Inspired Defense

Mon, Oct 1, 2012 - 12:07pm

After the CNBS interview of Fed Goon Evans seemingly caught The Cartels off-guard, the coordinated response was swift and decisive.

It began this morning with this:

The reaction in the metals was almost instantaneous. Prices shot higher and were once again within a whisper of taking out critical Cartel resistance and triggering an even-more-massive short covering extravaganza. At precisely 9:00 am EDT, The Monkeys sprang into action.

The first mission was to blunt the move toward the all-important $35.50 level in silver, above which lays a tremendous amount of buy-stops. Once that was achieved and momentum halted, the real attack began and silver plunged 60c in just 4 minutes. Gold, too, was repulsed in a Gold Cartel counter-attack. After successfully holding gold under $1790 at 9:00 am and 10:00 am, the gold attack began once the London PM fix was in. Between 10:00 and 10:04, gold fell $5 but when it appeared to bottom for the third time at $1785, desperate measures were called for. An overt attack by The Forces of Darkness drove price down $12 in just two minutes at 10:39 and 10:40 EDT.

Below are 2-minute charts that show the action.

None of this should surprise anyone around here as we have been watching The Cartels aggressively defend these levels since the announcement of QE∞ nearly three weeks ago.

Despite all of this nonsense, please do not get discouraged. Gold priced in euro once again made a new all-time high today as demand to convert debasing fiat for hard assets is continuing unabated. Euro gold has led dollar gold higher this summer with a lag time of about 4-6 weeks. Just be patient and you will be rewarded. The Cartels are fighting a losing game.

Next up, The Bernank! As I type, it is 11:51 EDT, which means that The Bernank will begin a speech in Indianapolis in about 40 minutes. You can feel quite comfortable that volatility is about to ramp up again.

Speaking of volatility, you'd better get used to it. Have you seen the latest open interest numbers? Volume and liquidity have finally returned to the metals pits and this will undoubtedly lead to more volatility in the days ahead. The Dec12 gold contract ended Thursday with a total open interest of 353,966. As recently as mid-August, the entire gold complex open interest was just 385,000! And in silver, the Dec12 has an OI of 86,972. For comparison's sake, total silver OI fell under 100,000 late last year and was as low as 102,000 as recently as February.

In terms of news items, chew on this one for a moment as it doesn't seem to be getting much media play. ( If the Iranian currency continues to implode, things could get very dicey, very quickly in the region. The mullahs and rulers of Iran could very easily begin to feel threatened by an upheaval of their own population and desperate leaders often take desperate actions in their attempts to cling to power. Watch this story very carefully all week!

Lastly, we're finally ready to conduct our first interactive webinar over at TurdTalksMetals. The first event will be on Wednesday and the guest will be James Turk of GoldMoney. I would imagine that you might have a few questions for James but you have to be a member of the site to participate. All of the details can be found by clicking here: I sincerely hope you consider joining the site and participating in the fun.

That's all for now. The Bernank speaks in about half an hour so get ready!


About the Author

turd [at] tfmetalsreport [dot] com ()


SilverSurfers · Oct 1, 2012 - 2:20pm

Surprise Rally?

Gut Check called it. Should Bang 35 ish this week, 32.50 seems out, position sub 35 in you can, wait for move to 37 ish, take some off table to cash, wait for 35 ish retest mid-late Oct, and load the boat for the run to 47, at which price, Au/Ag swap, say 30% of stack .... just one man's opinion .....

I buy/trade metal from Tulving, for you so california folks.

Known Hannes personally for years. Always delivers the goods.

I read some of these posts, YOU TURDS ARE FUNNY!!!!!

Eman Laer · Oct 1, 2012 - 2:20pm

Sorry about the repost...

...but I'm on a mission to help a nice person. (I already posted about this in the previous thread) Tomorrow I get to present the case for economic collapse to a friend. She is intelligent but ignorant about economics. 

I'm looking for suggestions for a good documentary about the coming collapse.I started a thread for the purpose here:


Watcher · Oct 1, 2012 - 2:31pm

Bernanke gold

I wonder how much gold and silver Bennie boy and the fed govs have in their personal safes?

Swineflogger · Oct 1, 2012 - 2:47pm
vonburpenstein · Oct 1, 2012 - 2:49pm

Looking for some advice...

I have a rental house I want to sell. Even in this market I can net 50K and am wondering what to do with the proceeds...I have some stupid debt that I want to be rid of that totals around 50K also...Here are what I think my best options are..

1. Take the money and buy metals and wait til prices go up, sell - then pay off 50K

2. Take the money and pay off stupid debt therefore freeing me up to stack or prep on a more regular basis (dca). 

I know there are other options but I want my fellow Turdites to weigh in and hopefully point me into an obvious direction that make good sense.

I appreciate any thoughts on the best plan of action

agrock · Oct 1, 2012 - 2:57pm

@ vonburpenstein

if it were me i'd pay the debt off first - 

I don't think anyone truly knows the 'when' metals are going to blast off .... how long can the cartel stay in control of the crimex? 

Louie vonburpenstein · Oct 1, 2012 - 2:59pm

@ vonburpenstein--How about....

You take out as many CCs as you can while you still own the property, sell the house, buy PMs with the cash, then max out all of the CCs on PMs, then claim your PMs got stolen in a robbery, claim the $2,500 you can on your homeowners/renters policy, turn that $2,500 into PMs, then call a bankruptcy lawyer and walk away from all the debt?

The banks will do it to you if you give them the chance!

Watcher · Oct 1, 2012 - 3:00pm

If it were me...

I would sell, buy metals NOW and carry the debt to march 2013 and reevaluate things. Having the metal in hand you can always pay off that debt.

Dyna mo hum vonburpenstein · Oct 1, 2012 - 3:04pm


Be debt free. Its is the best feeling you will ever be allowed to have with your clothes still on. I know!

Slick Watcher · Oct 1, 2012 - 3:04pm

Bernankes gold

Probably some 8000 t

flaunt · Oct 1, 2012 - 3:16pm

Hey I have an idea! Let's all

Hey I have an idea!

Let's all dump a bunch of silver futures contracts right at 3pm, one hour before the stock markets close! Haven't tried that one before! :)

HeNateMe · Oct 1, 2012 - 3:17pm

Bernanke Slips - Fed Dictating FISCAL policy

Bernanke describes the difference between fiscal and monetary policy and defines fiscal policy:

"Fiscal policy involves decisions about how much the government should spend, how much it should tax, and how much it should borrow. At the federal level, those decisions are made by the Administration and the Congress."

But as we scroll down further in Bernanke's speech today we see the opposite in action:

"The Congress and the Administration will also have to raise the debt ceiling to prevent the Treasury from defaulting on its obligations, an outcome that would have extremely negative consequences for the country for years to come."

The Congress "will also have to". That's key. There is no suggestion here, it's a mandate, a fiscal policy mandate from the organization that supposedly is only responsible for monetary policy. Yeah right. We all know who's BOSS. 


even steven · Oct 1, 2012 - 3:17pm

just wondering

I see on this site some people anxious to see the PMs on the ascending curve. At the first sight it seems appropriate for somebody to wish for his assets to appreciate in value. However we do not really invest in PMs isn’t it?

Therefore, this is something I do not understand. If we do not really “invest” in PMs, as we are rather “staking” them and if we all agree that physical is the only way to do that (as opposed to “paper”), then why would we wish for PMs to go up? Shouldn’t we wish them to go down instead, or at least to stay steady so that we can “stack” them at affordable levels? We should be thankful for the manipulation to the downside as it works in our favor.

I understand that some people may trade on the side some paper for some fiat, but if this is on the side then it means that the main focus is still “staking”.

In this environment we know, BB knows and “vegetable lasagna” knows that PM will not go down in value, therefore shouldn’t we cheer up every time we see an orchestrated sell off as we’ve seen few in the past?

Elaine and David Puddy with Vegetable Lasagna
Cottonbelt21 · Oct 1, 2012 - 3:17pm

@ vonburpenstein ...

… along the lines of diversification, keep the house & lease income (assuming net positive cashflow) – real estate a good place to hide if horizon is long-term (along with PM’s)

TD · Oct 1, 2012 - 3:24pm

being debt free

Being debt free is over rated.

It's not that I wouldn't want to be there right now, but I have been there in the past, and it was... well... disappointing.

I sold my sweet home with the 20 year mortgage I had on it, and moved to a rural property and paid cash for it. Over the next few years I built a small home out of a salvaged materials and put in a nice garden with the aid of the neighbors team of horses. It was nice to not have that mortgage... but, over the coming years I realized that the mortgage was really just another monthly bill, and all those other bills just came rolling in... the electric bill, the phone bill, the county, state, and fed taxes, the insurance, the gas bill, medical bills... and on and on.

My priorities in order are faith and family. After that I found it was to have a career in something that I truly enjoyed and one that paid all the bills. Next in line wasn't the desire to be free of debt, but rather to have a nest egg. I have found that if I have a nest egg, I don't worry about debt. I'd rather have a sweet little stack and be in debt, rather than be debt free and broke.


SilverSurfers · Oct 1, 2012 - 3:34pm

Tiny Reversal

not that 34.80 to 34.10 is much of a micro down trend, but did not we get a tiny outside reversal today, a Cartel NO-NO? losing control? naa, for the more they manipulate, the longer and stronger this bull goes, with both the trend friend, and ample trading op's for multiplying metal weight. STOP THINKING in terms of the cash equivalence, but the number of ounces in possession, for in the end days, that is all that really matters. 

37 ish looking good ....

even steven · Oct 1, 2012 - 3:36pm

Being "debt free"

Being "debt free" is something that a "financial responsible" person would do. Being a financial responsible person and debt free in the same time will provide you the means to acquire that desired little stack. Therefore debt free and the little stack are not either/or concepts.

proformatrillionaire vonburpenstein · Oct 1, 2012 - 3:39pm


Pay off the debt first then dollar cost average your physical purchases. People will always argue to keep the debt and pay it off later with cheaper dollars. However, the problem with carrying debt is that when the sh-- hits the fan your investments will probably be lower or you will forced to sell at a lower price in order to keep your payments current and you may have no regular income to service the debt payments. There is no guarantee that PM prices will rise from here. Its hard to see why it would not but there is no guarantee. Paying off your debt is a guarantee.

Urban Roman · Oct 1, 2012 - 3:41pm

Aaaand it's gone

Looks like we are setting up another "Turd Hat" formation on the silver chart today.

· Oct 1, 2012 - 3:44pm


For anyone out there who thinks I'm full of shit or crazy for pointing out obvious Cartel caps and strategies, here's just another example.

R man J · Oct 1, 2012 - 3:49pm


The debt needs to go away. Just as importantly you also need a PM hedge.

I bought 50% of my PM hedge in 2008-mid 2010 with cash. A great thing!

The second 50% I financed on Credit Cards in late 2010 until today. For the last year I have been sweating to PAY those suckers off. I am now about two weeks away from CC debt-free.

Debt financed PM delivery to front door = feeling of safety, independence, and the need to keep working at my job longer before retiring.

Being debt free = feeling of freedom, PM buying power and the prospect of retirement sooner rather than later

You need a decent stack....NOW! But if you already have a decent stack...PAY OFF THE DEBT.

TJeffson · Oct 1, 2012 - 3:52pm

@Vonburp re debt vs pm

if it was me, I'd pay off the debt .. no point in paying interest which is just wasted money. Get as debt free as possible .. that's my take on it. Then you can stack all you want without ever having to pay interest again. 

babaganoush2307 · Oct 1, 2012 - 3:53pm

Jefferson War Nickels

in my opinion are a great buy right now. I have bought 5 different lots over the past week off of ebay and paid less then the silver content in them is worth. Apperently everyone else would prefer to pay a premium to have the 90% silver coins. Love those to but to me silver is silver and right now I am purchasing it for less than market value. Good bartering tool to if it ever comes down to that. yes

benque · Oct 1, 2012 - 4:00pm

even steven

Many here have been stacking for a decade or more. Do you expect to stack until the day you die? I believe that like myself, many long-time stackers here expected the prices to be much, much higher years ago. Again, how long do you continue stacking? Answer, as long as you can, until prices rise (rapidly) to meet expectations, or until you realize that bernank is right, and a really nice guy....LOL. These are the points where you will barter, or sell your stack.

The more time you have to stack, the worse it will be for everyone else when TSHTF.

Do you really want much, much more time to stack? Let's get this done and behind us, so as to make an economic recovery without massive destruction of infrastructure, and loss of life. As far as I know, the only ones aware of this who wish it to continue, are the bankster cockroaches, who care little for the destruction they are manufacturing.

Orange · Oct 1, 2012 - 4:03pm


My wife and I own our home outright. We will sign a 30 year loan at 3.375% on Wednesday. The way I view it is physical assets will survive. The price of houses are likely to go down further before we get a reset, but they are still physical assets. The Fed is stealing from savers, so play the game and be an asset holder, preferably physical gold and silver, stocks will fall as the world economy unravels. And borrow as much as you can for the longest time, so long as you can handle the costs. Then invest in physical. After the reset, i.e. new money/massive devaluation, buy land that produces an income.

· Oct 1, 2012 - 4:17pm

What a great example

Why do I beat my head against the wall teaching my students critical thinking and argumentation methods. When presented with a very sensible argument--"the Federal Reserve is enabling bad fiscal policy by keeping interest rates very low and thereby making it cheaper for the federal government to borrow." 

Ben simply says: "I find this argument unpersuasive."

He follows with circular, uh... figure-eight logic that simply muddles the issues. Paraphrase: "Everyone knows that if we raise rates the gov will go deeper in debt. So we got it all figured out: if we lower rates and offer the gov all the money they want, they won't borrow as much! Problem solved. economy fixed! QED!"

If we give the alcoholic all the free booze he wants, he'll stop drinking, right?

Beastly Stack · Oct 1, 2012 - 4:20pm


I for one am with you 1000% TF.We all know they do this and frankly it does piss me off but through the years I have grown to welcome it.

The thing that sucks is we know they should be fucked,but if you are holding a silver future position or 2,this can really suck because you have to fear the $2 plunge in thin trading!That's what sucks!

Hang in there!

Magpie · Oct 1, 2012 - 4:37pm

@ vonburpenstein

A compromise? Pay off the high-interest debt, keep the low-interest debt. A smaller stack, but a lower overall cost to you on the balance of your debt.

bucktooth · Oct 1, 2012 - 4:53pm


Have you ever wanted to accurately weigh your coins? 

This scale is extremely accurate, 50 grams (capacity) to 0.001 grams (resolution) and for the price is very reasonable. Comes in a hard case, includes a 20g calibration weight and has an ac adapter. I plan on using it to verify the weight of coins, but can also be used for reloads. 

Just spent a bit of time finding a decent scale and thought I would pass it along.

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