Fri, Jul 5, 2013 - 12:45pm

It's late so just a quick summary today.

Anyone still wondering why we call it the BLSBS need look no further than today's report. This story from ZH says it all:

I could type up a full summary but there's no time. Besides, Denver Dave tells you all you need to know here:

And of course, just so you understand the narrative and how this is all supposed to fit together, CNBS chimes in to inform you that the BLSBS data is gold's "nightmare":

Ummmm. No, not really. A nightmare for paper gold traders who are long, perhaps. Certainly not a nightmare for me.

Speaking of "narrative", while I've been on vacation I've had one thought that keeps creeping back into my mind. It's this notion that gold is going down because sometime soon The Fed is going to begin to "taper" their $85B/month in quantitative easing. OK, fine. But how does that explain the fact that gold has been going down since October? QE∞ was announced last September and fully realized in December yet gold broke from $1800 in early October and has rarely seen an uptick since.

Perhaps the narrative doesn't quite work. Perhaps it's really all just a cover story. I fully, 100% believe that the events of the past nine months have been a contrived, managed and designed scheme to decrease and eliminate The Bullion Banks' liability in paper metal. Last September, they were net short 737 metric tonnes of paper gold. As of ten days ago, that number was down to 109 metric tonnes. As of this moment, let's safely assume that it is well under 100 which means that the short paper liability has been reduced by 90% in the days since QE∞ began. This is not by accident and it is not some sort of fortunate coincidence for the banks. This type of counter-intuitive move, for which a cover story has been created and maintained, is a clear and coordinated, manipulative event. For the sake of simplicity, it looks something like this:

  1. Begin paper price smash that eventually feeds on its own momentum, drawing in Large Spec selling to perpetuate it. The Banks are buying and covering into this Spec selling. However, the falling price increases physical demand.
  2. By design, though, the falling price changes "investor" psyche and redemptions begin at GLD.
  3. Redemptions at GLD allow the APs (which are the Bullion Banks) to withdraw gold and utilize it to settle physical purchases brought about by the lower prices.

Finally, today, this great piece from JS Kim. Please take time to read it over the weekend:

As I close, I see that gold went out down about $38 and silver is down nearly $1. Crude has spiked toward $103 and bonds are getting smoked with the 10-year note now yielding 2.70%. Nothing is "fixed" and nothing is "fine". Hold your metal closely and keep stacking.


p.s. Two things:

  1. There is no CoT report report today. Because of the holiday yesterday, the CoT will be released on Monday... a full six days after the survey was taken!
  2. Lately there have been an abundance of full articles being c&pd into the comments section. Please refrain from doing this. There are often copyright restrictions on internet material and using a full c&p can put me into some legal hot water. When posting, please copy just one or two paragraphs and then add a link to the rest of the article. Thanks!

About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 5, 2013 - 12:47pm



Jul 5, 2013 - 12:48pm


I second BTFD


Jul 5, 2013 - 12:49pm


Edit: 3rd...

Jul 5, 2013 - 12:58pm

Top 10

While the partiers sleep off the 4th Celebrations!

Off to the LCS to see if anything is available at this price level.


Jul 5, 2013 - 1:01pm


fourth and getting closer.

Jul 5, 2013 - 1:01pm
Jul 5, 2013 - 1:01pm

Larry Edelson

I've been following Larry Edelson since I came to the realization that his calls have been quite accurate. Amazingly, he doesn't believe the PM prices are manipulated! But he does believe that the PMs will soon begin their next leg up. He sees gold going to $5,000 over the next three years. I just hope that silver gets back to my DCA (about $30) by the end of this year. I made the mistake of putting too much of my capital in silver. I need some cash for other things.

Jul 5, 2013 - 1:02pm

1st Top Ten

I can't keep some point you run out of Fiat.

Jul 5, 2013 - 1:02pm


would you believe sixth and getting closer ???

Stock_Canines kryton619
Jul 5, 2013 - 1:04pm


That's why the advice to BTFD from 40 - 18 was poor, poor advice.

PuraVida Stock_Canines
Jul 5, 2013 - 1:08pm


And now it's not. So BTFD. Cock Stanines.

Jul 5, 2013 - 1:10pm

Subjective vs objective

Part time work up, full time work down ...

Subjective observation: "green shoots of recovery !" .... again

Objective observation: After a dramatic decline, the metals are above their recent lows .....

Conclusion: really big ships take a long time to sink, and the value of lifeboats may not rise quite as soon as one would expect, especially when the band is playing nice tunes, and the wealthy passengers are only disappearing one at a time.

What about that job at the Fed which is coming vacant? Oh yeah ... it's just another VIP passenger leaving the ballroom.

Jul 5, 2013 - 1:12pm

I don't even know

if I'm in the top ten or not - too pixilated to count this morning.

Jul 5, 2013 - 1:13pm



Jul 5, 2013 - 1:17pm

Turd, a suggestion

Why not institute a zero tolerance policy for any post which violates the copyright rules you've stated about 20 times?

Why not instruct your paid admin staff to delete any and all such posts on sight, saving you the worry and angst?

It's beyond me how some can do this so repeatedly, despite your politely asking that they not do it....

Also.....shall we started taking wagers as to what India's June silver imports will be?

800, 1000, 1200 tonnes? 1500?

That figure is going to be hilarious.

Jul 5, 2013 - 1:18pm

From bottom of last thread


Submitted by Bugzy on July 5, 2013 - 1:06pm. Hat Tip! 0

You think that higher interest rates are bad for Gold... Well it depends.

With an economy that is getting healthier - rates naturally rise to find an equilibrium. This healthier economy is bad for Gold.

However, with everybody maxed out in debt, the housing market frigged on unnatural low rates and businesses struggling even at these rates... and the bond buyers (are there any left?) are saying "you want me to buy 10 year for HOW MUCH RETURN? ERmmm! I will buy, but I want way more interest for my risk than that (risk being real inflation, risk of hyperinflation, defaults etc - remember interest rates reflect risk).

So these rising rates would (are ) crushing the housing market and the shares,,,well,,, only seem to be about the almighty Ben and his upper drugs.

If rates go up too quickly the who mountain of debt will collapse. Remember all currency' is a debt instrument.

So if it all start going FUBAR again then they will need to print even more; this is good for Gold.

So you need to decide between genuine recovery or massive drug induced distortion.

Now..taking the world as a whole it is really in the crapper...Europe. UK, China, Japan (see recent Bass) - now it could be the uncle Ben has exported so much inflation that he has destroyed the competition.

I am still in the FUBAR camp. Holding and contemplating buying a lot more.

I hope this helps... also if my thinking is wrong, anyone please add.

Edit: I guess what I am trying to say is: If uncle Ben takes a hands off approach. Rates will rise, deflation will happen, bad debts written off, clear the system. Then Gold bad (maybe), people good, eventually.

If they do not let this debt monster unravel and deflate the Gold good,,,very very good. People bad.

I am a person and have Gold, there no matter what, there is good in my plans.

Jul 5, 2013 - 1:30pm

United We Stand

Thanks again Turd!!!

Midnight Stacker
Jul 5, 2013 - 1:35pm

Remain calm my friends

I know it's tough (emotionally). My avg Ag cost/oz is about 31. Au 1700.

But remember this... you've got insurance...whatever happens.

I believe we're in the 'endgame'.

Didn't I read one guy who said that this action indicates that the EE is


Xty : You're so cool...great post.

All the best, R

Midnight Stacker
Jul 5, 2013 - 1:35pm


I agree.

Jul 5, 2013 - 1:37pm

From the Kim article Turd recommends . . .

"So even though it seems that every month, more and more people are awakening to the global bankers’ plan to loot everyone’s assets to recapitalize the world’s major banks, all of which are essentially bankrupt today and cannot be recapitalized by the creation of trillions of more ‘free” money as the total amount of derivatives owned by these global banks are believed to exceed $1,200,000,000,000,000. Consequently, the only way to resolve this problem, since many of these derivatives are worthless or are only worth pennies on the dollar, would be to create so much more new money out of thin air that hyperinflation in all the world’s major fiat currencies would occur. And if this occurred, then mass global revolution against the bankers would undoubtedly occur. And the global bankers fully understand this equation. This is why their much preferred plan is to bankrupt as many people as possible, so that no one will have the financial means to revolt against them when the global financial system finally collapses. If you still are so naïve as to believe that the Central Banking system is not deliberately designed to transfer money from all citizens to the top executives at banks to enrich them at our expense, then listen to these tapes of John Bowe, the Director of Retail Banking and Peter Fitzgerald, the Head of Capital Markets, at Anglo Irish Bank. Note in the audio file in this link, how these top two banking executives express not the slightest shred of guilt about undermining every citizen in their nation through their failures and instead, joke and laugh about how they will never pay back a 7 billion euro loan from the Irish Financial Services Regulator Authority (IFSRA) that was provided to them to recapitalize their failing bank.

(Repost from last thread due to Turds recommendation, which I heartily endorse)


Kim advises that the elite intend to steal assets and/or bankrupt as many people as possible, so the standard "asset allocation" we have been taught through modern portfolio theory will put you at risk of 100% loss of any asset within the banking system.

We have been saying that the Fed must continue to do QE, to buy assets, bonds, etc. to keep the system going. That has been true, but we may now be past that point, or soon will be.

The BIS has advised the Fed to stop QE. So, Bernanke announced "tapering." SHTF real quick--quicker than BIS expected, so they trotted out others to reign-in the damage. They want the system to continue long enough to get all their ducks in a row.

The current financial system has outlived its useful life. It must be terminated, but the elite have no intention of losing their power and wealth in the transition to a new system .

The only sure way to protect assets from whatever and whenever they decide to pull the plug, is to get them out of their system. The banking system is at their full control. All stock market assets, bonds, currencies, etc. are all in their fully-controlled systems.

Gold and silver in your personal possession are not in their system.

And, they are still available at reasonable fiat prices. You either trust the bankers' system or you do not.

Act upon your deep belief.

Jul 5, 2013 - 1:37pm

A Stackers' "Heads Up"

Provident is still offering free shipping if you buy a 10 oz. OPM Ag bar, at $1.19/oz. over spot, and they are offering 1 oz. OPM Ag rounds at $0.99 over spot, any quantity.

So, today might be a good day to get Ag in your hands for less than $20/oz.

I Run Bartertown
Jul 5, 2013 - 1:45pm

Freedompalooza 2013

FREEDOMPALOOZA 2013 July 4th - 6th
Where Patriots become friends

Come join us for 3 days and nights of camping, music and chats around the bonfire. Actually, it might be the best part of each day. This is a family oriented event. It is also a BYOB (ie Beer, bring ID) event, but NO HARD LIQUOR.


endorsed by the ADL:

"... a long list of bands and speak­ers, many of the lat­ter com­ing from extrem­ist and fringe move­ments and causes. One theme that unites many speak­ers is vir­u­lent anti-Semitism or anti-Israel sen­ti­ment. Two of the more promi­nent speak­ers, for exam­ple, are for­mer mem­bers of Con­gress: Cyn­thia McK­in­ney and James Traf­i­cant. Other speak­ers report­edly sched­uled to attend include Mer­lin Miller, the 2012 pres­i­den­tial can­di­date of the white suprema­cist Amer­i­can Free­dom Party, sev­eral Amer­i­can Free Press writ­ers, and Cyn­thia Steele, the wife of white suprema­cist attor­ney Edgar Steele (cur­rently serv­ing a 50-year sen­tence for con­spir­acy to mur­der Cyn­thia, a charge she claims is false).

Free­dom­palooza will also host a vari­ety of anti-government extrem­ist speak­ers, includ­ing rep­re­sen­ta­tives from sev­eral mili­tia groups, a rep­re­sen­ta­tive from the anti-government and con­spir­a­to­r­ial Oath Keep­ers, and the Apple­seed Project, a marks­man­ship pro­gram that warns atten­dees that they may have to (lit­er­ally) fight the gov­ern­ment to main­tain their liberty.

Also present will be Larry Pratt, head of the Gun Own­ers of Amer­ica, a rad­i­cal gun rights group, and Jeff Christo­pher, a sher­iff from Delaware with ties to Michael Per­outka, for­mer pres­i­den­tial can­di­date of the right-wing extrem­ist Con­sti­tu­tion Party"

Jul 5, 2013 - 1:49pm


Count me out; I'm all FOR beer and fun; but only anti banksters and politicians.... of all races, creeds and colors. Equal opportunity discrimination.

Jul 5, 2013 - 1:50pm

@Turd re: your message . . .

"Last September, they were net short 737 metric tonnes of paper gold. As of ten days ago, that number was down to 109 metric tonnes. As of this moment, let's safely assume that it is well under 100 which means that the short paper liability has been reduced by 90% in the days since QE∞ began. This is not by accident and it is not some sort of fortunate coincidence for the banks. This type of counter-intuitive move, for which a cover story has been created and maintained, is a clear and coordinated, manipulative event."


You said a mouthful here--great thought process at work!

The fact that this all happened starting at the announcement of QE-infinity has special meaning.

Of course, the normal response to more QE would have been a steeply rising price of the metals as more money is created. But, there was another message sent to the Fed-member banks that nobody else was privvy to.

That message was this, IMO: the end of the paper PM system is nigh, and phyzz will play an expanded role in the future financial system--be prepared.

I am sure there was a whole lot more in that message, and the messages since.

Now, after the banks have extricated themselves from the short hole they created, in a very short time period with lowered prices, the BIS announces to the Fed that continued QE is bad, very bad, and should be stopped.

As Turd said, the banks don't do anything on coincidence--especially the unraveling of a decades-long, manipulative and lucrative PM short position.

Now, read the Kim article Turd linked.

I Run Bartertown
Jul 5, 2013 - 1:55pm


so that quickly, based on a blurp from the hate-group ADL, you write off the appleseed project, gun owners of america, the oathkeepers, the Constitution party, and many more...

reflexive parroting of that horseshit is pathetic and bears a good deal of responsibility for many of our problems today...

Jul 5, 2013 - 1:58pm
Jul 5, 2013 - 2:00pm


You are awfull quick to accuse someone of all sorts of things, based upon two very short and general sentences. Reminiscent of 1938 Germany perhaps. Would you have fitted in well there?

Jul 5, 2013 - 2:06pm


You wouldn't say anything anyway!! Thanks for the laugh!!

I Run Bartertown
Jul 5, 2013 - 2:08pm


I post about a Patriot Festival with GOA, the appleseed project, Oathkeepers, some Deleware Sheriffs who've had their arrest powers illegally revoked based on their 2nd amendment stance...

and you go straight to Nazi references and accusations?

"First they came for benque,

and I didn't say anything because he's a POS that will defame honorable groups so that he doesn't risk being called racist..."

And I've determined that your anti-banker reference is a 'dogwhistle' and you are clearly an anti-semite.

See, I can do that, too.

Jul 5, 2013 - 2:13pm

LCS visit

Visiting an out-of-town LCS while my wife was at her Drs appointment (2 hrs one way). No 90%. No Mexican .999. Had an order of 5000 ASEs come in -- cost him $4.10 above spot. Was selling for $6+

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