Tue, Feb 5, 2013 - 11:02am

In the true, military sense...our situation remains "normal"...

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I mean, seriously. Nearly every central bank in the fiat world is rushing to debase and devalue its currency in a vain attempt to monetize its debt and extend The Ponzi. This cash invariably sloshes around the planet and drives everything higher. Stocks, crude, food items. It doesn't matter, they're all going higher except...the metals, of course.

The only real monetary alternative...the two things that should be benefiting the most...the only alternatives to fiat currency...remain under assault and pressured lower. Why? Well, that's easy. The Fiat Masters must not allow gold and silver to appear as a reliable alternative. The illusion of prosperity and calm must be maintained, therefore, gold and silver must be kept lower.

So, the situation this fine Tuesday remains normal, all F'd up. Stocks are soaring and reclaiming all of the losses from yesterday. The Pig is stable and remains a "safe haven". The U.S. 10-year note continues to yield 2%...finding willing buyers even though they are virtually guaranteed a minimum of -10% annualized real return if held to maturity. (But, hey, when the only "willing buyers" are The Goons at your own central bank, why does it matter anyway?) And the metals continue to be slammed by The Cartels and their willing and unwitting accomplices in the momo trade. Whatever. It's all just a complete sham.

Please, I beg you, use this remaining time smartly. Though it's probably wise to play along with some of your cash (if they are going to relentlessly drive stocks higher, you might as well let them make you some extra fiat), now is the time to be preparing for The Paradigm Shift. This global monetary change will not occur this week...it likely won't occur this month...maybe not even this year...but it will occur. Of that you can be certain.

In the meantime, in our SNAFU world, the most valuable assets that you can accumulate...physical gold and silver...continue to see their prices controlled and driven lower at the urge of a machine and a headline. Oh wow! Something called the "non-manufacturing ISM" can cause prices to gyrate wildly both before and after the "news". Amazing. Simply amazing. Just btfd and forget about it, lest you be driven crazy like yours truly...

So here are your updated charts. Well, sort of updated. I printed them off about an hour ago and prices have moved about quite a bit since (see paragraph above). Regardless, the pennants and resistance levels remain valid so these charts should remain helpful.

Look, I know this is extremely challenging, frustrating and agonizing and it seems that it will go on forever...that The Forces of Darkness will remain in control of the metals and that they will simply create enough paper metal to suppress price to eternity. Let me assure you, they can't and they won't. In fact, I am convinced that gold is on the verge of a major breakout. Open interest fell Friday to just 423,613. This is the lowest level since the price lows of 12/27/12 and late August of last year. Combine this with the CoT structure, the charts and physical picture and you've got the recipe that has preceded virtually every other breakout. This will undoubtedly prompt a rally in silver, too, so hang in there. Just be patient.

A couple of headlines that you cannot and should not ignore. First, it's official. The U.S. no longer has a "debt ceiling". The issue has been permanently punted by the politicians who were afraid that the negative press was beginning to affect the re-election possibilities. Oh sure, tack on the silly "you'd better pass a budget or we'll hold back your pay" nonsense and The Sheep and MSM will just forget about the whole thing in a few days. August 2013 will come and go and the U.S. debt will simply grow unabated, to infinity. https://blogs.wsj.com/washwire/2013/02/04/obama-signs-debt-ceiling-law-now-what/

In regards to "The Paradigm Shift", here's your latest world gold reserve update. https://www.zerohedge.com/news/2013-02-05/china-imports-record-amount-gold-december-price-drop Your "friends", the Chinese, officially imported 834.5 mts of gold last year, doubling the already-massive 431 mts they imported in 2011. This brings they're reported official holdings to somewhere north of 3,000 mts. However, none of that total includes the gold that they have imported "unofficially" and that which they simply mined themselves. (Remember that in 2007, China surpassed South Africa as the world's largest producer.) And please, please, don't forget about this: https://www.tfmetalsreport.com/blog/3924/gonefor-good The metal that the Chinese are taking from The West is being re-cast into one kilo bars, never to return to the LBMA system. It's gone and it ain't comin' back.

(And yet, paper price declines. I just happened to check prices a minute ago and I see that gold is now about $20 off its highs of an hour ago. What a complete joke. Nice to see that this post is appropriately titled, though.)

And finally...after all this time reading about currency devaluation and Chinese plans...it's time you connect a few dots. If you think that this: https://www.zerohedge.com/news/2013-02-05/chinese-warship-prepared-fire-japanese-destroyer-last-week and this: https://www.telegraph.co.uk/news/worldnews/asia/northkorea/9846447/North-Korea-preparing-for-two-nuclear-tests.html and this: https://www.guardian.co.uk/world/2013/feb/05/north-korea-video-us-city-flames are completely unrelated to this...

...then you're crazier than I am. It's a wild and dangerous world out there, full of intended and unintended consequences. Please continue to use his time wisely and btfd.


About the Author

turd [at] tfmetalsreport [dot] com ()


Feb 5, 2013 - 11:07am


I did it! Foiled again......story of my life.....woe is me! I am actually a distant turd.

Feb 5, 2013 - 11:08am

thanks for all you do! (again!)

lol@ www.TFyenReport.com

I should register it before the Bernank does so...

Feb 5, 2013 - 11:08am


Aargh thought i had it, my first first! Ah well beaten by a fraction might as well pimp my new blog.

Was going to call it AFbitcoinsreport but thought that might annoy Turd. Don't be harsh on me if you read it, early days.


Be Prepared
Feb 5, 2013 - 11:11am

I think therefore I am...

It's good to be.... and even better to exist.... and it always the best to be a Turdite!

Feb 5, 2013 - 11:12am

Top 10

Did I win anything?

El Gordo
Feb 5, 2013 - 11:15am

When I used to get high...

...the airplane was optional. Oops, wrong thread.

Silver Alert
Feb 5, 2013 - 11:15am

Finally goth the

7th I needed.

New game everyone - collect 1 each of the top ten spots. (Only 1 spot per blog allowed.)

Feb 5, 2013 - 11:17am

top ten

oh yeah

Edit: Now that I've proved I can hit a button as fast as the best of the turdites, I can actually discuss the topic.

Its likely that one of the reasons that PM are being suppressed is to keep a lid on Cu price. JPM has approval for a copper ETF and it will take a while to counter China's stockpiles. If gold and silver get out of hand, it will not be possible to hold copper down either. Although gold and silver are important in the QE environment, they influence the perception of metal stockpiles in general.

Feb 5, 2013 - 11:20am

@crg . . . yeah, agreed . . .

"The FED and the PPT seem to be able to keep this ponzi shit market going alot longer than we think."


Agreed. We now have a command economy. Every algo is set to achieve the desired result. Capping gold and silver is part of the equation, as it must be if the Fed is the only buyer of government debt. Everything is run to maintain a status quo--not too hot, not too cool. Just enough to hold everything together. and, they have been masterful at it. It takes complete compliance of every major financial institution. That is why they had to take $17,000,000,000,000 from taxpayors and give it to the bankers--to buy their complicity, safety, and wealth preservation.

That is how it will remain. Silver and gold will remain capped/controlled until COMEX can no longer trade, due to silver drainage.

(response to post in previous thread)

Feb 5, 2013 - 11:21am

Holder givng the S&P ratings.. a tongue

lashing.. wow,, oooh stop that hurts so much,,ouch!

brig freaken deal... Arrest them and maybe they will spilll the beans on the rest of you crooks.

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

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Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

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