Three Overnight Items

Mon, Aug 15, 2011 - 10:08pm

Gold and silver performed exactly as expected today. Now that we're moving higher again, where do we go from here? The charts below will help.

I mentioned back on Friday that I was going to be participating in an interview of Clif High, the founder of the WebBot Project. Here's a link to Clif's Wiki page and site:

The full interview has now been posted to YouTube. Yours truly primarily appears in segment number one but I'd encourage you to listen to the entire interview.

Lastly, The Golden Jackass sent me a terrific and detailed email earlier today. He has also given permission to post it here. As you know, Jim is one of the few good guys who isn't afraid to speak his mind. He's also a Turdite. His website and subscription service can be found here:

Jim Willie CB to me

Hey you big Turd-bag
this is the Dirt-bag, aka Jackass Extraordinaire

interesting how Silver is negatively correlated with the USDollar
but so is the US stock market, which grew dependent upon weakness perversely
strange how over the last 18 months the S&P500 stock index became part of the USD Carry Trade
very interesting, almost recognized by the mainstream monkeys too
they failed to realize that the DJIA and S&P indexes merely preserved purchase power, not a bull market
but it means that Silver falls with the S&P500 stocks unfortunately
it will take a couple months to separate the two

the Global QE will in my opinion replace the US QE
it will take the heat off the USFed and the clueless Bernanke
has Ben gotten a single analytic perspective correct in four years ??
I think not
in fact, the Jackass and Big Ben are always on opposite sides, and Ben is wrong every time
with the Bank of Japan buying the USTBond and the Swiss Natl Bank pulling down the Franc currency,
we have the makings of a Global QE
all it needs is a G-7 Meeting with the confused broken central bankers to join hands and sing together

my thinking is that Silver has toyed around and dithered under $40 long enough
it has built a strong base, and shows absolutely zero interest in going below 38
that means the only trade is on the long side, which means over 40
the Weak USDollar trade will be replaced by a Weak Western Major Currency trade
see the USDollar, Euro, and British Pound, all of which all circling the FOREX toilet
the objective of the major central bankers will be to keep the exchange rates calm controlled contained
they can then claim FOREX is stable, mission accomplished, even though the commodity prices will rise again

some money will move from Gold profits to Silver buys, a big new upcoming factor
this is the next important phenomenon along with Large Commercials covering their short positions
I have stated many times that Gold fights the big important political battles
but Silver rides through on a white horse and take triple sized gains
this time is no different and Gold has broken a wide gap in their criminal fortress wall
to be sure, some claim Silver has too much of an industrial component
it does, but it is a staple with stable demand
the big added demand is from investment demand, a powerful new global factor led by the Chinese and Indians
Silver demand is still nearly equal in US$ volume as Gold, an amazing fact

my solid reliable experienced Gold trader contact reports that investment grade Gold bullion comes with a price premium of 25%
and that Silver bullion comes with around a 20% price premium, both versus the COMEX paper prices
he calls the COMEX almost completely irrelevant, but still watched by sheep
translation: Gold is now at $2000 and Silver is almost now at $50

please post this note on your weblog if you wish
any quick thoughts in reply would be appreciated and valued, never depreciated, surely not deprecated
best wishes to you and all the other Turd-lets
greetings from the Land of Jackass Wannabees
/ jim

Have a great overnight/early Tuesday. See you in the U.S. a.m. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 16, 2011 - 12:00am


With the introduction of the Euro and the WAG, both in 1999, the paper price of gold is no longer real. What is the real paper currency price of gold? That is the question of all questions. The international cartel of counterfeiters (EE) already know, the rest of the world does not! As this price discovery unfolds, one will find discrepancies in the paper and physical price to be more prevalent as time goes on. You are already seeing this with the difference in brent and crude oil. Next on the agenda is gold. Make no mistake...this is a currency crises! In a currency crises, the crack-ups can appear weird and non-intuitive. There is wealth to be made on the arbitrage, but that is too fluxional for most commoners. Better to keep stacking while the giants play, no?


Bay of Pigs
Aug 16, 2011 - 12:02am

RE:Jim Willie

Been a subscriber for a very long time and had the pleasure of talking to Jim on a few occasions at the Cambridge House Conferences. Shot the breeze with me one on one for 20 minutes or so. He is very bright guy, a fine gent and has rock solid analysis/newsletter.

Sadly, he doesn't attend those shows anymore. Why, I'm not exactly sure. Probably because he lives in Costa Rica now.

I'd love to see both him and Turd on a panel with the GATA boys teeing off on Nadler and Christian. I'd pay to watch that...

A big Hell Yeah to Turd and the Golden Jackass!

FogHorn LegHorn
Aug 16, 2011 - 12:05am

TF and Jim Willie it just gets better and better

Thank You, both! This is becoming the premier learning resource for noobs and old cranky cynics like Me, and everyone in between! Jim your posts are some of my favorites, the depth of Your understanding, offered up in Your, "Classic no bull" format, Top shelf stuff! Your current take on Silver is spot on in my opinion. Hat tips to you Sir!!

Aug 16, 2011 - 12:07am


UncleFester, I understand the price discovery issues. And, Darth, I've never tried to purchase 50,000 oz (I wish I had those kinds of resources to invest). But I guess I still don't understand what's preventing a person from purchasing 10 Comex silver contracts, at the current "paper" price, and standing for delivery of the fifty 1,000oz bars. Has anyone tried it and been told they need to pony up an extra 20% to convert the contract into physical?

If/When that actually starts happening, things will get very interesting indeed.

Aug 16, 2011 - 12:07am

Be careful of keeping your gold in Switzerland

A few weeks ago Jim Willie mentioned that he heard about stories that some Switzerland bank was actually unable to deliver phyzz gold to ALLOCATED accounts. He talked about it in the past and received death threats b/c of it. That mess was still not sorted out the last time he talked about it. I think there's a public audio interview on Black Swam that he talked about it. Check it out, folks.

Don't trust these bankers easily, be it US banks or foreign ones.

Aug 16, 2011 - 12:11am


Thanks Turd for posting the Jim Willie email and thanks Dr. Willie for allowing it to be posted.

Golden Jackass, dirt bag, no matter. A few years ago the belligerent one and I exchanged an email or two and I can say there isn't a more straight shootin' S.O.A.G. to be with in one's corner. Always upfront, no b.s. sugar coatings, and more than worth the read, subscription, and education. Thanks Dr. Willie.

I suspect that Big Jim was coaching Dylan Radigan or at the very least that Dylan is a Golden Jackass subscriber. If not, he ought to at least be a Turdite.

I can see it now, The Golden Jackass and the big Turd team up and leave us all some golden road apples along the way. Now there's a thought that'll give someone nightmares ay Blythe? Ruprect? Timmy? Jeffrey?

Aug 16, 2011 - 12:18am
Aug 16, 2011 - 12:18am


Smarter than I can tell you the # of contracts required before delivery of physical can be stood for, and the # required to break the COMEX. Indeed, that would make for fireworks at the LBMA and COMEX. This has been done in the past, see Hunt brothers in the late 1970's. That was squashed with the Volker rule + changes to the COMEX delivery rules. Basically, the Hunts fought the law and the law won. The law doesn't have the head room to pull those shenanigans again, IMHO. Raising rates would bankrupt every sovereign in the western hemisphere...then again, maybe that is the plan!


murphy Rui
Aug 16, 2011 - 12:22am


I really respect and value James Turk's opinions from Goldmoney. When talking about pm's with any of his guests he always says the physical has no counter party risk. I would agree if one holds their own. But, what about his operation? His vaults are in Switz., London and Hong Kong. Are they susceptible to counter party risk? I believe you are referring to "normal banks"?

Aug 16, 2011 - 12:25am

I had to catch this before called it a night

Jon Stewart calls out mainstream medias disconnect from Ron Paul!
YouTube - Daily Show - Ron Paul 8/15
Well done !

Aug 16, 2011 - 12:26am
NC Fred
Aug 16, 2011 - 12:43am
Aug 16, 2011 - 12:48am

How is a global QE going to

How is a global QE going to work actually? Other countries buy our stocks? Or would the bailout money we gave the Euro banks ( now leveraged 20 to 1) be used to buy US treasuries? If so, what a freaking joke. That's like us buying the bonds indirectly plus paying interest on where our tax dollars went. Hmmmmm. Ang-ry.

I'd like a gold standard but if we can't get it, I would be happy if they got rid of the capital gains tax on bullion.

Turdle GG
Aug 16, 2011 - 12:52am

$1,764 is a magnet

For almost twelve hours now, gold has been at or around $1,764.

I wonder: would this be the case if Jim Sinclair never mentioned such number?

TheGoodDoctor TheYeomanFarmer
Aug 16, 2011 - 12:54am

@TheYeomanFarmer Yeah I was


Yeah I was going to post that it was COMEX settlements but now I read it again and I have to say WTF? too.

Aug 16, 2011 - 12:55am

Watch Gold/Silver/Oil Price Ratios

Watch Gold/Silver/Oil Price Ratios

The picture is very straightforward with gold. Gold has been in a steady, rising trend while the price of oil has fallen considerably from previous levels. This means that not only are the gold miners selling their metal at a significantly higher price, but they are producing it at a cheaper cost – and yet the share price of these miners falters (especially the exploration companies).

This presents a fabulous opportunity for any/every “value investor”. Soaring revenues and shrinking costs are a pretty simple equation. Best of all (as has now been proven) gold will continue to prosper in any fear/recession/deflation scenario. Meanwhile, it was already well-established that gold has thrived in any high growth/high inflation scenario.

Producing gold miners have become the “blue-chip stocks” in the entire world of equities: record profits, profit margins continuing to grow, able to prosper in any/every foreseeable economic scenario. It doesn’t get any better than that for investors seeking a “safe haven” – and yet their valuations flounder due to bankster manipulation.

Throughout the 10+ years bull market in precious metals we’ve seen how this dynamic plays out. The longer/more severely the banksters compress the valuations of these miners, the greater the “explosion” upward when their choke-hold inevitably fails. Currently we see one of the best valuation entry points for these miners in this entire bull market, and certainly the best “buying opportunity” since the beginning of 2009.

With the silver market being much smaller than the gold market, the banksters have traditionally been even more effective on “stomping on” this market than with their gold manipulation. In fact, they were previously so “successful” that they pushed the price of silver to a 600-year low (in real dollars), while driving more than 90% of the world’s silver miners into bankruptcy during the 1990’s.

Enjoy the rest of this great article and click below:

rjsand Shill
Aug 16, 2011 - 12:57am


Mainstream Media is 100% bought and paid for. There is no mystery here. Ron Paul is most certainly not whom TBTB want us to consider because he is not theirs. Thanks for posting this, good job! I always forget to watch Jon Stewart's show. At least he is intellectually honest, unlike so many of the MSM.

Aug 16, 2011 - 12:58am

The Pain

I know most here understand the gold/(silver)/oil/dollar revaluation that is going on in the world today, but I want to stress the other side of the coin of the realm, so to speak. Make no mistake, this is about control versus freedom. While all pundits, bureaucrats, politicians, hedge fund managers, bankers, etc. talk about dollars and cents, what they are really talking about is your children's and grandchildren's liberties and freedoms. The failure of modern political-economics and its policies is the failure, whether purposeful or not, of recognizing unstated axioms. While economists recognize that price is where supply meets demand, they simultaneously dismiss, or refuse to acknowledge, the premise behind such a statement. The premise is simple and assumed to be in place...all actors in the buying and selling of goods and services are free to act. That assumption is no longer valid, we are not free! Not in the buying, not in the selling, and not in the saving of goods and services necessary for the material transaction of life. If the supply of a good is controlled via cartel and the price is controlled via government decree, then demand is set. If demand is set, then demanders are controlled via price. What is the world is waking up to today? It is simple, we are not free! Freedom was the rallying cry of yesteryear, it will be the rallying call of tomorrow.

Yearn to be free,\


Aug 16, 2011 - 1:35am

Hugh G contest

Is November 5th taken already? If not I want it. Its easy to remember. Also Darth smoker I noticed your star wars currency avatar, have you seen the silver star wars 1 oz silver currency coming out in November? Apparently its legal tender. In some small island nation I can't spell, but they are made at the new Zealand mint.

Aug 16, 2011 - 1:55am


When the Swiss Bank allocated gold account story came out in August 2010 both Bill Murphy and James Turk found it too scary to be true. They wouldn't believe the banks would go so far as to touching the allocated physicals. Later that year both Turk and Jim Rickard heard some sorta similar stories.

I think Turk is a guy we can trust but he's not big enough to hold off a crazy government. My belief is that don't ever underestimate the extreme a desperate government could go to. As Doug Casey pointed it out we might have to diversify geo-politically to escape the madness.

Red Pill murphy
Aug 16, 2011 - 2:46am

@Rui @Murphy  re counterparty risk

@Rui @Murphy

re Goldmoney I would assume that Turk has thought very carefully about this, and that it is the same as Bullionvault

Your gold is your outright property, stored in specialist facilities reserved exclusively for our clients and run by ViaMat – Switzerland’s leading accredited professional bullion vault operator. You choose the storage location :- London, New York or Zurich. You are truly isolated from the systemic risks in the financial system. You have taken legal delivery of your gold and you own it directly in physical form. Unlike the huge majority of investment products no company’s financial failure can deprive you of this gold. Our bank (AAA rated Lloyds TSB), Via Mat and BullionVault itself could all fail, and your gold is still perfectly safe. ​from - lots of good info here
Aug 16, 2011 - 2:55am
Aug 16, 2011 - 3:01am


Found this , interesting.

Good luck all

The Stealth Market in Gold

Gold has gone up for 12 straight years in a stealth market. In the last ten years gold has had a compound annual growth of 20.5%. This is an absolutely outstanding return but investors should not look at gold as an investment but as money. Gold reflects governments’ deceitful actions in totally destroying the value of paper money by printing unlimited amounts of it. With gold up 7 times since the bottom in 1999, is it too late to jump on the Goldwagon?

Read more at:


Aug 16, 2011 - 3:04am

Jim Rickards @CNBC, talking

Jim Rickards @CNBC, talking about Europe, possibility of Gold Standard, and of course gold going to $7000.

Jim Rickards & the Euro Gold Standard
Red Pill speconomist
Aug 16, 2011 - 3:09am

this was brilliant, they dont

this was brilliant, they dont know how to handle or take Rickards at all.

so NOT what they want to hear either.

Aug 16, 2011 - 3:17am

Walgreens Online Offer, "Out of Stock"

Dear RuNuts,

We're sorry, but the following products are currently out of stock and will not be shipped.
Store Online Order Number: xxxxxxxxx

Aug 16, 2011 - 3:34am

"is that the same sausage

"is that the same sausage that bachman had in her mouth ?"

It's probably the Bilderberg/Illuminati footlong. They have to share, seeing that they have been making losses for 10 years now on those gold and silver shorts.

- Markus

Aug 16, 2011 - 3:38am
Titus Andronicus
Aug 16, 2011 - 3:51am

Gold moving. How far will it get?

Gold is definitely moving back up in strength.

European markets are tanking strongly so far this morning. This seems to be the driving factor. US stock index futures are also down. These could all change on a dime.

A strong move up in gold and silver is definitely possible, but of course so is a pullback.

I'm long both gold and silver paper. I'll sell half if we drop below the pit close prices of yesterday.

Aug 16, 2011 - 4:06am

a little bit discouraging to

a little bit discouraging to watch silver plunge to the sewers while gold keeps climbing :( Hope it catches up :D


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