The Week That Was

420
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. https://www.tfmetalsreport.com/blog/3465/csi-comex-gold-and-silver-massacre

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.

https://www.alt-market.com/articles/1034-get-ready-for-an-epic-fiat-currency-avalanche

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: https://www.tfmetalsreport.com/forum/4188/radical-islam. 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.

TF

About the Author

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

  420 Comments

  Refresh
El Gordo
Sep 16, 2012 - 6:39pm

I'm ready to buy

...so where is that FD?

Dyna mo hum
Sep 16, 2012 - 6:38pm
Sep 16, 2012 - 6:35pm
Sep 16, 2012 - 6:22pm

Nothing to see here, move along ...

Defence experts downplay UK, U.S. deployment in Strait of Hormuz

Asked if the exercise has anything to do with the ongoing tension between Israel and Iran, Lt. Greg Raelson, a spokesman for the U.S. Navy's Fifth Fleet in Bahrain, told Al Arabiya English: “No; this international mine countermeasures exercise 2012 is not being conducted in response to any one particular threat or a specific situation."

The U.S. Navy had announced since Aug. 30 in a press release posted on its official blog (https://navylive.dodlive.mil/) that “the U.S. Fifth Fleet will host its first International Mine Countermeasures Exercise (IMCMEX)” in the Arabian Gulf . “With more than 20 nations participating from Asia-Pacific, Europe, the Middle East and North America, IMCMEX 2012 will be the largest of its kind ever in this region,” according the U.S. Navy statement. ...

https://english.alarabiya.net/articles/2012/09/16/238425.html

Mariposa de Oro
Sep 16, 2012 - 6:19pm

Colliodial Silver forum

Did I miss it or are we still thinking about it? :o)

¤
Sep 16, 2012 - 6:09pm

Critical: Sinai Desert / Suez Canal

The Other Side of Suez (BBC Documentary)

Zoltan
Sep 16, 2012 - 6:06pm

Check Out NetDania (w Volume)

Someone is still hitting all the bids.

Z

145Bluesman
Sep 16, 2012 - 6:06pm

Thanks Watcher

Finally someone brings it up.

The real threat in America are the spetsnaz forces.

If you do not know who these people are and what their mission is, you have homework to do.

This must know and understand information is more important than any rag head arguments.

silverwood
Sep 16, 2012 - 6:06pm

Tim

@Thereal story...CME halts trading, twice

Submitted by TimObr76 on September 16, 2012 - 3:09pm. Read up on what was done to the Hunt Brother and then ask yourself if the CME actions are not predictable. Then ask yourself why you are trading in the markets.
Watcher
Sep 16, 2012 - 5:57pm

sleeper cells

There are sleeper cells in the US that are not only Muslim but Spetsnaz. These cells have slipped in some nasty stuff thru that porous border our prez won't defend.

The geopolitical endgame is here.

Psalm 2 tells how it will turn out.

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