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
Sep 16, 2012 - 5:44pm
Mickey
Sep 16, 2012 - 5:43pm

USLV. UGLD. AGQ

If you want to prove the good tracking use Stockcharts.com and track there.

If we are indeed on a good rally these leveraged product are superb in that they are dynamic. Ie. I bougT back into nugt when it was in the 8's and now it's 18.

The price goes up dynamicalle compounded each day,

the risk is if credit Swiss fails ugld and uslv are in trouble.

or if futures market closes AGQ is in trouble.

sent from iPad which has a typing and auto correction mind of its own

Patrancus
Sep 16, 2012 - 5:38pm

CBS Scot Paulsen gives a honest but disturbing, assessment

Interesting - CBS gives an honest, but disturbing, assessment .

.

CBS Scot Paulsen on "2016: The Movie"

The Right Politics

This past week, “2016: The Movie” about President Barack Obama opened in the Chicago area,

I’m glad I saw the hyped-film because it was more informative than I had thought it would be and included less propaganda

than I had predicted.

If anything, it was nearly too informative as there was an enormous amount of information condensed into the nearly

one-hour-and-a-half documentary. Fact after fact is put forth which shows that President Obama definitely has many skeletons

in the closet that have not been released prior to the nation’s trust in him with the Oval Office.

To watch this movie and realize, or simply be reminded of – all that is unknown about President Obama is of concern.

Much of the information has been ignored by the American media totally. When appropriately reminded as to what

is still unknown about Obama to date, one has to ask: How can any logical-thinking person give a damn about Romney’s taxes while

not asking any questions regarding our current President’s past? The man influences the entire globe, but liberal Americans want

to know how much Mitt Romney paid in taxes in the past rather than learn about the man who they have entrusted with the country.

Unbelievable. The movie undeniably links Obama to persons of suspicious-interest due to their past actions and statements,

such as former radical activist and Chicago educator Bill Ayers. While the media and blinded-liberals cast such facts aside,

the movie does not. No, this portion of the movie is not propaganda – it is the display of factual information about relationships

between people that cannot be denied. Yet, the “left” does deny the facts that are right in front of them.

Quite disturbing is the talk of the United States economy in the film. The current national debt which has increased two-fold during Obama’s presidency and the horrendous economy is suggested to be part of the plan to strip the nation of democracy –

reasonable cause to make citizens totally dependent on the government. The “left” is aghast at this suggestion of the current economy. They actually believe that Obama is unintelligent enough to let this economy just happen. Ironically, it’s many of the people on

the “right” who know Obama’s not stupid, and much of what has happened to the United States in the past four years is

part of Obama’s plan.How could one so-highly educated and intelligent as Obama not know what he was doing when he incurred

such debt?

I left the movie thinking more strongly than I had in the past that the current debt and this economy was part of Obama’s plan

all along. Increasingly making Americans dependent on the government is the plan. What’s more, he knew his blind followers

would believe it was not the plan and, of course, was all Bush’s fault. He must be laughing at his blind followers all the way

to the “new America” they’re allowing him to create.

My belief is that Obama continues to prey on his die-hard followers’ stupidity to accomplish his personal goals for America.

The most disturbing part of the film to me was the interview with President Obama’s half-brother George Obama from Nairobi, Kenya. How can Obama claim to want to help people when he has done absolutely nothing for his own family? It makes me wonder if he really

cares about anybody if he can’t find it in his heart to help his own family.

As the closing credits started to role upward across the screen, the audience applauded. Me, I just walked out, reasonably upset.

Those who have already decided to vote for Obama will probably not even see the movie. It’s sad but they probably don’t want

to know the truth when it is laid out so clearly for them in this documentary.

The independents who are still deciding who they are going to vote for ought to see this film. I’m quite confident that any

undecided voter who sees this film will know who to vote for after viewing this documentary. If you know you’re not going to

support the “left” in this coming election, see the film out of interest if you like.

But, fair warning, it’s disturbing – and quite frightening – to say the least.

Short Stack
Sep 16, 2012 - 5:38pm

@Short Stack

I can see how it could be taken that way, even if it wasn't what I meant.

No biggie.

Keep stacking.

Louie
Sep 16, 2012 - 5:28pm

Tony Blair gets JPM to buy his island

Tony takes 4.2 million pound loan from JPM. He receives a 2.5 million pound salary from them annual for his advice. Of course he did not receive and preferential treatment on his loan.

https://www.dailymail.co.uk/news/article-2204154/Feeling-pinch-Tony-Blai...

Sep 16, 2012 - 5:20pm

Puppet? no

Hobo,

Not a puppet, but certainly a peon who cannot make a difference on my own. I study this stuff to try to make a bit of fiat and to be able to recognize the dreaded black swan and be a few steps ahead of where I would have been before taking the red pill. But, I am ready to be part of a larger political movement that reestablishes the primacy of the US constitution. I had hoped Ron Paul would run 3rd Party. As it stands we are working toward moving our family to a location that is more hospitable than where we now live.

Zoltan
Sep 16, 2012 - 5:11pm

Weekend Musical Interlude

Lives In The Balance

Jackson Browne Lives In The Balance Lyrics

Songwriters: BROWNE, JACKSON

I've been waiting for something to happen
For a week or a month or a year
With the blood in the ink of the headlines
And the sound of the crowd in my ear
You might ask what it takes to remember
When you know that you've seen it before
Where a government lies to a people
And a country is drifting to war

And there's a shadow on the faces
Of the men who send the guns
To the wars that are fought in places
Where their business interest runs
[ Lyrics from: https://www.lyricsfreak.com/j/jackson+browne/lives+in+the+balance_200685... ]
On the radio talk shows and the t.v.
You hear one thing again and again
How the u.s.a. stands for freedom
And we come to the aid of a friend
But who are the ones that we call our friends--
These governments killing their own?
Or the people who finally can't take any more
And they pick up a gun or a brick or a stone
There are lives in the balance
There are people under fire
There are children at the cannons
And there is blood on the wire

There's a shadow on the faces
Of the men who fan the flames
Of the wars that are fought in places
Where we can't even say the names

They sell us the president the same way
They sell us our clothes and our cars
They sell us every thing from youth to religion
The same time they sell us our wars
I want to know who the men in the shadows are
I want to hear somebody asking them why
They can be counted on to tell us who our enemies are
But they're never the ones to fight or to die
And there are lives in the balance
There are people under fire
There are children at the cannons
And there is blood on the wire Z
Kcap
Sep 16, 2012 - 5:03pm

@tyberious

Very well then....lol.

Kcap

alphamorph
Sep 16, 2012 - 4:55pm

UN Onagain Offagain

United Nations Secretary General Ban Ki-moon has said that a military attack on Iran over its nuclear program would be “unacceptable".

One must assume that Ki-moon will release a similar statement when Iran threatens to explode its first nuclear device over Telaviv.

On the other hand, we're being told that Iran having the bomb is somehow different and more threatening than Pakistan or Korea having it. Maybe, maybe not but there sure are a lot chips on the table and I don't like the hand we're holding.

Short Stack
Sep 16, 2012 - 4:53pm

@PuckT

Was unable to make the Summit (still recovering in hospital at that time) but have heard about it. You are right on for the most part, but I did not catch that you were taking a stab at U.S. foreign policy. It came across to me like you were criticizing Christianity.

Turd does not want main street to be used for religious discussion so I'll leave it at that and just say:

Peace Man !

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