Idiots Out Wandering Around

106
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: https://www.reuters.com/article/2013/03/18/us-jpmorgan-silver-lawsuit-idUSBRE92H10520130318. 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: https://www.tfmetalsreport.com/blog/4408/guest-post-summary-silver-civil...

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. https://www.hindecapital.com/blog/cyprus-oh-the-irony/

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. https://www.spdrgoldshares.com/

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".

https://www.zerohedge.com/news/2013-03-19/cyprus-contagion-spreading-greek-bonds-plunge-most-bailout

https://www.zerohedge.com/news/2013-03-19/germany-enters-grace-bull-liquidating-cyprus-china-shop

https://www.zerohedge.com/news/2013-03-19/former-cyprus-central-bank-head-slams-blackmailing-european-leaders

https://www.zerohedge.com/news/2013-03-19/cyprus-finance-minister-resigns

https://www.zerohedge.com/news/2013-03-19/cyprus-now-set-vote-against-bailout-ruling-party-abstain-guaranteeing-failure-ratify

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.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  106 Comments

Mudsharkbytes
Mar 19, 2013 - 1:32pm

Somewhere

Near the top.

Mudsharkbytes
Mar 19, 2013 - 1:32pm

Somewhere

Near the top.

Mudsharkbytes
Mar 19, 2013 - 1:32pm

Somewhere

Near the top.

Motley Fool
Mar 19, 2013 - 4:28pm

Everywhere

near the top. ^^

ancientmoney
Mar 19, 2013 - 4:32pm

Nowhere

Near the top.

thesandbox
Mar 19, 2013 - 4:33pm

wooooo

hooooooo!

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

Reuters

2:36 p.m. CDT, March 19, 2013

https://www.youtube.com/watch?v=qcxSKt73394&t=1m21s
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. https://www.chicagotribune.com/business/sns-rt-us-eurozone-cyprus-ecbbre92i137-20130319,0,5763596.story
Urban Roman
Mar 19, 2013 - 5:18pm

Bitcoin

There was some discussion of bitcoin on the previous thread. It seems that the nerd money has gotten the attention of the kleptocrats: https://www.bitcoinmoney.com/post/45771686409/news-roundup-fincens-guidance-re-virtual-currencies 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

These Protests Are Only The Beginning

Work continues to shield Cypriot small savers
hammerman
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?

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