German Gold Hijinx

Wed, Jan 16, 2013 - 11:54am

I guess it all depends on how you look at it. Either this is all on the up-and-up or it isn't. Either this is a purely political show or it isn't. Either the gold is really there to be repatriated or it isn't. It's up to you to decide.

Just three months ago, The Bundesbank labeled as "lunacy" the idea that German gold needed to be brought home. They announce today that they're doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn't upset the status quo or shake the global banking system in the manner we'd all hoped.

However, you could also choose to look at it this way:

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.
  • So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?
  • And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD? (

Ahhhhhh....what do I know? I'm just a Turd. A dope with a MacBook. I'm sure it's all just fine. Move along. Nothing to see here. All is well. Go back to sleep.

Anyway, it has been a few days so we need to update the charts. Let's start with gold. Take a look at these two, daily charts. You can clearly see the price double bottom. This also coincides with an open interest bottom in late December. In the big picture, me likes what me sees.

Now check out this 8-hour chart. Besides all of the horizontal and diagonal resistance lines I've drawn, gold will likley run into some tough sledding near the 50 and 100-day MAs. The fifty for the Feb13 contract is currently near $1697 and the 100 is near $1718. Taking it all into consideration, the "all clear" for a rally can't truly be sounded until gold gets up and through about $1710-1715, maybe in a week or two. Until then, I just plan to keep stacking physical. I'm not going to buy any more options just yet.

As you might expect, silver has a somewhat similar picture. It came down in late December and then double-bottomed just below $30 about two weeks ago. Since then, it has seen a steady progression higher. Now it just needs to follow through. It is finding resistance near the highs of 1/2/13 (31.50) and it needs to break that level to draw in more buyers. Once through there, expect slowdowns near the 50-day, currently at $32.01, and the 100-day near $32.60.

That's all for today. I need to go take a little boat ride with all my guns and ammunition. It'll probably take most of the day. More tomorrow...


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 16, 2013 - 3:02pm

"the Administration does not support blowing up planets" (yet)

Washington bureaucrats reject public request to build Death Star due to excessive cost

Death Star - visionary project rejected by the Obama administration.

The office of the US President has rejected a popular public petition to construct a Death Star due to a high construction cost of $850 quadrillion, a major design flaw and the fact that “the Administration does not support blowing up planets.”

Jan 16, 2013 - 3:02pm

This German Gold thing has me scratching my head

Why so little in small drabs? Makes no sense. They either decide Gold is good to have at home = get it, get it all now; before the "event" that we need it for actually happens.

Why publisize? Surely just sends ripples around the world that we are ALL in deep doodoo! That Gold has value ...etc.

A distraction perhaps? The magicians favourite trick. Did I hear 2nd ammendment something or other - executive order?

To passify public dissent in Germany? Well no - if I were a German then I would be pretty pissed right now.

As a threat to puppet masters: Now this might have some legs. Do not push us too far you bastards or we blow the whistle on you, and when the world gets to know that you have no clothes........

Anything to add gang? Please put it all out here - outside the box stuff too - I need more possible angles.



Jan 16, 2013 - 3:03pm


ancientmoney... I totally agree with your comment.

BUTCHERS have come and gone.

DICTATORS have come and gone.

HYPERINFLATIONS have come and gone.

WORLD WIDE DEPRESSIONS have come and gone.

EMPIRES have come and gone.

FIAT MONETARY SYSTEMS have come and gone.

..... However, the fundamentals always RULE OUT IN THE END. Cycles always revert back to the MEAN.

ENERGY is the reason why 'THIS TIME IS INDEED DIFFERENT." Mankind has spread his wings over the planet over the past thousands of years because he was able to EXPLOIT higher forms of energy sources. We are currently peaking in this energy source, and we don't have one to TRADE UP TO.

Sure, some very IDEALISTIC PEOPLE with HOPIUM, think technology will save us...LOL. Technology as we have used it has actually done quite the opposite. It has taken HIGH EROI ENERGY and created systems of daily live that are HUGE NET ENERGY LOSERS.....LOL

Maybe when we can stop SLAPPING OURSELVES on the BACK thinking we have done something wonderful with all this TECHNOLOGY, then and only then maybe we can be honest with ourselves and realize..... its time to GET A REAL SACK and act like REAL MEN.

I say MEN, because in the end... MEN are the real problems in the world. Woman don't create BOMBS and start WARS... that comes from those who believe their SACK is just a TAD BIT TOO SMALL.

Well, anyway... that's my RANT today.

Jan 16, 2013 - 3:05pm

"Boat Ride with Guns & Ammunition?"

I thought silver was a required staple in all boat rides?

Back from holiday hiatus at sports betting. Talk about death by a thousand cuts. Not gonna drive over to Laughlin NV anymore. Now on wagon with New Years resolution to STOP SPORTS BETTING. Gonna be tough to stop betting underdogs (Packers?) and favorites (Broncos?) and stick with the true underdog, silver.

Re TFs remark about the French needing to find that relocated/ hypo-relocated and simply lost gold. Was in my local WBG store and asked my favorite girl there: "Who is buying all this scrap gold?" She didn't know or say but I suppose, if we connect-the-dots, we see the big CBs scooping up all this loose gold for paper that they can print at no real cost. Trouble with this scenario is that soon the law of diminishing returns, no scrap gold, enters the picture. I see less scrap sterling on the shelves of my local thrift stores now. Haven't found a piece in several months. I still find a few grams of AU, sometimes a nice piece of 14K that is too nice for the WBG store or the CBs future gold bar.

Anyway, fellow Turdustanis, glad to be back here and see PMs going up steadily.


Jan 16, 2013 - 3:05pm

@SRSrocco . . . nice rant!

You have a good way with words! Chris Martenson happens to agree with your view:

Jan 16, 2013 - 3:08pm

re: rpboxster

well, that free silver dollar got my attention.

where do i sign? ;)

Dyna mo hum
Jan 16, 2013 - 3:09pm
Jan 16, 2013 - 3:10pm

Some breathtaking insights

Some breathtaking insights from Bob Pissonme:

Jan 16, 2013 - 3:13pm

if we could see what they can see...

I can practically feel the candles going to JUST under massive amounts of buy-stops over and over again.. only to be pushed down again.

They're probably just sitting there, at 31,60 USD, waiting to be triggered!

brad_pitts_betterlooking_brotherold tradesman
Jan 16, 2013 - 3:14pm

re: old tradesman

like any other organization the nra can be infiltrated with so-called members that actually do not share the predominant views of the whole.

expect to see more of this kind of ploy in the near future.

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