Turd for Nobel Prize in 2013

Fri, Oct 12, 2012 - 11:31am

I mean, why not? Plus, I could use the cash!

First, Al Freaking Gore wins the Peace Prize for...what exactly? And then O'Bottom wins it...why again did he win it? And now, the sanctimonious Nobel Committee awards the Peace Prize to...The European Union? WTF?!? Don't you have to be an individual to win? Is this what Alfred Nobel intended? "Let's just reward and congratulate ourselves on being such wonderful and peaceful bureaucrats!". Seriously? Seriously. Oh well, the EU does need the cash. So, the campaign starts today. Screw the presidency, I want The Prize!



One group definitely NOT deserving of any prize is The Evil Empire and their willing accomplices at the Comex. We've now had to endure Comex-opening beatdowns on 8 of the last 10 days. This is unbelievable and unprecedented. I don't think I've ever printed so many 1-minute charts and, frankly, I'm sick of it. Here are just a few:

And here are the "bloody gloves" from today's crime scene:

If I sound frustrated, it's because I am. These Comex games are enough to drive you to drink. We here know that physical metal is your only financial protection and investors worldwide are fast coming to the same conclusion. Regardless, the phony-baloney Comex paper price is still manipulated for the benefit of a select few. Whatever. Screw 'em. They'll get their comeuppance soon enough.

In the bigger picture on the longer-term charts, you can clearly see that they are making very little, actual progress. In fact, the shorts appear to be playing a losing game here. EVERY attempt to jab price lower is being met with stiff demand, not further selling. EVENTUALLY (soon), longs will be emboldened and, once some resistance levels are breached, the recent shorts will be forced to cover.

For now, keep your eye on $33.60 silver as this level has been attacked repeatedly this week and has held each time. Should a rally develop later today or early next week, our target remains $34.35. As, above there, shorts will begin to get squeezed and face capitulation.

And gold is looking to put in a "bowl" or "cup" shaped bottom on these charts. I'm always fascinated by these patterns when they come together as, when they work out, they almost seem predesigned and predestined.

Just two bits of reading today. First, Detlev Schlichter has penned another beauty: https://detlevschlichter.com/2012/10/we-are-on-the-road-to-serfdom

And our pal, Paul Mylchreest, has written up another lengthy report. Great stuff, as usual, and he was even kind enough to include a reference to some of our work here.


OK, that's all for now. Please check back later as I will try to post some thoughts on the CoT when it's released. It should be somewhat interesting as OI declined over the survey week and we'll get some idea of just who was selling/covering.

Have a great day!


About the Author

turd [at] tfmetalsreport [dot] com ()


El Gordo
Oct 14, 2012 - 6:55am
Oct 14, 2012 - 7:31am

No chance

for Turd to win Nobel price. Before him are waiting Kim Il-sun and Ahmadinejad in the list to win peace price.


Oct 14, 2012 - 7:53am

It must be the season

To rate blogs based on some mysterious formula. I know last week someone posted a ranking where Turd was #8, but on this one he has fallen out of the top ten into 11th place. I was willing to stick around for a top ten blog, but I am not going to stay long at #11! What the hell is the matter with you people? I am going to check out Huffpo.


Oct 14, 2012 - 8:03am

10% approval

Congress has about a 10% approval rating yet over 90% get reelected!!! WTF!! think WHEN you do vote! start locallywhere 50 votes do make a difference.

Oct 14, 2012 - 8:23am

Real reason for QE3?

Is the fiscal cliff and the expiration of the payroll tax the real reason for the QE3 announcement? Was QE3 just a hedge against the more likely (in)action of congress to resolve this issue? Did the Bernank make the right call since QE3 was already 'priced in', did he get a freebie by flirting with the market about the QE for so long, and can he get away with announcing it but not buying anything for a few months (post election)?

GOLDMAN: A Significant Tax Hike Is Coming, And Neither Party Is Even Talking About Stopping It

"We are surprised that neither party has seriously challenged the case for near-term fiscal retrenchment. In particular, the expiration of the $126bn payroll tax cut (1% of disposable income) is almost universally accepted. This expiration alone is likely to shave 0.6 percentage point from 2012 growth on a Q4/Q4 basis—the same order of magnitude as the estimated boost from QE3—at a time when investors are lining up to finance US government expenditure at a real 10-year yield of -0.8%. Read more:

An article on ZH in the last coupe days pointed out that the fed balance sheet didn't reflect the 45bn increase, but that it could take a few months since it was rmbs.

Gregory Mannarino says he predicted QE3, and that QE4 will be launched soon.

Oct 14, 2012 - 8:29am

gold from bacteria?

So Bacteria produce pure Gold! .... only problem is they produce it from gold chloride! Where does gold chloride come? from pure gold !

Gold(III) chloride is most often prepared by passing chlorine gas over gold powder at 180 °C:[1]

2 Au + 3 Cl2 → 2 AuCl3 (WIKIPEDIA)

Oct 14, 2012 - 8:32am

How bad is it out there?

My wife and I own a 12 unit Mobile home park. It is time for the water system to be re-plumbed, with aging steel pipes springing leaks --usually on a Saturday night or some other inconvenient time. My usual plumber did not want the job. I called a friend to see if he wanted a side job. He looked it over and suggested using his employer who had the digging equipment we needed. His company gave me a bid for 25K. My jaw dropped. I called two other plumbers. Neither wanted the work. so I decided to do it myself. I used to do lots of contracting so the job is not daunting. Project time: two weeks--landscaping and everything. No inspections required in the county jurisdiction. I have to rent digging equipment and buy numerous hand tools. I don't get a contractor's price on parts. I am insured, hiring labor through a contract service. I am buying the guys lunch every day and gave them a weekly bonus on Friday because they are working so hard. But I am paying a bit more for everything, plus we did not work efficiently the first few days. Everything that can go wrong has: 6 damaged sewer lines. Yesterday we broke an unmarked gas line. Really, as far as construction goes, its fairly normal. I think we are past the midpoint--all downhill from here. My total cost will come in at 6-7K. That leaves a fairly nice profit range above actual costs--especially for a smooth running shop with experienced people. I guess I am just surprised that some contractor didn't want to take the job for a reasonable price--lets say 12-15K.

I thought things were tough out here in the midwest. Actually I know they are. I am so confused. Are there too many people on the hand-out wagon who prefer to stay home?

With all this digging the past few days, you would think we should have found a little bit of gold!

Silver Alert
Oct 14, 2012 - 9:17am

@ag1969 blog season

Last week's 8 ranking was in gold blogs wasn't it? This week's 11 is silver. That gives a PM blog average of 9.5 so I guess you can stay a little longer.

What is more concerning is Turd's obvious bias against Ag. Silver bugs are going to have to reconsider things and perhaps seek redress.

TD Doctor J
Oct 14, 2012 - 9:47am


Dr, Jerome, I can't respond directly to your situation, I'm not a plumber, nor have I seen your project, but I am a builder and perhaps I can give you a little insight from "the other side of the fence". For the record, I do admire your boldness and initiative in undertaking the project yourself. There is a tremendous reward potential in any do it yourself project.

I've had my share of projects (perhaps more than my share) where my client viewed paying me for my services as an option. So, I have to adjust my charges not only to cover overhead and profit, but the inevitable deadbeat. I wish I could tell who will pay and who will not, but is amazing how many folks feel fully justified in not paying for services rendered.

There is now less work out there in construction, but there is also less people doing it. A lot have given up and retired, or changed professions, or moved back to Mexico.

The plumber I use won't touch repair work because there is enough new clean work to keep him busy. I imagine if he were to consider doing repair work, with all it's potential problems, he'd likely bid it up to make it worth his while. Underground estimating is a guessing game, you don't know what you will find... bid high and the worse case situation you won't lose money... bid low and you might work for weeks and end up losing money (in other words you would have been much better off just sitting on your ass and doing nothing).

The overhead costs in construction is intense. I know of a few guys who started in the business as the result of doing something like what you have done... taken on a project and seen the potential for making a good living at repeating it for others. But once they get into it and start experiencing all the headaches, overhead, and deadbeats... well, they retire, or change careers, or move back to Mexico. lol


Oct 14, 2012 - 9:49am

Silver Alert

Thank you for clearing that up, I really wanted to hang around a little longer and see if Silver Stacker quits smoking. Just think of the PM's he could remove from the market if he doesn't have to buy those cigarettes. I only say this because right now he is so small time, that he orders ASE's by the pallet and buys 1000 AGE's at a time. Now he can be a real stacker.

Oct 14, 2012 - 10:04am

How bad is it

In my area it is so bad that a huge percentage of contractors went out of business. Reduced capacity means most of the remaining ones are busy. Occasionally I have found an exception to this but usually with a one or two man operation that may not be willing to take on larger jobs. I used to buy tires from a locally owned tire store. Most of his customers were contractors as he did their truck, trailer, and equipment tires. Two years ago he sold his building and closed up as most of his customers were out of business.

I use the Chinese restaurant index to gage construction activity in my area. There is a Chinese restaurant near my office that I eat lunch at about once a week. 5 years ago the place was packed with painters, landscapers, etc. every day at lunch. 3 years ago you rarely saw any construction guys. Now I there is usually 2 or 3 crews there but nothing like 5 years ago.

Oct 14, 2012 - 10:05am

Doc Jerome

I am in the process of installing a wood stove. I completely restored a 30 year old wood stove and am building a beautiful river rock firewall. Anyway, I want someone who knows chimneys to install the chimney (just a metalbestos chimney, not masonry) and I had to call seven different people just to find someone even interested in doing it. And we are not talking about a week long job where you might open a can of worms underground. This is one hole in the wall and four hours max.

I am amazed at the number of companies I call for work that don;t even return their phone calls, never mind take the job. These are definitely weird times, but when you think of how much money a business spends to generate a phone call these days, you would think they would follow up on one when they get one.

Oct 14, 2012 - 10:22am

Bernanke defends QE from international criticism

Oct. 14, 2012, 12:20 a.m. EDT

Bernanke defends QE from international criticism

By sgoldstein[at]marketwatch[dot]com (Steve Goldstein), MarketWatch

WASHINGTON (MarketWatch) — Federal Reserve Chairman Ben Bernanke defended his central bank’s extraordinary efforts to revive the U.S. economy from international criticism, saying the Fed isn’t responsible for artificially boosting rival currencies — and that other nations should let market forces determine exchange rates anyway.

Speaking before the International Monetary Fund meeting in Tokyo, Bernanke on Sunday refuted criticism that the Fed’s asset purchases and low interest rates are mainly driving capital flows to emerging market economies. The Fed last month embarked on its third major bond-purchase program, this time buying $40 billion of mortgage-backed securities every month until unspecified improvement in the economy.

Bernanke said he was “sympathetic” to the problems associated with overly hot flows, namely undesirable currency appreciation, asset bubbles or inflation or economic disruptions when hot money goes back out.

His response was two-fold — one, that basically, the Fed isn’t driving capital inflows to emerging-market nations; and two, that emerging-market economies should accept currency appreciation.

“To be sure, highly accommodative monetary policies in the United States, as well as in other advanced economies, shift interest rate differentials in favor of emerging markets and thus probably contribute to private capital flows to these markets,” Bernanke said, according to a transcript of his remarks. “I would argue, though, that it is not at all clear that accommodative policies in advanced economies impose net costs on emerging market economies.”

Bernanke cited IMF and other research showing that differences in...


The man who stole a leopard
Oct 14, 2012 - 10:47am

Speaking of Nobel Prize winners and bacteria pooping gold

Where do trees come from?

Richard Feynman Fire
Oct 14, 2012 - 11:09am

Four Seasons ~ Vivaldi

Four Seasons ~ Vivaldi
Oct 14, 2012 - 11:37am

The Golden Countdown:

The Golden Countdown: Retracement Nearing Completion, Gold to Reach $2,850 in 12 Months October 14, 2012 By The Doc 2 Comments

The gold chart indicates that the gold price has quite a ways to go the upside, before the next serious correction occurs. The RSI indicator has not reached the red danger zone that I’ve highlighted. Strong bullish moves often occur right before the price goes into that overbought area, above 70.
QE1 & QE2 had a profound effect on the price of gold. During the euro crisis, QE2 may have stopped the dollar from rallying significantly.
The current round of QE has just started, so this rally in gold may be equated to the age of a newborn baby. Over the next 12 months, I expect QE3 to increase the size and velocity of the US dollar “snowball”, and create the strongest leg of the gold bull market. My intermediate trend targets are $1850 & $2015.
From $2015, I expect a more significant price retracement, and then a move up to my primary trend targets, which are $2300 and $2850. Gold should reach all these prices, within twelve months.

Submitted by Morris Hubbartt:

  • At this point, the US election could probably go either way. Many analysts believe a Romney victory would be dollar-positive, and gold-negative. As I study the US debt and unfunded liabilities, my conclusion is that the dollar will continue to decline, regardless of who is elected.

  • My technical analysis of the dollar is not targeted at fiat currency traders. It is to assist physical gold buyers to purchase gold, at ideal price points.

  • Longer term, I see the dollar bouncing off of the 71 area, and then plunging to new lows. I call this chart the “countdown” chart, because I believe that by approximately October 16th, the dollar will begin a new leg down, and gold will begin a new leg higher.

  • My time target is based upon the price resistance I see at 80.50, the size of the bear flag, and the location of the inner Fibonacci arc.

Gold Twin Targets Chart

  • The “Commitment of Traders” (COT) report shows overzealous public and funds buying gold aggressively, while the “smart money” bankers are adding relatively large short positions.
  • Many investors believe that the latest COT reports prove that a large correction in gold and silver has started. I think that may be an over-simplistic evaluation of large liquidity flows.
  • The amount of money that was poured into the gold and silver market in the past 12 months by commercial traders is quite extraordinary.
  • Profit taking by commercial traders is not unusual after a rally like this. After a major bottom has occurred, a pause in the upwards price action is quite typical.
  • I am projecting that gold will suffer no more than a 4% drawdown from the recent highs. Hold your core positions, and accumulate a bit more on any 2% decline.

Gold QE Power Chart

  • This chart indicates that the gold price has quite a ways to go the upside, before the next serious correction occurs.
  • The RSI indicator has not reached the red danger zone that I’ve highlighted. Strong bullish moves often occur right before the price goes into that overbought area, above 70.
  • QE1 & QE2 had a profound effect on the price of gold. During the euro crisis, QE2 may have stopped the dollar from rallying significantly.
  • The current round of QE has just started, so this rally in gold may be equated to the age of a newborn baby. Over the next 12 months, I expect QE3 to increase the size and velocity of the US dollar “snowball”, and create the strongest leg of the gold bull market. My intermediate trend targets are $1850 & $2015.

  • From $2015, I expect a more significant price retracement, and then a move up to my primary trend targets, which are $2300 and $2850. I am projecting that gold reaches all these prices, within twelve months.

Gold Volume Vs. Fibonacci Chart

  • This chart displays important Fibonacci retracement lines. Many technicians are using these now, to highlight possible buying areas on a correction.
  • I think that’s a bit premature, because I don’t believe this intermediate trend higher has been completed. The Fibonacci lines should prove to be more practical, once gold is trading near $1850.
  • For now, my maximum retracement target is the volume-based support at $1721. That’s quite a bit higher than the “Fib” line in the $1695 area.
  • Gold is likely pausing very briefly, rather than beginning a significant price correction. Volume patterns suggest that the intermediate bull trend will resume within days.

GDX Arc & Flag Chart

  • As gold stocks were making a bottom in May, I used Fibonacci arc charts to forecast how GDX would move upwards. Now that the outer arc price has been almost acquired, what’s next?

  • There is an important bull flag pattern that is taking shape nicely. It is accompanied by light volume, which is bullish. GDX seems to be setting up to launch a high-volume move to the upside.
  • I have suggested that my $66 target could be replaced with a higher one, at about $72. The bull flag within the arc pattern makes it very likely that GDX could acquire a minimum price of $70, by Dec 31.

GDXJ Eye on the Prize Chart

  • A quiet digestive period after a big rally is continuing in GDXJ. This action is normal and healthy.

  • Junior gold stocks are a compelling buy, even after rising almost 50% from the May lows.
  • Note the position of the RSI oscillator, near 50. Momentum-based moves can occur from here.

  • Volume is extremely bullish, and I expect GDXJ could lead GDX again on the next leg higher, as it did on this one.

Silver QE Power Chart

  • The last few employment reports have likely done nothing to change Ben Bernanke’s views; QE is slated to run for an “unlimited” amount of time. That’s very bullish for silver.
  • We are in a debt crisis, in a fiat currency world. Paper currencies will be produced out of thin air, and silver is an excellent asset to protect yourself.
  • Note how low position of MACD on this weekly chart. That indicates there is lot of room for silver to run, before it gets substantially overbought.
  • When the 3rd primary advance gets underway in a major bull market, investors may do better by trading less, and investing more. Concentrate on building the size of core positions. Let the profits ride, at least until gold gets close to $2015!

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Oct 14, 2012 - 11:39am

1 week: How long until a plane or 'copter is shot down?

More Middle East Escalation:

Turkey, Syria Bar Flights Over Each Other's Airspace

First, last Wednesday, Turkey intercepted a Syrian civilian jet suspected of carrying Russian weapons to Syria, forcing it to land in Turkey. The jet subsequently continued on its trip following stern denials from both Damascus and Moscow, and after Turkey found no evidence of its claim. Then yesterday, Syria promptly retaliated against this overt and unjustified aggression by banning all Turkish aircraft from crossing its airspace. Now, moments ago, Turkey retaliated to an act of retaliation against its own initial provocation, by barring all Syrian flights above its own airspace, and in the process preventing virtually all local airborne traffic from taking place. In other words: more mindless escalation which usually ends in a very unfortunate way.

More from Reuters:

*Turkey banned all Syrian aircraft from its air space on Sunday, days after intercepting a Syrian airliner carrying what it said were Russian-made munitions for the Syrian army.

*Asked if Syrian aircraft were now banned from Turkish air space, a Foreign Ministry official said: "Yes, civilian aircraft. Military aircraft were de facto banned way before."

*Syria said on Saturday that it was banning Turkish civilian flights over its territory.

We eagerly await to learn what Syria's retaliation to this retaliaton to its retaliation to etc, etc, etc, will be, and how long it takes until either the national interest of the "western world" or the Russia-China axis is impaired, and how they react. Beacuse in the end, that's what it's all about.


TD ag1969
Oct 14, 2012 - 11:41am


If I may be so bold to again provide a viewpoint from "the other side of the fence" with regard to your project... I'm not trying to be argumentative, just trying to present the other guys perspective.

I myself wouldn't touch a "four hour" project. Because I'd likely spend twice that amount of time, in the preliminary discussion on the phone, in riding out to the jobsite, in looking the project over and talking to the potential client about the project, in working up a material list, in figuring up a quote and presenting a proposal. If I am hired, I move forward, if not, I've just wasted half a day. But let's assume I'm hired... I need to go get the materials and make sure I have the proper tools loaded up... more of my time and fuel. Inevitably I'll likely be missing something once the job begins, or a part will be defective... more time, more fuel. Once the job is finished I need to work up a bill and hope I get paid. And then I'll never hear from you again... unless there is a problem, in which case I'm expected to work for free.

All this misc time that goes toward a job works out the same for a four hour job as it does for a four day job, or a four week job. Which job potential job would garner the most of my attention? And who pays for the wife's rose bush if I drop the pipe on her beloved plant?... there goes my compensation for the whole job.

If I get a call from a loyal client, one who has used my services in the past, or one that holds potential for more steady work, or a larger project in the future, I am their loyal servant. I hire a lot of subcontractors who work for me. When calling them I do so not with the attitude that I'm offering them work, but rather with what can I do to entice them to join me in this effort... I mention that I pay them quickly upon completion, that I've got more work lined up in the future that I will need their help on, and that my carpenters will be onsite to aid them if they need an extra hand. A free cup of coffee goes a long way too.


Oct 14, 2012 - 11:45am

TD & AG1969

Thanks for the insights. I just got a call from a tenant --seems I have sewage backing up into a home on my big project...

Oct 14, 2012 - 1:20pm

gold dog

perhaps this would help:


Oct 14, 2012 - 1:46pm

QE 3 has been announced but

QE 3 has been announced but has not started yet- there is no increase in FED balance sheet since its announcement 1 month ago, and also of (excess) reserves held by banks in FED on October 10, 2012- 1 month after the QE3 announcement.

In fact, these reserves has been contracting since end of QE2. Also, FED balance sheet has not expanded. That means that QE3 has not actually started. Why not I do not know, but that is what the numbers tell. QE1 and QE2 are easily visible in the chart, QE3 is missing so far. It does NOT exist in practice.

Hence, no REAL impact no gold, silver prices yet. Who needs QE3 if employment can increase by printing in another government facility - the one responsible for printing the right statistical numbers. Even more effective, 0 cost than increasing money supply.

Possibly GDP for Q3 will also be printed as an increase relatively to lowered expectations by Q2 GDP which was SET to 1, 3% . If that is exceeded, again practical implementation of QE3 can wait a bit. But it can not wait forever as economy deleverages further. If savings rate is going lower, and American consumers are getting more optimistic, real incomes shrinking, soon the savings rate will hit its limit and then where to take money from to satisfy the polled consumer optimism driven need for next IPad?

On a very small scale , there is an upturn in this chart during last month, but its so small relative to both the increases during QE1 and QE2 and decrease since end of QE2 that impact on gold silver prices is delayed. The last month shows that after sept 13 there was a drop in reserves held with FED which was then compensated by increase, net gain being EXACTLY 0 since announcement of QE3:

Here is another chart that supports the idea that the USA international debt holders is either not interested, or is asked not to be interested in reducing their exposure to the USA debt (and hence, withdrawing support for the USD) -they have added around 2 trillion since 2009-an increase of 60%:

This is an good source for up to date data in editable charts- I hope these pictures does not change over time in format?


Green Lantern TomMack
Oct 14, 2012 - 2:40pm

So Bacteria produce pure

So Bacteria produce pure Gold! .... only problem is they produce it from gold chloride! Where does gold chloride come? from pure gold !

Gold(III) chloride is most often prepared by passing chlorine gas over gold powder at 180 °C:[1]

2 Au + 3 Cl2 → 2 AuCl3 (WIKIPEDIA)
I ain't no chemist although I can make a decent mixed drink. Your logic is like saying that salt water comes from pure water. While I understand that science can change salt water into fresh water they can't do it in sufficient qualities to take care of the earths water problem.
A little more research on your part would have yielded that the 2AuCl3 doesn't come from pure gold, it comes from scrap gold still binded to base metals. And to take scrap gold and melt it to separate the metals is no layman's task. Cupellation. So yeah, it ain't pure lead that's being turned to gold but it's not gold back to gold either. And if you could produce gold from gold scrap in your turds, you'd probably be a wealthy man with a stock pile of old electronic equipment in your back yard.
Oct 14, 2012 - 2:55pm

Regarding that gold poopin' bacteria…

My understanding is the oceans are full of gold chloride and even though it's only something along the lines of 6 parts per trillion, there might just be a way to use these little buggers to extract the gold in sufficient quantities to make it profitable.

But imagine the consequences if the world were suddenly flooded with cheap gold.

At least they haven't engineered any silver pooping bacteria so far.

Fritz ivars
Oct 14, 2012 - 2:59pm

IVARS: QE III has been announced but . . .

Mortgage Backed Securities (MBS) can take two to four weeks to settle . . . So the next balance sheet update will begin to reflect purchases . ..

Oct 14, 2012 - 3:03pm

Gold from turds

Well almost. In Mumbai a group of young men go down the filthy drains in the jewelry quarter and bring up buckets of mud/silt/crap. In this foul mix is gold dust from the clothes of the goldsmiths. They must do this at night otherwise some local big cheese would charge them for it.

They then sell the stuff to processors by the river who sluice out the finer particles and then get a handful (literally) of mercury to mix in and bind the gold. Then in an open fire burn off the mercury and then using hands mix nitric acid to eliminate the silver. Then these lads can just about afford a slum room where six of them can live.

Just seen this on a new documentary on the BBC. Wish I could post a link. For those that can access iplayer, it is called Welcome to India.

Oct 14, 2012 - 3:29pm

Bit of a cheeky request - but

Reading a good article on peak prosperity - Chris Martenson site.

Was about happiness etc. Was in two parts - first part free, second part, you need to be paid up member for. Well...if it (second part) were to mysteriously end up in my inbox here......

Edit - I was a paid up member but have relapsed.


Oct 14, 2012 - 3:36pm

Ocean gold potential in the future

I think GL and Mudsharkbytes bring up some interesting thoughts on ocean gold being possible.

I wonder if that process can be replicated on a massive scale with significant gold production resulting from it? I would think if you had access to fresh ocean water in an area laden with high concentrations of gold chloride with the specific bacteria you needed to produce the gold waste that you could come up with some type of industrial sized pond system or large vessel storage capability to accumulate and hasten the process in a super nutrient enriched environment.

I bet someone somewhere is actively planning to see if any sort of captured process is possible for gold harvesting. It might be like scotch or whiskey where they have to start a batch and wait a few years or whatever to start harvesting after some aging (gold poop accumulation) takes place. I'm kind of picturing how a fish aquarium gets a bit dirty in the gravel after a little while. Billions of bacteria in a super nutrient enriched environment might yield significant gold dirt however they might capture it.

It doesn't sound that far-fetched to me given time and as gold goes higher in price the 'aging process actually would multiply the benefit for being patient.

( Here's a repost about ocean gold and some stats)


No one knows the answer to this or what the future holds but can anyone imagine how much gold there must be on the ocean floor in certain (or widespread) places?

I'm not insinuating that it will suddenly be available or found anytime soon but there must be an unimaginable amount that hasn't been discovered. Roughly anywhere in and around the 'Ring of Fire' seems a likely place for gold to have formed at one time or another.

Extracting it efficiently and cost effectively is something else altogether but there has to be a undersea motherlode(s) somewhere that is ripe to be found. Gold is definitely a finite resource but maybe the portion that is landlocked above sea level isn't the only available source of it and possibly in a greater amount then we can conceive of.


How Do You Mine Underwater?

Mining the seafloor will require a suite of specialized tools to dig up and collect the mineral-rich ore. Two remotely controlled cutting tools will bite into the rock on the seafloor, which is about as hard as concrete.

One looks like a massive rototiller mounted on a hydraulic arm. This one will smooth the surface. A second machine, called a bulk cutter, will tear away at this smoothed surface with a large spiked drum. Both run on bulldozer-style treads.

"It's like cutting the grass," says Samantha Smith from Nautilus Minerals, the company planning this massive operation.

A third remotely controlled machine will follow behind and slurp up the rubble that the two cutting machines generate. The rubble gets drawn up a milelong "riser" pipe, which will carry it to the sea surface. This technology was developed for offshore oil development.

The slurry ends up on a custom-built ship on the surface. That ship will separate the mineral-rich ore from the water, filter the water, and pump it back to the seafloor. Smith says fishermen worried that tuna would be harmed if that mineral-laced water was discharged at the surface. The company realized it could mitigate that risk by pumping the water all the way back down to the seafloor — and it turns out that decision makes it easier to run the entire pumping system.


Is there gold in the ocean?

Yes, there is gold in the ocean

Ocean waters do hold gold – nearly 20 million tons of it. However, if you were hoping make your fortune mining the sea, consider this: Gold in the ocean is so dilute that its concentration is on the order of parts per trillion. Each liter of seawater contains, on average, about 13 billionths of a gram of gold.

There is also (undissolved) gold in/on the seafloor. The ocean, however, is deep, meaning that gold deposits are a mile or two under water. And once you reach the ocean floor, you’ll find that gold deposits are also encased in rock that must be mined through. Not easy.

Currently, there really isn’t a cost-effective way to mine or extract gold from the ocean to make a profit. But, if we could extract all of that gold, there’s enough of it that each person on Earth could have nine pounds of the precious metal. Eureka!


Oct 14, 2012 - 3:44pm

Interesting: http://libertyst



Language Matters
The language used in the press and elsewhere is often imprecise on this point and a source of potential confusion. Reserve balances that are in excess of requirements are frequently referred to as “idle” cash that banks choose to keep “parked” at the Fed. These comments are sensible at the level of an individual bank, which can clearly choose how much money to keep in its reserve account based on available lending opportunities and other factors. However, the logic above demonstrates that the total quantity of reserve balances doesn’t depend on these individual decisions. How can it be that what’s true for each individual bank is not true for the banking system as a whole?

The resolution to this apparent puzzle is that when one bank decides to hold a lower balance in its reserve account, the funds it sheds necessarily end up in the account of another bank, leaving the total unchanged (see FT Alphaville and this New York Fed Current Issues in Economics and Finance article for more detailed discussions of this point). In the aggregate, therefore, these balances do not represent “idle” funds that the banking system is unwilling to lend. In fact, the total quantity of reserve balances held by banks conveys no information about their lending activities – it simply reflects the Federal Reserve’s decisions on how many assets to acquire.

I am just entering this , so pls do not blame me if its not the full picture. I want to find proofs that removing QE will not be too painful for banks. Except for the interest that get on these reserves, about 4 billion/ year.

Oct 14, 2012 - 3:52pm

Nat Geo: Colombias Gold War

I think you'll enjoy this.

Watch how leftist guerrillas, criminal gangs and international mining companies all claim the gold in Colombia.

Video unavailable
Fault Lines - Colombia's Gold Rush
Oct 14, 2012 - 4:31pm

WOW!! Has anyone else read this.


Is this a big deal? Should this be a big deal? Could someone explain? Good or Bad?



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