German Gold Hijinx

Wed, Jan 16, 2013 - 11:54am

I guess it all depends on how you look at it. Either this is all on the up-and-up or it isn't. Either this is a purely political show or it isn't. Either the gold is really there to be repatriated or it isn't. It's up to you to decide.

Just three months ago, The Bundesbank labeled as "lunacy" the idea that German gold needed to be brought home. They announce today that they're doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn't upset the status quo or shake the global banking system in the manner we'd all hoped.

However, you could also choose to look at it this way:

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.
  • So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?
  • And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD? (

Ahhhhhh....what do I know? I'm just a Turd. A dope with a MacBook. I'm sure it's all just fine. Move along. Nothing to see here. All is well. Go back to sleep.

Anyway, it has been a few days so we need to update the charts. Let's start with gold. Take a look at these two, daily charts. You can clearly see the price double bottom. This also coincides with an open interest bottom in late December. In the big picture, me likes what me sees.

Now check out this 8-hour chart. Besides all of the horizontal and diagonal resistance lines I've drawn, gold will likley run into some tough sledding near the 50 and 100-day MAs. The fifty for the Feb13 contract is currently near $1697 and the 100 is near $1718. Taking it all into consideration, the "all clear" for a rally can't truly be sounded until gold gets up and through about $1710-1715, maybe in a week or two. Until then, I just plan to keep stacking physical. I'm not going to buy any more options just yet.

As you might expect, silver has a somewhat similar picture. It came down in late December and then double-bottomed just below $30 about two weeks ago. Since then, it has seen a steady progression higher. Now it just needs to follow through. It is finding resistance near the highs of 1/2/13 (31.50) and it needs to break that level to draw in more buyers. Once through there, expect slowdowns near the 50-day, currently at $32.01, and the 100-day near $32.60.

That's all for today. I need to go take a little boat ride with all my guns and ammunition. It'll probably take most of the day. More tomorrow...


About the Author

turd [at] tfmetalsreport [dot] com ()


annei question
Jan 16, 2013 - 3:44pm

Java problem

I'm told "it's a Java exploit called Zero Day and Oracle is not doing much about it. Problem exists in Java 7." Nasty virus hack.

AuStan Dard pourty
Jan 16, 2013 - 3:46pm

Au makes good contacts

because it practically does not corrode (silver much more so). this is why many contacts of computer chips, cables, USB sticks et al. have a golden surface layer... somewhere I read that each year about 300 metric tonnes of Au are used for industrial purposes (e.g. air plane windows too). anyway, added more Ag (and a little Au) to our family stack this week. my little girls will hopefully greatly profit from that one day. CHeers AD

Jan 16, 2013 - 3:51pm
Jan 16, 2013 - 3:57pm

Another Way to stack…

…this past Saturday at the local Goodwill this little box caught my eye.

It was pretty dirty, but for a measly $1.00 I thought it was worth the risk.

Took some time to clean it thoroughly.

Thought I don't have any chemical way to assay it, I'm about 90% sure it's solid silver. Definitely the right color (matches ASE's set inside of it), rings like silver when it's struck, handmade, tarnish came off when dipped in baking soda / water / aluminum foil bath, and no amount of scratching on unobtrusive areas on the inside comes up with evidence of plating. If it's not silver, it's doing a damned good job of looking like it.

Weighs 92 grams. I figure the colored resin probably takes up a couple of grams at most and I've no idea the purity, but still at the worst I figure I managed to score at least 2.5 troy ounces of silver for a buck - probably closer to 3 ounces.

If you pull the pin the sides open on a hinge and both the top and bottom come off.

I'm a little buzzed about this as I'm always on the lookout for silver when I'm at thrift stores and garage sales but have always come up empty handed.

Keep your eye out at thrift stores, you never know what you'll find.

lakedweller2 TF
Jan 16, 2013 - 3:57pm


Haven't read it yet but would it be his lunch was on time and was very good. Much beyond that would be shocking... Can't wait.

Jan 16, 2013 - 4:00pm
lakedweller2 TF
Jan 16, 2013 - 4:01pm


Haven't read it yet but would it be his lunch was on time and was very good. Much beyond that would be shocking... Can't wait. (Reply to Bob Pissonme comment).

Second thought: not going to read it.

Jan 16, 2013 - 4:02pm

Santa's message, my take

What Santa is saying, IMHO, is something extremely profound. I'm not saying that I see it, or agree with it; I am just giving my interpretation of what he is saying.

I believe that he is telling us that the Euro system is one in which the participants want gold to carry a fair market value, as the Euro is designed to co-exist with this, rather than live in fear of gold, as the dollar and pound do.

Furthermore, rather than just co-exist with it, to benefit from price appreciation, since gold is a constituent part of the Euro's reserves.

Fofoa was saying much the same thing; do not be surprised by upswings in the price of gold at quarter end, because the ECB balance sheet benefits from this.

Stand back, deep breath, stunned expression; the European Central Bank (the one headed by a Goldman guy) is our ally? WTF? No way Jose!

The implications and questions (and disbelief) are epic, but this is what Santa seems to be alluding to. Not alluding; he is quite explicit about it.

He concludes that Germany had had enough, with the price manipulation which was succeeding to 'break the back' of gold's recovery.

I personally cannot reconcile all the contradictory info in my head on this assertion.

Byzantium out.

Ferd Torgerson
Jan 16, 2013 - 4:07pm


Congratulations on your find at the thrift store.

Your object looks strikingly similar to a valuable family heirloom that was taken from my home in a break-in last February. It was one of several items held by the Torgerson Family Trust. We recovered the most valuable item (a painting titled "Dove of Peace in Cloud") from Green Lantern after some tense negotiations. Here's a photo of our heirloom that was provided to our insurers.

I'll be contacting you to arrange a safe return.

Seriously, even if it's worth no more than you paid for it, it makes for a great story. If it turns out to be real silver, you've got something to show family and friends and just might get some of them started down the path to knowledge regarding PMs.

Best Wishes.


Jan 16, 2013 - 4:08pm
Jan 16, 2013 - 4:09pm

Good stuff

Turk: First of all, gold is not an investment.

"It’s money. It’s not an investment because it’s a sterile asset. It doesn’t generate cash flow. It doesn’t have a balance sheet, management team, PE/ratio or anything like that. And in fact, gold doesn’t create wealth. Money doesn’t create wealth until you put it at risk. Money only creates wealth if you invest it or you lend it or you deposit it. But gold itself doesn’t create wealth. Dollars don’t create wealth unless you deposit them in a bank, lend it to somebody, or invest it in securities. It’s the same thing with gold."

Jan 16, 2013 - 4:13pm

I posted before that

The Euro when first launched was backed by reserves from the member countries which were currency and GOLD.

Don't quite get $31.60 today. Is $0.94 significant?

Also if the buy stops were triggered does it only happen in the market that is open or across all the PM markets?

Jan 16, 2013 - 4:18pm

If you want to play...

you got to be able to pay.

It's real easy, if you don't hold it, you don't own it and you can't play.

Strawboss TF
Jan 16, 2013 - 4:21pm

Turd - is there a link that

Turd - is there a link that shows this information or is there a way to track it on a daily basis so we can track the spread?

Jan 16, 2013 - 4:22pm

Turk, following on

In fact he contradicts himself; he is never shy to mention gold's average 18% gains over 10 yrs. Gains against what? Is it an investment or not, for people paid in fiat, and measuring their portfolios in fiat?

Why keep referring to its 'appreciation' if all it is, is a store of wealth?

Jan 16, 2013 - 4:24pm

@ Tyberious

Turk's assertion that gold is not an investment, is likely rooted in something more banal than high principle.

Goldmoney was banned in the Netherlands as a pension investment vehicle, as the Dutch government decreed that gold was too speculative and risky to constitute a pension investment (!!!!!! stick with the safe bond & stock market bubble instead folks!).

Following that, Turk is going out of his way to stress that gold is not an investment, because he faces legal implications to his business if it is.

Jan 16, 2013 - 4:29pm

if it was silver

wouldn't it be stamped with a hallmark somewhere?

Jan 16, 2013 - 4:30pm


First cracked it at:

1/16/13 19:39 (GMT) 31.51

Highest was:

1/16/13 20:20 (GMT) 31.53

Danced around it for an hour or so and fell back to 31.45 area after that....

Jan 16, 2013 - 4:30pm

Mudshark's trinket

is a corrupting force.

Give it up Mudsharks, or it will turn you into Gollum.

Look what it did to Bollocks, turned him into a little robot. He needed a big Mexican moustache to be able blend in with people.

Jan 16, 2013 - 4:31pm

@ Rocoach

depends on when & where it was made.

Jan 16, 2013 - 4:32pm

No, it's mine...!


Here's a photo of my 16th century false-moustache holder that was lost when on a shopping trip last week. (I would sometimes forgot to take the moustache out of it first - dearie me, I can be SO forgetful!).

Anyway, I believe it dropped to the ground during that day and, alas, I didn't notice until I returned home.

You must admit that the object in the photo is strikingly similar, if not identical, to the object that you, ahem, "bought".

Don't believe what Ferd is saying. He's clearly trying to steal it from you. There is no "Torgerson Family Trust", however I have it on good authority that there does exist a "Torgerson Family Thieving Bastards Trust".

I'll PM you with my address details.

Thanks so much for finding it, my false moustache will be thrilled!

All the best to you and your wonderful family .

Jan 16, 2013 - 4:33pm


once-you-start-talkin-to-the-hand . . .

Soap - Chuck and Bob Mindreading

. . . well, then: you can damn near talk to anyone so summoned -- Germans. The Bundesbank. the frenchy-french. The Fed. even the naked&the dead __ubl. madonna. ubs. gaga. u bs__ but, like UBFoolin wit JJ here [and it is, jewish joke, all The Big JJ as to just who's now,then,eventually found 2B holdin-the-gold. . . { all same-same as UR Anon-Innominate BANKER ELITE move it to all-the-better setup in their Mysterious East, v. west} . . . rhetorical] don't be surprised to find that, 4warned is 4armed = The one-and-only OCTOPI x mind,body&soul ~ Totally Xposed, with its hand so far up your own ass2mouth you're only ever finally capable of, repeat-after-me-- duh Spineless . . .

and zero at the bone

Jan 16, 2013 - 4:33pm

@ Mudsharkbytes / Ferd Torgerson

I often look at my old UK sovereigns from the 19th Century, and early 20th, and contemplate what histories these individual coins may have had. The issue year is always shown, & I know a bit of history so I can also relate the minting of the coin to the broader events of the time.

That item in the photo, stolen from Ferd subsequent to having been stolen from my own ancestors, looks like it has had quite an interesting history!

If you rub it, does a genie come out? (Oh darn, that's lamps!).

Jan 16, 2013 - 4:33pm

All this news is BS in my book

Its funny to hear about the seriousness of the central banks not trusting themselves. I mean really? Do you really think they ever trusted each other? They all know they are all liars. How else could they have kept the ball rolling for a decade or more without lying? These central bankers are some of the most clever liars on the face of the planet. They didn't just figure out now that maybe they shouldn't trust other central banks. lol. On another note, it looks like silver has run out of steam. I have to say, we were close to making it above 31.60. It looks as though we lost in the short term as the cartel will definitely smash the crap out of silver soon. Possibly tonight. Those crooks are just playing with us. Im sure most on this board will agree with me on that!

Jan 16, 2013 - 4:33pm

Food price crisis . . .

Snippet from article at

Put another way, crop prices (and food prices) are not “high” today. Rather, the debauched paper which our bankers (and governments) call “money” has been plummeting in value so rapidly that even with nominal prices spiraling here, in real dollars agriculture prices remain extremely depressed – explaining the relentless, long-term deterioration of inventories.

The dynamics are simple. Heavily-subsidized (Western) agricultural products are dumped in markets all over the world. Poorer, less-developed nations cannot compete with those subsidies, and thus subsidized Western agricultural products have bankrupted 10’s of millions of small farmers all over the world – and taken that land out of cultivation, further depressing supplies/inventories.

Those reactionaries in the U.S. incensed over Mexican “illegal aliens” can thank the “farm lobby” in the U.S. (i.e. Monsanto), as it is 100% responsible for the flood of Mexican migrants into the U.S. Massive corn-subsidies in the U.S. bankrupted millions of Mexican corn-farmers. With no other options for survival, these farmers made their only logical choice: they migrated to the place where they knew that the corn which they used to grow was now being grown – the U.S.


The more governments (esp. U.S.) meddle with free markets, the bigger the mess they leave behind. Think "Arab Spring."

Jan 16, 2013 - 4:33pm


All of the pumpers talk their books, which is fine by me, most discerning investors or savers should be able recognize this.

But to me gold and silver are money and a method of savings. I think most people would agree that money in a savings account gaining say 3-5% interest would not be considered an investment, just savings. His most important point is that investment requires risk, I for one do not see much risk in holding physical metals, in this environment.

Jan 16, 2013 - 4:34pm

Try this and convert? Still

Try this and convert? Still looking for something in $...

Jan 16, 2013 - 4:37pm

Miners down today, metals hit tonight or tomorrow?

That's been the signal for several years now. Guess we'll find out soon enough whether it was miner/HUI specific or another of what GATA deems a "signal" between the shorts in cahoots.

Jan 16, 2013 - 4:39pm
Dyna mo hum
Jan 16, 2013 - 4:39pm

Ferd Torgerson

Now that's funny! You are a fast thinker for show!

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