Pre Fedlines Open Thread

Wed, Sep 18, 2013 - 10:24am

Only about 3.5 hours to go before all the fun starts. Here's a thread to get you ready.

Just two charts so that we're all on the same page. Again, once we broke down last week and then closed below $1320, it became clear that a minimum downside was somewhere near $1270. Might we see that later today? I hope not but it's certainly NOT out of the question.

The main item of interest, though, is the obvious attempt to hammer price last evening. When this type of move is employed by The Forces of Darkness ahead of the news event, it's almost always a fakeout. Why? Because the bullion banks, as agents of the central banks, likely already know the outcome. By crashing price, they are attempting to draw in as many fresh Spec shorts as possible, into which they cover and BUY. We saw this identical pattern back on 9/5, the day before the latest BLSBS release. We'll see how it turns out this time but, I must tell you, last night's action makes me quite optimistic about the ultimate outcome of today's craziness.

One more thing...For subscribers, this weeks Access2Access event has been scheduled. It will be a webinar with Andy Hoffman of Miles Franklin. Just like last week, participants will be able to submit the questions and Andy will answer them live during the presentation. If you want to be a part of it, you can register by clicking here:

Have a fun day!


About the Author

turd [at] tfmetalsreport [dot] com ()


Mr. FixDeaconBenjamin
Sep 18, 2013 - 9:01pm

@ Chris Martenson: What’s Next?

Chris Martenson: What’s Next?

DeaconBenjamin's Post needs a listen!

Very good, and no hat tips?

Please give it a chance!

Sep 18, 2013 - 8:53pm

Obama: 'Raising the Debt Ceiling...Does Not Increase Our Debt -

"Now, this debt ceiling -- I just want to remind people in case you haven't been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy. All it does is it says you got to pay the bills that you've already racked up, Congress. It's a basic function of making sure that the full faith and credit of the United States is preserved."

Obama went on to suggest that "the average person" mistakenly thinks that raising the debt ceiling means the U.S. is racking up more debt:

- See more at:

Uh huh, and getting a windy in the oval office is not sex, a gold futures contact is made of gold, and JPM is just hedging for a client.

Sep 18, 2013 - 8:51pm

Gap filled.

Nice dart down to fill gap...can move higher now through $23 overnight....


Sep 18, 2013 - 8:45pm


From what I can see right now I grossly overestimated that 90% number.

>>>Gold Facts Interactive Gold Map<<<

It looks like that 90% number is how much of the planets Rare Earth Elements that China reportedly has. I do however remember posting about some Enormous (with a capital E) discovery of REE's within Japan's territory except that it's on the sea-floor. They supposedly dwarf China's deposits from what I remember of the story.

I'll continue to look into the China claim. You would think a story like that will ripple throughout the gold mining community.

The blue squared area's below are the gold producing regions more or less.

Sep 18, 2013 - 8:39pm

World's highest grade gold mines

Top 10 Highest grade gold mines 2011:

# Name Country Type Controlling Company Ore Production (Mt) Grade (g/t)
1 Gosowong Indonesia OP Newcrest, Antam 0.592 25.44
2 Red Lakes Canada UG Goldcorp 0.840 23.90
3 Wattle Dam Australia UG Ramelius Res 0.153 20.50
4 Orcopampa Peru UG Buenaventura 0.453 18.89
5 Poderosa Peru UG Poderosa 0.200 18.00
6 Turquoise Ridge USA UG Barrick, Newmont Mining 0.375 16.15
7 Pogo (Stone Boy) USA UG SMM 0.800 14.70
8 Parcoy de Trujillo Peru UG CMH 0.350 14.00
9 Doyon Division Canada UG Iamgold 0.056 13.90
10 Kettle River-Buckhorn USA UG Kinross Gold 0.443 13.77

25,000 g/t for this Chinese gold mine is either a typo or bullshit!

Mr. Fix
Sep 18, 2013 - 8:37pm

China gold and just a little bit more speculation.

I've got another what if for you,

it has to do with the whole gold backed trade settlement system that is supposed to replace the dollar in international trade.

Obviously, we all know that there is a currency war going on, and by war, I mean WAR!

Now at some point, all of these gold backed notes are going to have to at least appear to represent real gold somewhere.

One reason China would buy all the gold available from Western banks, even if they already had 90% of all the gold in the world, (hypothetically of course) would be to leave any possible competition without anything to trade with. (or at least very very little).

It is widely speculated that they plan on backing their currency with gold, and if they have almost all of it, by default, they would have the world reserve currency.

another thought to consider:

what if they wanted to institute this new settlement system without drastically affecting the price of gold?

For at least the time being, they can do what the United States does, and pretend they have gold, by borrowing against what is “allegedly” still in the ground. With that many “reserves” to work with, they would be able to produce a massive quantity of “gold backed” notes for their new trade settlement system.

This is worth watching, because the beauty of Fiat is that you can print as much as you want, but if you go to a gold backed system, you have to at least appear to have a whole bunch of gold (somewhere) to back up your currency.

It'll be interesting to see how many more gold mines are "discovered" in the near future.

Sep 18, 2013 - 8:28pm

LOL ag1969 :)

There's a possible war brewing amongst them chinese restaurants...

Sep 18, 2013 - 8:23pm

And in other news

Blythe and Jamie caught burying 1,458,333 Comex Gold futures contracts in the Fujian area of China.

A Christmas Story Chinese Restaurant Scene

Edit: And let us not forget that China is the counterfeit capitol of the world. Maybe after all of this time, they have finally discovered that it is easier to just say a shit ton of gold is in the ground instead of expending all of that manpower on making tungsten and molybendum chochkis, trinkets, coins, and bars. I'm just sayin....

Sep 18, 2013 - 8:23pm

Santa Quatrain: Reasons to sell your gold

Reasons To Sell Your Gold


September 18th, 2013

at 5:54 PM (CST) by Jim Sinclair

My Dear Extended Family,

"QE to Infinity." Infinity defined as the low .7000 on the USDX.

Every reason for gold’s decline from $1900 so accepted by the talking heads has gone SPLAT!

1. Sell gold because the dollar is strong. Yeah, on the downside.
2. Sell gold because the Euro is weak. It looks like the euro is going to be wearing its necklace of gold valued in the market in the 1.40s.
3. Sell gold because the US central bank is going to taper, which means tighten. That turned out to be totally foolish.
4. Sell gold because the US economy is going to improve. Yes, it is improving on the downside.
5. Sell gold because the stock market is going to break and take gold with it. Break to the upside is more like it as has all stock markets in similar liquidity situations.
6. Sell gold because the bond market is going to break wide open and take gold with it. Right now 10 year bonds look more like 2% or less than the 4% all the talking heads were predicting.
7. Now gold returns and exceeds it old high.
8. Now good gold shares put on bull markets.
9. Now the shorts in gold who were fat, happy and uncaring will pay the paper for the hubris.
10. Now the gold shorts in good gold company shares that are complacent in their positions will get the spiritual experience they well deserve.
11. Now the bull market in gold is far from over.
12. Now it is clear that those in the community that verballly hammered gold with their sub $1000 predictions in their writings repeatedly tried to help it lower. Now to the dickens with them.



Sep 18, 2013 - 8:16pm

China gold claim

Bollocks and Steve W...I'll look into it further. That does sound chunky, but what if the deposits were ripe with big flakes and small nuggets? Somewhere on the planet, there are probably immense gold deposits. Getting to them is a whole other matter. What if they got real lucky, as MudBone mentions? Or what if they overestimated by 50%? Its still sizeable.

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