Joined At The Hip

Mon, Nov 10, 2014 - 8:40am

Not surprisingly, prices were jammed back lower at the Globex open last evening. Meh...happens all the time. What has my interest is what happens next.

If you're new to all of this, then this might be news, otherwise...You see, whenever there are significant gains made on the post-Comex, afternoon Globex trading, these gains are almost immediately clawed back in the evening when the Globex re-opens. It's as if The Forces of Darkness consider any afternoon rally as illegitimate and the gains ill-gotten. We saw this again last evening in response to Friday's $10 Globex rally. Note the full round-trip:

Prices then recovered a little, back toward $1175, and then things got interesting. Why? Yes, the London Monkeys seemingly appeared to drive price back down at the usual hour but notice the relative direction of gold vs the yen. For months, they've moved in tandem but, today in London, gold has plunged while the yen has rallied. Looks like the "break", that we saw on Friday and were hoping to see extend today, isn't happening just yet:

Someone, something or a collection of somethings wants to see this correlation continue. Whether that's a Cartel Bank or just the collective action of a bunch of pre-programmed algos is impossible to say. What is clear, though, is that the direct correlation, which was broken a little on Friday, is trying to re-establish itself today. As mentioned in the opening paragraph, I'm very interested to watch the action today to see if this link is hammered back together. Friday's price rally seemed to help GOFO rates rise a little in London, indicating a slight easing of the delivery pressure, but they remain significantly negative through three months. Again, is $1140-$1150 the paper-physical breaking point? Maybe...

Just two stories from the weekend that need you attention today. The first is this gold-rigging admission from Unlimited BullShit (UBS).

Let me tell you a little story...

I have a "friend" who works in management, within the retail side of UBS here in America. When gold was being smashed in June of 2013, this "friend" rather smugly informed me that UBS had just lowered their gold price target to $1000 and that "they're pretty good at that stuff". I mentioned back to him that this was a direct conflict of interest for them versus their clients as UBS specializes in:

  • Unallocated accounts
  • Bullion banking
  • Active paper price manipulation
  • My "friend" looked at me like I had suddenly grown three heads. First, being involved in the retail stockbroker wing, he had no idea what the terms "unallocated accounts" and "bullion banking" even meant. Additionally, when it came to price manipulation, that was all just a bunch of "conspiracy nonsense". Uh-huh...

    Moving on, PLEASE take the time to read this follow up story on Sharyl Atkisson:


    Sharyl Atkisson:...Hacking is a word that of implies to me sort of a single event — an in, an out. The forensics exams, three separate ones, have shown a long term monitoring and surveillance that went on both in my CBS laptop computer as well as on my home Apple computer. It’s pretty chilling when you consider the extent of the abilities they had, according to the forensics reports, to monitor my every keystroke, to activate Skype by getting the password to my account, and listen through Skype on to audio if I was talking in the room or talking on the phone. Being able to exfiltrate files using Skype, downloading and refreshing these surveillance methods periodically using something called a BGAN satellite terminal, using WiFi when I was at a Ritz Carlton at one point. I mean they left some very distinct trails because I don’t think they ever thought I would have the ability to have highly-skilled specialized forensics people be able to find what was in there. Ordinary computer analysts may be very good, but unless they know exactly where to look and they’re familiar with some of the proprietary government practices, I’m told, they will never be able to find the things that were found in my computer. But I was able to go to some very good sources.

    If your government is willing to go to these measures to surveil a prominent member of the media, what steps might they take to surveil YOU, an every day regular bloke who is simply trying to prepare for the end of The Great Keynesian Experiment?This is truly chilling and should strike fear and caution into the hearts of everyone.

    Hang in there but be smart...and, whatever you do, always be aware that Big Brother might be watching.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    · Nov 10, 2014 - 9:04am

    Sorry about that...

    I had forgotten that the default comment setting has been reset to "disabled" so I have to manually enable them for each Vault post.

    CPE · Nov 10, 2014 - 9:09am

    No longer


    Thanks Turd, and I'm with you 100% on the changes!

    StevenBHorse · Nov 10, 2014 - 9:15am

    Thanks Turd

    Check out this photo. Who is China's right hand man?

    Mickey · Nov 10, 2014 - 9:18am

    I thought the selloff would have been late Friday

    at least for pure traders who if they used leverage made some nice bucks Friday-so why hang around over the weekend?

    If not Friday then overnight now and into the morning.

    Oil was up almost $1 earlier. I still believe the biggest driver to lower oil price was the election and being able to say that oil prices were down. A strong nod to sticking it to shale oil and fracking by both the Saudis for competitive purposes and the administration for the environment.

    A slight nod to keeping prices down to aggravate Russia-but not Iran now as it appears the adm wants to get closer to Iran.

    If I was a trader (and I know some) and not even caring about underlying asset as traders just care about momentum of anything, I can see a quick turn up here this am to snarf a few bucks of profit on a bounce.

    An independent trader once told me he used to walk around the pits to get a feel for whats way going on--if he "felt it" he would jump in and buy something for 10-15 minutes then sell. Do it a few times a day and go home.

    Now magnifiy that guy who might buy and sell one or two contracts by the hedge funds that buy and sell dozens or hundreds of contracts

    All this is confusing, who's on first?

    surfergod · Nov 10, 2014 - 9:21am

    Ambush alert

    Was just told by my options account customer service agent that gold stocks (not sure if all gold stocks) as of this weekend needs 100% margin coverage in your account. As of Friday, the margin required was 50%. The agent didn't know this until I inquired this morning and only after he had to make some phone calls. He was very shocked to find this out! This was based on a new requirement from APAC (?) and not from the options brokerage.

    AUandAGbull · Nov 10, 2014 - 9:21am

    Open Interest Thoughts

    Turd, would love to hear your thoughts on the huge (preliminary) rise in gold OI Friday (although it might be prudent to wait for the final CME OI numbers) me the tricky part is ascertaining whether the sudden reversal from 1130 was (1) the commercials buying / 'defending' a too low physical price (and speculators selling) or just simply speculative buying based upon the news of Russian tanks entering Ukraine (with the commercials selling)

    jaba · Nov 10, 2014 - 9:24am

    Question For Turd Re Charts


    Bearing in mind the importance of the comparison charts of (a) Crude Oil vs Silver and (b) Yen vs Gold would it be possible to add these charts (active, but delayed by 15 minutes or so, like your existing gold and silver charts) to the "Charts" section of your web site ? This IMO would be most helpful to those Turdites interested monitoring these developments on an on-going, intra day basis, so as to assist in the making of intra day investment decisions. 

    I note that you have a small window showing real time prices, which include Gold Silver, Oil, and Yen. However I note that as at the time of writing the Oil price is shown as USD 92.6 !!!!!!! Is that correct ? If it is correct Oil is up USD$ 14.80 (from a Friday close of USD$ 78.80) overnight in Asia and early European trading. Or is that oil price "Brent" oil ? You have another separate chart showing a Crude Oil price of USD$ 79.40 ?

    Your feedback would be most appreciated.

    Thanks for a wonderful web site Turd. You are obviously a good advocate for the "KISS" principle - "keep it simple and straightforward". I wish I had subscribed earlier, as IMO the TFMR is excellent value for money.

    chrtoo · Nov 10, 2014 - 9:26am

    Thank you and Good Morning!

    Off to another interesting week ..

    Remember, about these stories of hacking and such, it is really unusual to have caught them in the act; this is almost always found out "after the fact", if ever at all. The chance of finding hacking evidence is inversely proportional to the quality of the Hack.

    Dance like no one is watching

    Sing like no one is listening

    Communicate like your are talking to the NSA


    And on a related note ... I hear all sorts of warnings that the US infrastructure has been compromised by the foreign installation of "Dark Energy" Trojans. They are warning the people, pre-disclosing the enemy to soon be blamed. Given all this advanced understanding that we will be so screwed ... where is the effort to Head this off at the Pass?

    Certainly, if you know that much about the an impending attack and the method to be employed in that attack, you should be doing more than just drumming up public anger about how bad it will be, when it all happens.

    So much for pro-activity. I must have missed something .. for me to be the only one asking ".. so what's being done to eliminate this threat, before it destroys the US"?

    P.S. First, non-yellow.

    CPE · Nov 10, 2014 - 9:32am


    I find that very interesting, because Brother Barry is more communist than Putin, but he's over on Xi's left hand... However, Obummer does seem to like wearing that little suit a lot.

    AUandAGbull · Nov 10, 2014 - 9:38am
    AUandAGbull · Nov 10, 2014 - 9:42am

    Open Interest for 11/07/14

    gold +19,548 silver + 1,209

    · Nov 10, 2014 - 9:43am
    realitybiter · Nov 10, 2014 - 9:43am

    and uraniums again...

    uec, urre, urz, ccj.

    I think the encouraging thing observing them is that NO ONE is actively suprressing this market. You can't. The price of uranium is set by contracts between suppliers and users. If uranium is sincerely breaking out, the "price of things" is breaking out. Today. UEC took out its May peak after a higher low last month and took out the three year downward slope containing lower highs. Looking good, Reginald

    Hang on.

    AUandAGbull · Nov 10, 2014 - 9:44am

    Once we see the final

    Once we see the final numbers, we'll discuss OI in today's podcast.

    JPMoargain · Nov 10, 2014 - 10:01am

    Putin's Revenge

    'Putin's Revenge': Russia And China Try To End The Dominance Of The Dollar

    AGAU AUandAGbull · Nov 10, 2014 - 10:07am


    Great article thanks for the link

    realitybiter · Nov 10, 2014 - 10:12am

    Sharyl Atkisson

    The tin foil hat crowd has long contended that our government is influenced by totally, evil, immoral zealots who could give a rip about the constitution. She is simply a mainstream source supporting this. They crossed the line a long time ago, and there is NOTHING they wouldn't do, IMHO. Why do you think Obama is so complicit? "Mr President, I sure would hate to see anything happen to those beautiful children....maybe we should increase security. All this talk about the 4th amendment is creating quite a bit of risk for them..........sir." wink....

    It is a joke for folks to take an oath to the constitution and then observe this BS right out in the open, and do NOTHING. As W is allegedly quoted, "just a GD piece of paper." Domestic enemies abound. They need to be tried and punished for high treason. Clapper can go first. Maybe he and Cheney can do a

    I'm glad that you are promoting this story, but Bill Binney resigned from the NSA in 2001 because of this and started making noise. He didn't get a lot of press until he was threatened with lifetime in prison, no-knock swat raid, 2007. THIS has been going on for TWO administrations!!! and those that gave the story legs were deemed unpatriotic. riiiiiiight. Orwell rules.

    What would these obviously, totally evil governments stop at? Nothing. "A New Pearl Harbor" was a chipshot. Read PNAC.

    AUandAGbull · Nov 10, 2014 - 10:19am

    Re: Hope for the SGI?

    Yikes, sorry Turd, didn't mean to flag this post, just thought you might have the wrong link ?

    amarula4 · Nov 10, 2014 - 10:29am

    Hacking and surveilling and stalking

    survivors of these things all say it is those closest to you, whom you trust, who are the greatest menace, work colleagues being in reality almost anybody rather than what they appear. This is certainly my experience. They can shoulder-surf because you trust them not to filch your password. But once they do get the admin password to your laptop or email they can spy to their hearts content by installing hidden 'extras' on your machine to proceed remotely. Even those who type their password with lightening speed with their back to the wall can eventually be recorded bit-by-bit by watchers and CCTV. Edward Snowden has to cover his head and laptop with a red cloth to logon to his computer to defeat possible hidden spycams. Just depends on who wants to surveil you, how many there are, and how bad they want to do it.

    StevenBHorse · Nov 10, 2014 - 10:37am

    Here is a nice exchange

    1.  2h2 hours ago

      New Vault post:

    2.  2h2 hours ago

      FYI comments are disabled

    3.  39m39 minutes ago

      how much have you lost listening to turd?

    4.  3m3 minutes ago

      $10/month. I gather info and make my own decisions. That's what a man does. You do what pussies do, which is hate.

    A. Tad Askew · Nov 10, 2014 - 10:38am


    Nenner's weekend commentary was decidedly gold bullish. He says his final (daily, weekly, monthly) cycle has bottomed and "we have to get bullish on gold".



    goldcom · Nov 10, 2014 - 10:50am

    Ambush alert @surfergod

    I have never seen that kind of over site for a grouping like that of gold miners. They said nothing about silver miners or PM miners in general? I don't do any options anymore as I just got burnt every time I used them a few years back and have never used margins so no big deal with me. Turd is this out of the ordinary? Is this a strategy to suppress the volumes of longs or protecting credit on trading accounts that will be slammed soon. 

    · Nov 10, 2014 - 10:51am

    Turd- Re: your friend at UBS

    It would be really interesting to email this guy, remind him of your (years ago) prior conversation, include a link to the manipulation story, and ask him what his response is... I would be fascinated to hear how he reacts to that.

    SubjectivObject AUandAGbull · Nov 10, 2014 - 10:52am

    The Wealth Watchman

    article is a fabulous summary/clarification of the PM price suppression context.

    Analogous to unlimited printing of fiat, we're up against unlimited printing of unbacked sell contracts. The only resolution is extensive failure to deliver, or the black swan of an associated systemic socio-econo-politico event.

    StevenBHorse · Nov 10, 2014 - 10:57am

    Most of those guys

    That work for UBS, Morgan Stanley and the like are just giant cogs in their firms asset gathering machines. They make people take overly simplified surveys to determine what type of bucket to put their money into. They simple use the models that the guys in New York make up, and don't deviate from it. If they should deviate from the model they will be receiving phone calls.

    Mainly those guys look good in a suit, can speak to average Joes about the market, which they themselves don't understand. They buy the MSM propaganda, hook, line, and sinker. Their livelihood depends on it. The entire financial services industry has built on a foundation of blind allegiance to the central planners.

    Orange · Nov 10, 2014 - 10:58am


    Interesting chart, shows we are posed for rise in silver and a lowering of the gsr.

    infometron · Nov 10, 2014 - 11:10am

    Another must read imho

    I can't remember how I came across this, possibly from another turdite who posted it a few days ago. If so, thanks! I found it to be a fascinating and enlightening read. For those who have already read it, I would suggest that it is well worth reading again.

    Edit: And as Craig points out on occasion, this is one to print out and stash away

    arch stanton · Nov 10, 2014 - 11:13am

    question for Turd

    With the new forums where does one go to view the active users?

    realitybiter · Nov 10, 2014 - 11:15am

    SB Horse

    When Corzine stole customer money and gave it to JP Morgan to cover his margin, I was one of his customers. 200 large vaporized over night. I had a friend who worked for JP Morgan. I explained to him what happened, and he was dumbfounded, "that isn't right....I'm sure that can't be right." He was genuine, sincere. A crime against one, is a crime against all. Ignoring one, is ignoring all, self included.

    Everyone must man up.

    unclepete · Nov 10, 2014 - 11:21am

    New Jim Willie

    Best Jackass in a while IMO. New 'Voice' input, Scotia and GLD in depth. 

    ADDENDUM: $18,000 Gold & U.S. Becomes Third World | Jim Willie

    Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

    Become a gold member and subscribe to Turd's Vault


    Donate  Shop

    Get Your Subscriber Benefits

    Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

    Key Economic Events week of 12/10

    12/11 8:30 ET Producer Price Index
    12/12 8:30 ET Consumer Price Index
    12/13 8:30 ET Import Price Index
    12/14 8:30 ET Retail Sales
    12/14 9:15 ET Industrial Prod. and Cap. Utilization
    12/14 10:00 ET Business Inventories

    Key Economic Events week of 11/26

    11/27 9:00 ET Case-Schiller home prices
    11/27 10:00 ET Consumer Confidence
    11/28 8:30 ET Q3 GDP 2nd guess
    11/28 10:00 ET New home sales
    11/29 8:30 ET Personal Income and Spending
    11/29 10:00 ET Pending home sales
    11/29 2:00 ET November FOMC minutes

    Key Economic Events week of 11/19

    11/20 8:30 ET Housing Starts
    11/21 8:30 ET Durable Goods
    11/21 10:00 ET UMich Sentiment
    11/21 10:00 ET LEIII
    11/21 10:00 ET Existing Home Sales

    Recent Comments

    by lakedweller2, 2 hours 3 min ago
    by Turd Ferguson, 2 hours 18 min ago
    by scoremore, 2 hours 32 min ago
    by lakedweller2, 3 hours 11 min ago