Cutting Vacation Short

548
Wed, Feb 20, 2013 - 10:04am

This is relentless and unforgiving...and I'm not talking about MrsF.

So bad that I'm cutting my mini-vacation short. I still don't have time for a full post so here are two items for you to read this morning.

ZH has been doing an excellent job chronicling the consistent, daily destruction. Here's the latest: https://www.zerohedge.com/news/2013-02-20/precious-metals-morning-slam-right-schedule

And here's someone who has noticed some of the same "anomolies" that I have: https://www.zerohedge.com/contributed/2013-02-20/curious-case-falling-gold-and-silver-prices

The charts, of course, look terrible. Having failed at hoped-for support, silver looks like $28 and gold, if $1580 fails, looks headed all the way back to the bottom of the 18-month range, near $1550.

This is all highly unusual and indicative of extreme manipulation and panic-level positioning. At the risk of sounding trite and reading like another KWN pumper, I must say it: THIS WILL PASS. THESE EXTREMES WILL BE RESOLVED SOON AND NEW UPLEGS WILL BEGIN. PLEASE BE PATIENT. THE FUNDAMENTALS ARE STRONGER THAN EVER AND PHYSICAL REALITIES WILL SOON REPLACE PAPER SHENANIGANS AS THE DRIVING FORCE BEHIND PRICE.

More later if possible.

TF

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  548 Comments

Dr G TF
Feb 20, 2013 - 12:01pm

Since he's been correct in

Since he's been correct in calling this smash for the past two weeks, don't you think you should respect his call for an almost immediate rebound, too?

No, not at all. Those two things are in no way related.

ag1969
Feb 20, 2013 - 12:02pm

Nonoverlapping

OK, I won't waste any more breath on you. Thank you for doing that math for me. Cheers!

NonoverlappingMagicCereal ¤
Feb 20, 2013 - 12:02pm

@DrkPurpleHaze

Thank you sir :)

musicmaker99
Feb 20, 2013 - 12:03pm

Don't forget - March is a delivery month

March is the first delivery month for Ag since Dec, a fact that seems not to have been mentioned on this board for a while. Currently ~50k contracts open, that's 250MM ozt against 63MM ozt available in Comex registered. Let's see how that pans out over the next week.

During the last delivery month (Dec) open interest actually increased as the month progressed - something Harvey said he had never seen before. If you haven't seen this before, read it now:

https://www.silverdoctors.com/harvey-organ-cftc-cant-release-findings-of-silver-probe-end-game-is-being-played-out-lbma-comex-near-default/

Harvey interviewed by The Doc in December. The transcript of the interview below the audio is astonishing. He says silver manipulation should be resolved by end of March. Kinda what Turd and Jim have been saying too.

Nice to see Au bounce of 1580 as Turd suggested it might. Let's see if that holds.

I'm *very* tempted to pick up a few more kg of Ag at BV today. I already have over my body weight and now gunning for triple digit kgs. I really need another month for that, but I don't think I'm going to get it.

Mickey
Feb 20, 2013 - 12:03pm

MCD and WMT and AAPL and Cat

Apple joined in earlier today when Foxconn announced slowdown in iphones and CAT reported its slowdown. This has to be terrible for employment and consequently tax receipts.

Not mentioned here yet either.

so, is Fed going to throw in towel and let economy and market collapse right now? (although the eay things have been going if the economy gets any worse we see Dow 16k soon)

Oh yes, KRFT was a little light in sales too

Dr G thedukes
Feb 20, 2013 - 12:03pm

Last year the silver price

Last year the silver price hit the high for the entire year on February 29th at 37.43

...and then was immediately smashed for $3+, followed by a 4-month smash that took it another $7 lower. Anybody correlating this year with last year should probably be crapping themselves right now.

opalboy
Feb 20, 2013 - 12:05pm

NONOV

Why do you care about us so much?

boatman
Feb 20, 2013 - 12:06pm

we are not wrong

arithmetic demands it.

i guess u never heard of BUD Kress or Kondratieff.

i'm shorting civilization at this juncture.

the west+japan has maxed out the credit cards with no end in sight.

i suppose u think the fed can stop printing money.

they cannot.

the trolls will soon be but a speck in sinclair's review mirror.

El Gordo
Feb 20, 2013 - 12:09pm

Picking bottoms

Has anyone started picking bottoms yet? I decided to pick my bottom a few minutes ago and pulled out a tube of brand spanking new 2013 ASE's. Hope my bottom picking is over, but if there are more bottoms to be picked, I'll probably be watching.

ivars brad_pitts_betterlooking_brother
Feb 20, 2013 - 12:10pm

Instead, I suggest to think

Instead, I suggest to think about it as that is how investors may start feeling and that of course impacts PM price. Things are not static, there are arguments coming into play that have to be taken into account. USG treasury standard has been based on USG debt for last 42 years, and if there is any scenario that can improve the debt situation totally or vs. GDP that will impact PM prices negatively. Any asset USG can show, be it military or local gas/oil that could reduce its debt accumulation speed will stabilize the USA situation. Anything in the other direction will worsen it. At the moment things are uncertain as its not quite clear what arsenal of strategies the USA will use, apart from ones mentioned in the article. Of course China as biggest creditor is NOT interested in USD collapse, so anything that buys time for them to develop their economical and military might under the stable USD cover is good for them. They are not ready to take over, and will not be anytime soon. When world will accept Chinese debt instead of USG, than yes:)

On other hand, there has not been the spike in gold that would have signaled the end of bull cycle, so presumably, the investors have not figure out yet what direction is more likely.

Hence the protraction in the current correction to Gold and Silver prices, ongoing for silver since May 2011.

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