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 You and I both know that this is complete nonsense and that GLD gold is being redeemed and withdrawn by large investors seeking immediate allocation and physical delivery.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 ()


Lamenting Laverne
Mar 20, 2013 - 3:13pm


Bugzy - where did you get the depleted uranium info from? Remember that story about the Benghazi bombings? It alleged that the bombing was an attack on the operation that was funneling weapons from Libya to Syrian rebels via Turkey. Further, it alleged that Turkey had gotten cold feet, when it discovered that there were chemical weapons in the shipments. The meeting was said to be between a Turkish envoy and the US ambassador. Remember that later the press had a number of news beeps about fear that Assad would use chemical weapons on his own people. One was a British newspaper, I think, the other was Euronews. I remember thinking false flag conditioning at the time. Remember that Hillary Clinton had a terrible headache and could not appear at the Benghazi hearings. Did she ever appear in front of the hearing panel? - or did the headache continue long enough for her to get off the hook? Could it be that she allowed to resign for her role in Benghazi without trial, in the same manner that banks pay fines to avoid trial in settlements out of court?

Mar 20, 2013 - 10:50am

Silver Wheaton is a buy at this level. Earnings report on Friday

Silver Wheaton is a buy at this level. Earnings report on Friday.

Mar 20, 2013 - 10:15am

Very Obvious

The last few days of trading have made it bloody obvious that there is a very clear and heavily used BUY SPY and SELL Miners. Almost every sudden spike higher in SPY is matched instantaneously by a pounding of the miners (but it does not go in reverse). This is based on a very close examination on a second by second analysis of trading.

So .... either this is shorting miners (and so at some point must be unwound) .. or it is a continuation of a move by someone out of miners. I'd put my bets on the former.

Gold and miners will move up strongly only once the broader market uptrend is broken.

Perfect example at 10:12:30 just now ... SPY jumps .20, XAU drops .20, instantaeously.

Mar 20, 2013 - 10:12am

Bailout Clash: Why Europe Must Play Hardball w/Cyprus

Bailout Clash: Why Europe Must Play Hardball with Cyprus

The Cypriot rejection on Tuesday night of the euro-zone bailout package for the country's ailing banks has triggered a power struggle between the island nation and the European Union. If Brussels gives in, future efforts to save the euro will be made more difficult. All hopes are now on Russia.An Analysis by Christian Rickens more...

Banks on the Brink: ECB May Cut Emergency Funding to Cyprus

Cyprus Turns to Moscow: Scenarios for a Russian Role in the Bailout

Mar 20, 2013 - 9:39am

Cyprus: Russian Mafia Money Laundering

Russian oligarchs, businessmen and Mafiosi, who have invested illegal money in Cyprus, would be the main beneficiaries of any future eurozone loan to prop up the island's banks, according to a leaked German intelligence report quoted in Der Spiegel. Cyprus denies the allegation, saying tough measures are in place to combat money laundering

Money laundering
Mar 20, 2013 - 9:35am


Sorry, couldn't resist when I saw there were 100 comments. I'll go read the article, now.

Mar 20, 2013 - 8:47am

Ivars ?

First it was that idiot Chris Hedges .... now it's Christine Desan .... what's next .... an hour of Michael Moore .... that bro in the orange hoodie who doesn't understand a word of what she's saying is her dude ? Monedas 1929 Comedy Jihad My Only Competition In Humour Are British Socialists World Tour

Mar 20, 2013 - 8:33am

Where's The Bernanke ?

He's sleeping on a cot .... in the Gold Suppresion War Room ! Monedas 1929 Comedy Jihad Who Needs Harvey Organ When Ya Got Me World Tour

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

Mar 20, 2013 - 8:27am

Judge clears JP Morgan of silver price conspiracy

A US district court judge has cleared JP Morgan Chase & Co of accusations by a group of investors that the company conspired to push down silver prices.

The plaintiffs were unable to prove that JP Morgan had intentionally manipulated prices by creating long and short positions that were out of sync with market events throughout 2010-2011.

The judge stated that the defendant was indeed able to influences prices – something that JP Morgan did not deny – but did not find sufficient evidence to suggest that the bank "intended to cause artificial prices to exist."

The US Commodity Futures Trading Commission started probes of silver price manipulation in 2008, proposing regulations in 2010 that would increase its ability to prevent traders from price manipulation.

Mar 20, 2013 - 4:24am

bullish gold

ALGO pattern match highly bullish

GOLD hourly

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment