New Highs Today

418
Fri, Apr 5, 2013 - 10:36am

No, not in gold or silver, of course. Nope, today saw a new high in the LSHI!

Of course, longtime Turdites know what the LSHI is but, if you need a refresher, you can find the definition on the Turdisms page. https://www.tfmetalsreport.com/glossary

Oh boy that was fun. Joe Kernen throws it to "Hampton Pearson at the Labor Department" and ole Hampton proceeds to drop a bomb on the Fort Lee crowd that left them speechless. He might as well have blasted some 14-megaton flatulence the way the room went silent in shock! The Shill looked like a deer in the headlights. Austen Goonsby went into SPIN overdrive and, of course, LIESman began to sweat profusely.

What does it all mean? The U.S. economy sucks and it ain't getting any better. Period. End of story.

And please, please, please...DO NOT BUY THIS GARBAGE ABOUT QE∞ ENDING. It can't and it won't.

And recall....and I say this with 100% certainty because I heard it with my own two ears...The Bernank said that:

  1. He might look at "slowing the asset purchases" when unemployment falls to 6.5%.
  2. He doesn't expect 6.5% unemployment until mid-2015, at the earliest.

And, regardless, it doesn't matter. QE∞ isn't about growth or jobs or anything economic. It's about providing a constant bid in the bond market so that rates stay at 2% or lower. Again...Period. End of story.

I could go into the specifics of the lousy data but why? You've probably read about it elsewhere and if you haven't, I can just give you this link. It pretty much tells you all you need to know: https://www.zerohedge.com/news/2013-04-05/people-not-labor-force-soar-663000-90-million-labor-force-participation-rate-1979-le

So let's turn the discussion back to gold and silver. That they haven't exploded higher today is due to several factors, one that I'll show you below. Primarily, though, sentiment is lousy and momentum is all to the short side. Therefore, it's very difficult to turn things around in one day. IT WILL TURN. AND SOON. But it's always going to be unlikely that such a major shift can occur in one day. So, we wait. And we continue to buy at these deeply-discounted prices. And we add to our stacks.

Now check this out. This is outrageous! When the headlines hit at 8:30 EDT, gold prices immediately jumped as new orders hit and a few buy-stops were triggered. Then, while we were still between 8:30 and 8:31, gold sharply reversed and fell back by $14! There is only one way for this to have happened so quickly: A huge sell order was placed above the market BEFORE the news with the intent of capping any surprise rally and blunting the momentum. If you ever wanted direct evidence that the metals are manipulated and managed, there you have it. And sadly, it worked. Halting the rally at 1575 emboldened the shorts to drive it back down and now, as I type, gold is still just $1565 and silver is up a measly 19¢ and barely over $27.

So, here we sit. The metals should be screaming higher but there not. So what else is new? They should have been screaming higher since October. And though we've bounced a bit today, we are clearly still not out of the woods for a drop below $1525 and $26. Today's action helps and I suppose that The Washout is slightly less likely today than it was yesterday. But we must remain guarded and on the lookout.

The first thing gold needs to do is to hold these gains and close today back above $1560. It then needs to stay above $1560 next week. Still, though, it would be foolish to "call a bottom" before gold gets back above $1625. Silver, too. As you can see on the chart below, every time this year it has had a chance to form a bottom, it has failed. Now our first target is $28. Don't even think about getting excited/optimistic until that level is regained and, frankly, don't get confident that a bottom is in until price is back above $29.40. That's a long way from $27.

Anyway, the moral of the story remains the same: Just stay patient and keep adding to your stack. You are on the right side of this. The end of the Great Keynesian Experiment continues to unfold right before our eyes. Do not lose courage or be swayed by the day-to-day machinations of the Cartel-controlled "markets". They don't matter. All that matters is that you continue to add to your financial protection by the accumulation of physical precious metal. One more time...Period. End of story.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  418 Comments

meegoreng1
Apr 5, 2013 - 1:39pm

COT REPORT

If there was ever a time that the COT #s to be fudged, it would be today after the huge smackdown of the metals this week.

J PIG Morgue aka the EE will not allow the traders to reposition themselves so they can continue profiting being on the other side of the trade.

Please stay away from all their casino games. Stack physical only and mostly silver as that is our only weapon.

ballyaleSilverSurfers
Apr 5, 2013 - 1:41pm

My thinking is the same

NK is a conundrum for both China, Russia, and the US.

Just think about the US launching a B-52 nuclear strike on Pyongyang. The nuclear fallout would spread into China and Russia.

Somehow, I don't think, either state would like that outcome. The economic costs would be enormous at a time of fragile global economic times.

The only "viable" solution is to cut off the head of the snake before it strikes.

It can't be the US, but either China and/or in conjunction with the Russian KGB should be able to do the job. It will make for a fascinating novel.

The end result should be a more meek NK and a destruction of their nuclear facilities. Ultimately, if these nations are sane (far from real), there should come about a unification of North and South Korea. In this scenario, the US agrees to remove all of its forces from SK, thus making SK into another Vietnam, i.e. neither friend or foe of either, just neighboring countries wanting to do business.

That would be in the best interests of all the Powers, imho.

Why this scenario hasn't been done is as much a mystery to me as the PM markets.

Bally

Bollocks
Apr 5, 2013 - 1:44pm

That's not Marvin

That's my Mother!

Still running on Windows XP. Dearie me.

silver66
Apr 5, 2013 - 1:46pm

Who would have thunk it

not related to metals but to TEOTKE and corruption/regulatory capture

https://www.slate.com/articles/health_and_science/medical_examiner/2013/...

Cheap, effective and not owned by the pharmaceutical industry, shocking that WHO is against it

Silver66

punchbowl
Apr 5, 2013 - 1:47pm

fulgurite -- summer crop?

Last I checked the Koreas are in the northern hemisphere and share the same seasons as Canada and the US. Therefore summer hasnt started yet and any harvest is way off. Not sure what you mean by it "still needs to be harvested" when it isnt even in the ground.

Tell me more about this "sable rattling"? Shaking weasels?

Your insight is truly profound. Novel take. So smart.

Please impart some more of your cutting edge missives.

SilverSurfers
Apr 5, 2013 - 1:47pm

@Cubish

What if the Fed,

Used its printing,

To alleviate taxation?

========================

BINGO!!!!!!!!!!!!!!!! instead of bank holidays, as the deficits are already blown out for years to come, why not TAX HOLIDAYS, and get the econ really rockin!!!. The problem of that is that QE is not for the dollar, the people, or the economy, but all about saving the bansters arses and bulbist bonuses.

but yeah, you hit it out of the ball park.

the teapartiers focus on taxes, there own pocket books, (read motivate by selfish greed) and not the comprehensive whole, for QE devalues them pocket book dollars, for the NO WIN, but given that political stalemate in that cesspool, called DC, it is a start though comprehensively short sighted.

Fulgurite
Apr 5, 2013 - 1:48pm

@ancientmoney

Quote:

You assume that there will be physical available to buy after such an event.

I aggressively bought plenty of gold and silver in 2008 (week after Lehman), 2009 and 2010 and, despite fear mongering on certain website about supply shortages, I never experienced a shortage of precious metals here in Berlin, and neither have friends who live in the UK and The Netherlands.

It's all fear mongering in order to scare you into buying. Think of it like good ol' Jimbo Cramer saying "get in quick, before prices take off and it's too late!" It's all bollocks!

Even when gold was $1900, there never was a supply problem with any of the sites below;

https://www.proaurum.de/

https://www.gold-super-markt.de/

https://www.edelmetall-handel.de/

https://www.amsterdamgold.com/nl/goud-kopen/goudbaren

Groaner
Apr 5, 2013 - 1:48pm

How did they know I stuffed 175K in my mattress?

https://www.marketwatch.com/story/the-175000-mattress-2013-04-05?link=MW_home_latest_news

this kid is not trusting the banksters with my money.

I wonder if the scum bags got their moneys worth with that block this morning on the big jump? We are now higher..

ancientmoney
Apr 5, 2013 - 1:49pm

International "events" like NK's sabre-rattles . . .

are orchestrated. There is some other purpose. Maybe a pure distraction; to get people to look that way, while the real stuff goes on with little notice. Maybe a way for NK to get some benefits, as someone else said. Maybe a way for cover in a new international rearrangement. No serious war maneuvers get announced ahead of time; surprise is the greatest tool for making war.

ancientmoney
Apr 5, 2013 - 1:52pm

@Fulgerite . . . no supply problems . . .

"there never was a supply problem"

#####################################################

There was a bit of a supply problem in 1933 after FDR devalued the dollar and confiscated the people's gold.

And, another one after Nixon closed the gold window in 1971.

Never is long time, and you never know when never will end.

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