Narcoleptic Tuesday

Tue, Jan 22, 2013 - 11:12am

With the holiday yesterday, I figured that today would be either Happy or Terrible. I sure didn't expect this snoozer.

Even though the U.S. economic data was lousy today, the metals seem stuck in neutral. Oh well. Actually, it's kind of nice, for once. A nice, bland and boring far. However, I'll be watching for that same, evil Globex algo to rear it's ugly head at around 1:00 EST. Let's see if gold then drifts lower into the close and loses another $6-8 between 1:30 and 4:00.

Here are some charts as you start your week. First up, here are the hourly finviz charts. Note that since the miserable, contrived beatdown of 1/3-1/4, both metals have moved up nicely, contained within broad, upward-sloping channels.

And these daily charts that I printed yesterday neatly summarize where we are in the bigger picture:

OK, here are some other, random items...

Anyone following along in the comments to yesterday's thread would have seen this story already. It seems that the Indian government would like to discourage gold investment by its citizens. As ZH rightly points out, with items like gold, you often get the opposite effect. If anything, the post contains a very instructive chart that I've copied below.

While at ZH, I found this fantastic new piece from JS Kim. I agree wholeheartedly with many of his conclusions, particularly the ones about "financial advisors". Though there are a very select few out there who "get it" and are actually trying to help their fellow man, most are simple snake-oil salespeople who are driven by commissions and fees. Years of self-reinforcing behavior have convinced them that they are the smartest people in the room and that their "advice" is valuable and worthy of your hard-earned dollars.

Earlier today, The Doc (who isn't sleeping much these days so he has some extra time on his hands) posted this first-hand account of metal demand in China. Admittedly anecdotal, it nonetheless tells a story you simply won't hear anywhere in the MSM.

And here's another reminder...Paul Coghlan is hosting a FREE charting webinar again tomorrow. The one last month received rave reviews for its value so I would encourage you to sign up. Like the previous one, this webinar will also be recorded and posted for later review if you are unable to watch it live. However, you still have to register to view it. You can do so by clicking here:

And, frankly, that's it for today. Short and sweet. As I wrap, I see that the metals are moving a bit higher. This is nice but they need to sustain these moves. Silver is still battling its 50-day moving average, currently near $32.04 on the Mar13 contract. Besting that, its next goal is horizontal resistance and the 100-day MA near $32.65. Gold, too, is butting up against its own 50-day, currently near $1697 on the Feb13. Keep an eye on those levels with crossed fingers.

Have a great day!


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 22, 2013 - 11:16am


I shall celebrate with a proper cup of coffee.

Jan 22, 2013 - 11:16am


well, fifth.

Jan 22, 2013 - 11:16am

the fifth

ill take a fifth--single malt

Jan 22, 2013 - 11:18am

first hand account - China

the premiums people pay for silver in China are ridiculous!

The sellers know it and almost never let you weigh the silver item that you're interested in.

I've seen 1-kilo Perth Mint coins sell for almost twice of spot!

It really is time for the retail-public to have access to fair-priced silver in China; when is NASE coming online? any news on this, Turd?

Jan 22, 2013 - 11:21am


Hurdle????? Looks like boredom may be ending.

Jan 22, 2013 - 11:23am

stupid question

This may sound stupid and probably over-thinking things, but what exactly do foreign countries buy US debt with? So Japan says they are buying US bonds for example, are they handing over Yen that they printed? Does our Treasury deposit the Yen? What happens at maturity then? I'm probably making this more complicated but forgive me, gold and silver is just so easy to understand :)

Jan 22, 2013 - 11:25am

Eighth is still top ten!

Picked up a bit more Ag yesterday. Been trying to pick up anywhere between 5 and 25 ASE's every two weeks...Really wish I could afford a monster box at these prices. If Ag goes on the anticipated 2013 run up in price, it'd sure be cheaper! As it is, I have to proceed like a turtle toward accumulating my weight in silver...begins to look like the only way I'll ever get there is by fasting!!!

Jan 22, 2013 - 11:25am


it's good to be at near the top of the turd-stack!

i stack solely because of silver's anti-bacterial properties

The Green Manalishi
Jan 22, 2013 - 11:25am

Looking forward to your appearance on the Keiser Report

  1. - sure would have you on if you made it to London! Or anywhere!


Stacy, thank you. It would be an honor. Please email me tfmetalsreport at gmail if you'd ever like to set something up.

Mr. Fix
Jan 22, 2013 - 11:25am

Funny, I was just going to take a nap.

And then you put up a new post, to let the fun continue.

How great is this place?!

J.P. Cubish
Jan 22, 2013 - 11:31am

Existential Conundrum

I am of two minds.

Firstly, I want to spread the good word about precious metals. Pretty much everybody in my community knows nothing about them. To this end I carry an ounce of silver with me. I offer to settle debts with it, or just flash it as a conversation starter. I believe it is good work.

Secondly, I want to protect myself. By spreading the word, I also reveal that I stack. I betray myself, and put myself at risk of theft.

Just curious how other Turdites deal with these conflicting conflicting motives. I imagine there are two basic camps, "Tell no one about your stack," and "I feel so passionate about gold that I can't shut up."

Any thoughts Turdville?

Jan 22, 2013 - 11:32am


And The PTB continue their FRAUD, day in and day out.

Just a reminder, fraud breaks/nullifies any contract.

Jan 22, 2013 - 11:34am


Call Houston, wake those boys up!

Jan 22, 2013 - 11:35am
Jan 22, 2013 - 11:39am

@ thecoloredsky

I believe in the case of your scenario, then yes the Yen would be printed, and US Treasury bonds purchased. This weakens the yen vs. the US dollar.

Jan 22, 2013 - 11:40am
Mr. Fix
Jan 22, 2013 - 11:41am

RE stupid question by thecoloredsky

Okay, I'll take a stab at this.

The way I understand it, it is really not all that complicated.

The nations that hold the most United States debt are the same ones that sell us their crap.

So it works like this:

Walmart gets $1 billion worth of crap from China, and we send them $1 billion worth of Federal Reserve notes.

Then, China turns around and sends those Federal Reserve notes back, and buys bonds with them.

So they are buying our debt with our own money.

it works exactly the same way with Japan,

we buy a whole bunch of Japanese cars, send them the money, and they send it back, and buy more bonds.

This keeps Uncle Sam happy being able to piss away money at an obscene rate, while handing the bill to our trading partners.

Of course, such a great deal will eventually crash and burn,

I'm sure by now both China and Japan know full well that they will never see a return on their investments,

which is why now the Federal Reserve has to just print its own money,

those foreign entities have found a more practical use for all those extra federal reserve notes,

they are flooding the markets with them in search of hard assets.

Simultaneously, the Federal Reserve is now monetizing nearly our entire debt,

and the crash of the dollar is about to become very, very real.

Jan 22, 2013 - 11:41am


This one??

Submitted by DrkPurpleHaze on January 22, 2013 - 10:27am.

Maybe the USD/PM correlation is happening because CB's are treating gold like currency at this point behind the scene's.

Also, oil is creeping higher with no red flags attached to it so far and seems to be on a 'long' leash. I'm pretty sure the UST market and other bond markets tie in here somewhere along with the yen regarding these correlations.

If possible I'd love to see those 5 components on the same chart for comparison going back a little before the US election in November. Things changed right after the election and I've wanted to see these 5 on a chart for awhile but unfortunately I'm not a chart guy....yet.

My overall guess would be that gold is being treated like

collateral in some significant market(s) in lieu of cash at this point by some CB's.

Jan 22, 2013 - 11:41am


Left a response to P4 regarding USDX/PM's on last thread fwiw.

Can't repost

here from my tablet. Oh well.

Jan 22, 2013 - 11:42am


I keep my mouth shut. The advise I tend to give (if someone seems to be receptive) is more in line with "get out of debt", and live within your means.

Jan 22, 2013 - 11:51am


It's all bond recycling (good collateral for now but waning) and digitized foreign reserve accounts and probably gold at this point.

It's nothing more then CB collateral recycling.

Jan 22, 2013 - 11:54am


Thank you.

Typing on this new tablet kind of sucks. Luckily for everyone I need to keep my posts short

Jan 22, 2013 - 11:54am

Ammo and a perspective

First, anyone out there have a source for bulk 223 ammo? I cannot find any at normal haunts. Second, my stepmother texted yesterday during the coronation . Don't know if she lifted it somewhere or made it up. Regardless, it is my new mantra. "It is no longer a matter of educating people but of making like minded people stronger". If we spend all of our time and energy trying to pull everyone into the life raft we will do so at the risk of being unprepared when the raft goes over the falls. We are at a point in our journey where the currents of the river have taken over. Going back up stream or getting out of the river are no longer options.

Jan 22, 2013 - 12:00pm

@ J.P.Cubish

I tell 'em to hang on to all and any gold jewelery and any silverware; that they'll get ripped off at current prices because they will go higher.

Many people have accumulated or inherited outmoded, unfashionable jewelry that they will never wear, or silverware that they tire of cleaning, so seek the cash alternative.

I tell them that it is wealth, regardless the physical form, and let them work the rest out for themselves.

Jan 22, 2013 - 12:00pm


Addressed this issue. Repatriation of gold is in preparation for reset. This is why the gold consolidation is ending....and the answer to the question of reality of said reserves could finally emerge..... "Is it real, or is it Memorex?". (Is it even there????) As well, the repatreation is very overt signal of distrust in current system's longevity....increased buying solidifies these ideas. Sooner, rather than later. Urgency? I believe so. Who else may have questioned the FED about repatriation that has gone unannounced? I believe there have been others.

Jan 22, 2013 - 12:04pm

charlie reese's last column

Charley Reese’s final column for the Orlando Sentinel…
He has been a journalist for 49 years.
He is retiring and this is HIS LAST COLUMN.

Be sure to read the Tax List at the end.

This is about as clear and easy to understand as it can be. The article below is completely neutral,
neither anti-republican or democrat. Charlie Reese, a retired reporter for the Orlando Sentinel,
has hit the nail directly on the head, defining clearly who it is that in the final analysis
must assume responsibility for the judgments made that impact each one of us every day.
It’s a short but good read. Worth the time. Worth remembering!

545 vs. 300,000,000 People
-By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.

Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

You and I don’t propose a federal budget. The President does.

You and I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does.

You and I don’t write the tax code, Congress does.

You and I don’t set fiscal policy, Congress does.

You and I don’t control monetary policy, the Federal Reserve Bank does.

One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.

I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes.

Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.

What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? John Boehner. He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.

It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it’s because they want it unfair.

If the budget is in the red, it’s because they want it in the red.

If the Army & Marines are in Iraq and Afghanistan it’s because they want them in Iraq and Afghanistan …

If they do not receive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.

There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish;
to lobbyists, whose gifts and advice they can reject; to regulators,
to whom they give the power to regulate and from whom they can take this power.
Above all, do not let them con you into the belief that there exists disembodied mystical forces like
“the economy,” “inflation,” or “politics” that prevent them from
doing what they take an oath to do.

Those 545 people, and they alone, are responsible.

They, and they alone, have the power.

They, and they alone, should be held accountable by the people who are their bosses.

Provided the voters have the gumption to manage their own employees.

We should vote all of them out of office and clean up their mess!

Tax his bed,
Tax the table,
At which he’s fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for
peanuts anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won’t be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He’s good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he’s laid…

Put these words
Upon his tomb,
‘Taxes drove me
to my doom…’

When he’s gone,
Do not relax,
Its time to apply
The inheritance tax.

Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

What in the heck happened? Can you spell ‘politicians?’

(actually, reese retired some time ago – 1995 – but it’s still on point.)

Jan 22, 2013 - 12:06pm

Just received my favorite email

"Thank you for your order from Provident Metals. We wanted to let you know that your package was shipped."

This is a tube of 2013 ASE's ordered the day the mint suspended them.

Jan 22, 2013 - 12:06pm


just saw some FAE 55gr fmj @Natchez. $599/1000rds

Jan 22, 2013 - 12:06pm

Gold as money

FOA claimed ( in the late 1990's) that the BIS carried gold on it's books at $6000/oz. I'd bet it is far more than that now.

Jan 22, 2013 - 12:07pm

Cubish .... don't be a square !

Most of us .... go through the "irrational exuberance" stage .... of needing to spread the word .... like good little liberals .... we want to pass out free "existential condoms" to strangers .... get over it .... we have plans for you .... you will serve humanity more .... if you are alive .... and solvent ! Monedas 1929 Comedy Jihad Quorum Of One World Tour

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