Some Charts

Thu, Dec 20, 2012 - 12:15pm

I've received several requests to "do what I do". So, here you go. (Keeping in mind that you should probably do the opposite.)

First of all, these hourly charts are astonishing. Just six, short trading days ago, The Fed confirmed QE∞ at a minimum of $85B/month, all needed to fund the ongoing U.S. federal deficit. Instead of rallying, the metals have been slaughtered. Why? Hmmm...We've seen this phenomenon in crude before ( & ( and apparently it's worked so well there that The Fed and Their Cartel have decided to give it a go in the metals, too.

And now, mainly, I'm just mad at myself because I didn't see this coming. Of course The Fed is going to instruct their minions to crush the PMs. The Fed had no choice but to initiate QE∞ and the last thing they needed was an immediate, perceived quid pro quo with rising metals prices. The metals had to be crushed. It's all a part of their ongoing strategy of MOPE and SPIN. Duh! (Jeez, the more I type the more stoo-stoo-stoopid I feel. Better stop here.)

All that said, there is no reason to think that it's over, that the 12-year PM rally is kaput. I'm sure that the metals will stop and reverse, just like last year. The only question is, where? Since nothing has changed and the fundos are, in fact, even stronger than last year at this time, why would we expect prices to break any lower than they did a year ago? (Keeping in mind that the last sentence was typed by a guy who didn't see this selloff coming.) Sometime soon, the metals will reverse with a sharp, short-covering rally. That rally will likely stall and the momo-shorts will be emboldened to take another stab at the downside. Then, after failing to take things markedly lower, a bottom will form and price will begin to recover. If compelled to trade paper in this environment, here are some charts that show a striking similarity to the action of a year ago.

Hang in there. Good luck.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 20, 2012 - 3:34pm

In my more lucid moments...

..I suspect that the worse things become for the PMs, the more outlandish the predictions made by Sinclair, Turk and co become. Endgame my ass.

Bill of Rights
Dec 20, 2012 - 3:35pm

The whole ball game: They can’t talk about it

Good call Turd, I'll keep my Metals thanks. Been down this road many MANY! times.

Dec 20, 2012 - 3:36pm


Provident swapped in 90% Kennedy Half-dollars to replace the 90% Washington Quarters they usually ship with my usual generic 90% silver order. The half-dollars command a premium on the Provident website... supply issue, or am I reading too much into it?

Dec 20, 2012 - 3:37pm

That kinks song...

they've ripped themselves off .

The music is practically the same as "All of the day and all of the night .

The Kinks- All Day and All of the Night
Dec 20, 2012 - 3:38pm

paas, hl just went green for the day.

paas holding green for now. hl fuctuting.

old tradesman
Dec 20, 2012 - 3:39pm

musical chairs

as the dollar looses nations within the swift exchange. 300t of electronic dollars. It comes back to the western nations

As the 15 asians and the brics are colluding In not using swift.(using it only to outsource losses) The new electronic money(qe) is to cover losses, that the western countries have to cover. It gets spread between all markets. When in the real value of markets as corn, wheat, gold, silver, ect. ect. So basicly what Im saying is that everybody is being robed in any market. Even though s&p breaks even your still taking a loss. If gold or silver go down Im not taking a loss unless I decide to take a loss. If I hold paper, I dont have any control of a loss. All sit down

Dec 20, 2012 - 3:46pm

another reason to keep gold down

The CPI will be meaningless after the next tweak. A loaf of bread could be $10 next fall, but the CPI chained will still say 2% inflation (sawdust substituting for flour is hedonic).

People will be looking for other measures of inflation, and gold will be one of them. If BB can keep gold below $1620, he can say at the next fed meeting, "see, there's no inflation, gold didn't go anywhere last year". It will work until it doesn't.

GM Jenkins
Dec 20, 2012 - 3:46pm


If the Treasury announced an instant 30% devaluation in the dollar they would still crush gold, saying it was less than the 50% devaluation pundits were expecting. THAT's how absurd it has become.

That seems right.

Dec 20, 2012 - 3:51pm

@ Bollocks

Same experience myself with the Vat. Just got a demand , so contacted them with the "legal tender " argument, only to be told, as a private individual that I am liable, had I been a financial institution though, it would be Vat free. Just about sums up everything that's fucked up. No more from Guernsey now, premiums are too high, but always searching.

Dec 20, 2012 - 3:52pm

I didn't pick up any AG today, but ......

I did get a $100 box of nickels from the bank.

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