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

Founder
turd [at] tfmetalsreport [dot] com ()

  106 Comments

ZILVERMAN
Mar 19, 2013 - 5:20pm

i bought

100 silver philharmnonics coins,i feeeeel good man!

ag1969
Mar 19, 2013 - 5:22pm

hammerman

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

Urban Roman
Mar 19, 2013 - 5:22pm

Somewhere

near the bottom.

...

At least until a new bottom is established.

Hagarth
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 slutOrange
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.

beinki
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

https://blogs.marketwatch.com/thetell/2013/03/18/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.

It's A Wonderful Life bank run

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

dnlward
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.

Strongsidejedi
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.

https://www.southparkstudios.com/clips/222624/the-importance-of-saving-m...

Andddd it's gone...

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

it's gone.

Subscribe or login to read all comments.

Contribute

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 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

Key Economic Events Week of 3/2

3/2 9:45 ET Markit Manu PMI
3/2 10:00 ET ISM Manu PMI
3/2 10:00 ET Construction Spending
3/4 8:15 ET ADP employment
3/4 9:45 ET Markit Service PMI
3/4 10:00 ET ISM Services PMI
3/5 8:30 ET Productivity & Unit Labor Costs
3/5 10:00 ET Factory Orders
3/6 8:30 ET BLSBS
3/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 2/24

2/25 9:00 ET Case-Shiller home prices
2/26 10:00 ET New home sales
2/27 8:30 ET Q4 GDP second guess
2/27 8:30 ET Durable Goods
2/27 11:30 ET Goon Evans speech
2/28 8:30 ET Pers Income and Spending
2/28 8:30 ET Core Inflation
2/28 9:45 ET Chicago PMI

Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

Key Economic Events Week of 2/10

2/11 10:00 ET Job Openings
2/11 10:00 ET CGP Hump-Hawk House
2/12 10:00 ET CGP Hump-Hawk Senate
2/13 8:30 ET CPI
2/14 8:30 ET Retail Sales
2/14 9:15 ET Cap Ute & Ind Prod
2/14 10:00 ET Business Inventories

Key Economic Events Week of 2/3

2/4 10:00 ET Factory Orders
2/5 8:15 ET ADP Employment
2/5 9:45 ET Markit Service PMI
2/5 10:00 ET ISM Service PMI
2/6 8:30 ET Productivity & Unit Labor Costs
2/7 8:30 ET BLSBS
2/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 1/27

1/28 8:30 ET Durable Goods
1/28 10:00 ET Consumer Confidence
1/29 10:00 ET Pending Home Sales
1/29 2:00 pm ET FOMC Fedlines
1/29 2:30 pm ET Powell presser
1/30 8:30 ET Q4 GDP first guess
1/31 8:30 ET Pers Inc and Spending
1/31 9:45 ET Chicago PMI
2/2 10:00 pm ET Chiefs win SB LIV

Key Economic Events Week of 1/13

1/14 8:30 ET CPI
1/14 9:00 ET Goon Williams
1/15 8:30 ET PPI and Empire Fed
1/16 8:30 ET Retail Sales and Philly Fed
1/17 8:30 ET Housing Starts
1/17 9:15 Et Cap Ute and Ind Prod

Forum Discussion

by nuggety, Mar 31, 2020 - 10:21pm
by Green Lantern, Mar 31, 2020 - 10:11pm
by Green Lantern, Mar 31, 2020 - 4:39pm
by Green Lantern, Mar 31, 2020 - 4:23pm
by 11IMIX, Mar 31, 2020 - 2:47pm
randomness