Tooth and Nail

Fri, Mar 11, 2016 - 10:57am

Wow. The Forces of Darkness are fighting us for every last tick, nakedly issuing new Comex contracts at a record pace in a desperate attempt to hold gold back from new 2016 highs. Will they win again? When was the last time they lost?

I must admit to a certain level of frustration today. After yesterday's reversal and rally, gold appeared to be on the verge of another breakout. Instead, after surging $10 higher to $1284 at the "Asia open" last evening, gold is now down $20 and back to $1264. How/why?

  • First of all, incredible naked short issuance by The Bullion Banks on the Comex. Just yesterday, they increased the total open interest by 15,000 contracts to a new multi-year high of 504,000. This represents new obligations to deliver up to 1.5MM ounces or 47 metric tonnes but did The Banks deposit any additional gold or put up any extra gold as collateral? Of course not.
  • Price was sat upon all night long as we even saw a return of The London Monkeys after a 3-day absence. Here's a look at price immediately following the Asia open.

  • Next, we get the standard London PM fix screw job where price is suddenly smashed for $5 just as the Fix is determined:

  • And now, at 10:30 EST, I look up to see price at $1258 and down $15 on the day, $26 or 2% from the "Asia" highs. Ridiculous. Is there any accompanying news? No. Has the euro given back all or even part of its gains from yesterday? No. Has the yen suddenly plunged, taking gold with it? No. This is nothing but plain, old standard Cartel raiding. Brutal. Totally unfair. Completely manipulated. Sickening to watch.

So, is that it? Are we doomed to suffer another massive raid and Spec rinse cycle? It's hard to say. The FOMC and accompanying "fedlines" next Wednesday will go a long way toward determining what happens next? Will Mother raise the FF rate again? I doubt it. Will she and her Goons proceed to jawbone their way to dollar strength? Yep. And will The Cartel use this jawboning to raid price even further because "all is well, the economy is strong, markets are surging, rates are headed higher"? Of course.

We will, most definitely, have to watch the charts closely. For now, both metals are hanging tough despite all of the repeated raid attempts and incessant creation of paper metal.

At the end of the day, this is all criminal behavior but what do you expect from a bunch of unregulated criminals? Since the end of January, they've now issued over 130,000 new Comex gold contracts to meet the Spec paper demand. That's 13MM paper ounces or 404 metric tonnes. These banks don't have this gold nor do they intend to find and deliver it. They're simply waiting the process out. Hoping/planning to smash price with such force that the Specs will rush the exits. This Spec selling will allow The Banks to buy back and cover their shorts, thereby reducing open interest and closing positions without ever having to deliver any metal. It's criminal. It's fraudulent. And it's the way business is done on the Comex.

As you can tell, I'm a little beaten down today so I'm planning to take the afternoon off. My pal, Sweetness, is in town so I'm going to watch a little basketball, drink a little beer and play some golf...though not necessarily in that order. As such, there WILL NOT be a podcast this afternoon. We'll record and post one tomorrow morning, instead. (And don't go complaining about how you need me to read the CoT for you. I can tell you right now that it's going to be horrific with the largest Commercial NET short positions in years. We'll deal with that tomorrow.)

Have a great day and try to find some solace in the fact that LIES cannot continue forever. The TRUTH always wins and The TRUTH will one day set prices free.


About the Author

turd [at] tfmetalsreport [dot] com ()


joeblack · Mar 11, 2016 - 11:00am
proformatrillionaire · Mar 11, 2016 - 11:08am


Now that I live near Gainesville Coins I will need to drop by and make a purchase in person to celebrate.

gazzmann · Mar 11, 2016 - 11:12am

it's a


TF Metals fan · Mar 11, 2016 - 11:15am

That beer a great idea. Much better than seeing a bunch of criminals at work.

canary · Mar 11, 2016 - 11:20am

Totally naive question.

If the Fed rise rates or just talks tough next Wednesday (bypassing weak negative data).....With all those commercial short positions.....What will happen to gold and silver?

BarnacleBill · Mar 11, 2016 - 11:20am


For physical purchases should the Banksters prevail short term at FOMC. I'll take it! It is very frustrating to watch but they ARE losing control and soon it may not be possible to buy physical at these prices. Trying to stay positive.

· Mar 11, 2016 - 11:20am

Since the Asia open

The Asia open sends gold to new 2016 highs on strong upward momentum. In a normal "market", this would engender even more buying. Think of what you might see in an individual equity, for example.

Instead, we get this:

canary · Mar 11, 2016 - 11:21am


C'mon, man. You can answer that yourself...

· Mar 11, 2016 - 11:27am

Shares being pushed lower too

HUI now down 2% on the day after daring to reach above 180 again.

ReachWest · Mar 11, 2016 - 11:35am

The Battle Rages On.

Thanks Mr Turd ...

This is a war and we win some battles, while losing others. (Although - the opposition wins more and has been since 2011.) But - they will ultimately lose. No matter how powerful they seem (with their endless supplies of conjured currency and naked paper gold shorts) - we have a secret weapon. That weapon is called "human nature and natural laws". Trust will be lost in their paradigm. They are fighting the forces of gravity (so to speak) and we have gravity on our side. The best they can hope for is to delay the inevitable. The spinning top is wobbling and there is no way to stabilize it before it stops spinning.

I wonder how many of those people in the command structure of the Keynesian system are actually acquiring physical metal for their own personal protection? Probably a large percentage.

tread_w_care · Mar 11, 2016 - 11:45am

Go have some fun Turd

You damned sure deserve it my man.

These things don't bother me anymore. Knowing what is up eliminates the anxiety - i.e. knowledge is the key to serenity in these markets. 

You give us that knowledge, I for one am very grateful.

If they push it down far enough - buy some physical, that simple. 

· Mar 11, 2016 - 11:54am

Daily musing

Methinks that the tooth & nailers want metals to be lower, regardless of what the FED does. But they may not get what they want. On one hand, I hope to see more disappointment on their part in the coming months.

But on the other hand, I am still trying to cut losses and unload rental properties in the midwest. I need the system to hold together until my house is in better order. As of today, there is a bank out there that has the right to come after my personal finances if I cannot make the mortgage payment on a commercial property... and they know I hold some precious metals as part of my "portfolio." So I am thankful for the time we have had to continuing to prepare.

But on the third hand (there are always more than two hands), that MAV video on the last thread, combined with the threat of nuclear war, is scary as hell. If a collapse will end the threat of war, forcing all of us just to struggle for survival and then rebuild our governments, I welcome the collapse. I hate war! and my recent new friendship with a Vietnam vet struggling with PTSD just deepens that hatred.

And on the fourth hand, we are faced with a his horrid choice between Hillary the war-mongering criminal, and Trump the authoritarian dictator. Both are insiders in my view. This not a choice between the lesser of two evils, but the evil of two lessers. But since the neocons hate Trump, I figure that counts for something and may earn him my insignificant protest vote.

Oh! How I long for Ron Paul to step back into leadership.

In the meantime, I have to decide whether or not to hold out hope for my DUST position or cut losses today. I don't think I want to be holding these shares when the FED announcement comes. I am watching for a severe beatdown so I can get out.

In personal news, we received a reasonable offer on a money-pit property in Indiana. That makes three underwater properties sold with only one to go. Then we need to unload two with equity that are in Ohio. Proceeds from those two could pay off our home and fatten our stack. So I really don't want a collapse to happen right away. Yet, I would greatly enjoy seeing metals rip higher while the tooth & nailers hold things together a few more months.

Mickey · Mar 11, 2016 - 12:32pm

51 million oz OI and position limits

With all the BS talk from incumbents and a prior senator, is there any question why Trump is gaining popularity?

We have regulations that are not being enforced and congress arrogantly initiates more of the shit it wil not enforce unless they get paid under the table to

It is like Cook County.

Trumps no Saint--unless compared to the trash he is competing with. But with the others we are pretty sure we would definitely be going down, Incl Hilary and Bernie).

I was a CFO of a 4000 person 1 billion company and used to hire--the crap I heard is what I hear in the debates and the appearances. Nobody has priorities of what's really important (except Trump who knows we are knocking on BK) and if we go BK nothing else matters, not immigration pro life pro choice, welfare, foreign policy. We become a doormat.

If he is elected we will see a lack of cooperation just like we see in Illinois with a Republican Gov and Democratic IL House and Senate.

Media wil say good, stalemate is good. Not when you are trending down fast.

Conclusion: we are screwed and make sure you have sufficient real money and if necessary a bug out plan. To where I have no idea.

SteveW · Mar 11, 2016 - 12:32pm

London Fix

Don't forget that the London Fix smash will seem to occur an hour earlier for the next two weeks, due to different dates for the move to "Summer Time".

I understand how the drip by drip takedown is frustrating but the good news is that they no longer seem to be able to produce any smash that has legs and how long is it since we saw a real "waterfall". It really seems different this time.

Angry Chef · Mar 11, 2016 - 12:35pm

MAV Video ?

I can't find the MAV video you reference Dr. J. If you have the link please re-post. Watching this nightmare unfold twists the mind some day's. I can see why Turd needs a day off. I don't see how this ends well at all. The situation with Russia, China and the BRICS is accelerating. Lets hope for calmer heads...but I doubt it.

· Mar 11, 2016 - 12:49pm

And this, of course, is

And this, of course, is completely normal. too. A $1.50 range for over an hour...

That's it. I'm outta here. Have a great day, everyone.

Fred Hayek · Mar 11, 2016 - 1:45pm

@Mickey -- there's a lot that can be done even with gridlock

Below are links to a couple of articles by Karl Denninger over at Denninger was ambivalent toward Trump but found that his plan for health care includes enforcing existing laws against much of what Big Pharma and cartel healthcare do. Denninger believes that a president who would simply have the executive branch enforce existing laws against restriction of trade could make huge changes in the health care industry and lower costs.

mfields111 · Mar 11, 2016 - 1:46pm

Lets not forget

yesterday, the market reacted to the Draghi bazooka..and to the Chinese ownership of all losing companies....the stage is now have to expect the masters of the universe to do their thing but in my book its all over just be patient.

canary · Mar 11, 2016 - 1:57pm


I expect the Fed to talk tough as long as they possibly can.... With the S&P looking strong, they will.

And having the commercials loaded on shorts....Wednesday makes me stay very, very cautious. 

James Crighton · Mar 11, 2016 - 2:18pm

Update on taking aelivery of silver from

Fellow punters, for those of you that requested updates on the situation relating to my taking delivery of silver from GoldMoney, I am pleased to report that they have compensated me - in full - for the shortfall described in earlier posts. They (GoldMoney) have been most accommodating.


infometron · Mar 11, 2016 - 2:40pm

Classic dampening pattern?

I know we have some very astute physicists here in turdville. Check this out, I've seen and made note of this pattern many times before... does this look like the price is being controlled by a dampening algorithm to you?

StevenBHorse showed an example of what I can only assume was a bid ask stack for gold futures contracts from a few years back... If those data were available in real time and could be captured and modeled, that could possibly provide proof of a price suppression algorithm, especially as demand starts to peak out...

silverwhere · Mar 11, 2016 - 2:47pm

@James Crighton

That's good news JC.

Ten bucks >>> most Local Coin Shops are FAR MORE dishonest than GoldMoney.

infometron · Mar 11, 2016 - 2:58pm

CME COMEX Special Fluctuation Limits

I read this to mean that the fluctuation limit for Gold Futures (GC) is $100/day, and for Silver Futures (SIL), $3/day... Don't think this is any change from what we noted a couple of years ago, and they wouldn't have much impact at current levels (although we did have a ~$60 fluctuation in gold a couple of weeks ago), but once prices get up into new all time highs, they would progressively dampen any upside movements.

Also, so much for any substantial one-day commercial signal failure...

Such a case would have to play out over a number of days...

Leaving lots of time to increase margins...

Been there, done that, eh!

infometron · Mar 11, 2016 - 3:14pm

last hour of trading...

time to pump stawks and dump metals...

right on cue! bastardos!!

infometron · Mar 11, 2016 - 3:18pm

Happy weekend everyone!

I've seen enough! I'm cutting out early too! Even though it is too wet for a round of golf here, it is past noon, so I can fully justify tying into one (or more) of these:

Cheers, info

blackhawk01 · Mar 11, 2016 - 3:37pm

Gotta love that Gold CoT!

Cant wait for the rant!

JQuest · Mar 11, 2016 - 3:40pm

Right On Que!

With the 2:00 pm PM kick in the balls.

This gets so Fu%k'in old.


MiningJunkie · Mar 11, 2016 - 3:41pm

GLD puts

I would love to short the NUGT in here but volatility too scary so I am wagering $10,000 on a GLD short at $120.30 looking for $170.

joeblack · Mar 11, 2016 - 3:43pm


commercials move 23900 gold contracts to the short side 

MiningJunkie · Mar 11, 2016 - 3:47pm


reminds me of Phyllis Diller on a bad morning....too ugly for words.

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