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

Founder
turd [at] tfmetalsreport [dot] com ()

  204 Comments

tyberious
Dec 20, 2012 - 10:32am

Where is support?

That's were I'm buying? 28ish?

¤
Dec 20, 2012 - 10:32am

Success!

This just happened and I bought it while Ag dipped just under $30

Screw the premium and being penny-wise/pound (1/2 kilo) foolish at this point.

Poured bars are awesome!

ReachWest
Dec 20, 2012 - 10:33am

Lookout Below!!

Quick, Quick - Everybody SELL your Gold and Silver - We're going over the fiscal cliff!

Buncha stoopid nonsense this action since QE3 and QE4. Honestly - at this point - there's nothing left to do but laugh.

AND .. I just about pee'd my pants laughing when I saw the image ScottJ posted above re the CFTC mission! These future markets are hilarious.

lilbromarky1
Dec 20, 2012 - 10:33am

Can you please define "unreasonable" for me?

That's sounds interesting but I'd like to hear your definition.

IdahoSilver
Dec 20, 2012 - 10:34am

USD

It is not helping the Dollar

RaRaRasputin
Dec 20, 2012 - 10:35am

For those of you

with an hour to spend while they continue to make a complete joke of this market watching Kyle Bass' latest presentation should help any short term anxiety. An excellent opportunity to remind yourselves why we do what we do and for me it's like a shot of Narcan (https://en.wikipedia.org/wiki/Naloxone) in this hopium addicted world.

I'm sure many of you have already caught it on ZH but it is worth watching more than once:

https://www.zerohedge.com/news/2012-12-19/hour-company-kyle-bass

Enjoy - it makes moves like that just witnessed much easier to bear

RaRa

binzer
Dec 20, 2012 - 10:36am

I know of

no other industry where people supposedly in the know get it continuously wrong; and people still listen to them and follow their advice...quite extraordinary.

If the likes of Turk, Maloney, Morgan et al told me that night followed day, I would still wanna look outside to check.

Silverman
Dec 20, 2012 - 10:36am
El Gordo
Dec 20, 2012 - 10:37am

Putting it in reverse

I haven't backed the truck up yet, but I did get it to go in reverse. Won't be long until I'm forced to hit the gas and back it up to the loading dock. Santa can take all that other crap back, this year you're getting silver.

Roark
Dec 20, 2012 - 10:38am

@Turd: "Unreasonable"

"Unreasonable", as in responding to post-once-a-year antagonists. :)

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