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

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turd [at] tfmetalsreport [dot] com ()

  420 Comments

dgstage
Sep 15, 2012 - 4:43pm

JPM Skeptics

Just maybe Jamie Dimon pissed someone off.

Punk-Assets
Sep 15, 2012 - 4:44pm

I still say QE to infinity aint the

I still say an announcement of QE to infinity aint the real catalyst to propel gold to the next blast off phase. A mega crisis sending money running for the hills will launch the real deal. That said, I am 100% all in PMs. So, it doesn't matter to me.

Sep 15, 2012 - 4:46pm
Punk-Assets
Sep 15, 2012 - 4:47pm

In my best Al Swearengen voice...

"Physical, in my fucking hand gold"

Sorry ladies... lol

Dagney Taggart
Sep 15, 2012 - 4:49pm

@Xty

Off to the ignore list you go too, cupcake.

Dagney Taggart
Sep 15, 2012 - 4:56pm

@Punk

Agreed. The people who operate the world's financial system have always operated that way: engineer crises to take the blame for their theft.

Can't remember where I heard it, but they spend 10% of their time deciding what to do and 90% finding something else to blame it on.

Green Lantern
Sep 15, 2012 - 4:57pm

Re: Cartel & "Bernanke Surprise"

Do you know Catherine Austin Fitts? She worked in the George Herbert Walker. Bush Administration as the assistant Secretary of Urban Housing. Before that she worked for Wall Street investment house Dillon Read. Yes, Dillon Read You might remember that John F. Kennedy's own Treasury Secretary Douglas Dillon, who came from the UBS Warburg-controlled Dillon Read investment bank, voiced opposition to the JFK proposals of Executive Order 11,110 which called for the issuance of 4.3 trillion in United States Notes through the U.S. treasury rather than the Federal Reserve System. Now she is head of Solari Investments teaching her clients about gold and silver, and the inner workings of our financial system including all the nefarious connections between banks, fed and goverment.

If you have not read or listen to her stuff, grab a bag of popcorn, a couple of diet cokes, and hunker down. Hmmm where to start. How about the connection between the Cartel and Bernanke? Seems relevant.

From early 2011 " JP MOrgan is acting as an agent as the ESF which is the US Government. I think the idea that US investors can crash the US goverment in the nexst year is a pretty Don Quiote idea." If you don't know who the ESF is I refer you to DPH's post a couple blogs back. They are who the Fed works for. Did I get that right?

Catherine Austin Fitts on Gold, Silver and the 'Crash JP Morgan' Idea

And then you will surely want to read her or listen to her article "Unpacking of Mr. Global. Save you some googling

Story of the major financial coup e'tat happening. “When I wrote this story, I wanted a case study that would really help people who are not financial people to go into the inner workings of the financial system and see how Wall Street and Washington rig these deals. What’s the financial engineering that allows all this financial manipulation and financial coup d'état to take place?” —Catherine Austin Fitts

Here is another teaser

Well, in that case I would say they’re trying to control the food systems.

https://mediaroots.org/mr-transcript-unpacking-mr.-global-part-1.php

https://mediaroots.org/mr-transcript-unpacking-mr.-global-part-2.php

Another video on Catherine Fitts Austin and the hidden financial system from Joseph Farrells recent videoblog. And also Gold standard. there already is one. You're not invited.

NEWS AND VIEWS FROM THE NEFARIUM SEPT 13, 2012

An interesting tanget since all this information will take you in many directions is Mr Farrell a loyal reader of the Daily Bell mentions Child labor laws. And on this small tangent, I present you with Mr. Liberty himself. The brain automatically will say child labor laws good. Is it in a free society free of political law? Not as intuitive as you think

Anarchast Ep. 10 with Richard Maybury of the U.S. and World Early Warning Report

I am still digesting all this Catherine Fitts Austin stuff. Other very interesting videos on youtube. So I welcome any objective analysis.

¤
Sep 15, 2012 - 4:57pm

Saturday Night's Alright for Fighting

Elton John Saturady Night's Alright for Fighting

atarangi
Sep 15, 2012 - 4:58pm
bvwalker1
Sep 15, 2012 - 4:59pm

SHFE Holiday

Was just wondering if the SHFE holiday starting Sept 30 will have any affect on PM prices. Since the Asians seem to help prop up the market in the evenings, their absence could be viewed as an opportunity by the Cartel to attack and drive prices down in order to cover some of the massive shorts put on over these last three weeks.

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