Fri, Jan 6, 2017 - 11:15am

As we begin 2017, it's more important than ever to be clear about what we discuss here. To that end, today we add two new acronyms to the TFMR glossary...CDG and CDS. No longer will be discuss the paper derivative price of "gold" or "silver". Instead, we will refer to these issues as CDG (Comex Digital Gold) and CDS (Comex Digital Silver).

Let's just cut to the chase. When you regularly observe charts such as this one...

...isn't it appropriate to ask yourself just what you are following? How in the world can anyone continue to call what you see trading on the Comex "gold"? It's not gold. Instead, it is simply an electronic derivative contract that HFTs and hedge funds utilize to give themselves "gold exposure" or a "hedge". No physical metal ever changes hands. Even the bi-monthly "delivery" process is nothing but a Bullion Bank circle jerk where warehouse receipts and warrants are shuffled to and fro.

So, why should we continue to refer to what is traded there as "gold"? Well I, for one, will no longer do so. Oh sure, I may slip up from time to time and, by force of habit, still call what is discovered on Comex the "gold price". However, going forward I will make every effort to instead refer to it as CDG for Comex Digital Gold. As the same situation exists in silver, henceforth the Comex silver price will be referred to as CDS for Comex Digital Silver.

Will this catch on over time? Maybe but who cares. As long as you and I are truthful, honest and accurate about what we're discussing, everyone else in the gold community and financial media at large can piss off. The Comex price of "gold" is no more connected to physical reality than the value of my shoe is connected to the price of oranges. What I'm saying is that the Comex price and the physical reality are completely unrelated. As you've heard me repeatedly state: "Gold and silver are priced as if they are physically abundant when they are not. Instead, what is abundant is the paper derivative."

Therefore, from this day forward, we shall refer to the Comex/LBMA/Globex price as CDG and CDS.

To that end, CDG is back down a little today as the USDJPY and bond market react to another utterly worthless US jobs report (BLSBS). Not only did the US allegedly add 156,000 "jobs" in December, but now they tell us that wages are rising, too. Uh-huh. Maybe not:

And about those 156,000 "new jobs"...It appears that 155,000 are completely imaginary as they came into being from BLS seasonal adjustments:

Here's a fun idea. Go out today and stop at a Walmart or Aldi. Find some poor soul with a handful of foodstamps and tell them that all will soon be better as they were just hired for a BLS seasonal adjustment job. Full benefits, paid vacation...the works! See how that goes over.

What a freaking joke and scam this all is.

And then take a look at the new record high number of people "not in the labor force" at all. This number hit 95.1MM people today! Again, that's 95,100,000 people out of a total working age population of about 243,000,000. AND YET YOU'RE REPEATEDLY BEING FED THE LIE THAT THE US IS AT/NEAR FULL EMPLOYMENT! Again, lay this on the food stamp recipient at Dollar General and see how he/she feels about the "robust" US economy and labor market.

All the while, Kernen, LIESman and Lavorgna yuck it up on CNBS.

And here are three fun charts for you. US factory orders are plunging but US bomb drops are soaring. Maybe what we need to Make America Great Again is a huge surge in Bomb Manufacturing plants. Maybe some of those 95.1MM not in the labor force can pack TNT and set fuses?

And then there's this friggin guy. Two years ago he's the devil incarnate after he overtly and deliberately PERJURED HIMSELF AND LIED TO CONGRESS about the NSA spying on and collecting data from average, everyday Americans. But, oh no. Now that he serves the ends of The War Party, he's some kind of unimpeachable expert of high integrity. Give me a break!

So, well, whatever. Let's get down to business and get this posted as it's getting late.

The price of CDG is down today and giving back some of the gains of earlier this week. Keep in mind that the first three days of 2107 saw a combined $30 rally so the fact that CDG is back down $6 today isn't really too big of a deal or unexpected. Simply holding these gains and closing the week above $1160 is a significant accomplishment and keeps CDG on track for a stab toward key/critical resistance near $1200.

CDS is down a bit today, too. However, when you consider that it was already up about 4% on the year, giving back only a few pennies today is quite an accomplishment. Let's see what next week brings! For today, simply holding and closing above $16.50 should be our primary goal and we've got a decent shot, too, as I have a last of $16.54.

OK, that's all for today. I'll be around for most of the day, posting comments and charts to this thread. However, I have a very important meeting to attend this afternoon so I will not be able to record a podcast until Saturday morning. On the bright side, it should be one of those overly-caffeinated deals fulls of vim and vigor.

Have a great day,


About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 6, 2017 - 11:19am
Jan 6, 2017 - 11:20am



The Wetback Surgeon
Jan 6, 2017 - 11:22am
Jan 6, 2017 - 11:23am


With a big hat tip to P4, of course, and I share this honor with all the old timers who have perservered.

The "First" club: I have a great fondness for this little community, and I like the dumb things we do like proclaiming 'first'... it's a silly thing, but damn-it, it's OUR silly thing. This series struck a chord and people still mention it on occasion.


Jan 6, 2017 - 11:32am

Liar lies about lies !

That`s James Clapper for you.

CDG & CDS, great stuff TF !

Jan 6, 2017 - 11:35am

@ Turd

With the CDG price tied to the USDJPY do you see a scenario where it breaks?

Jan 6, 2017 - 11:38am

GREAT post Craig!

I'm so happy to know that I'm not the only one yelling at my television on occasion!

Edit: Ninth! Yay! :^))
Jan 6, 2017 - 11:39am

Taking the Fifth

Yes, Turd! Coin the phrase! If you want it to catch on, "CDS" is already "credit default swap" - yet another form of fiat paper derivative that increases systemic financial risk.

How about CPG and CPS (Comex Paper Gold and Silver)?

To broaden the moniker beyond COMEX, then: PDG and PDS - Paper Derivative Gold and Paper Derivative Silver.

In any case, I have come to the conclusion (or is it a thesis?) that fractional reserve anything is the beginning of all financial fraud - in central banking, in commercial banking, in futures trading, etc. etc.


Jan 6, 2017 - 11:39am

Gold positive data...and metals down?

Trade, Jobs, Factory Orders.

Gold struggling to maintain momentum.

Jan 6, 2017 - 11:46am
Jan 6, 2017 - 11:47am

looks to me... they are making a push for 20 K today. It'll be an interesting last your bets !

Jan 6, 2017 - 11:53am

Yep. That's the entire focus of the day.

USDJPY was suddenly goosed and reversed last evening and now it's up nearly two full points from the lows and recapturing all of the losses from yesterday.

This is one final gift to Obama. Goose the USDJPY so that you get "full employment" and Dow 20,000 just days before he leaves office. Grotesquely manipulated and sickening. billhilly
Jan 6, 2017 - 11:53am

re: Dow 20k

I agree billhilly. TPTB want everyone to buy in and push Dow above 20k and S&P to 2,500. Check out this perfect Fibonacci chart if S&P futures hit 2,500 this year.

Jan 6, 2017 - 12:05pm


Hmmm, are you really sure?

Since we sometimes talk about CDS, credit default swaps, I would have chosen less ambiguous acronyms.

How about CVG and CVS for Comex virtual gold and virtual silver? At least we're unlikely to be talking about an airport or a pharmacy.

Or why not be less flagrant and simply use CG or CS?

Jan 6, 2017 - 12:20pm


I am looking at a daily USD chart and seeing the pattern of higher highs/higher lows back to Aug. If this rise from yesterday's low continues then the pattern remains intact and we should be watchful for a break above the 103, going to 105? Not something we all would enjoy seeing but we need to be aware. I wish I could learn to post charts.

Just food for thought....I'm NO CHART EXPERT !!! but sometimes when I play darts, I actually hit the board.

Jan 6, 2017 - 12:30pm

James Clapper

Amazing how time flies. It was March 12th 2013 (almost 4 years not 2) when he committed perjury before Congress, shortly before Edward Snowden exposed the whole sorry spying mess.

BTW: I put no credibility in whatever the Russian hacking report he's authored says.

Jan 6, 2017 - 12:32pm

Intelligence Agencies (global trend)

Every time I look at the faces of people representing them...I immediately become skeptical about anything they say. At least they are Not named Intelligent Agencies.

I feel like our world would be better without them.

Jan 6, 2017 - 12:35pm


"The Comex price of "gold" is no more connected to physical reality than the value of my shoe is connected to the price of oranges." -made me laugh.

I can magically make the comex price connected to physical reality. Just ordered xx ounces at the "price" quoted and I'll be holding the physical in hand Monday. Magic I am.


Jan 6, 2017 - 12:35pm

Re: BillHilly

Just do a screen grab of a chart and it becomes a pic. You obviously know how to post a pic. HTH PW

Jan 6, 2017 - 12:37pm


As long as there are knot heads (like me) out there that that can buy real G & S for the FAKE CDS & CDG price its a GOOD DAY. on the day we cant anymore...... well that the day de all live for I guess. Until then "Keep Calm and Carry On"

Jan 6, 2017 - 12:38pm

Traders Be Careful

I saw this coming. Elites want Trump/OBAMA to have a grand entrance/exit. And where else can they manipulate to show the US and global masses their "perfect picture"..? DOW screaming past 20,000. Nasdaq blows past 5,000., etc. PIG going to $105 ....YEN going to $120. The bullsh*T result is that Gold is dropping below $1100 and Silver dropping below $15 to "reset" the algos. Like Capt Turd's merely trading with fundamentals behind the REAL price of gold/silver.

Like I said before, JDST/JNUG have gaps to fill. And they usually fill it in a few days and sometimes, a few weeks. Get in your stops hard and ride the JDST until it's time to load the 24 wheeler on miners. Its going to be a bloodbath next week. But hey, good deals for us.


Angry Chef
Jan 6, 2017 - 12:41pm

Harley Schlanger Interview

Hanging With Harley: The New Year Is Here!!! (01/05/2017)

This was an excellent brief interview for those that want a macro view of events like Syria, Banksters, CIA misfits, and more....

Old Howard
Jan 6, 2017 - 12:50pm

@looks to me..

With all the "market" manipulation supporting the progressive's agenda I can hardly wait for post inauguration "markets"!!!!!

Jan 6, 2017 - 12:51pm


Call it what you want, that is the price you will get if you sell and how much you will pay when ya buy ?? + premiums of course and as long as that premium is not too high the comex is setting the price is it not!??

How much does a miner get (unhedged ) for hs gold? what is the reference price??

Someone asked at a dinner party the other night

"I wonder what Thomas Jefferson would be saying if he were alive today?"

I said

"Get the lid off this ferkin coffin"

I wasn't asked to stay around for the Port

Jan 6, 2017 - 12:58pm

The paper trading anacronyms....

Yes the CDS is one that was brought to mind as taken. Could the paper futures be called a claim? I don't know if they're even legally enforceable.

I don't know which is worse a note (cash) backed by faith and credit, or a future that is a claim?

No wonder they both trade at such a discount.

indiana rod
Jan 6, 2017 - 1:03pm


Those acronyms fit nicely with the Main Stream Media acronym, HDE.

Hillary's Digital Election.

Jan 6, 2017 - 1:08pm

The photos of Clapper always looked like Head Elf to me.

from Rudolph the red nosed reindeer

Jan 6, 2017 - 1:12pm

How about FAu and FAg...

Fake gold and fake silver.

James Crighton
Jan 6, 2017 - 1:13pm

@Viking - 11:29am - "fractional reserve"

you said: "In any case, I have come to the conclusion (or is it a thesis?) that fractional reserve anything is the beginning of all financial fraud - in central banking, in commercial banking, in futures trading, etc. etc."

Nah - not a thesis - usury has been recognised as the root of all evil for thousands of years - see the Old Testament - and it was over this issue that Jesus carried out his only - HIS ONLY - violent act - that of physically casting the money-lenders (usurers) out of the metaphorical temple.


Jan 6, 2017 - 1:45pm


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