Happy Anniversary

263
Mon, Aug 15, 2011 - 10:31am

In case you missed it, today is the 40th anniversary of the decision by the great republocrat criminal, R. Milhous Nixon, to remove the U.S. from the "gold standard". The Turd was only five when it happened so I cannot be held responsible for my inaction.

Nixon Ends Bretton Woods International Monetary System

I wrote about this some time ago. For your enjoyment, here's a link:

https://tfmetalsreport.blogspot.com/2010/12/preparing-accordingly.html

OK, enough of that. All of the commodities are up this morning but gold is down. That is about to change so let's get started. We have a few things to cover.

First up, gold. In January, near the bottom of a nasty correction and with gold near 1340, I gave you "1600 by 6/10/10". When the call came up either $22 short or six weeks early, depending on how you look at it, I took a rash of sh*t from people who, apparently, expect perfection. Several weeks ago, when gold broke through 1600, I gave you "1800 by Halloween". That seemed to work out pretty well. Hmmmm. Lots of crickets out there. Now, I'm on the line with "$44 silver by Labor Day". Lord help me if silver only makes it to 43.92. Anyway, back to gold. As you can see on the chart below, it is clearly forming a short-term bottom. It has twice tested and held key support between 1725 and 1730 and has since gone flat. This won't last long. Your first clue that gold is heading back to 1800 will be a breach of 1750. Watch that level closely.

paper_8-15amgold.jpg

Silver faces a moment of truth later today. It is getting ever-so-tightly wedged into a pennant. All signs point to silver breaking UP and out of the pennant. The fundos are extraordinarily strong and on a short-term basis, all of the other "commodities" are up today. Watch the 39.50 level for clues.

paper_8-15amsilv.jpg

Lastly, I found this earlier today on ZeroHedge. As you know, I have a penchant for historical trends and patterns. As Shakespeare said, "what is past is prologue". In the case, the author has found some startling similarities between the current day U.S. and the late stages of the French monarchy. Before getting started, I suggest a stout cup of coffee or some other mental stimulant. Though the information is well-researched, I found the manner in which it is presented to be somewhat challenging. But, what do I know? I'm just a turd.

https://www.zerohedge.com/news/sun-chairman-whats-future-prologue-and-why-second-french-revolution-coming-america

At any rate, here's the paragraph the bast relates to what we do here. If you're still living in some dream world where you follow the "stock market" in the hopes of growing your "retirement account", the passage below should help raise you from your slumber:

"Painted in oscillating shades of red and green on our dealing screens, we can also see the full, epileptic frenzy of our broken financial markets, no longer evidence of the rational allocation of hard-spared capital to the enriching process of patient and diligent entrepreneurship, but a wild, computer-driven video arena where countless billions swarm into and out of the sea of tickers from one micro-second to the next, with each successive ebb and flow of this leveraged flood further reducing the informational content of the associated prices and so defeating the very purpose of the capital market itself."

I have lasts of 1745 and 39.51. It's going to be a very interesting day. More later. TF

About the Author

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  263 Comments

margaritatime · Aug 15, 2011 - 7:45pm

@murphy

"fwiw.

You are probably familiar with Goldmoney or the like, but if you like to flip the metals they make it very efficient and you don't have to wait for delivery."

You know, someone else mentioned that (was it you?). I may have to look in to it. Currently I have a few places I can sell to locally that I actually recover almost all my premium. If it's a GSR trade, it works strictly on spot both ways... I prefer to trade rather than sell - but it just depends where I see the market going. It's likely not the most efficient trade in the book. There is something I like about taking physical delivery and having them on hand encase I change my mind... But for flipping on the GSR I think I need to look in to that.

I am guessing you do the same - flipping. My two cents; I would have both metals handy. I think the opportunity to flip back and forth is going to present itself numerous times here very soon. 

Thanks for the heads up - I will be looking in to it!

Rui · Aug 15, 2011 - 7:48pm

Sound money HAS TO BE HARD

I repeat: it HAS TO BE HARD.

There is no such thing as "floating standard" when it comes to sound money. Floating means it can go both up and down. When you allow bankers to run a fractional reserve system and socialize the bad loss then the money supply just keeps growing, and therefore the value of that money can only go down. If it only goes down it ain't floating any more. The right term for that motion is "sinking". "Floating standard" leads to "sinking standard" which is what we have now.

Turdle GG · Aug 15, 2011 - 7:54pm

Just catching up here

Turd,

Just read your post from earlier today. Looks like things have worked out just as you predicted! Well done, again!

SilverWealth · Aug 15, 2011 - 8:05pm

Fortinbras

My reply to your question is posted on the wrong board, sorry. Its under Pailin's Corner on the Silver section.

best to everyone, SW

NW VIEW · Aug 15, 2011 - 8:11pm

@ WINEGUY

Mr. T.F. cannot give any good advice on T.P. ; he is just a youth and has very little experience with flat T.P. Everyone under 55 will just have to learn some lessons from us who are older and have spent our time in the outhouses. In those days the newspapers and Sears catalogs were stacked by the two-holer. One could read for awhile and then use it for the intended purpose, so it had a two fold usage, not like the single usage of today. So when you look at those canned hams on the shelf and the expiration facing out, place stacks of newspapers next to them; they are always readable and useable and it will be like 1950 all over again.

margaritatime · Aug 15, 2011 - 8:17pm

@ I am the unknown...

I just saw that post - freakin' hilarious... Mix awkwardly... lol

I really think there should be an Eric O yummy tidbits forum, and someday everyone can contribute and publish a turd cookbook.. It would be my flippant luck to have "Yummy Turd Recipes" laying on the counter during a first date .. This is how my universe works!

Save_America1st · Aug 15, 2011 - 8:19pm

@Eric O

Eric...just got my 50 peso coin today from GVille Coins and wanted to send a couple snapshots. Remember, I was originally worried about what kind of shape it might be in (banged up, scratched, etc.). Well, I was blown away at the quality of it. Like you said, it's most likely a re-strike, but what a beauty, ay!??? So if anyone was thinking of ordering one online from GVille, here's an example of what it should look like!

Doin' my best to keep stackin' the phyzz, and I also did my part to wipe out Walgreen's ham supply yesterday by ordering 24 cans! wink

Thanks as always for all your killer advice man!

margaritatime · Aug 15, 2011 - 8:19pm

.

..double post ... no idea ... I guess I broke the internet!

¤ · Aug 15, 2011 - 8:21pm

Save America 1st

Very nice and congrats!

I love my big 50 peso piece and the one I have is in great shape also. Isn't it a beauty?

It just feels right in your palm. Have you put it down yet or still holding it? It's that nice.cool

Mudsharkbytes · Aug 15, 2011 - 8:26pm

Hard money can only exist

in a closed system, otherwise, it will get debased again like what is happening now. That's the beauty of a gold standard - the government can't simply create more out of thin air.

In such a system, as the population grows, as the availability of resources changes, so too will the value of the hard money in circulation (aka gold/silver) change to reflect this, otherwise there is a revaluation of everybody's net worth every time there is a birth or death.

It's not like there will be a daily government decree telling everybody how much gold or silver is worth today - it will happen naturally - if the gold / silver supply tightens, the metals in circulation will naturally trade for more and vice versa.

sevin · Aug 15, 2011 - 8:28pm

Investment help

My grandma recently received a decent amount of money from my great grandmother when she passed away recently. She gets her social security check and annuity of $500 a month. This mostly covers her expenses except for taking me to eat on occasion. What percentage should I put into Au/Ag? Idk if i can convince her to go "all-in" I highly doubt. High dividend paying stocks maybe?? Any advice would be very much appreciated. What do I say to convince her to get gold and silver as the older generation seems harder to convince to get PM's??

lostinspace · Aug 15, 2011 - 8:30pm

Bachmann bought votes

When she wasn't deep-throating sausages, Bachmann was bribing voters with Randy Travis tickets.

https://www.youtube.com/watch?v=4vJXxIrLLVI
Boswell · Aug 15, 2011 - 8:31pm

Cottonelle (TP) Coupon!

You have to enter a fake name & email, then click to get to the 50¢ coupon.

¤ · Aug 15, 2011 - 8:31pm
bobby · Aug 15, 2011 - 8:33pm
¤ · Aug 15, 2011 - 8:34pm

Ho hum...

Sure would be nice if the PM's kind of took off at 8:00 instead of the usual slow sell off.

What's up with that? No complaints here about Au but the Ag just doesn't seem to get much sustained buying. We keep hearing about how there is so much Asian demand yet we aren't really seeing much in the way of any real silver movement.

I'm starting to wonder a little bit about this silver shortage we have been hearing about for quite awhile also. When does that happen or begin to show an actual supply and demand type of relationship.

(the above is a attempt to speak too soon and have silver take off right after writing that)

Economical Disaster sevin · Aug 15, 2011 - 8:34pm

@Investment help

the only thing I can say is that in the year 2000 I put my ENTIRE house sale into GOLD and SILVER. When people stated I was insane back then, I recently called them up asking them how stupid they feel today.

Save_America1st ¤ · Aug 15, 2011 - 8:35pm

@DPH

yep...she's a beauty all right! I've set her down a few times, but not for long! What a night...got my new shiny gear, Monday Night Football is on, crackin' a few ice coldies....now if I just had my canned ham I could do some serious celebrating! cool

latcho · Aug 15, 2011 - 8:36pm

Big 38% fibonacci level to take

but once we take it out... ! :) A lot of support !

Eric Original Save_America1st · Aug 15, 2011 - 8:43pm

Save_Am

Yup, she's a beauty! Nicely done.

How do you like the feel of her in the palm of your hand? That's a serious chunk of the precious. I'm going to turn you over to the "gold side" yet! Ha ha ha ha ....

¤ · Aug 15, 2011 - 8:43pm

Is this happening right now?

Just listen to and watch Daddy Bush talk about the NWO.

He knew something then and probably long before then.

New World Order & World Leaders
¤ · Aug 15, 2011 - 8:46pm

Propoganda? Or warning?

Video unavailable
Save_America1st Eric Original · Aug 15, 2011 - 8:54pm

@Eric O

yeah man, a very nice chunk...I'm diggin' it (mining pun intended) lol You da man! Like I said, I do seriously appreciate your advice. Ham and gold salesman of the year indeed, that's you man! yes

Tesla · Aug 15, 2011 - 8:55pm

Pant Pant... Drool Drool.... Nice Coin SaveAmerica1st!

Nice Specimen! If you like the design you'll like the Mexican Silver Cinco Peso as well. 0.868toz ASW 30g .900 purity and beautiful like the 50 you have there.

I just scored this beauty 1948 Cinco w/ a nice toning and in almost perfect condition except a bit of edge wear. Aztec ruler Cuauhtemoc on face (scary dude).

¤ · Aug 15, 2011 - 8:57pm

$7,000 too low IMO

It would be nice for it to reach $7K, no doubt about that.

But if I was the U.S. and I was going to revalue gold for monetary reasons I would jack it up past $12,500 and establish a world market price before China does. If China has half the chance to do so I think they will establish the market price at some point to tie their currency to it.

We should beat them to the punch and set the price we need for it to be due to our debt situation. Of course, we won't do such a thing because of banker greed and intellectual arrogance on their part(bunch of dumb asses).

Irene · Aug 15, 2011 - 8:58pm

Eric

Hey Eric,

Got some more dough and figured, hmmmm, I already own silver stocks but no gold stocks. Hee hee.

What brokerage firm do you use (because it would be nice to open another account)?

Ham. Coins. Ham. Coins. Ham. Coins. GOLD!

¤ · Aug 15, 2011 - 8:59pm

Tesla

That's a beaut. Congrats on that pick up.

Irene · Aug 15, 2011 - 9:00pm

DPH

Dont you think if the US were to revalue up like that, they'd slap a capital gains tax of some outrageous number on it pronto. What do the feds care about little twits like us?

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