Cyprus Gold...and Silver, too

Mon, Mar 18, 2013 - 10:37am

As if this week wasn't going to be crazy enough, the knuckleheads of the EU have really thrown everyone a curveball with their latest.

Here's the latest from ZH and it's a good place to start:

The gist of it is this:

This is a big deal, regardless of how Cramer and CNBS attempt to downplay it. Why? Fractional reserve banking. As depositors across Europe realize that they are potentially next in line for a similar (or worse) "haircut" if their bank fails, the realization will dawn upon them that keeping money in said bank, at 0% interest no less, is not a very good idea. As depositors begin to withdraw their cash, the entire fractional reserve system begins to seize up. So let's start first with this, a reminder as to how the fractional reserve system works:

You should also be reminded here that this is another reason for the current gold price suppression. At this critical time gold, which also doesn't pay any interest to the holder, must not be seen as an alternative. An illusion must be maintained where there is no alternative to keeping money in a bank or national/regional system. (This is why so many foresee capital controls in the near future.)

So, again, this is why this latest EU "bailout" idea is such a huge mistake. And the proverbial genie is now out of the bottle, too. Even if the deal is amended or if the Russians sail in to make the deal less painful, the EU has tipped their hand. No bank depositor in Greece, Spain, Portugal, Italy, France...anywhere...should now feel comfortable and "guaranteed". And this is what the buffoon Cramer misses entirely with this "analysis":

OK, moving on. Prices rallied sharply at the open last evening but were then beaten back lower. Why? If you've been following along here for the past several weeks, you already know why. There were an abundance on buystops above 1600 and an effort was made to protect them and keep price below 1600 at the Comex open. This effort ultimately failed and price surged at the Comex open as these stops were tripped. I currently have gold hanging around $1610 so our mission is accomplished for far. What we need to see is gold hang in there and close near these levels, at a minimum, with a 16 handle. This will set the table for another run back to important resistance at $1626. As you can see below, that level is important as it is the lows of the new year, Jan 3-4 selloff, and getting back above there is critical for shifting sentiment. And sentiment is key. There was a lot of talk this weekend about the extraordinarily large hedge fund short position in both gold and silver. Why is this so overwhelmingly bullish? Because the hedge funds have neither the intent nor the ability to deliver. They will need to cover at some point. That's buying pressure. And if they can be flipped long at the same time...That's buying pressure times two. So, keep a very close eye on 1626 and 29.40. Those are two very important levels as we go through this week.

It's already getting late and I need to get this posted so just one more item for today...the GLD. It continues to be liquidated and now shows an "inventory" of just 1233 metrc tonnes. Again, on 1/2/13, the GLD had an alleged inventory of 1,349.92 metric tonnes so this baby is down 117 metric tonnes year-to-date or roughly 8.7%. Again, mainstream "analysts" would have you believe that this is entirely due to "investor selling and reallocation" and that this metal has simply been returned to Authorized Participant vaults. OK, sure. Maybe it least a little. But I am 100% confident that the majority this drawdown is from large investors converting their paper GLD shares into physical metal.

Why am I so sure? Check these three data points:

  • Every two months or so, the Comex offers delivery of gold. The latest delivery month of February saw 13,910 contracts stand. That's 43 metric tonnes and about 3X the typical amount that stood for delivery each time in 2012.
  • London regularly sees 15-20 metric tonnes allocated and delivered each day. Though these numbers are not publicly reported, they are confirmed by our friend Andrew and his closely-connected contacts within the LBMA system,
  • And Andy also has considerable contacts in China and Asia. From there, his contacts report that the Shanghai Exchange has delivered over 153 metric tonnes of gold in just the 12 trading days this month! That's another 10 mts/day.
  • It is clear to me that there is a global movement afoot to acquire and deliver physical gold (and silver) as quickly as possible. This physical demand WILL, eventually, turn the paper "ship" around and lead to much higher...and even new alltime high...prices. It is not a question of "if", it is a matter of WHEN.

    I'm not going to be as readily available as usual for the next 2-3 days as MrsF and the LTs require some attention over Spring Break. I will be around and updating the site, just not as much. Hang in there and keep the faith. Buy some more physical today, while you still can.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Mar 18, 2013 - 7:23pm

    Russian Mafia Money

    I would hate to be a Cypriot banker today and double that for being a Cypriot politician tomorrow.

    Just wait 'till they find out that Russian mobsters give "haircuts" with chainsaws.

    The Watchman
    Mar 18, 2013 - 7:24pm

    GLD Continues to be DRAINED

    From Harvey:

    "we lost a massive 13.55 tonnes of gold at the GLD tonight ."

    The Watchman
    Mar 18, 2013 - 7:27pm

    US Mint UPDATE-638,000 ASE's SOLD Since Thursday

    2013 Silver Sales Totals
    (in ounces / number of coins)
    Month One
    ( oz. / #coins )
    January 7,498,000
    February 3,368,500
    March 2,349,500
    Total 13,216,000
    Cry Me A River
    Mar 18, 2013 - 7:28pm

    CYA Tomorrow I Gotta Split!

    The Blues Brothers, Tucker McElroy
    Mar 18, 2013 - 7:47pm

    @ Micky et al VISUAL WORKS BETTER

    While most of us here would rather read information rather than listen to it read to them, we crave information and want to base our decisions on the best we can find and do a lot of searching. And reading is a lot faster than 'listening'.

    That said, Most people in todays world are looking forward to being 'entertained' more than being informed. And I even know people that respect the truth, but won't spend the effort to read.

    I didn't understand this in the late 90's and kept sending out info to friends that acted interested, but I later realized couldn't or wouldn't read anything of depth.

    To many, the only way to get them to open up to receive even a seed of what is causing/has caused what we are entering is the visual stimuli they are accustom to.

    Sad But True, and even sadder, it's the only thing a politician even has a chance of understanding.

    Mar 18, 2013 - 8:02pm

    Euro vs USD

    Interesting post WSJ doing hit on euro. They are at war with each other.

    I have done my best to understand history of Euro, my opinion is the architects of the Euro were not intellectual lightweights, but rather punched way above their weight class. I find it hard to imagine that they did not anticipate the end of irredeemable paper. They called Nixon going off the gold standard (defaulting on the dollar) years before he did it. I am neither for or against the Euro, just as I am not for or against the USD. I am for me and my family and trying to figure out how to port my wealth to the next system (I have always had a thing for big stacks , but I digress).

    I have to think if I can do very rudimentary excel spreadsheet planning for various enterprises I am involved with, I am sure TPTB have propeller heads that can run out scenarios for them. Plus most wealthy people I have met tend to have a bit of grey matter, its fun to think of them as members of the lucky sperm club, but reality is most are smart.

    The game is on, it is not to late but the pieces are in motion.


    Mar 18, 2013 - 8:06pm

    Bitcoins breaks silvers all time record

    Bitcoins have smashed through $50 for the first time beating silvers all time record. Which will reach $100 first silver or bitcoins? Are bitcoins be proving to be a better hedge than Pms? I've wondered a few times if the parasites that be can't manipulate it yet.

    Heres a 10 day chart

    Mar 18, 2013 - 8:11pm

    Interesting post WSJ doing hit on euro. They are at war with eac

    Another divide and conquer while consolidating power by the MSM. WSJ now owned by Murdoch.

    "I am neither for or against the Euro, just as I am not for or against the USD. I am for me and my family and trying to figure out how to port my wealth to the next systemI am neither for or against the Euro, just as I am not for or against the USD. I am for me and my family and trying to figure out how to port my wealth to the next system"

    I think you sum things up very nicely. Now is NOT the time to be fighting a war with people like us that want to be left alone. (Like that HAS been appriate at any point)

    Gregory Manarinno had a nice post today.

    Video unavailable
    Mar 18, 2013 - 8:12pm

    Temperature rising

    What helped me come to terms with the loss of most of my stack in a tragic and totally unpredictable boating accident, was that I was never one to fondle coins; they are mainly just 'business' to me. Note that what survived is too spartan to be worth hiding, and is to hand, but I never bother with them. However, Cyprus has really changed something in the vibe I am getting from the events around us, and for the first time in years, I took one out as a natural focus and prop for brooding and contemplation. It does beguile and fascinate, so back to the sock drawer soon, before it turns me into Gollum. And best not look at it by firelight. I am contemplating it now in my hand; now 99 yrs old, a 1914 UK sovereign. No shortage of historical significance of that year. I wonder what historical events will ultimately be linked with a 2013 coin. All a bit sombre really.

    Mar 18, 2013 - 8:17pm

    Holy Toledo!

    Over 13 mts or more than 1% removed from GLD just today!!

    And, again, this is apparently due to "investor redemptions" because gold is declining in price. Yah, right. In the face of Cyprus and gold surging today. Investor redemptions. Uh-huh...

    New total in alleged inventory: 1219.45 metric tonnes

    Mar 18, 2013 - 8:19pm


    Absolute pump and dump SCAM. They have no value apart from assumed value, just like fiat currency.

    AVOID at all costs.

    Mar 18, 2013 - 8:25pm

    GLD/ Paper Bullion Bank Run

    Like TF mentioned in this very post and what I mentioned earlier and previously, that bullion bank run of sorts is well underway.

    Whatever it is that we've all been's begun.

    Mar 18, 2013 - 8:25pm


    haven't read up on it. but if it's purely digital it's probably easily hacked(easily in the sense, that with enough time a team will crack it) but, nonetheless an interesting experiment.

    unlike Max Keiser I would be very nervous being a bitcoin millionaire. Rather be millionaire in commodities/silver/gold.

    Mar 18, 2013 - 8:26pm

    GLD redemptions

    Whereas us plebs might fondle or flip our coins, I am trying to imagine how billionaires might interact with their gold bars the size of bricks. I wonder if they suffer disproportionately from hernias; probably the only time in their lives that they ever lift anything.

    Mar 18, 2013 - 8:45pm

    Cyprus to the rest of the world

    (1) Confiscation is happening in broad daylight.

    (2) Paper assets continue their value depreciation.

    (3) The debt crisis travels around the world in cycles.

    Mar 18, 2013 - 8:46pm


    Lol! That's one hernia I wouldn't mind experiencing.

    Mar 18, 2013 - 8:47pm

    I DO like Gregory Manarinno BUT...

    When he asks me "How are you today?", well apart from most occasions when I just say "good thanks", I have told him what's going on in my life, like for example a week or so ago I explained to him that my cat had a fight with the neighbours cat and he got pretty cut-up and we had to take him to the vet and we waited about 40 mins before we were seen, during which time the dogs there were barking non-stop and driving us crazy, not to mention frightening little kitty to death, and then after kitty had been treated we politely pointed out that we didn't like the wallpaper in the waiting room and that also one of the girls at reception was wearing a blue jumper and we really don't like the colour blue, but nothing was done about that, and then on the way home it looked like it was going to rain so we opened our umbrellas but it didn't rain which really pissed us off and then when we did get home we found that kitty that we'd taken to the vets wasn't ours after all. Cos we don't have a fucking cat.

    So, I explained all that to Gregory. Did he listen?


    Try it yourself. You'll see.

    Mar 18, 2013 - 8:47pm

    Hitler Bails Out Cyprus

    Ya knew it had to happen

    Hitler Bails Out Cyprus
    Mar 18, 2013 - 8:49pm


    @silver66 ", I am sure TPTB have propeller heads that can run out scenarios for them. Plus most wealthy people I have met tend to have a bit of grey matter, its fun to think of them as members of the lucky sperm club, but reality is most are smart." This statement is correct. I can guarantee you its true. But one of the things many people tend to forget in conspiracy theories (and I don't mean that to be pejorative, people conspire its a natural way of seeking advantage)is that there is a big difference between "smart" and "wise". The thing is, and this is true everywhere but is most especially severe in government bureaucracy, that these "smart" people often do not listen to the people whom they pay to tell them these things things and run these numbers for them. Its tempting to say but they are diabolically smart. Smart in no way armors you against foolish. I think many people would be surprised at just how often the various people in power simply refuse to listen to good information or analysis by people they rely on for good information and analysis. In fact they often destroy people simply for doing their due diligence because they either needed a scapegoat or for various emotional reasons can't handle being told the truth. It is often the case that a bureaucracy become run by people who only know how to play the political games of scapegoating and CYA. These people always have "smart" people to run the numbers and many many of them almost never listen to them either. This has been formulated in Jerry Pournelle's Iron Law of Bureaucracy But even more insidious than just the nature of the people who bubble to the top's aims is also the fact that many people simply are too arrogant or to cowardly to take good advice. And even more tragically there are many decent people who simply get put in a spot of pressure and succumb to wishful thinking and the ply the many instinctive methods of manipulation that all people have and unconsciously make use of to attempt to get people to tell them what they really want to hear. The important question is almost never "Do they have good and accurate analysis?", it is almost always "Did they listen?" I would add a corollary to that which is "The more the leadership feels that they can get away with doing things without consequences the less they listen to anyone in their organization with good information/analysis."

    Mar 18, 2013 - 8:49pm

    For Our CIGA Chris / Puck T. Smith

    I started a thread by the same name in the hopes that a longer string of well-wishes and thoughts could be conveyed there and not just on tonights thread and then stopping at some point.

    Chris is important enough to all of us that I thought this would be a good idea to express them here tonight/tomorrow on this thread but also at this new thread so that they could continue for as long and as deep as some of you might want to get.

    I know I can count on many of you to say the right thing that maybe I couldn't express properly there. Thanks.

    For Our CIGA Chris / Puck T. Smith

    Mar 18, 2013 - 8:53pm

    @ DPH

    it'll either be that, or sudden crushed-foot syndrome.

    Mar 18, 2013 - 9:04pm

    Bit Coin discussion.

    I wonder if Bit Coin is just essentially another ETF created to divert people away from historical Honest Money?

    Turk's company initally offered a debit card. Send him gold and when you swipe the card at a local merchant your gold would be exchanged for the local currency and the merchant was paid.

    Great way to save, no hassle, but was eliminated very quickly by banking laws.

    If Bit Coins are 'allowed' to enter the system, there is NO way they are a store of wealth. Just another fiat sink to keep money away from REAL INTANGIBLE wealth.

    Just my .02


    Hey it's Friday ... I've posted to much this week.

    Holy Moly, it's only Monday!

    Back to lurk mode.

    Mr. Fix
    Mar 18, 2013 - 9:07pm

    World events are catching up with my predictions.

    There is nothing to do now but kick back and watch the world's economic system implode. GOT POPCORN?

    I've got my food, I've got my gold, I've got my silver, I've got my ammo, and I've got myself.

    Bring it on. The collapse is accelerating, wealth confiscation will be global this spring. (In many forms.)

    I promise you, someday, gold and silver will be worth many multiples of what it is now, there's just a lot of crap we'll have to deal with first.

    Keep stacking while you can.

    By the way, I wouldn't be holding onto whole lot of extra fiat right now, it's time to change it into physical metal. They will devalue what they cannot steal outright.

    Lamenting Laverne
    Mar 18, 2013 - 9:09pm

    Appeal to all

    If this is the real thing going down - and I think it is, then I have an deeply heartfelt appeal to all Turdites and "bugs" of various kinds everywhere.

    We have been waiting for so long, been mocked and ridiculed, been ignored, occasionally been in doubt and many have suffered losses as a consequence of their convictions. If the reversal really happens now, it is only natural to feel the urge to gloat a bit in the light of vindication and to tell less fortunate souls that you told them so or that they have been stupid for not noticing what was going on.

    Some have been suspecting that the markets would not move before the wheels are coming off for real - meaning that the metals would not really move before the beginning of the ultimate reset sequence. We don't know for sure, but it feels like we may be there.

    If true, that means that an awful lot of people will find themselves utterly perplexed at the events unfolding, because they have not yet developed the keen sense of cynicism that the rest of us can protect our emotions with. They will find themselves financially decimated or terribly impaired, and they will probably suffer horribly.

    I appeal to all, who are in a better place due to preparations to exercise self-discipline and not start spewing "I told you so's" around all the websites, where people will arrive in greater and greater numbers to try to understand, what is going on. That is not going to help at all - in fact I suspect that the bad guys would just love, if we went ahead to fuel the divide and conquer strategy by not being able to contain the gloating due to lack of self-discipline.

    There is nothing wrong with celebrating your own victory, if and when it comes. Just be mindful of how your words may be received by all those, who were less fortunate. We still need them on board the MS Liberty even if they are late to the party.

    If you agree with this message, please spread it to like-minded friends.

    Mar 18, 2013 - 9:10pm

    Mr. Fix

    No matter how many times I see that popcorn-eating deer, it always brings a smile to my face.

    Mar 18, 2013 - 9:14pm

    What BS

    Reuters) - JPMorgan Chase & Co (JPM.N) has won the dismissal of a nationwide investors' lawsuit accusing the largest U.S. bank of conspiring to drive down silver prices.

    U.S. District Judge Robert Patterson in Manhattan said the investors, who bought and sold COMEX silver futures and options contracts, failed to show that JPMorgan manipulated prices at their expense, including by amassing huge short positions that were not justified by market events at the time.

    In a decision made public on Monday, Patterson said that while the investors showed that JPMorgan had the ability to influence prices, a fact the bank did not dispute, they failed to show that the bank "intended to cause artificial prices to exist" and acted accordingly.

    A lawyer for the investors did not immediately respond to a request for comment.

    JPMorgan did not immediately respond to a similar request.

    Investors had, in at least 43 complaints filed in 2010 and 2011, accused banks of amassing hundreds of millions of dollars in illegal profit by manipulating silver prices.

    After the lawsuits were consolidated, HSBC Holdings Plc (HSBA.L) was dropped in September 2011 as a defendant, leaving JPMorgan and 20 unnamed individuals as defendants.

    Patterson had rejected the investors' claims in December, but gave them one last chance to bolster their case.

    The complaint had sought triple damages for what it called JPMorgan's antitrust violations in distorting silver prices between 2007 and 2010, including through alleged "fake" trades late in the day when market volume was thin.

    The Commodity Futures Trading Commission began probing allegations of silver price manipulation in 2008, and two years later proposed regulations to give it greater power to thwart traders who try to manipulate prices.

    The case is In re: Commodity Exchange Inc Silver Futures and Options Trading Litigation, U.S. District Court, Southern District of New York, No. 11-md-02213.

    (Reporting by Jonathan Stempel in New York; Editing by Jan Paschal)

    Mar 18, 2013 - 9:16pm


    "This is a nuclear war on savings and wealth."

    Mar 18, 2013 - 9:21pm

    (No subject)

    This is just a one off comment by Joerg Kraemer, chief economist of the German Commerzbank, a German bank so take it for what it is worth (a comment from a single rep of a single German Bank)....anyway, I digress. For those that speak German, here it is

    Now that the dictatorial EU and IMF have simply set about stealing the privately accrued wealth of lifetime savers in Europe, everyone is asking one question – who’s next?

    Joerg Kraemer, chief economist of the German Commerzbank, has called for private savings accounts in Italy to be similarly plundered. “A tax rate of 15 percent on financial assets would probably be enough to push the Italian government debt to below the critical level of 100 percent of gross domestic product,” he told Handelsblatt.

    Thanks Jim :)
    Texas Sandman
    Mar 18, 2013 - 9:21pm


    Hate to say it, but him going in for a feeding tube & winding up in an icu with a pneumonia sounds an awful lot like an anesthetic complication.

    A botched anesthetic can end you much faster than any surgeon/surgery can. The difference between a trip to the execution chamber in Huntsville and a nice sleep is what I provide. The drugs and methods used aren't all that different. Hope he's ok. But I'm afraid the only real treatment for an aspiration pneumonitis (assuming that's what this is) is supportive (in other words, keep him alive & hope he heals).

    Mar 18, 2013 - 9:22pm


    While I really respect what you are trying to say. Doesn't it come down to the reality of why everyone should respect the liberty of others?

    Isn't that why the founding fathers of the Constitution DECLARED honest money as the legal tender?

    I accept what I think is your point that nobody should be an 'I told you so', but it seems you are planting seeds for people to make 'money' with PM's and then things will be OK without a change in society.

    This is Not a Game, it's the end of an evil one that has run it's course and has set it sights higher.

    I don't own PM's to make more ficticious fiat, nor do I do so to triump over my fellow man. I own them because they are honest.



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