Palpable Desperation

Tue, Oct 2, 2012 - 11:16am

As we approach the end of this current consolidation and capping effort, the efforts of The Bullion Banks to keep price capped are getting increasingly desperate. Again, as Turd's Old Man says: Let om! They're going to lose.

What The Cartel doesn't seem to grasp is this basic rule: "When you find yourself in a hole, the first thing you do is stop digging". The stupid, arrogant jerks just won't give up. QE∞ has long been predicted by The Turd, Santa et al, it was formally announced by The Bernank three weeks ago and it was confirmed beyond a shadow of a doubt just yesterday by Fed Goon Evans. Nevertheless, they just keep issuing paper metal at a frantic pace in a desperate attempt to cap price and contain it below $1780 and, ultimately, $1800. Why are these levels worth defending, you ask? Here's a reminder:

And so, for the third consecutive day, we have seen aggressive capping of price at, or just above, $1780. Again I'll use the word "desperate". No doubt about it. There is some serious panic setting in. Paper price is extremely vulnerable to a quick, $100+ move but the banks can't jack the price lower because of the continuing, robust demand for physical in London. What to do, what to do? Desperation, indeed.

And so then you get a day like today. The metals were unusually strong in the pre-open and looked poised to catapult higher once the Comex was up and running. Paper metal was thus gathered and dumped right at the 8:25 silver Comex open. Note all of the big, blue candles on the charts below indicative of direct attempts to keep the pressure on and rein in price.

But here's the thing: They are almost of of time. The window is closing. You can clearly see it in the charts below. The trend is higher and once their little defense line runs into it (by Friday?), price will almost assuredly burst higher. Perhaps the BLSBS data on Friday will provide the impetus? Who knows? All I know is that this 3-week effort to cap price is about to blow up in their faces.

And The Pig may be ready to provide a spark, too. The rally set off by the announcement of QE∞ appears to have run its course. Though there is still a chance that the POSX will extend toward 82 in order to create a head-and-shoulder top, it is far more likely that the "Calvin" bounce is already over. Watch the 79.65 level (cash) very closely as a decisive drop through there will signal 79.40 and points south.

Just a couple of news items for you. First, "Squeaky" over at PIMCO has released his latest newsletter. I'm posting a link for you simply because it seems so surreal to have the manager of the world's largest mutual fund sound so much like a Turdite:

Here's an interesting link that shows bullion sales year-to-date:

And, somehow, I have a hunch that these three stories should be linked together: & &

Finally, there's still time to register at TTM and participate in the webinar tomorrow with James Turk of GoldMoney. The site is great fun (maybe a member can comment on the intensity of yesterday's podcast ) and we'll be hosting events like this on a regular basis going forward.

Have a great day and get ready for an increasingly volatile remainder of the week.


About the Author

turd [at] tfmetalsreport [dot] com ()


Hard Rain
Oct 2, 2012 - 11:18am

Top 5

Must be my lucky day...gonna buy some silver.

Oct 2, 2012 - 11:18am

Sometimes it just works out?


Edit - Just finished reading the comments from the previous thread and clicked on the main TF Metals link and couldn't believe my eyes - 5 reads and no comments! I thought I had it!

Oct 2, 2012 - 11:20am


That's Welsh for "five".

Mr. Fix
Oct 2, 2012 - 11:20am


To my friends in Turdville: Maybe I am a little bit late, but I would like to take a go at Green Lanterns query about velocity. I don't think there will be any in the foreseeable future. The system is frozen, and as far as I'm concerned the powers that be will be quite content to let it remain that way until it all collapses. As for the reason for the "Breathtaking Audacity", I think that they are in fact related. What we are witnessing is by far the greatest heist in human history. There can be no doubt about this. The money printing is theft plane and simple. The guys running the printing presses know full well that this is all coming unglued very soon. I suspect that they have already agreed upon what our replacement currency will be after our current system collapses. At some point, people will have to exchange there nearly worthless Federal Reserve notes in for something that can be used for a currency. It does not matter if it is electronic money, or a gold backed hard currency, I think the plan is to have an enormous amount of federal reserve notes stashed away for the great reset. When it happens, trillions of dollars stolen, will become billions of dollars in the bank's vaults. Billions of dollars stolen by individual bankers, will become millions of dollars in their personal savings accounts. And millions of dollars worth of precious metals will still be millions of dollars worth of precious metals. After this all plays out, then, and only then, will there be any hope for any real velocity of money. It has been said repeatedly that we are in the “endgame”. I'm not expecting any genuine velocity until we get to the other side. This would also completely avoid the entire hyperinflationary argument. It may also be the only possible scenario that the bankers might expect to survive, because it would at least leave the masses with a little bit of something to live on. Otherwise, a hyperinflationary crash would probably cause most of the richest .01% to wind up in their local morgue. Keep stacking!

BJ Penn Forever
Oct 2, 2012 - 11:22am

Blomberg does not adjust for inflation?

Even in this little silver discussion on Bloomberg this chick does not even mention inflation adjustment when discussing the 1980 $50 dollar target for silver. Some punk in a Kiplingers article did the same thing when trying to say silver was a bad bet.

Oct 2, 2012 - 11:24am

Not again?


Monty Python- Architect Sketch
BJ Penn Forever
Oct 2, 2012 - 11:25am

Is Greg Mannarino a decent

Is Greg Mannarino a decent news analysis source for those of us without backgrounds in finance and economics who can not understand half of the contend on

Oct 2, 2012 - 11:26am
Oct 2, 2012 - 11:28am


I like that a lot!

Nick Elway
Oct 2, 2012 - 11:40am

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