The Outliers

Mon, Feb 24, 2014 - 8:31am

In any naturally occurring population there is some degree of variation between individuals within that group. When the variation is genetic, then the subtle differences between individuals can sometimes equip a few of them to survive better than others- for example, a small number of moths born with slightly more pigmentation of a color which makes them harder to spot by predators. If that difference has enough of an effect on their inclusive fitness to allow them to pass on their genes differentially, then that trait will be slightly more common in the next generation. If this happens for a long enough period of time, the entire nature of the population will change. This is what is familiarly known as natural selection.

This dynamic is not confined only to genetic inheritance, and in some cases can apply to variations in behavior as well. Within any large group of individuals there will be a wide range of differences in behaviors, values, goals, comportment, strategies, etc. Find something that people do, and if you study it closely enough you will quickly realize that there is great variety in how different individuals choose to go about doing that thing. Some may even choose not to “do that thing” at all! What is interesting is that, through the exceptional power of our brains, human beings do not have to wait for thousands of years for these differences to slowly work their way through the genetics of the population- if they can observe that behavior X is beneficial to those who have adopted it, they can also choose to adopt it, often with great rapidity. When large numbers of people suddenly start doing something that only a few had done previously, this is called a preference cascade.

A preference cascade is a uniquely human phenomenon. It happens, in part, because we are NOT purely rational actors, always weighing costs/benefits and choosing based on this analysis. Instead, we are intensely social creatures and tend to be influenced to a great degree by what others around us are doing. In normal times people look around, observe how most others are behaving, and copy that behavior themselves. This usually works fairly well as an adaptive strategy because the totality of individuals can usually be assumed to be doing just fine, so if we do what they do, we assume we will be just fine too. Additionally, activities that are perceived to be outside the mainstream often carry a degree of social or cultural stigma, thus imposing some costs on the people who adopt them – there are significant negatives to being perceived as the “weirdo” because you are behaving differently or deviating from the accepted. So most people just do the “usual” thing and don’t think much about it… right up until they observe their peers suddenly doing something differently. Then they quickly perceive not only that it is “OK” to do that thing but they also will not be acting alone if they do it, and a preference cascade ensues.

University of Tennessee Professor Glenn Reynolds has written about the phenomenon of the preference cascade over the years, and in this article he gives two interesting examples of it in action. Reynolds writes:

(Prior to 911), the people who didn't have flags on their cars weren't necessarily unpatriotic - but displaying a flag on one's car was associated with particular political and social categories that aren't especially popular on campuses. After 9/11,enough people started flying flags to make other people feel safe about doing it too. Now you can see a lot of flags on the cars in that garage. Have people become more patriotic? Maybe. But more likely they've just become more willing to show it. This illustrates, in a mild way, the reason why totalitarian regimes collapse so suddenly. Such regimes have little legitimacy, but they spend a lot of effort making sure that citizens don't realize the extent to which their fellow-citizens dislike the regime. If the secret police and the censors are doing their job, 99% of the populace can hate the regime and be ready to revolt against it - but no revolt will occur because no one realizes that everyone else feels the same way. This works until something breaks the spell, and the discontented realize that their feelings are widely shared, at which point the collapse of the regime may seem very sudden to outside observers - or even to the citizens themselves. Claims after the fact that many people who seemed like loyal apparatchiks really loathed the regime are often self-serving, of course. But they're also often true: Even if one loathes the regime, few people have the force of will to stage one-man revolutions, and when preferences are sufficiently falsified, each dissident may feel that he or she is the only one, or at least part of a minority too small to make any difference.

Understanding the dynamics behind the preference cascade is particularly important for gold and silver. If we think about the behavior that we call investing, we can quickly discern that at present, people who place a portion of their savings into physical gold and silver are “Outliers” in terms of investing behavior among the general public. The vast majority of people who invest do so in equities (through 401k’s, trading accounts, mutual funds, etc), and many own bonds or own funds that invest in bonds, as well. The idea of investing your saved wealth in physical gold and silver outside the system is still a practice that is comparatively rare. This makes all of us at TFMR unusual exceptions to the norm… we are the odd outliers within the larger population of investors.

So far so good… but I think a key insight comes from understanding WHY there are a comparatively small number of gold and silver investors, and more precisely why such an outstanding, traditional investment vehicle is now considered so outside the mainstream. When one considers how precious metals are portrayed and discussed, however, it makes perfect sense, particularly when one thinks about who, precisely, controls that mainstream narrative. You can tell what a power structure fears most by observing the energy and resources they deploy against that thing, and the ‘thing’ the fiat currency regime fears most intensely is a preference cascade to real money.

Consider the vast array of resources deployed today against gold and silver investing. First, we see a regular drumbeat of negative articles, the full weight of the mainstream financial media and legions of writers on financial websites brought to bear to convince people NOT to buy gold and silver. We see variations of the same hackneyed articles year in and year out, regardless of the state of the markets or the price. These constant attempts at shaping opinion and sentiment employ misleading arguments, ignore contrary evidence, and use every rhetorical trick in the book to convince people that gold and silver are “risky” and “speculative” (Anatomy of an MSM Hit Piece on Gold), when the reality is that they the most historically stable stores of value known to man. We also see mainstream brokerage houses issuing sell recommendations year after year, for assets which ironically they never told their clients to buy in the first place (It’s Never a Good Time to Buy Gold). All of these operate within a conventional milieu of financial advisors emphasizing “traditional investments” (i.e. fiat based, fiat supporting) while going out of their way to dismiss gold and silver – think Berkshire Hathaway’s Charlie Munger claiming “Civilized people don’t invest in gold” for a fairly standard example. If you think about the totality of the effort used to try and manage the public perception of gold and silver, you start to get a sense of just how intensely these things are feared by the Fed/Finance/Political regime.

But wait, there’s more! Consider, too, the extraordinary energy and enormous wealth deployed against the price of gold and silver over time. Look at the long history of price suppression, from the known and historically established facts of the London Gold Pool (link) to the extraordinary actions of the last five years (The Golden Ostrich, Chris Powell speech on price suppression). I think people in the general public would be shocked at the sheer amount of effort, the degree of secrecy employed, and the vast amount of wealth expended towards suppressing PM prices over time. This, above virtually everything else, makes it crystal clear what an enormous threat that a large-scale adoption of gold and silver by the investing public would be to the current power structure.

Reality, and particularly mathematical reality, has a way of asserting itself. Inevitably, the truth of the real nature of the present system will become apparent to everyday investors. At some point the broader public will look around and grasp that the current system has been siphoning their productivity and labor for generations, and has been doing so well beyond the publicly acknowledged and democratically chosen practice of taxation. They will realize that the “value” of everything they have earned or saved has been remorselessly diminished by the hidden confiscation tax of currency devaluation over time. They will see that as the politicians spend the produce of their labor without limit and the enabling Fed prints to pay those bills, their paychecks buy less and less and the value of their pensions shrink. With every dollar printed and every TBTF bank bailed-out, in every investment they own they are slowly being bled dry. At some point people will wake up and understand that although they are following the rules (and following the herd when it comes to investing advice) they are swimming against the tide, and the tide is winning.

And when this becomes plain to them, people will look around and see that there is a small group of investors who have managed to protect their saved value through physical gold and silver in their possession, and that this has insulated them, over the long term, from wealth confiscation via inflation. And I firmly believe that when this happens, and when the obvious benefits of the behavior of these investing “outliers” becomes crystal clear to the broader population, we will see a preference cascade to end all preference cascades into the metals. That, I think, will really be something to behold.

Then and only then, when the awareness of these things has become so widespread that my idiot neighbor is talking about ASE’s and everyone and their brother is trying to buy gold and silver, will I start thinking about selling some of mine. I hope to do so at a healthy, and possibly ridiculous, profit.

Until that day comes, protect yourself and your wealth in the present. Keep stacking.

About the Author


Feb 24, 2014 - 5:40pm

Cryptcon Currencies

Jeez, there's about 125 of them now:

What a joke. Here are some of the names that I've noticed...

Mooncoin (yeahhhh baby)
SecureCoin (phew, that means it must be, right?)
BBQCoin (sizzle?)
Sexcoin (oh, come on)
GoldCoin (GOLD Coin??? look, just kill yourself okay)
LeafCoin (made of leaves, no doubt)
Pandacoin (made of pandas, no doubt)
Catcoin (made of ... nah, don't worry)
Penguincoin (shhhh)
DuckDuckCoin (QUACK)
DopeCoin (you must be one to buy it)
Nyancoin (this refers to the Nyan cat. Well, at 100 million views it's a sure winner, eh)
Junkcoin (aha, an honest one!)
Bollockscoin (that's the best one. what? not there? oh, that's because it's so reassuringly expensive that you have to come direct to me to be totally shafted)

Ok, my crypto-currency bashing post is over. Next one coming SOON. Hurrah!

Feb 24, 2014 - 5:55pm

@Pining: Excellent Essay

I was sad to hear about the passing of Harold Ramis and that got me thinking about his body of work. When I reflected upon the character of Dr. Egon Spengler (Ghostbusters) I was immediately struck by the similarities between Spengler's acutely focused and profoundly fertile mind and your own. If you will allow me to repeat myself when asking the question "Who are you P4?" I now know . . . . . .


Feb 24, 2014 - 5:59pm

@Pining, Motley re: preference cascade . . .

"And I firmly believe that when this happens, and when the obvious benefits of the behavior of these investing “outliers” becomes crystal clear to the broader population, we will see a preference cascade to end all preference cascades into the metals. That, I think, will really be something to behold."


"The day I can't by gold at close to spot + manufacturing costs I will consider the market broken."

--Motley Fool


The normalcy bias is very strong. 15 years ago, I got a couple of relatives to buy some gold. One of them could have bought 50 ounces at the time, and seemed very "into" what I was telling her. But when it came time, she bought ONE OUNCE! Her broker told her to go ahead and buy some, but it would be silly to put much into physical gold.

It seems to me that the bankers have done a great job of lowering price, and wringing out most of the phyzz, but keeping just enough at retail levels to maintain calm among the general population.

I think the PM market will be broken well before we westerners, as a whole, ever catch on.

An announcement will be made, likely on a Sunday night before a Monday holiday. A brand-new financial system will be unveiled, and banks will be closed for several days to "get prepared."

When the banks reopen, gold and silver prices will be stratospheric, if available in phyzz form at any fiat price.

The vast majority of western folks will never know what happened, until well after-the-fact. Paper PMs will not exist as we had known them.

Edit: this is the more optimistic outlook, and assumes WWIII or an EMP attack, or other fomentation does not occur first.

Feb 24, 2014 - 6:09pm
Feb 24, 2014 - 7:03pm

Most crypto coins are novelty

Most crypto coins are novelty bitcoin clones and won't amount to anything. I'd need some fucking good reasons to switch to the bollockscoin. Some do offer original features though. eg Peercoin which has a concept of minting coins through proof of stake (in addition) to bitcoin type mining, which means the strength of the network isn't dependent on processing power, could eventually prove a good reason for people to switch to it or similar. If nothing else its an interesting field of innovation... Or all a big fat con if you prefer.

Tried reading up on some freegold stuff today, the link motley shared, but still can't get my head around why gold is essentially different to silver.

All that stuff about drawing lines in the sand to keep count of the debt and having a floating gold value to allow the debtor to keep going further into debt forever. Maybe i missed the point. It doesnt seem intuitive, why gold? Can you not have free gold and free silver? Why allow the debtor to keep building debt forever instead of doing somethign fucking productive.

It went along the lines of paper has replaced silver as bad money so silver is left as just another commodity with only industrial uses. Historically gold price always has to be suppressed but silver has to be supported by governments. It doesn't wash with me, maybe i'm too much of a joe 6 pack to understand. I do like beer a lot.

Gold Dog
Feb 24, 2014 - 7:26pm

Fine' (Am I the only one suffering from "cursor jump"?)

Back to deviance, As many of you have deduced I live in a rather "tony" area. I would estimate that 25% of the people have at least some bullion stashed.....maybe going back to the late seventies. Of interest is that the stackers all seem to be from the right hand politically, perhaps liberals trust gubbmint more. Too small of a sample to tell. Since my retirement I have been buying some PM's. In my most recent shipment of gold Maples there were some from 1980 and it made me wonder about the history of who made the descision to sell, prolly the lunkhead grandchildren after granny went to her final reward. Hope they enjoy the vacation, where did we go anyway? Mrs Dog and I are headed to Chile for a month of Llama hunting on Thursday and I am curious as hell about what we will find. Wonder what the bag limit is on those walking sweaters. I will endeavor to report the highlights. Your friend, Dog the Conservative

Gold Dog
Feb 24, 2014 - 7:37pm

Deviants on a bell curve.

First off, great piece, I plan to work Preference Cascade into every thing I say now.

"There sure seems to be a preference cascade on unleaded gas that's been going on for some time now!"

" May I get four front row center for Petty before the preference cascade hits?"

To my iPad to finish.

Feb 24, 2014 - 7:44pm

The SYSTEM - SILVER Continuum

con·tin·u·um kənˈtinyo͞oəm noun noun: continuum; plural noun: continua
  1. 1. a continuous sequence in which adjacent elements are not perceptibly different from each other, although the extremes are quite distinct.

The System --->--?->-?---?->- ? ->-?---?->-?-->-->Silver is Money

The world/reality is getting close to "Silver is Money", but the masses are mostly still fully bought in to the World Fiat Currency "System". They're WAY behind.

The 'preference cascade'... cool

Feb 24, 2014 - 8:04pm

No, can't not, I have to

comment on your article Pining. Because it's true (and you know I was joking earlier didn't you - if you remember my previous posts about your articles).

"I think people in the general public would be shocked at the sheer amount of effort, the degree of secrecy employed, and the vast amount of wealth expended towards suppressing PM prices over time. This, above virtually everything else, makes it crystal clear what an enormous threat that a large-scale adoption of gold and silver by the investing public would be to the current power structure."

I know that gold and silver are the only true, portable, store of wealth and I know that what you say there is true. Not because I read it somewhere, but because I come from a family that are one of the elites in an east-european country - which I left at a fairly early age and haven't been back to since. I mentioned this here in a post a few months ago.

I was raised with the mindset of those that have real power. My leaving the family, which happened because I was driven inside (unknowingly at the time) to question what I saw and to find the truth of who I am, resulted in a period of several years of true insanity. It was 'schizophrenia' (as the doctors rush to label - never having experienced it themselves, ahem) and I lost what I thought was my identity, which was my upbringing, but which I knew inside wasn't true and which I now know was the dissolution of what was inevitable because I was driven inside to find the truth (not that I had any idea of what was going on then).

I got through that period eventually, through events in my life, and all of that has now gone.

Yes, the secrecy and disinformation of tptb and those they pay to sell their message is there to keep the majority asleep and unaware.

Unaware of the true value of whatever has true value. That's how they continue the thieving.

Gold Dog
Feb 24, 2014 - 8:46pm

Bullox and Pining

You two crack me up!



Feb 24, 2014 - 8:49pm


I knew you were kidding, I was just giving you a hard time about your word choice! And you are absolutely right about reckoning genuine value. People have been fooled, but I think the truth will out soon enough.

C F Mantis
Feb 24, 2014 - 8:58pm

speaking of crypto-currencies

Another big attack in the news today.

(Reuters) - Cyber criminals have infected hundreds of thousands of computers with a virus called "Pony" to steal bitcoins and other digital currencies, in the most ambitious cyber attack on virtual money uncovered so far, according to security firm Trustwave.

...and the hits just keep coming.

So It Goes
Feb 24, 2014 - 8:59pm

Totally off subject

What does everyone think of this?

How many 1 oz 24 kt bullion coins (say Canadian Maples or Australian Kangaroo/Nugget) would it take to trade for this watch?

Can one even trade gold yet without the state(s) interfering? Interesting question?

Let me know what you think?

I Run Bartertown
Feb 24, 2014 - 9:12pm

50 Bucks

Trading Places (5/10) Movie CLIP - Haggling at the Pawnshop (1983) HD
Feb 24, 2014 - 9:42pm


I got serious about PMs after the September 2008 inflationary $700 billion TARP bailout.

$700 billion now seems so quaint and I'm still waiting for the inflation that I expected to be like the late 70's of 15-20%. Not that I'm complaining about being able to stack more than I originally thought, even though my retirement portfolio took a big hit last year.

I've heard the inflation was exported but there must be a tsunami of $US waiting to flow back home. I always thought that inflation was defined as an increase in the money supply and increased prices a symptom.

Feb 24, 2014 - 9:50pm

How many in the US own gold and/or silver?

I think the percentage is higher than most here would think it is. How many people through the 90's bought silver proof sets from the mint (one for each kid), and had no real idea that they were buying precious metals at all? They thought they were buying collector's items, which may increase in value over the years. Really.... how many? My hand is up. How many grandparents bought them for the grandchildren? My father-in-law bought silver eagles for the kids every year. He wasn't even thinking about them as a store of value. They were just shiny trinkets, something to throw in the bottom of your underwear drawer and forget about. As proof that he had no concept of PMs as real money.... he also bought them savings bonds every year!

Feb 24, 2014 - 10:17pm

Harvey's Up! (TFMR)

  • John Embry discusses the implications of the coming chaos: I’m offended by some of the propaganda coming out of the mainstream media. The World Gold Council came out with some figures for Chinese demand that dramatically understated the truth, and essentially falsified the demand for gold from China. As the stock market continues to surge, I see nothing of real importance going on anywhere in the economy. We also have inflation falling to new lows in Europe. In fact, it’s probably deflation. The mainstream media keeps telling people that things are improving in Europe, but that’s a lie -- things aren’t improving in the least. In the midst of all this, gold and silver are putting in reasonably good performances against continuing resistance. They are trying to take the price of both metals lower, but they are not getting away with it. This continues to be a positive development. But until the gold price gets out and runs by $100 in a day, you can be guaranteed that the central planners are still in there fighting these metals in the paper markets. Having said that, I still believe this will come to an end this year and there will be some explosive upside days. So I fully expect new highs for both gold and silver.
  • Harvey: Today, gold and silver had a great day. It seems now that the bankers are resorting to off hours in order to try and contain gold/silver. During the Comex hours, gold and silver advance due to the huge demand from overseas. Tomorrow is options expiry so expect the bankers to try and suppress gold/silver prices for the rest of the month. They do not want longs to take possession of our two precious metals. We are still witnessing anywhere from 7 to 10 tonnes per day leave the SGE and thus demand over there greatly exceeds global production. If we look over our shoulder we see that the GOFO rates for the top 3 months are negative, indicating lack of supply of good London delivery bars. Thus Shanghai is getting their physical gold which now puts pressure on the GLD boys to obtain metal for its fund and no doubt they are robbing the bank of England who in turn owe the gold to someone. Should be interesting once this implodes. Over at the GLD, we surprisingly gained another 3.3 tonnes of gold. Over at the SLV, we gained back 2.116 million oz of silver into the SLV vaults.
  • John Embry on black swans: Despite the mainstream media propaganda, the world economy and the US economy in particular are not going to be robust. Also, if you look at the Chinese shadow banking system, we are talking about huge numbers. The reality is that a lot of their shadow banking system is insolvent. So there are a lot of ‘black swans’ cruising around out there, and I suspect that before the year is out several are going to erupt and that is going to change the whole view of what is taking place, but this remains a wonderful time to be acquiring gold and silver bullion and the respective shares. I still think they are on the bargain table, as very few people own them, and very few people are paying attention. So for those paying attention, this remains a fabulous opportunity.”
  • The Financial Times reports this morning that global gold prices may have been manipulated on 50% of occasions between January 2010 and December 2013, according to analysis by Fideres, a consultancy. The findings come amid a probe by German and UK regulators into alleged manipulation of the gold price. Prices are set twice a day by Deutsche Bank, HSBC, Barclays, Bank of Nova Scotia, and Societe Generale in a process known as the London gold fixing. Fideres’ research found the gold price frequently climbs, or falls, once a twice-daily conference call between the five banks begins, peaks or troughs, almost exactly as the call ends, and then experiences a sharp reversal, a pattern it alleged may be evidence of “collusive behavior.”
  • Mark O'Byrne: BaFin, the German regulator, has launched an investigation into gold-price manipulation and demanded documents from Deutsche Bank. The bank last month decided to end its role in gold and silver pricing. The U.K.'s Financial Conduct Authority is also examining how the price of gold and other precious metals is set as part of a wider probe into benchmark manipulation following finding of wrongdoing with respect to LIBOR and similar allegations with respect the foreign exchange market.
  • Katherine Rushton: The US Federal Reserve knew about Libor rigging three years before the financial scandal exploded but did not take any firm action, documents have revealed. William Dudley expressed fears that banks were being dishonest in the way they were calculating the London interbank offered rate -- a global benchmark interest rate used as the basis for trillions of pounds of loans and financial contracts. "There is considerable evidence that the official Libor fixing understates the rates paid by many banks for funding," he said. He added that a newspaper report, which lifted the lid on some degree of manipulation, appeared to have triggered "an outbreak of veracity among at least some" bankers, who started reporting accurately the interest rates they offer each other, which are used to calculate Libor. Three years after his remarks, it emerged that traders at more than a dozen banks, including Lloyds, Royal Bank of Scotland, and Barclays, had routinely been trying to fix the official Libor rate to boost their own bonuses and profits.
  • Alasdair Macleod: China is trying to rein in shadow banking. There were two defaults with coal companies. China is trying to decide whether to let the big companies fail or to actually stop printing money. Fed is now seeing the downside of the production of money. China has cornered the gold market. The Shandhai gold exchange has delivered 2800 tonnes into public hand. That is close to world mine production. China 430 tonnes of gold production in 2013. On the basis of Chinese public demand the supply is in deficit and depending on scrap.
  • Koos Jansen on ICBC’s Precious Metals Department: For the future, Zhou Ming’s goals are clear and simple: to continue to build the precious metals “battleship”, heading towards international markets. “In 2013 China became the world ‘s largest gold producer and consumer, there is no reason for it not to have any voice in international price fluctuations.” Zhou Ming said, “This must be the aim of ICBC, to service the market and our customers competitively.”
  • Bill Holter on silver: Harvey has a theory which I agree with and had thought about this time last year. China is a "silver" country. They used silver for many years (between fiat blow up episodes) and had accumulated some 300 million ounces at the time of Mao back in 1949. The Yuan was originally a silver coin which was named after a Chinese general and is synonymous with the renmimbi. The U.S. which no longer minted any silver in its coins since 1965 had a stockpile of possibly 2 billion ounces after the dismantling of the Manhattan project, by approximately 2003 all of that silver was gone. Harvey speculates that we approached the Chinese to "lease" their silver and is probably one of the reasons that they received "favored nation status" for trade. The Chinese agreed but understood that the pressure on silver prices was from their stock being bled onto the market as supply...but, they also understood that they could purchase gold at suppressed prices. Our speculation is that China knows that their silver is gone...and will claim as much as they can from Comex...however in the meantime they have been scooping up as much gold as they could and in far larger "dollar quantities" than the silver that they originally leased.
  • Kateryna Choursina, Daryna Krasnolutska and Ilya Arkhipov (Bloomberg): The Ukraine seems to have reached a deal to split the country in two: a western Ukranian speaking country and an eastern Russian speaking one. The pact, unveiled yesterday after all-night talks in Kiev with European Union foreign ministers, envisions a national unity government within 10 days. Lawmakers approved a return to the 2004 constitution, which would curb Yanukovych’s authority, and voted to free jailed ex-Prime Minister Yulia Tymoshenko. Under the constitution, the president still needs to sign the measures. President Yanukovych fled to the eastern city of Kharkiv after yesterday signing a deal with the opposition to end the bloodiest episode of the country’s post-World War II history. Protesters were guarding key buildings in the center of Kiev. His flight was precipitated by protesters storming the presidential palace where they plundered the gold.
  • BBC: Egypt's interim Prime Minister Hazem Beblawi has unexpectedly announced the resignation of his government. Mr Beblawi said the decision was taken "in light of the current situation the country is going through". It comes amid a series of strikes, including one by public sector workers and rubbish collectors, and an acute shortage of cooking gas. Mr Beblawi was appointed in July after the military overthrew President Mohammed Morsi following mass protests. Since then, more than 1,000 people have been killed and thousands of others detained in a crackdown by the security forces on the Muslim Brotherhood, the Islamist movement to which Mr Morsi belongs.
  • Pam Martens and Russ Martens: On the evening of Sunday, December 15 of last year, six weeks before the onset of the latest rash of tragic deaths of young men in their 30s employed at JPMorgan, the Pearland, Texas police received a call of a person in distress outside a Walgreens pharmacy at 6122 Broadway in Pearland. The individual in distress was Jason Alan Salais, a 34-year old Information Technology specialist who had worked at JPMorgan Chase since May 2008. A family member confirmed to Wall Street On Parade that Salais died of a heart attack on the same evening the report of distress went in to the police. The incidence of heart attack or myocardial infarction among men aged 20 to 39 is one half of one percent of the population, according to the National Center for Health Statistics and National Heart, Lung, and Blood Institute, based on 2007 to 2010 data, marking this as another unusual death at JPMorgan. It is suspicious when a rash of sudden deaths occur among a most unlikely cohort of 30-year olds at a bank that has just settled felony charges and been put on notice that it will be indicted if it commits any further felonies.

All this and more on...

The Harvey Report! >>-----> (Time flies, like an arrow)


Feb 24, 2014 - 10:21pm

Ok no inflation in the eurozone?

oh ah except for food and energy, so what else is their worry about these days anyway.

Feb 24, 2014 - 10:26pm

Pay tax on metals? Not me.

So metals go parabolic and tptb tax them at 70% you say. I wouldn't mind helping some of my non stacking friends get some physical. I can trade them metal and they can pay off my house. Or sell me a portion of their lumber company. Or many other things I might want to acquire.

Like in the Blues Brothers movie. How much for your wife? The little girl? Okay, not the little girl, that's stepping over the line.

Nice article P4. Also , excellent comment Swinef. Pining is a true renaissance man.

I would also give a big shout out to Ca Law, JY and AM. All of your writings add so much to the community.

This may be a silly idea but it would be interesting for you to compile a cooperative post some day. Not to write it together, maybe one person starts it and sends it to another and he takes it from there.

Feb 24, 2014 - 10:34pm

we were raised

on junk 90% coins from as early as I can remember, building a stash of morgans and peace dollars was encouraged by parents, aunts, uncles, who would gift them for birthdays and christmas and expect you to add them to your hoard, it was the way it was done.

Hunt brother
Feb 24, 2014 - 10:45pm

EXK founder Cooke turns Canarc into silver

Bradford Cooke of Endeavour Silver EXK announced an important deal today at Canarc Resources CCM.TO or CRCUF for those of us in the US.

Entry into this stock at 10 cents canadian or 9 cents us is an insider price.

I purchased for a canadian nickel two months ago, and bought more today 9.5 cents canadian.

Feb 24, 2014 - 10:50pm

Zero Hedge Article Glen Greenwald

The Conspiracy Theory is True: Agents infilterate websites intending to "Manipulate, Deceive, and Destroy Reputations". Would be better with briefing notes, but here you have it in print for all to see. What is not included is how they tap into social groups sending false info absolutely destroying an individual's reputation.

The person is not the story, the CREATED story becomes the PERSON to all those around and exposed to the individual. It is wrong, corrupt, heinous, disgusting, and PAID FOR with YOUR TAXES!

Also note the economic espionage cartoon. Not so funny huh, to anyone trying to patent a new idea.

P4 Great article. It is the outliers that always effect any initial changes, hopefully for the better, we need some moving forward in a positive direction. A direction that abides by an already established US Constitution is a good start.

Iceberg Slim
Feb 24, 2014 - 11:01pm

Mt. Gox offline...insolvent....dead.

i suppose bitcoin has very real counterparty risk implications after all.

Feb 24, 2014 - 11:18pm

@ murphy- Part of the resaon for the MOPE against PMs

Is that there is now way to collect TAXES! If I pay my neighbor 2 ASEs for a rick of firewood, how does the city, state, and federal government get "their cut"? THEY DON'T! That is why paying for things in cash is increasingly difficult, that is why there are more and more laws about withdrawing, holding, and transporting cash. If everyone started paying for everything with PMs- Taxman is cut out of the equation.

--Another HUGE barrier to the widespread adoption of holding PMs- most Americans are scared to hold their physical wealth. They are afraid they will get stolen. For some insane reason they think that depositing their money in the bank is "safe", or that having some investment firm hold stock certificates for them is "safe". Ink on paper = safe wealth, physical metal buried out in the barn = risky. Go figure.

Urban Roman
Feb 25, 2014 - 12:00am

Mtgox was a bank

Essentially, Mtgox was a bank for bitcoin. Apparently they wandered into "fractional reserve" land, and got lost ..

Bitcoin itself continues to exist -- the failure of one bank did not destroy the entire currency.

Gold Dog
Feb 25, 2014 - 12:20am


Excellent point about stifling an underground economy. Is anyone else stacking fiat against the day that Ivar's deflation hits?



boomer sooner
Feb 25, 2014 - 12:41am


I too believe there are more people holding silver and gold than you would think. I am in 3-5 homes per day and every one of them have some silver plates, candlesticks, candy dishes. All have at least one gold ring or necklace on their person.

Every time I am in an LCS, someone is shopping for that coin to finish the book. I can only imagine how many of those coin books are setting in drawers in some old lady's house. I have a customer who is VERY liberal and she has a necklace that I have been trying to trade her out of for 2 years, all gold, 1-50 peso, 2-20 peso,& 4 2.5 peso. I made her an offer when gold was $1600 oz and she thought very seriously but would not fold. Here I sit 2 years later and she still won't. I had to do some repairs at her home a couple of weeks ago and I told her she had better keep the necklace. Where is it located, in a saftey deposit box!

Louie - as to the idea of people think it is safer to keep digits on a screen rather than buried in a box, I concur. My mother is perfect case to that point. A few years ago, I purchased some gold coins for them, a few collectors and some mint coins. Her first exclamation was that they needed to head to the bank and put the coins in the bank box, lmao. My dad understood the reason reason to keep close, but mom put up a fight, saying it just wasn't safe (they live in a motorhome 24/7/365). When she finally agreed to keep the coins with them, her next concern was what would happen in a fire!!! Took a little fire expo to show how much would be left, unlike the bundle of FRNs she rolls around with.

FYI, a 24" long 3/4" PVC pipe capped on both ends holds $50 face merc dimes, 36"x1"= $100 quarters, 4" x24"=a lot of misc size bars & too damn heavy to run far with. Corner post on the 40= enough to buy the 40 even at the today's prices. For you nickel stackers, 30mm ammo can = $168 of Brinks rolls.

Feb 25, 2014 - 1:29am
Feb 25, 2014 - 1:48am


The Outliers has to be the best, smartest, most enlightened article ever - thanks Pining for your inspiration.
Feb 25, 2014 - 2:57am

Better Deep State info

Can be found on JY896 post of Feb 23rd @3:35 PM thread "Corporate asset stripping..." Video is same but article attached is far more informative and true to the essence of the program.

Martin Armstrong acknowledges, but also plays down the level of government malfeasance at hand. It is a huge deal to be put on the govt "internal threat" list; you are harassed beyond belief. The way Deep State is currently operating is very much like, and in some cases worse, than Stasi in Nazi Germany.

His "Lets not get our panties in a wad" approach lacks the attention to detail and microscope that should be applied to this currently operating illegal program and deep state behaviors; and the complete breakdown and trampling of civil liberties today as we know it. I would like to nominate Martin Armstrong for targeting for a month and see if he survives it. He would be singing a different tune quite fast.


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