Digging The Ditch

330
Mon, Apr 8, 2013 - 12:12pm

Isn't it great? In the world of leverage, rehypothecation and malfeasance, it's like Friday never happened. That lousy BLSBS, the crappy participation rate, all of it...never happened. Our blissful, fiat utopia chugs forward. For a few more days, at least.

I don't even know where to start on this fine Monday. The Yen? North Korea? 6,000,000 ounces of "silver" withdrawn from the SLV? Heck, let's just dive right in.

Here's a logical starting point. Santa's old pal, Yra Harris, has his own site and has written this insightful piece about the Japanese mega-QE. (Suddenly, I have this image in my head of an old, Japanese Godzilla movie with an horrific English overdub where Godzilla is a big, gansta-looking T-Rex with a big golden QE chain around it's neck, stomping on a senior living center filled with octogenarian Japs. Maybe Pining can cook this up for us?) Anyway, back to Yra's article. Read this now: https://yragharris.com/2013/04/07/billyjoel/

So, if Yra's right and, frankly, why wouldn't he be...Global bond yields are about to plummet and other currencies, particularly the euro, are about to rally. Thus, here are two charts of the euro. Keep in mind that, in general, rising euro = falling dollar = happy metals.

And there sure is plenty of disinformation out there, attempting to get you to sell your metal. One of my favorites is the continued "interest rates are rising" theme. Really? And which rates are those?? Here's a chart of the U.S. Long (30-year) Bond. Uhhh...rates rising? Not so much.

Speaking of disinformation...What's with all of the recent preponderance of worry and articles over confiscation? Why now? The metals bull market is over, right? We're all supposed to be selling our hard assets and safely moving back into paper, right? So, why all of the talk about confiscation? To me, it's just more disinfo, aimed at getting you to sell. Anyone spouting confiscation fear at the present time should be put on your "Disinfo Agent/Paid Troll List" and watched very closely in the future.

One guy who I know IS NOT a disinfo agent is Alasdair Macleod at GoldMoney. Here's his latest. You should read it. https://www.goldmoney.com/gold-research/alasdair-macleod/gold-price-suppression-the-game-goes-on.html

And here's some more Jackass for you, from the Greg Hunter website. It's worth a listen but I've already informed Jim that there's no way I'm going to follow suit and begin referring to him as "Dr. Willie". Maybe "Dr. Jackass" but not "Dr Willie"...unless, of course, I turn this into the TF Urology Report.

Large Widespread Cutoff of Supply Chains Coming-Jim Willie

And I've got this stray crude chart laying around this morning. As you know, we've been following along as it rallied to $98, then fell to $89 and then rallied back to $97. Well, check this out. I've not seen this anywhere before. Maybe it's something we need to keep an eye on going forward.

Finally, you're probably wondering about the title of this thread. Does it have any deeper meaning? Why, yes it does as a matter of fact. I announced in the comments of the Saturday thread that I had a new theme song. It's off of the new CD from the great Bruno Mars. The title is "Natalie" but when I hear it, instead of the three syllables of Nat-a-lie, I think "Blythe Mas-ters". Now, of course I realize that our old nemesis, The Wicked Witch, has moved on to greener pastures within The Morgue. Regardless, she's the one who put her face on CNBS a year ago and proudly proclaimed that JPM is "simply helping their clients" and that their positions are "fully hedged". Oh, really? Hmmm. Well, as President O'Bottom likes to say, the project is "shovel-ready". I hope to break ground by late next week. 

Video unavailable

(And please, this is all metaphorical and figurative. I'm not threatening anyone with physical harm. Just like how Bruno isn't out there hunting down some ex-girlfriend named Natalie. It's just a song...and a darn good one, at that!)

OK, that's all for today. Remain calm and keep stacking.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  330 Comments


Apr 8, 2013 - 2:33pm

WHOA! Check this out...

On Friday, as silver jumped 45¢, total silver OI surged by 2,174 contracts to a new multi-year high of 159,386.

Again, I cannot stress enough how totally F'd up this is, especially in the post-MFG era. For perspective, MFG declared bankruptcy on 10/31/11. A CoT survey was taken the next day, 11/1/11. That survey showed:

  • Total gold OI of 442,435. As of Friday, total gold OI was 412,744. Down 6.71%.
  • Total silver OI of 108,675. As of Friday, total silver OI was 159,386. Up 46.7%. 

The price of gold closed on Friday 10/28/11 at $1746.20. That same day, the price of silver closed at $35.27.

TJeffson
Apr 8, 2013 - 2:33pm

Pining....

now that was funny! Gotta love the old classic Godzilla.

csquared13
Apr 8, 2013 - 2:36pm

Turd, your Weekly WTI Chart

Turd, your Weekly WTI Chart is very similar to mine.

I've been playing that bottom trend-line from the long side with very good results. Almost 30% from Nov/Dec in to Jan and then just recently another 10% from early March. All longs via UCO. (too scared to short oil these days)

I'm hoping we re-test that lower trend-line again so I can have a go at 3 for 3.

A.B.
Apr 8, 2013 - 2:37pm

Thank god.

Thank god it is only JPM manipulating the market. If there were another, I don't know what would be the outcome... 

The latest rumor is that JPM is shorting the PMs and long the bitcoin. :))

it is almost 200 now. Around 3 times the value since Cyprus. 

Go figure...

SilverSurfers
Apr 8, 2013 - 2:39pm

Exactly

There is an OBVIOUS correlation between taxes and blue states, How fitting!!. That is so bogus, as cal sell rates not includes, so this is just the INCOME side, not the SPEND side, were slaved 70% actually, but nonethelss, it shows where the folk pandered heads are at, as BY CORRELATION, where enslavement, the degree of pandereressness, and where pandered folks actually live. Makes complete sense.

Exactly .... They keep diggin the ditch, until they fall in. ... Exactly.

They get you comin and goin, you cant hide, you are trapped. Give it up.

Im rootin for BB to trash the whole freakin cesspool. Come on BEN!!!

https://taxfoundation.org/article/tax-freedom-day-2013-april-18-five-days-later-last-year


ReachWest
Apr 8, 2013 - 2:39pm

Godzilla!

Great stuff Pining! Tried to hat-tip it - but the hat will not tip on that post - oddly I can tip all the others on the page - but - not that one. Regardless - excellent work!yes

ancientmoney A.B.
Apr 8, 2013 - 2:49pm

@A.B. re : Thank god . . .

"Thank god it is only JPM manipulating the market."

-------------------------------------------------------------------------------

Well, CFTC helps them out quite a bit . . . Their necks are quite distorted from looking the other way so much.


Apr 8, 2013 - 2:50pm

Now chew on this...

On Friday, gold closed at $1576. As of Friday, the GLD held in "inventory" 1,205.31 metric tonnes.

On Friday, 10/28/11, gold closed at $1746. On that day, the GLD showed an "inventory" of 1,243.55 mts.

In the grand scheme of things, that's at least logical and plausible. Now get ahold of this...

On Friday, silver closed at $27.22 and even though the SLV showed a drop of nearly 6MM ounces of silver on Friday alone, it still showed an "inventory" of 10,498 metric tonnes.

On Friday, 10/28/11, silver closed at $35.27 and the SLV allegedly held 9,764 mts. 

HUH???

Let me see if I've got this straight. Over the past 18 months or so, gold has declined in price by almost 10%. Over that same time period, the GLD has seen its "inventory" drop by about 3%. (Keeping in mind, of course, that the GLD "inventory" is down more than 10% YTD 2013.)

In contrast, silver has fallen in price by roughly 23% but the SLV "inventory" has grown by 7.5%.

So what does all this mean? Perhaps you should consult Sir William of Ockham for your answer...

Ten_of_Swords
Apr 8, 2013 - 2:53pm

China and the UAE

Busy little bees, via Reuters:

One step was taken in January last year when the central banks of China and the United Arab Emirates signed an agreement allowing them to swap 35 billion yuan ($5.6 billion). The swap facility does not appear to have been used so far, bankers said, but will ensure liquidity if demand for the yuan rises.

A key step would be any decision by China to appoint banks to clear yuan trades in Dubai, as it has done for Taiwan and Singapore in the last few months.

"Certainly the Middle East is a big enough region for it to operate its own clearing center," Wong said. But she added this would depend on factors such as the stance of UAE authorities and competition from London, a top global foreign exchange center, and there was no sign of this status being accorded now.

Even without clearing status, however, other innovations may spur yuan trade in Dubai. The Chinese central bank has said it will launch this year or next the China International Payment System, a facility to make yuan clearance more efficient for centers which lack their own clearing banks.

The new system would link Chinese and overseas banks, remaining open for most of the global day.

"We see great potential for further growth" in use of the yuan in the UAE, Zheng Yang, a senior official in the Chinese central bank's Shanghai branch, told HSBC clients in a presentation on Monday. He was visiting the UAE for talks with officials and bankers.

The article says it is for non-oil transactions, but how long will it take to become all transactions?

Rook takes King's pawn.

Check.

dudestacker
Apr 8, 2013 - 2:53pm

So let's all hat tip RW as Pining's proxy until it's fixed

Gotta show ya some love somehow (Dr.)Pining.

2x2
Apr 8, 2013 - 2:55pm

hat tip

Yeah - just tried to hat tip Pining, didn't work. On the bright side that gives me the chance to compliment you on the little details. Love Godzilla's t-shirt!

A while back you put together a collage of trolls complete with some an anti-PM quote for each. I remember one comment you stuck to an 'unfortunate' face was something like "You moran gold owners" Something like that, I can't remember the exact works except for the mis-spelt 'moran'. I thought: Typo or intentional? Figured, that is 100% intentional and brilliant! Beautiful details!

HAT TIP!

The Watchman
Apr 8, 2013 - 2:56pm

APMEX Message Regarding ASEs-Limited

Only $3.99 per coin over spot!
Available from the U.S. Mint for now, but they will be sold on a limited basis. Order yours from APMEX today while we still have them!

ancientmoney TF
Apr 8, 2013 - 2:58pm

@Turd re: chew on this . . .

So what does all this mean? Either:

A. Silver investors are much smarter than gold investors, as they truly do BTFD, or:

B. The APs at SLV are using the self-induced low prices to stock up on that cheap silver they arranged for.

I would go with B.

Road_Scholar
Apr 8, 2013 - 3:05pm

Looks like Turd is going with Michigan tonight...

with the "M" added to the foam hat on the homepage logo. I guess I'll take Louisville and give the points wink


Apr 8, 2013 - 3:08pm

Thanks folks!

No worries on the HT's, just glad you got a smile from it!

Off topic- On another note, I'm not sure anyone posted this here, but in honor of our esteemed host (who is a huge Nebraska Cornhuskers fan), I thought I would put this up here- careful, it'll make you choke-up if you have a heart. Blythe wouldn't bat an eye, but for the rest of us, this is pretty cool / heartbreaking all at the same time:

Jack Hoffman is a seven year old boy from Nebraska with a rare form of brain cancer. He’s been undergoing chemotherapy, but still has some of the same interests as other young boys, and apparently Jack likes football. Some of the Nebraska Cornhuskers have sort of adopted Jack and wanted to do something nice for him. Now, it would be great for a kid like Jack to get a chance to go see a game with his new friends, but the Cornhuskers had a better idea.

Jack Hoffman is a 7-year-old brain cancer patient, but that didn’t stop him from scoring a touchdown in Nebraska’s spring game Saturday afternoon. Jack, who was diagnosed with cancer in 2011 and is currently on a break from his chemotherapy treatment, came into the game for a fourth-and-1 on the 31 yard line. With the help of some blockers, Jack ran the ball all the way into the end zone in front of more than 60,000 fans.

https://www.youtube.com/watch?v=_Jmisv1Spck&feature=player_embedded

psi
Apr 8, 2013 - 3:08pm

@now chew on this...

Theoretically, GLD inventory need not rise and fall with the price of gold. It can start with one ounce & stay the same as long as buyers and sellers miraculously keep the price of GLD at lockstep with the price of gold.

Bohemian
Apr 8, 2013 - 3:10pm

North Korea Producing More Silvery Subs

"Over the last three years North Korea has significantly stepped up its production of submersible vessels such as midget submarines, according to an inside source. The sinking of the South Korean corvette ‘Cheonan’ in March 2010 by just such a North Korean midget submarine is said to have caused the authorities to appreciate the potential importance of such vessels to their asymmetrical warfare capabilities.

As such, there are suspicions that the recent North Korean decision to import more than 600kg of silver through China was done to facilitate the production of batteries for submersible production.

A North Korean military source told Daily NK on the 4th, “The [North Korean] Navy has been producing submersibles at every shipyard on their east and west coasts ever since the attack on the Cheonan in 2010.”

https://www.dailynk.com/english/read.php?cataId=nk01500&num=10463

hai
Apr 8, 2013 - 3:13pm
Louie
Apr 8, 2013 - 3:15pm

This is what silver shortage

This is what silver shortage looks like Fellow Turdites, It was just a few short weeks ago that we were debating the silver shortage and the premium on 90% "classic" silver. Just a few short months ago, you could buy "junk" silver for BELOW spot, because nobody wanted it! Just a few short years ago, you could buy Morgans to your hearts content at spot, or just above spot. Stacker gobbled up the Morgans first, then the Peace dollars. Then they turned to the 90% because of the low premium and the divisibility. Now the premium on 90% is $2.70 per ounce. Who knows if dealers are holding back ASE, or if there really is a shortage, BUT Louie's point is there is a growing disconnect between the spot price and the price at which physical holders are willing to deliver silver. The "Premium" will only grow larger in the days ahead.


Apr 8, 2013 - 3:18pm

More like the tech team is

More like the tech team is going with Big Blue tonight. We're Michigan grads, so we have no choice. wink

As for Turd, not sure if he's taking the points or not. He'll have to chime in.

That_1_Guy
Apr 8, 2013 - 3:20pm

Inquiry...calling on the Mental Giants.

Hello All,

I am responding to an email from a friend of mine that is stuck on the Swedish Solution for the western banking systems. He sees that as the only solution. I really don't know a lot about the implications. But at first look over, I see some things I dont like.

https://en.wikipedia.org/wiki/Swedish_banking_rescue

To me, it kinda looks like they collateralized the banks with the taxpayers money and sold national resources and real estate to bail out bad bets from the bankers. I would offer the default Iceland as a better long term solution. I dont think that rewarding the banks by enforcing their bad debt on the people is a good solution. I dont want to counter his solution without looking at other angles and perspectives, as I dont know much about Sweden. Your insight is always appreciated...we have the best group here.

He is saying that the gold backed BRICS and co currency will help Canada as they have huge reserves of gold.

https://www.visualcapitalist.com/portfolio/global-gold-mines-and-deposit...

He proposes that they nationalize the banks and pay for the bad debt through gold in the ground? I dont know how i feel about that...we have your gold...cough..in the ground.

Im really trying to educate my friend, rather than blow him out of the water.

This group is the best resource I can think of.

Thanks in advance.

GUY

Pinning..that godzilla is classic. Well played sir. I was picturing a dragon with a yellow hat on a pile of silver and gold..getting ready to fight the BOJ godzilla.

Dont forget to stack.

TF Metals Admin
Apr 8, 2013 - 3:21pm

I can't decide

Leaning toward taking the points, though. Me-chicken backcourt should be able to handle the Loouhhvull press.

Pining 4 the Fjords
Apr 8, 2013 - 3:23pm

Thanks, Pining

Here's a little MetalWorld coincidence.. Little Jack's dad's name is Andy. Not Ranting Andy Hoffman. Just regular Andy Hoffman.

opticsguy
Apr 8, 2013 - 3:26pm

Go Blue!

Aerospace Engineering '83

The Vet
Apr 8, 2013 - 3:29pm

Don't forget the SLV and GLD shorts....

SLV short interest 8,840,000 shares or roughly 8.5 million ounces..

https://shortsqueeze.com/?symbol=SLV&submit=Short+Quote%99

GLD short interest 25,311,000 shares or roughly 2.5 million ounces.

https://shortsqueeze.com/?symbol=GLD&submit=Short+Quote%99

SM shorts get the cash when they sell short and those short sold shares do NOT have any backing in metal in the vaults of the ETFs. If all longs tried to cash out then GLD would be at least 2.5 million ounces short for redemptions and SLV 8.5 has million ounces unbacked...

When you buy stock there is no way of knowing if you are buying a share backed by the ETF's metal in the vault or just a promise to replace the stock by a short seller who has no metal available to him.

Ten_of_Swords
Apr 8, 2013 - 3:32pm

A moment of silence for Australian Turdites'

IRA accounts. From ZH:

On the flip side, though, the Australian government has just announced new rules which penalize citizens who have responsibly set aside savings for their own retirement.

Any income over A$100,000 drawn from a superannuation fund (the equivalent of an IRA in the United States) will now be taxed at 15%. Previously, all such income was tax-free.

The really offensive part about this is that the government is going to tax people’s savings ‘on both ends,’ meaning that people are taxed on money they move INTO the retirement fund, and now they can be taxed again when they pull money out.

The Cyprus debacle drew a line in the sand– fleecing people with assets, or income, in excess of 100,000 dollars, euros, etc. is now acceptable. This is the definition of ‘rich’ in the sole discretion of governments.

And make no mistake– if it can happen in Australia, which still has reasonable debt levels despite years of deficit spending, it can happen in bankrupt, insolvent nations like the US.

I agree with the Tylers' assessment in the last paragraph. I would like to prognosticate that when it happens in the USSA, it will be so astonishing and unbelievable that our breath will be taken away. The spectacle of the US downfall can be summed up with this video:

Video unavailable
Pining 4 the Fjords
Apr 8, 2013 - 3:32pm

And check this out

Little Jack was included in all the official games stats, too:

https://www.huskermax.com/games/2013/00_redsversuswhites13.html

Ten_of_Swords
Apr 8, 2013 - 3:36pm
dnlward
Apr 8, 2013 - 3:37pm

@ 2x2

https://www.urbandictionary.com/define.php?term=moran

Look it up, ya Moran!

(j/k I had to look it up my first time as well. Still find it ironically highlarious.)

The Watchman
Apr 8, 2013 - 3:38pm
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