Odds & Ends

180
Wed, Dec 26, 2012 - 6:05pm

Not much happening on this day after Christmas but I found a few things for you to consider.

It has been a very quiet, rangebound trade since the conclusion of the last raid back on Thursday. The HFTs are in charge and they are alternately jamming price slightly higher and lower as they attempt to fatten some profits before year-end. The result is 3 days of market boredom with silver in a 50¢ range and seemingly going nowhere. Gold is stuck, too, but at least shows some signs of life. It double-bottomed near $1640 late last week and has since recovered quite nicely. IF it can get some traction here and move UP through $1680 and then $1690, it will actually enter 2013 with a positive-looking chart. Let's just see what the rest of this week holds.

The only market that held any excitement today was crude. Recall that we've been watching crude in a range from $85-90 since mid-October. Today, it finally broke higher and through $90, with the Feb13 closing at $91.17. Now the question is: Can it hold the breakout tomorrow and Friday or will it simply fall back down under $90? IF it can hold, it will set up an early 2013 test of the $95 level and IF it gets above there, a return trip to $100 awaits. Two things:

  1. $100 crude would definitely be supportive of higher metals prices.
  2. The situation in the MENA has been "hot" for some time now with various headlines going and coming. However, crude has remained below $90. Suddenly, today, it's $91. Hmmmm....

Finally, if you're like me you're probably looking for something to do, so, below is a YouTube link to a documentary. This show was mentioned in a ZH thread last week and I took the time to watch it. It's a fascinating story about the "Flash Crash" of May 2010. It's relevant here simply because the focus is High Frequency Trading and, as you know, those damn WOPRs have been wreaking havoc in the metals pits for some time now. Here are some background links to pique your interest:

https://www.zerohedge.com/contributed/2012-08-03/doug-kass-kill-quants-their-technology-they-kill-us

https://www.zerohedge.com/news/joe-saluzzi-hft-parasites-are-killing-market-host

https://www.zerohedge.com/news/2012-12-11/guest-post-five-minute-example-hft-shenanigans

And here's the show:

Flash Crash 2010 - VPRO documentary - 2011

That's all for now. Hang in there and keep the faith.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  180 Comments

PMBull
Dec 26, 2012 - 8:16pm

Turd - Typo

Just before the second chart: "However, gold has remained below $90. Suddenly, today, it's $91. Hmmmm...." I think that was supposed to be "oil." :-) Thanks for the great site.

kingboo
Dec 26, 2012 - 8:17pm

good point ZMan........

i didnt even think of that........ see? the list against it continues ad infinitum....

any time you have to "play" in their system......you're gonna get hosed. I say keep your head down..

Fred Hayek
Dec 26, 2012 - 8:19pm

DPH some of those Dutch painters did astounding work

They had an exhibit of the works of multiple dutch painters at the Peabody Essex Museum north of Boston and some of the stuff just took you head off. There were a couple Rembrandts, some of his contemporaries, some predecessors and some who followed him. The detail of some paintings was just amazing. More than once I ended up standing in a semi-circle of people all staring slack jawed at a painting because you just couldn't believe how detailed it was. There was one by a painter of whom I'd never heard, Gerritt Dou (hope I spelled that right). There was a white dog in the foreground of the painting of a sort of domestic scene and it looked like there was a brush stroke for every freaking hair on the damn dog. If I'm ever in surgery, I want the doctor to have hands as steady as Gerritt Dou must've had to paint that freaking dog and the rest of that scene.

My personal favorite is the english painter J.M.W. Turner and especially Dido Builds Carthage but those dutch masters deserve one's respect even if it's not quite someone's particular taste.

Mr. Fix
Dec 26, 2012 - 8:24pm

Dr. Jerome?

And then, there is one other option which I'm surprised no one else has raised.

Take every penny that you can possibly assemble into one big pile,

take it to your favorite dealer of choice,

and buy all of the gold and silver coins you can possibly afford,

and rent for now, until you see how it all turns out.

I agree with those that have stated we are nowhere near the bottom of the real estate market.

Being locked into a property that you cannot sell, should be avoided all costs.

At this point in time, there is no downside to being fully invested in precious metals, and renting your property temporarily.

It is also highly likely that your needs will change significantly over the next several years.

Renting will give you considerably more options,

and the precious metals will be considerably more valuable also.

This is exactly what I would do if I was in your particular situation,

but that's just me, one serious gold and silver bug.

Larry
Dec 26, 2012 - 8:36pm

Doc J

Some very good advice given already, but here's my opinion:

Sounds like you will have serious work to do either way. One job will be adjusting the paradigms and priorities of your 'still nesting' kids. This may require an attitude adjustment on their part... inspired by you. In addition to that, if you buy the apartment building, you'll also add an unknown amount/scope/cost of work being the investor, landlord, bookkeeper, handyman, contractor for a rental building filled with college students.

Even if this is an Ivy and not prone to deflate as much with the coming college bubble pop, go for the place of safety, away from the campus. With a change in attitude, happiness will be wherever you are. "Happiness" may need to be clarified and appreciated by the kids, the way you described the situation.

A few weeks prepping a garden plot in exchange for room and board might just be a needed attitude adjustment... or the motivation to find work and a place of their own.

Larry
Dec 26, 2012 - 8:40pm

Better yet...

Ditto Mr. Fix's advice. Rent now, buy more for your money later at the new exchange rate. Possibly two or four times the value for the same fiat investment into G&S today.

kingboo
Dec 26, 2012 - 8:58pm

Larry raises a good point......

about distinguishing what type of college it is near.........but you know what?...it may not even matter if it's Ivy League or not.......in fact, the Ivy schools have the highest price tag.......they may fall prey as quickly or even more so to the coming college loan bubble collapse.

I was fortunate enough to go to a private high school.....they turn out dozens and dozens of Ivy scholarship kids every year... (no, i'm not one of them!...as if you couldn't tell) I was attending an open house at my former high school with my son, who wants to attend high school there as well. While waiting to speak to someone, i engaged a student there who was volunteering......i asked him what his major was going to be and where he was going to go to college (since he was a senior).....he told me he was an advanced mathematics kid....and that he was going to attend 2 yrs at a local community college.....i was shocked.....i said "really?" and he said "yeah.....then i'm going to Columbia.....i can't afford 4 yrs of Columbia....i'm going to transfer in"......

That conversation right there made me aware that even the brightest of the bright are price shopping college........and figuring out ways to get that Ivy League degree without paying full sticker price...... and you and I both know that i didn't stumble upon an isolated incident.

So it seems to me it doesn't matter what college campus it is.........it is going to be vulnerable to the macro-economic state that the country finds itself in...... broke is broke. I like Mr. Fix's idea.....but then again, we seem to have a lot in common.....and that could include bad investment advice!

kingboo
Dec 26, 2012 - 9:01pm

@TimberTim....re:Piers Morgan

Piers head is so fat.....and so full of hot air.....we could "float" him to Iran...

look, this CLEARLY a job for Pining! PINING.WHERE ARE YOU??????

Green Lantern
Dec 26, 2012 - 9:02pm

Queen reassures the world, we have the gold

and Germany government raids biggest private bank, Deutschebank. And what about those tungsten bars?

Video unavailable

. Why would the German government raid its biggest private bank? Surely not for some silly tax fraud involving the even sillier elite-sponsored carbon tax idea! Perhaps this has something to do with it:

Source: Deutsche Bank Fulfilled Recent Gold Repatriation Request With Tungsten Salted Gold

If true, thus would mean Deutschebank is in on whatever scheme seems to be involving prime banks, central banks, and all the re-hypothecated gold, and by implication, the highly obfuscated figures for the actual amount of gold in existence in the world. Germany, as most readers of this website already know, is one of those nations that is giving clear signals that it is very suspicious of the structure of the Western financial world, by calling for audits and in some circles the repatriation of its gold reserves. And as readers of this website also know, it appears that, for whatever reason, the center of this storm is the privately owned American central bank, the Federal Reserve. We’ve seen story after story in the past few years of the complete criminality of the Western banksters, primary in the city of London and on Wall Street, and stories of wholesale theft and fraud, so why not believe that the banksters of the Federal Reserve haven’t been in on the fraud and theft of a whole lot of gold? Well, maybe, maybe not, but in any case, the Germans are suspicious, and one can hardly blame them.

Then, as if to reassure at least the “Anglo” component of this vastly corrupt Anglo-American financial oligarchy, one old lady recently paid a visit to another old lady. In the latter case, the old lady in question was the Old Lady of Threadneedle Street in London, the Bank of England, and the other old Lady was H.M. Elizabeth II of various and sundry scattered palaces, who was given a tour of the bank’s bullion vaults, with plenty of pictures being taken to make sure that everyone knew and could see vast amounts of nice shiny gold bars all stacked in tidy English rows on shelves:

Queen gives Bank chiefs a ticking orf over the crash as she visits vaults

Well, one can hardly blame the Queen of that country for being a little ticked off over the fact that its financial experts didn’t see the crash coming. What relatively sane monarch wouldn’t be concerned for the welfare of his or her subjects? What bothers me with the Daily Mail article are all those picture of the Queen with all that nice shiny gold…

…the pictures meant to reassure…

… because you’re probably wondering the same thing I am…

… are those bars filled with tungsten?


Read the full story: WHAT IN THE NAME OF SENSE IS GOING ON AT DEUTSCHEBANK?

Timber Tim
Dec 26, 2012 - 9:24pm

@kingboo

So that is it, settled. Iran it is.

So No nukes going to US from the UK. No Nukes going from the UK to the US and No Nukes going to Canada from the UK and No Nukes going to Canada from the US. Finally No Canadians going to UK or US. An international incident has been avoided.

We are all safe.

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