Weekend Review

Sat, Sep 22, 2012 - 12:16pm

What an interesting week. Instead of volatility, we got containment and flatlines. Something tells me next week won't be the same.

Ponder this for a moment, QE∞ is announced as official Fed policy last Thursday. That day gold, the only alternative currency to steadily-debasing fiat, responds with a $38 move. Frankly, I would have expected more but, given the Cartel propensity for containing daily moves at either the +1% or +2% levels, $38 seemed about right. However, over the next five days, would you have expected this?

  • Friday, 9/14: net change +$0.60
  • Monday, 9/17: -$2.10
  • Tuesday, 9/18: +$0.60
  • Wednesday 9/19: +$0.50
  • Thursday 9/20: -$1.50

So, cumulatively over the next five days trading in gold, immediately following the long-awaited announcement of QE∞, the total change was down $1.90. Huh?? And, again, it's not like we saw the +$20, -$22, +$31 kind of volatility you would have expected. Very strange and, once again, subtle evidence of the outright blatant and ongoing manipulation and "managed ascent" of the paper price by The Gold Bullion Banking Cartel.

To no one's surprise, this week's CoT continued the trend of Cartel naked short issuance to contain price. Again, I'm not really sure who wrote the mandate that JPM, DB et al have to act as market makers in the metals but, for some reason, that is the role they allege to play. Spec money comes into the pit and the banks issue the highly-leveraged paper. Not content to see price bid up as the spec bids search for willing sellers of existing contracts, The Cartel, instead, simply issues brand new contracts to satisfy demand.

In doing so, The Gold Cartel added another 18,196 short contracts this week and brought their net short ratio back up to an astonishingly dangerous (to them) 2.68:1. Why is this so dangerous, you ask? Because they are continuing to play this game as if none of the fundamentals have changed. This is no longer 2002 or 2008. It's not even 2011. We are near The End Game for fiat currency and the "creditor nations" around the globe recognize this. The are readily exchanging their rapidly-devaluing fiat for hard assets, gold in particular. This insatiable physical demand underpins the paper market and makes precipitous, short-covering drops, like we've seen The Cartel execute in the past, all but impossible. Oh sure, there will still be selloffs and beatdowns...Heck, we saw one yesterday...but incessant physical demand forces The Cartel to quickly turn tail and buy in order to cover and secure the metal required to meet the allocations sought at every London fix.

So, again, look to buy the dips. Not every $5 dip, mind you, but any substantial dip the pushes price back to obvious support points. Right now, the obvious area is around $1755-1760. IF a dip develops early next week, I'll be all over it. Gold looks certain to soon blast through $1780 and then $1800. From there, I expect a rapid move toward the old all-time highs of $1920. At that point, gold could, once again, get disorderly to the upside, similar to what we saw in August of 2011. It will likely break out and UP through the long-term channel again and head toward and through $2000.

And here is a long-term chart of gold priced in euros. Recall that we've been discussing for weeks how euro/gold was getting well ahead of dollar/gold and that dollar gold would eventually catch up. A month ago, euro/gold was showing that $1800 gold was coming. Now, euro gold makes it look like $1920 gold is only about a month away. (Chart courtesy Trader Dan: https://www.traderdannorcini.blogspot.com/2012/09/euro-gold-on-track-for-all-time-high.html)

And JPM and their pals continue to play games with silver, blissfully unaware that their dynasty has ended. Just last week, they added another 2,880 short contracts in a vain attempt to pin price below $35 and protect the vulnerable buy-stops near $35.50 that, if tripped, would send silver quickly toward $37.50. Oh well, screw 'em. So they "won" this week. Whatever. They're just going to lose eventually so what's another week of waiting. Now at a total gross short position of 82,358 contracts and a net short ratio of 2.58:1, The Silver Cartel is sitting on a powderkeg of their making. Boy is it ever going to be fun to watch it explode right under them.

As The Doc pointed out yesterday, The Forces of Darkness expended a lot of ammunition yesterday in a desperate attempt to start a cascade and keep price under $35. ( https://www.silverdoctors.com/cartel-dumped-2x-annual-us-silver-production-on-market-in-15-min-to-smash-silver-under-35/) They now find themselves in a bit of a jam as we head into Tuesday. They'll need to cover quite a few contracts before the 1:25 EDT close that day or they risk showing their footprints on next week's CoT. What will they do? Cover, of course! Now the question is, will they gamble by raiding first and hoping for a steep enough selloff that they can cover the raid "material" and more on the way back up? Maybe but I doubt it. Physical demand will easily blunt the dip again just as it did yesterday. Their only logical choice, after being thwarted yesterday, is to begin to cover yesterday's new shorts as early as Monday, otherwise they risk a significantly "Happy Tuesday" that blows out those $35.50-area buy stops and send price toward $37+. What to do, what to do. A whole lot of choices, all of them bad. HAHAHAHAHA! You did this to yourselves, you arrogant bastards, and now you're stuck. You'll get no sympathy around here.

And in case the action in crude this week left you feeling that global peace and harmony were right around the corner, I give you this to ponder: https://www.zerohedge.com/news/2012-09-22/head-irans-revolutionary-guards-war-israel-will-occur

In that same vein, I was contacted this week by a nice guy who asked me to link a few of his prepping articles. I certainly hope you are using this time to full consider these topics: https://destinysurvival.com/2012/09/03/food-storage-how-to-calculate-for-your-needs/ & https://www.emergencyfoodstorage101.com/2012/08/07/being-prepared-for-power-outages/. Of course (shameless plug coming), you can find many of these items by visiting the Turdmart, a link to which is conveniently placed at the top of each page but copied below for your convenience.


I hope that everyone has a safe, fun and relaxing weekend. Come back on Monday and be prepared for a week that is considerably more volatile and interesting than this past one was.


11:00 pm (23:00) EDT Sunday UPDATE:

So, what the hell happened at 20:58? Anyone have a guess? I do but, first, let's look at the charts:

At exactly the same time, the POSX began an uptrend that carried it 20 ticks higher over the next hour.

So, what we likely have here is another HFT algo (WOPR) run amok. True Cartel hit jobs rarely impact so many markets across the board. On a light volume Sunday night, a brainless computer "saw" the uptick in The Pig and began program selling.

Regardless of instigator or intention, it is going to be very difficult to break down paper price much further. Difficult but not impossible. That said, I will be very surprised to see the metals considerably lower in the morning as there is no reason to expect a buyers strike in London on Monday. As mentioned Friday, gold should have considerable support near $1750. Silver will continue to find bids, just as it did two hours ago, near $33.50.

Hang in there and try not to panic. If protracted selling does come in, consider it a blessing. Please consider any and all bouts of price weakness as opportunities to add to your stack.


About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 23, 2012 - 1:30pm


What's all the fuss about swearing? To me it's a great signal of lack of intelligence, imagination and strong vocabulary.

Sep 23, 2012 - 1:33pm

@Puck T. Smith

"Calling someone a douche nozzle because you don't like them or disagree with what they say is not even in the same league"

I didn't say anything about the use of swearing because you don't like someone or disagree with them. Try reading my post before jumping to conclusions - I never mentioned disliking or disagreeing at all.

And it's Bollocks, not Bullocks .

Sep 23, 2012 - 1:41pm

Perception Management re Tungsten Salted Gold?

https://www.zerohedge.com/news/2012-09-23/gold-counterfeiting-goes-viral-10-tungsten-filled-gold-bars-are-discovered-manhattan From a zero hedge post just a few minutes ago, from the story about several more tungsten salted gold bars discovered recently in Manhattan: "Remember the similar story from 2009 (as I recall)? That story quietly disappeared down the memory hole. So I'll ask the inconvenient question, why are these new revelations gaining traction now? Just a coincidence? Just a matter of high prices attract the unscrupulous out of the woodwork? Or could it be that someone benefits by undermining peoples' confidence in physical and the people who trade in it?" So there you have it. Why now with this story? Why only the swiss pamp bar, which retail investors buy and hold? Why in Manhattan, and not, say, Lincoln, Nebraska? Sorry, I call BS. This is MANAGED! QE to infinity, commodities reflect the devaluing of fiat frn's, sheeple take notice, and therefore, the sheeple MUST be managed to stay away from stacking, pure and simple. Only the pamp is separately stamped and numbered, thus proving to the sheeple that if the pamp bar can be counterfeited, then a lowly coin with no serial number can also be counterfeited. Sheeple say: "bettet to keep savings in something safe, like bank with cd, not on something risky like gold. . ." See?

Sep 23, 2012 - 1:46pm

Retail fuel price hike

All the fuel stations around me hiked their price today be 10%-13%. This morning it was low, then BAM.

In Louie's experience, the first indicator of financial instability is exchange rates, then second is fuel prices. 10% in a few hours is significant.

maravich44 George Clooney
Sep 23, 2012 - 1:49pm
El Gordo
Sep 23, 2012 - 1:51pm


It would seem to me that if there were a counterfeiting operation it would simply be taking tungsten blanks and coating them with gold, then stamping etc. to simulate the real deal. Wonder what the story is on the status of those serial numbers stamped in the bars - are they the originals, are or they duplicates or not yet issued or phony or what. Following that serial number lead would seem worthwhile to me. Remember, the Fed has a stake in keeping up appearances relative to some semblance of value for the greenback - and I believe Treasury has a relatively sophisticated minting capability. Who knows with these yo-yo's running things.

Sep 23, 2012 - 1:54pm

Define yourself...

Not by what you hate...but rather by what you love!...Put aside your petty prejudice & animosity!...Divided we fall...together we win!!!...

Bag Of Gold

Sep 23, 2012 - 1:58pm

The Summer Wind !

The much anticipated fruity farts of Summer ! So different than the dry popcorn farts of Fall ! Monedas 1929 Comedy Jihad Dooby Dooby Doo

Sep 23, 2012 - 2:02pm

Counterfeit Gold

I told you it was more than one bar last week.

I am not so sure that this is a false flag. If in the next few days plugged AGE, Maples, Krugs and a couple Saint Gaudens show up, then we will know for sure it is a FF.

I find it curious that Fadl says that he x-rayed the bars. IMO, an x-ray would have revealed the plug.

Also MO- group of counterfeiters out to get rich. These bars probably ARE in other places.

Sep 23, 2012 - 2:03pm

@Bollocks: Well, then.

I stand corrected.

maravich44 BagOfGold
Sep 23, 2012 - 2:07pm
Sep 23, 2012 - 2:10pm

I took the weekly gold chart I have been using for years

and looked at gold in Euros. What a nice cyclical pattern, bounded by the moving average envelope! It seems to have a 12-16 month period. And it also looks like we are on the upside of the pattern. We would reach the upper band of the MA envelope in 2 months at about 1800 Euro/oz, or $2340 at $1.30/Euro.

Sep 23, 2012 - 2:14pm

Machinegunning the Lifeboats.

A comment posted by 'Mr Fix' yesterday has me thinking since, (especially after reading Jesse's Cafe this morning), that the "end point" of this criminally fraudulent, in your face, daylight robbery by the putridly rotten, financial/politico elitist oligarchy, is fast coming into view.

The so-called "smart money" always seems to find a safe haven and hiding spot well before the SHTF moment arrives. This movement is well underway as high-net worth individuals, who are 'in the know' and have that inside track of information, take their ill-gotten gains and calmly walk away to their respective financial lifeboats.

They fully realize that with the announcement by 'Benny Bucks' of QE32I, the daylight robbery jig is up. Part of the reason why gold and silver have been so resilient lately, to constant attacks by the precious metals cabal, which allows this last minute cheap price robbery accumulation, by the elites before the price goes to the moon for the rest of the 'dumbed down' population. Solid support by physical demand buyers of size around the globe, will keep prices supported until capping by the cabal fails. That SHTF moment draws ever nearer as the lifeboats push off.

The publics 'John Doe' citizen still wiles away his time, standing in line for the next new electronic gizmo, wondering if he can push the balance on his credit card a little higher, so as to buy this latest panacea. All the while unaware that the last lifeboats are about to depart without him or his family. He will wake up too late. The remaining boats will have already been machine gunned by the elites.

When he finally does wake up and discovers that he is up "Shits Creek" without a canoe or even a paddle, that SHTF moment will be upon all who are left to fight over the scraps. If you have not prepared by now you are very nearly out of time and out of luck. A wise old farmer was once asked, "When is the best time to plant a fruit tree?" He said in reply, "Seven years ago!" Good luck everyone.

Sep 23, 2012 - 2:15pm
Sep 23, 2012 - 2:16pm

@tmosley: Star Trek And Money

"The notion that the Federation doesn't have money any more is pretty foolish."

I actually made this video as a humorous response to a Venus Project/Zeitgeist Movement proponent, but it is also a general jab a Gene Roddenberry's soft utopian socialism.

Money in the Federation

PS, I love the Ferengi.

Sep 23, 2012 - 2:17pm

@California Lawyer

I agree. It's managed.

They are trying to keep Fiat currency alive as long as possible. The longer they can do that, the more thieving they can do.

If you hold physical gold or silver your wealth is out of their system and they have lost the power to control you. Also, you hold what they know to be true money, and they don't want that going on.

Those who consider themselves to be our rulers, and indeed the owners of this planet, do not want anyone but them to hold what is a true store of wealth.

Sep 23, 2012 - 2:31pm

ESM to infinity

European Stability Mechanism to be boosted from a measly 500 billion Euros to 2 trillion Euros.

Prepping for Spain?


Sep 23, 2012 - 2:31pm

Sep 23, 2012 - 2:34pm

More Ferengi...

It Always Comes Down To Profit With You People
Ferengi and Humans

Now, I've got to go do some laundry. See you fine folks later.

Sep 23, 2012 - 2:37pm

Gregory Mannarino: High Probability Of Market Selloff Now

I like this guy. He really seems to know his stuff.

Video unavailable

Sep 23, 2012 - 2:41pm
Sep 23, 2012 - 2:48pm

Sep 23, 2012 - 2:49pm

paper or metal

Presented without comment:


Sep 23, 2012 - 2:49pm

Cursing & etc…

I've always taught my children there is no such thing as a "bad" word. Words are just sounds that convey meaning. The so-called "bad" words are useful because they tell you a lot about the person using them. Are they imaginative, or merely a vulgar way of masking a poor argument?

Frank Zappa ( boy howdy, do I miss him) argued before congress, and on Crossfire, that the reason these words exist is because they are capable of making a point stronger and faster than polite language, and I think he was on to something there.

Frank Zappa on Crossfire
SteveW Big Buffalo
Sep 23, 2012 - 2:50pm

@ Big Buffalo: Pollination of fruit trees

6 houses away in an urban area is plenty close enough for the bees. If your neighbour gets a pear tree just make sure its a different variety.

Sep 23, 2012 - 2:57pm

Swearing - an echo from the distant past

I've never sworn on a blog. What's the effing point?

But some of our swearwords should be treated as valuable, not only because they should convey genuine anger or anguish (thumb, meet hammer) but also because they are relics of the original Anglo-Saxon from which English derives.

If a word is short and sounds hard and biting, it is probably Anglo-Saxon. If long and soft, it's probably French or continental.

So ****, ####, @@@@, and certainly !!!! are the words folks would have used in Angleland over a thousand years ago. Although, like us, they had many words for sex, and might have used 'rut' instead.

Use them sparingly. Use them wisely.

Sep 23, 2012 - 3:08pm


Lead is just a teenie weenie bit heavier than silver. This means that a silver bar filled with lead and a little bit tin or air etc. would have the perfect weight.

Sep 23, 2012 - 3:09pm

Ignore user is a community

Ignore user is a community enforced "miniban". If every user of the site ignores someone, it is the same as them being banned.

Use of the feature, along with announcement of its use, is nothing more than community moderation. If more people would step up and use the tools given to us by Turd, we could make this a much better place.

I don't ban/ignore those I disagree with, I ban those who stir up hatred and resentment for no reason. Those who hate all Muslims get banned/ignored. Those who hate all Jews get banned/ignored. Etc. The other standard is cognitive infiltration (aka trolling). Use of any cognitive techniques to hurt people will not be tolerated by me, and I would hope that the community would have the same values. I wouldn't and won't enforce my views upon the public, but I will expose them to them, as I think they are useful.

I Run Bartertown
Sep 23, 2012 - 3:13pm


Sisyphus - "What's the effing point?"

I understand those who cuss (I do, though I should less).

I understand those who feel they should better apply their vocabulary to better represent themselves.

What I do not understand is the people who object to cussing, but then substitute a slight variation of a commonly used cuss word. As if a long history of usage renders the word 'fucking' unacceptable, but inventing your own version to put (only) in place of it is better. I don't mean to be insulting at all. Just saying. My own mother will say 'fricking' and shoot people a mean look if they say 'fucking', and that's always struck me as silly.

Sep 23, 2012 - 3:22pm

Heirloom Fruit Trees

For the southern gardener, Mr Calhoun has studied the old heirloom fruit trees. I live close buy and have enjoyed the garden talks by him, etc. Here is just one of many articles about him and his work and contribution to the old trees:


David Vernon of Century Farm Orchards in NC studied under Mr. Calhoun and has since opened up a farm on the old family estate selling the old heirlooms. He will take a cutting from grandma's old fruit tree and graft it for you if that is your desire. I believe he is still taking orders and has his Open House in November which is a real treat as he settled back on his family's farm in Reidsville, NC. There he displays many of the heirloom apples, provides sample tasting and is a wealth of knowledge of the older trees. The setting is lovely as well with out buildings, bluegrass music, home baked goods from the ladies of the family, apple fritters/apple cider..all from his farm. You can check out some of his videos on his site, see all the apples he has to offer and educate oneself of the care of the fruit tree. Folks come from neighboring states to this event awaiting to pick up their fruit trees that they ordered months in advance as well as the opportunity to buy trees that day.


Also...consider the magazine Mother Earth News; a great resource!




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 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Recent Comments

by WeWillWin, 5 hours 4 min ago
by AngryCitizen, Apr 23, 2019 - 11:27pm
by lakedweller2, Apr 23, 2019 - 10:39pm
by infometron, Apr 23, 2019 - 9:14pm
by Marcus, Apr 23, 2019 - 8:16pm