Getting Out of Hand

204
Thu, Dec 20, 2012 - 10:09am

Well, what are ya gonna do? I suppose you can be angry with me and everyone else because I certainly don't know of anyone who saw this coming. But the thing has taken on a life of its own now and there's really nothing anyone can do about it.

Would it be worth the time to sit here and bang out all of the reasons again why you own precious metal? Do I need to discuss the fundamentals again and all of the attendant rationale for doing what we do? Nah. Probably not. You've heard it so many times now I'm sure you could repeat everything in your sleep.

I could probably tell you about the short-term technicals and how oversold they are. Just a couple of days ago I mentioned that major selloffs typically don't begin from the oversold levels we were at then. And now look at things!

Maybe I should even waste a few moments going over the physical demand in London and how this will, inevitably, turn paper price around, lead to a stabilization and then a rebound. I could do that but why? You already know that.

In the end, this is nothing new. We saw this in May of 2011. We saw it in September of 2011 and again in December of last year. We saw it in February of this year, too. The metals rally. The Cartels sell all the way up by creating unlimited amounts of unbacked, paper shorts. Eventually, the rally runs out of steam. Some profit-taking ensues. The Cartels give things a shove and down she goes. Soon, the momo-chasing HFTs take over and really drive price down. Into this selling, The Cartels cover nearly all of the shorts they created on the way up until, presto/chango, we are right back to where we started.

Wash. Rinse. Repeat.

Only two things can possibly break this cycle:

  1. The toothless, hapless and corrupt commissioners of the CFTC will, one day, have to act upon the undeniable evidence before them. (Don't hold your breath.)
  2. Physical depletion continues until the market simply breaks. (And this is where we come in.)

Your job today is to relax. Yes, this manufactured event will likely continue but it will also end in the same way the other manufactured corrections have ended. Soon, there will be a very sharp, snap-back rally. It will emerge suddenly and catch traders by surprise. That rally will run out of steam and the shorts will attempt to re-assert themselves. Price will dive again but, ultimately, fail to make significant new lows. From there, a double or reverse H&S bottom will form and price will begin to recover.

In the meantime, head down to your local coin shop and add to your stack today (if they'll actually sell to you at these discounted prices). The only way we can be assured of victory is by taking action ourselves. The fraud that is the CFTC cannot be counted on to help us. Only we can help us.

Keep the faith. Persevere. Be strong and BTFD (again).

TF

About the Author

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  204 Comments

  Refresh
rocoach
Dec 20, 2012 - 1:35pm

What if

Price action indicates the Mayans actually got it right????

Mickey
Dec 20, 2012 - 1:31pm

if mayans got it right

not much to worry about tomorrow

Mickey
Dec 20, 2012 - 1:27pm

bottom call

look at Jessie's analysis-

says bottom by monday (or sooner but fits in that 3 day settlement window)

then if the pattern from last year repeats we see a rally in January back to where we started this selloff

not great for buy and holders, nice for good adept traders,

murphy
Dec 20, 2012 - 1:20pm

@TF

You usually like this one. Things are getting out of hand and we will be lucky to live through it. ( Not really, just some literary license).

We'll Be Lucky to Live Through It
Torpedo Fish
Dec 20, 2012 - 1:16pm

bottomed

Zee bottom

ag1969
Dec 20, 2012 - 1:15pm

Basil Thinks.....

Basil thinks The fiscal cliff is going to be resolved. LMFAO

And after they resolve the fiscal cliff, everyone gets free flying unicorn rides around Washington. One caveat, you can't board the unicorn until you get your nuts groped by a TSA stooge. Step to the purple elephant Basil, your adventure is about to begin.

Headswim
Dec 20, 2012 - 1:09pm

Leverage

Just posted the below on my facebook page. The only way through this is to take everything down by buying all of the metals we possibly can. The more physical that leaves the system above mined supply, the closer we are to ending this. At any price, being a buyer will only help all holders of silver in the future. Hopefully some of my friends will do themselves a favor and take some ASEs off the shelves...


This is extremely important for every single one of my friends. This is not spam, or a corny "pass it on" post. This is about your financial security -

Silver is down 6% so far today. If this were the DOW, that would amount to an 800 point drop for no reason, and the markets would be SHUT DOWN. If you don't own any of the white metal apart from jewelry and silverware, now is a wonderful time to look into protecting your money with something real, tangible, and that has held its value as real money over thousands of years of human history.

The US dollar has lost more than 95% of its value in the last 100 years. We all feel it at the grocery store every week. A gallon of milk cost me $4.00 the other day!!!! Silver has increased in dollar price by more than 20 times in that period, from $1.29 in 1913 to almost $30.00 today.

The US is continuing to devalue the dollar to the tune of $85 Billion dollars EVERY SINGLE MONTH. That amounts to 1 Trillion dollars in new money that was created in 2012, and at least 1 Trillion more that will be printed in 2013, 2014, and beyond. I urge everyone to take action and investigate today! Silver for less than 30 dollars an ounce is breathtaking, and the comfort of owning real money is simply invaluable.

I challenge all of my friends to find and go to a local coin shop today, tomorrow, or this weekend and just ask to hold an ounce of silver. Bring your kids and make an adventure of it. Note that the "face value" of the American Silver Eagle is $1. Hold it up next to a dollar bill. Hell, hold it up to a $20 bill, or even a $50 bill. Then tell me what you think REAL money is.

tyberious
Dec 20, 2012 - 1:08pm

Like clockwork, the week

Like clockwork, the week after the production of US Silver Eagles was halted the banking cabal slams the price of silver under $30/oz. The implications of the latest blatant silver slam are that US Treasury Secretary, Timothy Geithner, was AWARE that the manipulation was coming and has helped FACILITATE the action. You shouldn't be surprised given that Geithner is currently under scrutiny for knowing about the LIBOR manipulation during his time at the NY Fed and did nothing about it. I sat down with Kerry Lutz on Monday to discuss all the action...
Bix Weir - The Mint Halts Silver Eagle Production Till Next Year https://financialsurvivalnetwork.com/2012/12/bix-weir-the-mint-halts-silver-eagle-production-till-next-year/ The good thing about all this... IT MAY BE THE LAST SILVER SLAM EVER! (explanation will be in this week's Friday Road Trip...including my take on 12/21/2012!) May the Road you choose be the Right Road. Bix Weir www.RoadtoRoota.com

BasilByzantium
Dec 20, 2012 - 1:03pm

@Byzantium

OK , you make a fair point.

And I'm not blaming anyone other than myself for the recent price action, but I do hope that it reverses soon. Personally I think prices will continue to be pressurized until the fiscal cliff is resolved, the resolution itself possibly resulting in a bit more downside action, followed by a sizeable rally early next year. At least I bloody well hope so !

BasilByzantium
Dec 20, 2012 - 1:01pm

@Byzantium

OK , you make a fair point.

And I'm not blaming anyone other than myself for the recent price action, but I do hope that it reverses soon. Personally I think prices will continue to be pressurized until the fiscal cliff is resolved, the resolution itself possibly resulting in a bit more downside action, followed by a sizeable rally early next year. At least I bloody well hope so !

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