Ready for The Big Game

197
Fri, Feb 1, 2013 - 9:41am

Time to take a short break and enjoy some R&R but, first, a few things to ponder over the weekend.

First, today's BLSBS was terrible, regardless of the SPIN and MOPE. Now at 7.9%, the unemployment rate has to fall 18% to get to The Bernank's target of 6.5%. Good luck with that, Benny. Even the buffons who cling to the belief that somehow QE is about economic growth are going to have to admit soon that QE is here to stay...and then buy precious metal as their only protection against fiat debasement.

Speaking of fiat debasement, the situation in The Pig is getting rather tenuous. The Bernank had better send out a Goon or two to talk it up soon or it risks failing at 79 and then 78. IF/WHEN this happens, look out below for a retest of the all-important 73 level. You can plainly see it here on this daily chart. Open your mind and you'll see a year-long, head-and-shoulder top. Therefore, a breakdown here would indeed be a big deal.

But the main point I want to leave you with today are the numbers of those standing for delivery of the Feb13 gld contract. First some context:

Dec12: 4623 standing...that's 462,300 ounces or 14.4 metric tonnes

Oct12: 5178 standing or 16.1 mts

Aug12: 5807 standing or 18.1 mts

June12: 9171 standing or 28.5 mts

As you can see, the June12 was a bit of an outlier at 28.5 while the previous three delivery months, including December which is typically the largest of the year, all were around 16 metric tonnes.

OK, standing for delivery of the Feb13...drumroll please...13,910 contracts or 43.3 mts!

As Ruprecht would say: "That's a lot". Three times the amount that stood for delivery in December!

I guess now we know why the GLD has been drained of almost 22 mts YTD, now don't we?!

Again, this is just one data point and it could be an aberration. I guess we'll see. But, taken in concert with all of the other anecdotal evidence of precious metal shortage...Well, it certainly raises an eyebrow.

Here's what Harvey had to say last night:

"Today we had first day notice and what a surprise. We had a massive 1,391,000 million oz of gold stand or 43.26 tonnes of gold. I have been following the gold and silver comex data from the mid 1970's and I have never seen anything like this before. You will recall that this past December we had only 10 tonnes of gold delivered upon. Generally December is the biggest delivery month of the year. The comex is not a physical market. If one needs physical they generally head over to London at the LBMA and purchase the metal over there. The high amounts standing may mean that our gentlemen from Eastern persuasion are having difficulty finding metal and thus they are heading over to our neck of the woods to obtain this very valuable commodity.

The total number of contracts standing for gold is a whopping 13,910 contracts or 1,310,900 oz of gold which translates to 43.26 tonnes of gold I am sure that Blythe will be one busy girl these next few weeks as she tries to entice some longs standing to accept paper instead of metal."

And Denver Dave had some comments, too.

"Just a little truth tidbit if you're worried about the latest sell-off in the price of gold/silver. There's a lot of misinformation, disinformation and absurd ideas about what's going in the market. The truth is that the eastern hemisphere countries are vacuuming up physical gold and silver that they are having delivered domestically as quickly as the London/New York dealers are printing paper gold and silver contracts. You can see this in any given 24 hour trading period, where the price of the metals rises overnight until Hong Kong closes and London opens. Then the price sells off as the London/NYC bullion banks print up more paper contracts and dump them on the market.

In fact, per today's Comex open interest report, currently there are about 13,900 contracts February open and potentially standing for delivery. This represents 63% of the gold listed as available for delivery on the Comex. This is an extraordinarily high amount in relation to the historical context at this point in any given delivery month cycle (first notice day). We'll see how this unfolds, but I doubt Marketwatch, Bloomberg News and CNBC are reporting this information."

Maybe next week, I'll be able to track down Andy and get his opinion on the matter. Until then, just place this bit of info in your hope chest and rest well over the weekend.

Speaking of the weekend, I'm off with The Boys to watch the Super Bowl. Don't worry, though, there will still be lots of fresh content for you to savor here at TFMR. Later today, I'll be releasing a 70-minute podcast that I recorded with The Jackass yesterday. I know that that's probably too long for most folks but there are a lot of Golden Jackass fans out there that can't get enough. This ought to satisfy them for a while. I'll also have a thought-provoking regular thread released tomorrow so please be sure to check back over the weekend.

That's all for now. Wish me luck and go Niners! (Not that I care either way but I'm definitely laying the 3.5)

TF

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tyberious
Feb 1, 2013 - 4:06pm

BREAKING ! Federal Court

BREAKING ! Federal Court Indicts President Obama Will not see End of his Second Term!

BREAKING !Federal Court Indicts President Obama Will not see end of his second term! On January 25th, 2013 , Mr. Lyndon Larouche, a well respected journalist and political activist received word from his sources within the United States government that President Barack Hussein Obama has been indicted by a Federal Court. Details of the indictment has been omitted by Larouche but he characterized them as probably the greatest indictment he has ever seen placed upon a standing president throughout history.

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tyberious
Feb 1, 2013 - 4:02pm

The Man Who Coined the Name

The Man Who Coined the Name "Tin Foil Hat Gang"...IS FIRED!!!

Friday, February 1, 2013 12:56 PM I never liked Jon Nadler. Not because he was always anti gold and silver (YES he was) but because he had such an arrogant way of denigrating my friends at GATA. It culminated with his labeling all us GATA Warriors as "The Tin Foil Hat Gang". BREAKING NEWS: Kitco announced today that "Jon is GONE"! https://www.kitco.com/reports/KitcoNews20130201.html Not that I'm a fan of Kitco either but this was long overdue. Mark my words...at some point in the near future Kitco will announce that they are shutting down their "Pooled Accounts" program. That was a Nadler invention when he was at the Bullion Banks and he brought it to the Perth Mint and then Kitco and RBC. Basically, it's a con where they sell positions in mint and refinery PM inventories and use the investors money to buy T-bills and such making an easy spread profit as long as nobody redeems their metal. I don't feel sorry for Jon... BECAUSE I HAVE NO DOUBT THAT ONE OF HIS BANKING BUDDIES WILL HIRE HIM...OR MAYBE EVEN JEFFREY CHRISTIAN! But for now...GOOD RIDDANCE JONNY BOY! You won't be missed. May the Road you choose be the Right Road. Bix Weir PS - For past commentary on Jon Nadler just search his name at www.RoadtoRoota.com
Rui
Feb 1, 2013 - 4:00pm

COT is out and interesting

While gold net shorts did drop by 28k contracts as expected, silver net shorts increased by 4K contracts during the same week. Looks like EE just could not shake enough silver weak hands off. Wonder what they'd do next in February. Maybe it's time for the margin hike desperation again.

S Roche
Feb 1, 2013 - 3:54pm

This is more like it...

Hate it when MS/GS/C/BARC etc call for $2-$3k gold like 4 months ago. It's these fucknuckles who will miss the train:

https://blogs.marketwatch.com/thetell/2013/02/01/is-the-golden-era-comin...

https://www.businessinsider.com/credit-suisse-the-beginning-of-the-end-o...

ballzdeepnsilver
Feb 1, 2013 - 3:51pm
Libertybella
Feb 1, 2013 - 3:38pm

Urban Warfare Exercise in Galveston TX

found this article on SGTReport, originally published on Infowars....follow up to the Houston urban war games that were conducted without public notice...Galveston is the entry way to the Port of Houston btw...

On Wednesday the residents of Galveston, Texas, endured what folks in Houston and Miami did earlier this week – an “urban warfare” exercise conducted by the U.S. military.

“If you hear a lot of loud noises in Galveston tonight, it’s probably part of a military training exercise,” KTRK-TV in Houston reported. “According to the Galveston County Daily News, the Army is using the old jail on 17th Street for a night drill in urban warfare.”

Around 80 soldiers from the U.S. Army Special Operations Command in coordination with local law enforcement violated Posse Comitatus on Wednesday night, the Houston Chronicle reported.

“We were invited by the city of Galveston to conduct joint training exercises to enhance the effectiveness of both services in order to better protect the residents of Galveston,” Sgt. 1st Class Michael Noggle, an Army spokesman based at Fort Bragg, North Carolina, told the newspaper.

How Galveston residents alarmed by noisy military maneuvers are “better protected” by the mini-invasion was not explained. Is it possible the Pentagon and the bureaucrats who “invited” the Army are worried about al-Qaeda’s navy showing up at the Port of Galveston?

“The purpose of the realistic urban training is to give our Special Operators an opportunity to hone their skills in a controlled, but unfamiliar, realistic urban environment that cannot be replicated with the bare-boned facades found on military installation ranges,” he wrote in an email.

As we have noted on numerous occasions, these increasingly frequent military exercises in coordination with local cops and officialdom are less about training in urban settings “that cannot be replicated with the bare-boned facades found on military installation ranges” then they are about acclimating citizens to the prospect of combat soldiers in their midst.

Incidentally, KTRK-TV reported that “the Army and Houston police apologized for not giving advance warning of a joint training exercise in southeast Houston” earlier in the week.

Green Lantern
Feb 1, 2013 - 3:37pm

I've been preparing for that

I've been preparing for that day when the metals train leaves the station by rehearsing some possible ways of breaking the news to my wife.

___________________________________________________________________________________
GL: Honey, I've got good news and bad news.

Honey: What's the good news?

GL: My wealth creation scheme worked. We have wealth

Honey: What's the bad news?.

GL: We can't leave the house or go anywhere until martial law is lifted.
_______________________________________________________________________________

GL: Honey, I have to go out for a few minutes

Honey: Why? What's with the snorkel?

GL: You know our lifesavings that fell into the bay? Gonna go check on it

_________________________________________________________________________________________

GL: You know that bottle of champagne I've been saving for that special day?

Honey: Yes?

GL: Today we celebrate. Let's drink that bottle of champagne I've been saving for this day.

Honey: Go open it.

GL: Well actually come to think of it. I drank it due to the stress of the last three years in the metals market.

Honey: So now what are we going to drink?

GL; You have a taste for a glass of colloidal silver?

_______________________________________________________________________________

GL: You know all those hours I spent on Turd Ferguson.

Honey: Yes Green Lantern. I know

GL: Well it looks like it paid off

Honey: Why? You finally won a yellow hat?

GL: Even better. I just purchased the yellow hat factory in Bora Bora where Turd sources the hats.

_____________________________________________________________________________________
GL: Honey, I won't be spending anymore time on TFMetalsreport

Honey: Why?

GL: Gold is at 10,000 an ounce, the bullmarket is over. Mrs. Ferguson is now blogging recipes to make golden ice cream with edible gold flakes. .

_____________________________________________________________________________________

GL: Honey, who is better than you?

Honey: You!!

GL: True that Honey, what's better than gold today?

Honey: What?

GL: Silver

The Watchman
Feb 1, 2013 - 3:21pm
A1Topgun
Feb 1, 2013 - 3:20pm

Turd as Engineer

No explaintion needed.

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Kuchek
Feb 1, 2013 - 3:08pm

Friday dragging

Dr. John & Eric Clapton - How Long Blues 1996

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Key Economic Events Week of 5/25

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Key Economic Events Week of 5/4

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Key Economic Events Week of 4/27

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