Idiots Out Wandering Around

Tue, Mar 19, 2013 - 12:19pm

Why is that, lately, every time I try to get away for a few days, all hell breaks loose?

So, once again, I apologize for another abbreviated post. The Fergusons are currently in the great state of Iowa visiting MrsF's centenarious grandmother. I'll be back in my office by late tomorrow but, for today, I've got to make due.

So, let's start with this. Despite the tireless efforts of the legal teams and several, hard-working industry insiders, The Morgue finally won the permanent dismissal of the silver manipulation civil suit yesterday. Sadly, this does not come as a surprise since the rationale behind the dismissal changed little from the preliminary dismissal late last year. You can read all about it here: But for a more in-depth analysis, I would refer you back to the excellent legal commentary written for us by CALawyer back in very early January:

Moving on, the Cyprus story continues to dominate, as it should. Disregard the misinformation and disinformation. This IS a big deal. That gold and silver have barley budged while the U.S. stock market has rallied back to unchanged should surprise no one. MOPE and manipulation at its finest worst. Remember, at this critical time, gold (and silver) cannot be perceived to be a safe haven and a viable alternative to fiat currency....particularly fiat currency held within the confines of the banking system. With counterparty risk, negative interest rates and now "shared bail-ins", why would any sensible person continue to store wealth in fiat currency? At all cost, gold must be suppressed in order to promote the impression that it is equally unable to preserve wealth. Do not be fooled by this! Global demand remains extraordinarily strong. Fiat-conversion price will, very soon, begin to reflect this physical demand.

Finally, regarding Cyprus, this article from Ben Davies at Hinde Capital is terrific, written not only from a current, but also a historical sense. Please take the time to read through it.

And we must touch upon the GLD again today. Remember, the conventional thinking among mainstream analysts is that GLD is seeing a drawdown due to investor selling and asset re-allocation. You and I both know that this is complete nonsense and that GLD gold is being redeemed and withdrawn by large investors seeking immediate allocation and physical delivery.

Well, the mainstream narrative took a major hit yesterday. In the face of Cyprus, fiat and ECB distrust and a rising gold price, GLD had redemptions of 13.55 metric tonnes or more than 1% of the alleged "inventory"!! This brings the "total gold in trust" down to under 1220 mts, down from 1350 mts a/o 1/1/13. One hundred thirty metric tonnes, nearly 10% of "inventory", has been withdrawn since the first of the year.

As I go to close, I see that gold is surging to new highs for the week. This is constructive but, again, I caution you...I see no reason to get overly-excited until gold moves through and closes above $1626, which is the low of the post New Year decline back in January and the break down point from the Chinese New Year raids. Above that level and the smarty-pant, momo-chasing spec shorts will begin to get vehwy, vehwy, nuhvuss.

Silver is rallying, too, but still unable to draw away from $29 and, like gold, until it breaks back above $29.40 or so, it's still simply banging around within the range.

Finally, I just checked ZH to see if I've missed anything while typing. Not much. Only all of this. Remember, this is simply a "one-off" and "no big deal".

Have a great day and remember that the FOMC is meeting this week and Fedlines are due tomorrow. Keep your helmet and airsickness bag handy.


About the Author

turd [at] tfmetalsreport [dot] com ()


Mar 19, 2013 - 12:51pm

Interesting - Bix Weir

I keep thinking of the term: "Damned if you do and Damned if you don't" as it looks like Cyprus is going to reject the planned depositor tax. Cyprus is rejecting it's what? What happens now is that EVERYBODY will withdraw their money and the BANKS will lose everything IF they reopen their doors. The ramifications in the CDS derivatives market will destroy every other bank in the world. the world. The END has begun. The 4 year "waiting period" I have discussed many times on the Road to Roota is over and now it is time to END the Global Monetary System.

Mar 19, 2013 - 12:51pm

2nd, but with meaning

Second yes, but I can report good news... I bought 250 oz's!

Mar 19, 2013 - 12:55pm

no rest for the weary

rest is only a figment of our imagination

Mar 19, 2013 - 1:15pm


URST! Oh yes.

Code The Plumber
Mar 19, 2013 - 1:22pm

@Xeno re:Experimental

I disagree bitcoin will be "integrating." It needs to continue to innovate because as you mention anonymity is lost when you start integrating. Anonymity does not have to go out the window. Look at the way TOR works to hide your digital address. A similar "Who? I don't know that dude, I just got a package in his name." system could be worked out with UPS or others so your physical address cannot reasonably be tied to the transaction, let alone your wallet. The outlets/ups stores of the world would act like the relays, anonymizing package traffic. If UPS won't ship it without tying it to a person and transaction, so what. The DroneNet will. Give it time. One thing about .gov ought to be obvious to anyone that buys Au and Ag. They don't have the luxury of hiring the best and brightest. When the people decide they demand privacy, it will be seen to by the best and brightest, in due time. Go ahead, shut down the internet. Information will flow like water regardless, in due time. Gov owns the infrastructure you say? It's not physically resilient the way fiberoptic cable is, but I'd bet a series of lasers/receivers could be devised equally as uninteruptable for security purposes. They block your view? Move your unit. Lasers are cheap. There are a million solutions to a million problems. Bitcoin, to me, seems to be a good step toward solving the "problem" of being forced into participating in banks, in fiat currencies, with having every aspect of your behavior tracked. I like that it challenges the mental faculties of anyone that wishes to oppress too. Attacking it is difficult, and justifying attacking it even more difficult, at least to generations that traded baseball cards, pokemon or whatever innocent currency existed in your childhood. When bitcoin or it's grandchild spinoff, inevitably, is seen as a difficult to falsify medium that serves as a claim to gold, what's left after TEOTGKE, it might just be the commodity-reserve currency we all dream about.

Mar 19, 2013 - 1:24pm



Mar 19, 2013 - 1:27pm

One Off

Great new catch phrase. "Its ok dear, that hot girl i hooked up with, its a one off."

"Damn, im preggo now, its a one off."

The list is endless.

Smells like a new phrase for Urban

Mar 19, 2013 - 1:28pm

It's working

You should get away more often Turd , it's great for the metal prices wink . Come down here to Aus and then we can really watch the shit hit the fan.

Mar 19, 2013 - 1:32pm


Near the top.

Mar 19, 2013 - 1:32pm


Near the top.

Mar 19, 2013 - 1:32pm


Near the top.

Mar 19, 2013 - 1:32pm


Near the top.

Mar 19, 2013 - 1:32pm


Near the top.

Motley Fool
Mar 19, 2013 - 4:28pm


near the top. ^^

Mar 19, 2013 - 4:32pm


Near the top.

Mar 19, 2013 - 4:33pm



Cry Me A River
Mar 19, 2013 - 5:15pm

ECB Say's They've Secured Some Liquidity From Twiggy

After Cyprus vote, ECB says ready to offer liquidity within rules


2:36 p.m. CDT, March 19, 2013
BERLIN (Reuters) - The European Central Bank said on Tuesday after Cypriot lawmakers overwhelmingly rejected a key element of a proposed bailout that it was in contact with its IMF and EU partners and remained committed to providing liquidity within certain limits.

"The ECB takes note of the decision of the Cypriot parliament and is in contact with its troika partners," the bank said in a statement. "The ECB reaffirms its commitment to provide liquidity as needed within the existing rules.,0,5763596.story
Urban Roman
Mar 19, 2013 - 5:18pm


There was some discussion of bitcoin on the previous thread. It seems that the nerd money has gotten the attention of the kleptocrats: This was predictable. Someone comes up with a plausible alternative to fiat, and the kleps start to worry. It's worth noting that Bitcoin does not depend on the World Wide Web. It runs at a much lower level on the internet. If the internet is sufficiently damaged that it cannot support bitcoin, you can also kiss your brokerage account goodbye. No internet, no virtual fiat funnybux. But of course, that's the whole point of stacking, isn't it? Something that will work when the lights go out. 

Cry Me A River
Mar 19, 2013 - 5:19pm
Mar 19, 2013 - 5:19pm

when will bank runs start here in usa?

just asking the question should wake everyone up that the end is closer then you imagine?

Mar 19, 2013 - 5:20pm

i bought

100 silver philharmnonics coins,i feeeeel good man!

Mar 19, 2013 - 5:22pm


for me, the bank run in the USA began in 2008.

Urban Roman
Mar 19, 2013 - 5:22pm


near the bottom. 


At least until a new bottom is established. 

Mar 19, 2013 - 5:23pm

@Orange Seeing as the Banks...

are all tie together at the hip with the concept of derivative insurance I would have to say that you're on the right track. As in my earlier post, the "Senior Unsecured Creditors" are Banks, Investment houses and Bond/Debenture holders. The Bond/Debenture holders are you and me if we have investment grade Bank bonds. 

As I was sitting and reflecting on the International Capital Market Association (ICMA) meeting date of March 27th, 2013 it occured to me that they are likely going to discuss this Cypriot Bail-in, and its repercussions. After all it is only 1 week away from today. Too bad it's a closed door meeting, I would love to see the yelling that is going to occur...I wonder if anyone would get punched in the Face? Let's hope so!

gold slut Orange
Mar 19, 2013 - 5:25pm

Seems to me that they have

Seems to me that they have two choices:

1. Reopen their banks.

This will result in said banks not just having runs, but being TORN TO BITS by account holders. I would.

2. Banks never reopen.

If either 1 or 2 above happens, watch the dominoes fall....

Unless someone out there has some BIG TIME money to splash about, this will be nasty.

Just wish I had a bit more time to gather some more lovely yellow metal together before this happened.

Mar 19, 2013 - 5:29pm

Crime on the rise

We have two coin/bullion stores in my little burg of 120,000 sheeple and one was robbed this morning by three guys with guns in ski masks. I mention this to remind Turdites that it doesn't matter how much we stack if we can't keep it.

The Watchman
Mar 19, 2013 - 5:30pm
Cry Me A River
Mar 19, 2013 - 5:32pm

Spaniards Ask Jimmy Stewart For Liquidity

No bank runs in Spain, so far

March 18, 2013, 12:37 PM

There was no frantic clearing of deposits or stocks in Spain on Monday.

The IBEX 35 index XX:IBEX -2.20% was down over 1.2% by late afternoon, the worst-hit among European stock markets. Among big banks, BBVA BBVA -3.92% ES:BBVA -4.78% and Banco Santander ES:SAN -3.64% SAN +0.69% were each off over 2%. Spanish markets have had far worse days, but it’s also potentially early days for this crisis

Mar 19, 2013 - 5:34pm

Kiss me, I'm Iowa-ish!

Turd, it'd be my pleasure to buy you a beer if you are anywhere near Cerro Gordo county. Apologies for the snow. 365 days ago it was 80 degrees outside.

Mar 19, 2013 - 5:36pm

great to be back on line with TFMR

Great to see the server back up.
I was going through withdrawals...banking withdrawals.

Andddd it's gone...

this line is only for people with money in the bank...

it's gone.

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