education....................

Sep 15, 2012 - 8:10pm

re: Petrodollar and WW3 - interesting video


I'm glad to see SCG getting so much play with that video. It's a good one.

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