Tue, Oct 23, 2012 - 10:19pm

As we all sit in angst, watching the metals trade tick-by-tick, I have something rather timely for you.

I want to thank Dr. Dave Janda for making me aware of this video. It was posted to YouTube on Saturday but I have no idea when it was produced. That hardly matters. The subject matter is relevant and consistent with all of the themes here at TFMR.

As you know, I am convinced that the world will soon return to some type of gold-backed monetary system. This is not optional and it is not subject to debate. The creditor nations will, one day soon, enforce this system upon The West. To this end, China is rapidly accumulating gold, the latest summary appearing yesterday at ZeroHedge (

One of the leading proponents of the "Currency War" theory is Jim Rickards. In this video, Jim discusses the "war game" sessions in which he has participated where possible currency war scenarios are played out. You'll find the video thought-provoking and educational but you'll also find it to be timely. As The Cartels play their paper games and lead the spec money by the nose to their desired end, we must stay focused on the bigger picture and continue stacking metal in preparation for the inevitable outcome. Whether that end comes via the scenarios laid out here by Rickards is insignificant. The end of the current global monetary system IS coming. At least you, my dear reader, have been forewarned.


Jim Rickards: Currency Wars Simulation

About the Author

turd [at] tfmetalsreport [dot] com ()


Oct 24, 2012 - 1:16am
Oct 24, 2012 - 2:01am


Seriously. I had to take a screenshot. Vertical spike from $31.90 to $33.50. Could there be a glitch at Kitco?

Oct 24, 2012 - 2:30am

The "GLITCH" @ Kitco.......

Is named Nadler.

Oct 24, 2012 - 2:36am

Hi, Im Troy McClure

You might remember me from such films as Ted Goldenberg, "Investigative Reporter" and "How to pay zero taxes....Legally! " and how could anyone forget "Ron Paul: How Old is He? "

Why on earth would Jim "the smartest guy in finance and geopolitics, advisor to the CIA and Pentagon" Rickards be a party to this interview!? And then the laughable "puplication" Newsmax gets "the secret chapter" to peddle for its BS subsription service, which has consumer complaints all over the web? Bhahahahahaha. He's just like all the other con men, a snake oil no-talent errand boy for his masters, though credit where it's due, an extremely good actor like all the rest.

I can't even believe that picture of the old couple at the start of the film, complete with all the flags waiving, red tanks rolling, blank atm screen stalling, "enemy's" gonna get us BS. What a disgusting, sanctimonious, reprehensible, pathetic scam this whole thing is.

Oct 24, 2012 - 2:42am

Kidnappings and Security

In inflationary times, kidnapping rates soar. Thieves use the kidnapping of loved ones as a means of obtaining a victim's wealth. A thief could make some rather obvious assumptions about members of this community. I urge people to be careful when posting personal information like location and family members. I may be paranoid but I exercise great caution when leaving a coin shop and use code words when talking or emailing about bars or coins.

Oct 24, 2012 - 2:43am

GSR went up yesterday as

GSR went up yesterday as expected day before, with silver prices moving down. On a daily basis, there seems to be a good resistance about 54. Also, as mentioned yesterday, a move up ( silver south to 31 region) is expected today at 12:00 NYT - in the surroundings of that time, +-2 hours. After that, a move up may follow, may be to 32,6-32,7, for few days, which might not sustain , but also, the final bottom of this correction , should be reached before elections and in the same 31 region ( below 31 there is 200 MA at 30,96, 50,00% fibo retracement for the move from 27 - 35, 54 is 31,26 etc. Also, silver prices then will be again slightly below bottom of exponential channel which usually acts as strong resistance ( over last 10 years).

Silver exp channel:

Gold exp channel:

Oct 24, 2012 - 2:49am

RE: Today's Option Action

Today, the NOV 33 CALLs on SLV suddenly saw a huge spike in the volume....We went from a 1500 volume to 11,000+ volume....I saw massive excecution @.20c per contract (on the Ask)...The bid was .19c...This means we had something like over 10,000+ contracts traded at the bid. ..

My gut feeling was that someone saw that this has to be the bottom, and SLV will run towards $33.00 very shortly (Silver @$34.00)...Unless, this was part of a complex option trade...But, very unusual...The OI jumped from 33k to over 44K if i'm not mistaken...

So, the NOV 33 SLV CALLS could see a huge move shortly based on today's action...

Oct 24, 2012 - 2:55am


Sorry, my friend i disagree with your analysis....

I think the bottom was in Today....The Option volume on SLV Nov 33 CAlls spiked suddenly with over 10,000 contracts traded instantly at the bid...Someone made a big huge bullish bid for the interim....

RSI on the weekly charts looks very over-sold almost approaching the 40 has almost come to the "washout stage"....I expect an Up day today with FOMC confirming their intentions and the gravity of their conviction...We might see green the rest of the week...the action so far on the Asian market is promising with good volume and buying...

Oct 24, 2012 - 3:16am

Breakpoint Trades FREE

Breakpoint Trades FREE Newsletter on my LINK

This is good stuff, covers gold, equities, nat gas, and more, some trade ideas. Of course we always appreciate those who klik and support our all bloggers do.

Enjoy the free stuff, it is not common.

Oct 24, 2012 - 3:17am

Breakpoint Trades FREE

Breakpoint Trades FREE Newsletter on my LINK

This is good stuff, covers gold, equities, nat gas, and more, some trade ideas. Of course we always appreciate those who klik and support our all bloggers do.

Enjoy the free stuff, it is not common.

Oct 24, 2012 - 3:17am

Breakpoint Trades FREE

Breakpoint Trades FREE Newsletter on my LINK

This is good stuff, covers gold, equities, nat gas, and more, some trade ideas. Of course we always appreciate those who klik and support our all bloggers do.

Enjoy the free stuff, it is not common.

Oct 24, 2012 - 3:21am


I also think that after FOMC it will move up, but I thought about bottom before that as USD , weak earnings may move it down a bit further. Anyway, I do not expect positive FOMC effect to last on an upwards move into elections. There is more bad earnings coming, and more strength to the USD.

Prize Fighter
Oct 24, 2012 - 3:31am

I sure hope the bullish calls

I sure hope the bullish calls are correct. Some of you guys make really good cases. Like Turd said, it certainly feels like early 2011 for many of the same reasons. I was shopping for Christmas earlier today and I remarked to a friend this is the 3rd Christmas in a row silver prices are roughly the same. Remarkable really. I have some lucky nieces and nephews they get the same number of oz 3 years in a row. With a little luck they'll get grams next year, and like it.

I made a short term bearish call at the end of the last thread. Nothing to hang your worries on. This is only sport guessing for me.

Oct 24, 2012 - 3:31am


If silver hits 31.20 I will lose my position. One tenth of my account. Still holding 30.50 position.

Oct 24, 2012 - 4:25am

USD is about to test 50DMA

I think we should keep our eyes on the pig. Currently, 50 DMA is at 80.33. Gold & Silver should bounce up nicely.

sorry, I have trouble posting up the chart.

Oct 24, 2012 - 6:17am

Jim Rickards

Hard to believe that the ones "in-charge" of the system have not considered any of Jim's scenarios.

Just a guess, but I think that the ones who have controlled the system which we've lived under our entire lives have over-looked these scenarios. There is probably a Plan B for any one of them.

Show of hands..... How many thought Obama would have had to deal with a total collapse during his first term? Yes I know it's not over yet, but we can only hope right.

Another video to freak you out just in time for Halloween. Getting tired of the end is near stuff. Buy your stack and live your life.

Remember. Our nukes are better than their nukes, and that's what keeps em all in check.

Big Buffalo
Oct 24, 2012 - 6:29am

Seeking thoughts and advice

I found myself on criagslist the other day and ended up looking at jewelry people were trying to sell. Most of which were just crap and asking a fairly high percentage of the original rip-off price.

However some folks were just trying to get rid of engagement rings, ugly rings, chains, etc.

1) Would you buy some scrap gold/silver jewelry?

2) How much would you pay per oz for said a ring or chain?

Oct 24, 2012 - 6:43am

big buffalo

Whenever I go through eBay etc. for jewellery, I set myself a limit of 0.7 of that day's spot melt value. Sometimes you win, most of the times you don't. But over the last two years, I have thusly accumulated a shoe box full of 925 silver jewellery, all bought for maximum 0.7 spot. Some of the stuff is beautiful antiques.

Oct 24, 2012 - 7:04am


14K is just over 50% gold. Some "gold" is zinc/nickel/Cu plated with rhodium. If you believe you have a 14K ring or chain and can pop the stone out, the weight divided by two is probably your gold content. If you are going to turn around and have it refined, you will have to pay for that (assume 30% for instance).

So, a 1/2 oz men's gold ring will have about 0.25-27 oz Au, if you want to make a profit after the refiner takes his cut, you probably can only pay for half of that gold, or 0.12-0.13 oz, or $215. The more you can take to the refiner at once, the better your margin will be.

I asked a goldsmith to melt down a beat-up Maple to make me a ring. When I found out that the gaudiest ring I could wear would only have about 1/4 oz of gold, I gave up on the idea. Gold is just too soft unless alloyed.

Oct 24, 2012 - 7:23am

Currency AND Cyber Attacks?

Anybody been following the story about Wall Streets new algorithmic trading paradigm?

As I understand it, instead of guys down on the floor yelling in the pit, it will all now be handled digitally for both commodities and stocks. It has already proved to be problematic creating increased volatility.

A single mysterious computer program that placed orders - and then subsequently canceled them - made up 4 percent of all quote traffic in the U.S. stock market last week, according to the top tracker of high-frequency trading activity. The motive of the algorithm is still unclear.

The program placed orders in 25-millisecond bursts involving about 500 stocks, according to Nanex, a market data firm. The algorithm never executed a single trade, and it abruptly ended at about 10:30 a.m. ET Friday.

"Just goes to show you how just one person can have such an outsized impact on the market," said Eric Hunsader, head of Nanex and the No. 1 detector of trading anomalies watching Wall Street today. "Exchanges are just not monitoring it."

It does not require much imagination to appreciate that unfettered high-frequency trading (HFT) is going to end badly. It started as a war of the algorithms against traditional (human) investing and trading. In this all too real version of fictional Skynet, the machines are not only faster, but they increasingly use their speed of order placement in a predatory, front-running manner, as has often been discussed on this site.

The traditional investors and traders have been in retreat for several years. Increasingly, it is machine against machine in this war raging across our financial exchanges. Following the progression of HFT, how long will be before this turns into a cyber war where hostile entities are not just trying to game the system but to cause financial mayhem?

Given the risks and since HFT currently depends on the placing of high-speed computers within exchanges, 'Why is this allowed?' an innocent bystander might ask. It could only happen, and I choose my words carefully, because most of the exchange officials are greedy and naive. An increasing number of financial exchanges across the globe, in search of short-term revenue, are actually wooing HFT Trojan horses and inviting them into their premises!

The predictable consequences are an increasing number of flash crashes, frequent spasms of intraday volatility, a decline in actual, tradable volatility and the correlation banality known as 'risk-on' and 'risk-off'. This increases market volatility and reduces performance for most traditional investors, large and small.

'Where are the honest regulators?' you might ask. Way behind the curve of HFT events because they are outgunned financially, outnumbered and mostly underskilled.

On the footsteps of the Wall Street new system and recent reports of increased China and Russian cyber-attacks, Pentagon is announcing new cyber warfare rules to a growing threat to a "cyber-Pearl Harbor" aka crippling US Financial and other infrastructure systems.

US military prepares new rules for cyber war: Panetta October 12, 2012 ... The United States faces a growing threat of a "cyber-Pearl Harbor" and has drafted new rules for the military that would enable it to move aggressively against digital attacks,

‘”For these kinds of scenarios, the department has developed the capability to conduct effective operations to counter threats to our national interests.’ Although he avoided the word ‘offensive’ to describe operations or capabilities, Panetta’s speech clearly implied that the military would be empowered to take the initiative in the cyber realm.”
Translation: hidden authorization has already been obtained to go on the cyber-offensive against potential threats, and the USA has already done so.
“Panetta warned of a ‘significant escalation of the cyber threat,’ with foreign actors targeting “critical infrastructure networks,” including systems that operate chemical, electricity and water plants, as well as transport. He laid out dire scenarios in which hostile states or groups could seize control of vital networks. The result could be ‘cyber-Pearl Harbor’: an attack that would cause physical destruction and loss of life, paralyze and shock the nation, and create a profound new sense of vulnerability,” he said. “An aggressor nation or extremist group could gain control of critical switches and derail passenger trains, or trains loaded with lethal chemicals. ‘They could contaminate the water supply in major cities, or shut down the power grid across large parts of the country,’ he said.

Oct 24, 2012 - 7:29am

Jim's Scenario.....

General lurker here but a 58 year old long time survivor who never stopped "being prepared"

Yes, I live my life and am enjoying the best of times in love and healthful activities.

My wife and I hike, camp, travel (just back from Alaska) have three very active black labs that are in the woods an hour or more each day and a few cats and enjoy line dancing about 8 hours a week currently.

But no Ostrich and under no illusions about what is coming.

Tired of the gloom and doom you say?

Get over it!

We are living in one of the most exiting, dynamic times possible.

Events of great magnitude unfolding at a seemingly exponential rate.

Stay alert but live your life dammit!

I have been running a small family business for 38 years and yes, I have had to remake and adapt many times.

This is the norm. Remake and adapt.

And prepare for doing without the benefit of a stable supply chain, water, food and energy for an unknown period.

PM's were my very last prep.

Once the election is over, I expect all hell to break loose.

Harvey put together a very coherent string of current news on gold including Germany's movement to repatriate theirs.

Chavez was the canary in the coal mine and everywhere gold is moving.

China's actions are the mainstream meme.

We are about to ride the bomb right out of the bomb bay doors.......

Saddle up!


stalking wolf
Oct 24, 2012 - 7:39am

17% taken out of comex.

You all are probably aware of this figured I'd post anyway.

Is this a big deal?

Oct 24, 2012 - 7:42am

Another day of Chinese water boarding?

I see the Goons already got the ball rolling a bit ago. Hey at least FB is up big today.. Maybe that will stave off another big market sell off.

What will the Bernank say to prop up the markets..QE to extra extra infinity?

Oct 24, 2012 - 7:50am

Lease rates of gold and silver?

It appears that they cant be ignored as the favorite way to get the sell on for the Banking MOB Cartel.

Oct 24, 2012 - 8:04am

Not news, but confirmation of the crumbling foundations:

Despite austerity measure, Eurozone debt crisis deepens

LONDON -- In spite of years of harsh spending cuts and tax rises, Europe's debt problems are getting worse.

For the first time since the euro was launched in 1999, official figures showed Wednesday that at the end of the second quarter the total debt of the 17 countries that use the single currency was worth 90 per cent of the value of the eurozone's economy.

The rise from the previous quarter's 88.2 per cent and the previous year's equivalent of 87.1 per cent, as reported by Eurostat, the EU's statistics office, is a result of the eurozone's economic problems -- which make it harder for countries to handle their debts.

Six of the countries that use the euro are in recession -- Greece, Spain, Italy, Malta, Portugal, and Cyprus. Many analysts expect the eurozone to officially slip back into recession in the third quarter of the year when official figures are published next month. A recession is technically defined as two quarters of negative growth in a row.

A shrinking economy makes the value of a country's debt as a proportion of the size of its economy worse. Over the past year, Italy's debt burden, for example, has risen from 123.7 per cent in the first quarter to 126.1 per cent in the second quarter -- that's come while its economy has shrunk for four straight quarters.

Greece's finances, though, are in a league of their own. The country, which is struggling to convince debt inspectors that it's fulfilling pledges it has made in return for billions of euros worth of bailout cash, saw the biggest quarterly increase in its debt burden to 150.3 per cent of national income in the second quarter from 136.9 per cent in the first.

Read more:
Eric Original
Oct 24, 2012 - 8:05am

morning thoughts

Lumpy: I've thought every president since 1980 would face economic collapse before his term was up. Red ones and Blue ones alike.

Hang10: Totally agree on the Sovereigns. They constitute a larger portion of my stack than any other coin. yes

Oct 24, 2012 - 8:06am

rather 32 than 31

Ag is banging over head resistance at 32, and 31.80 on support, tide has turn positive.

Groaner SilverSurfers
Oct 24, 2012 - 8:07am

I was impressed by last

I was impressed by last nights rally in silver.. gold no so much.. silver hit $31.60 3 times and bounced.. a silver bottom?

DayStar stalking wolf
Oct 24, 2012 - 8:20am

RE: 17% Taken Out of Comex

Harvey has been covering these giant movements of silver over the past several days and we have covered them on the Harvey Report. Harvey has also spoken of the recent very large order that the LBMA did not want to deliver outside the system. They won’t deliver it outside of the system because there is no silver! That’s a real crisis! I’ve always advised the CFTC that the moment London is out of metal, the COMEX will be out in a nano-second! It will travel across the pond as quickly as possible and could cause a default of the COMEX.
This is why you’re seeing massive movements of silver in the vaults, all over the place. Every day there’s been over a million ounces moving around. Whenever you start seeing that, then you know there’s trouble. It’s Peter robbing Paul to pay somebody else. It’s just going on, and on, and on, and it’s now coming home to roost. And our friend the banks – JPM have their hands full!

Read the Harvey Report at


Groaner DayStar
Oct 24, 2012 - 8:24am

All hell will break lose if

All hell will break lose if they cant deliver.. I cant imagine what will happen..

They have already showed us their cards. They will default and screw the day lights out of everyone with the Governments blessing.

Become a gold member and subscribe to Turd's Vault


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 2/11

2/12 12:45 ET GCP speaks
2/13 8:30 ET CPI and three Goon speeches
2/14 8:30 ET Retail Sales (December)
2/14 8:30 ET PPI
2/15 8:30 ET Import Price Index
2/15 9:15 ET Cap. Util. & Ind. Prod.

Key Economic Events Week of 2/4

2/5 8:30 ET Trade Balance
2/5 9:45 ET Service PMIs
2/5 9:00 pm ET Trump SOTU
2/6 8:30 ET Productivity and Unit Labor Costs
2/6 7:00 pm ET CGP speech
2/7 9:30 ET Goon Clarida speech
2/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 1/28

1/29 10:00 ET Consumer Confidence
1/30 8:30 ET Q4 GDP first guess
1/30 2:00 ET FOMC fedlines
1/30 2:30 ET CGP presser
1/31 8:30 ET Personal Inc, Cons. Spending and Core Inflation
1/31 9:45 ET Chicago PMI
2/1 8:30 ET BLSBS
2/1 9:45 ET Markit Manu PMI
2/1 10:00 ET ISM Manu Index
2/1 10:00 ET Construction Spending

Recent Comments

by dangerkitty, 29 min 12 sec ago
by Angry Chef, 30 min 57 sec ago
by Dr Jerome, 33 min 41 sec ago
by RickshawETF, 48 min 49 sec ago
by NW VIEW, 55 min 31 sec ago
by Dorothy, 1 hour 19 min ago