All The Fuss

Tue, Aug 30, 2011 - 9:36am

The PMs shot higher this morning after the Chicago Fed Goon was interviewed by LIESman on CNBS. The metals catapulted higher when The Goon admitted that more QE is likely because the economy is in such terrible shape. Really? NO! Whodathunkit?

Because this is a full-service PM site, here is a link to the full "interview":

Could LIESman's head get any shinier? In a sort of Pinocchio fashion, LIESman's head gets more more shiny the more he shills and pimps for The Fed. Maybe we need to develop some sort of "Shiny Head Index" to help us all calibrate the degree to which LIESman is propagandizing? I can see it now. "Today's LIESman SHI is a 9. Be very cautious and take everything with skepticism". Hmmm. Have to give that one some thought.

Anyway, back to business. Gold is attempting to hold its gains but is already about $10 off its highs. I'm inclined to do some buying today as I expect the metals to be firm the remainder of the week, ahead of the BLSBS on Friday. Signals that the NFP (non-farm payroll) number will be lousy are already appearing. Namely, this "interview" today and the fact that President O'bottom pushed back his historic "jobs speech" to next week. Again, the logic is: Lousy job report = lousy economy. Lousy economy = more QE. More QE = much higher PMs.

As you know, I'm very excited about silver but I'm trying to pick my spot to enter. Open interest tumbled all of the way back toward 115,000 yesterday which is extremely bullish and pushing me to act in haste. The area around 41.25-41.50 would seem to be the right price as silver looks primed to mount an assault on 42.30 again. Once through there, it will spring toward 44 and, beyond there, 46.

Here are a couple of other interesting items to ingest. First, this guy does an excellent job of summarizing my thoughts toward Venezuela and its gold repatriation. Though El Commandante would certainly and understandably prefer to have his gold in his hands, at its heart this is an act of "financial war", a move to further destabilize the financial system of "the West".

Here's more on "The End of The Great Keynesian Experiment":

And here are two, interesting reads from KWN. First, here is John Embry of Sprott Asset Mgmt:,_Premiums_Exploding.html

Eric also interviewed Louise Yamada. There are lots of amateur chart-readers in the world, myself included. Louise Yamada is a professional. As a general technician, she has no peer.

OK, that's all for now. Gold is 1828 and silver is 41.38. Let's see where we go from here. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 30, 2011 - 11:28am

More RE: Liberty Dollars

I hope this doesn't expand into one of those 'conspiracy' threads that so bother those plagued with cognitive dissonance.

Liberty dollars were trounced upon because, supposedly, they were counterfeiting US currency by using the term "dollar". Not that anybody but a completely clueless moron could have confused a liberty dollar with genuine US currency, but that was their excuse - about as weak as the excuse they used to stormtroop Gibson guitars.

Don't look for any help from Ron Paul either. Look it up. Ron Paul was approached several times for support and endorsement of liberty dollars but didn't cooperate, despite his likeness being used on the coins.

argent rampant CreditCrumbs
Aug 30, 2011 - 11:28am

Good point.

The Swiss are dealing with that situation already, even though their currency is not (yet) gold backed, it is seen as the most sound available. It has become so strong their exports and employment picture are starting to suffer.

It's a very tricky game. I do think there will be currencies pegged to gold before too long, but there will have to be some international cooperation involved. The first link posted by Turd today mentions the Russo-Chinese SCO, which is pertinent to the heart of this issue.

Aug 30, 2011 - 11:31am


Chavez's moves = ramp up timeline for mideast war.

Aug 30, 2011 - 11:31am


Chavez's moves = ramp up timeline for mideast war.

Aug 30, 2011 - 11:32am

You are fundamentally wrong

You are fundamentally wrong on that. They were designed to not interfere with the UCC and could only be found to be competing with current money when compared to a Bicentennial commemorative coin issued by the mint that never was intended for circulation. He knew the law and deisgned a coin to trade vs. the US Dollar. He complied with the Treasury Dept. and consulted with the Fed Res. But, when the system was becoming popular in localities and began to take off, their offices were raided and they were shut down and put through a kangaroo court.

It's BS. But summary opinions like yours on the subject give them the cover they need to confiscate people's property. Buying silver eagles and buying LD's is fundamentally the same thing, 'undermining the currency' by competing with it.

The difference here is that NORFED designed a system to value their currency vs. the USD to seed the market with silver coinage, as opposed to just using Silver Eagles from the Treasury, with the stated goal of ENDING THE FEDERAL RESERVE.

Sound Familiar?


Respectfully Tom I may be fundamentally wrong Tom, but its a non issue with me. And to be honest I care not to be dragged into what is legal and what is not, been doing this for 20+ years I have read and seen it all. People want change well then step from behind the keyboard and go do it talk is cheap actions speak volume.. (Stands up and LOOKS OUTSIDE) Yup all alone as usual, when its GO TIME!! hit me up. Now on to more realistic issues, GDX is about to pop 63.

Aug 30, 2011 - 11:32am


Why are you buying PGH calls? I see no volume there. Please explain.

Aug 30, 2011 - 11:33am

Full service. Huh huh huh. Full service.

But I'm not surprised. Sniveling, blathering, whinging - they will be brought inexorably back to the printing presses to turn them back on. And this guy is in full blather mode. The sniveling and whinging will come out in later interviews.

They were presented with a choice in 2008 - screw the banks or screw the currency. They chose to screw the currency. Otherwise, our gold positions would've topped out in 2008 at 1000 and we would be probably sitting at 500 again about now, instead of at, what are we at today? 1829?

Red Pill margaritatime
Aug 30, 2011 - 11:33am

"Domestic terrorism"? Really?

you better believe it.

  • Anyone who talks frequently about the Constitution, or ill of the government
  • Anyone who supports the idea of a Constitutional Militia
  • Anyone who fights against anti-gun legislation, or owns many guns (man do we LOVE guns)
  • Anyone who supports state sovereignty and 10th Amendment issues
  • Anyone who supports Ron Paul (the ultimate sin according to the SPLC)
  • Anyone who believes the private Federal Reserve is destroying our economy
  • Anyone who talks about the “New World Order”, or global government (does this include men like George Soros, Joseph Biden, Gordon Brown, Henry Kissinger, George Bush, Bill Clinton, Strobe Talbot, George McGovern, Mikhail Gorbachev, Richard Nixon, etc.?)
  • Anyone who discusses economic collapse as a reality in the U.S.
  • Anyone who speaks out against the IRS
  • Anyone who participates in “Hacktivism” (including those who leak documents embarrassing to government)
  • Anyone who participates in any form of activist group
  • Anyone who argues that the Left/Right political paradigm is a scam
  • Anyone who promotes Anarchist views
  • Anyone who distrusts FEMA (as if Katrina did not give us ample reasons)
  • Anyone who believes a truly independent investigation of 9/11 is rational and called for
  • Anyone who home schools their children
  • Anyone who flies a Gadsden Flag
  • Anyone who stores survival goods and food
  • Anyone who uses shortwave radios or HAMs
  • Anyone who watches movies like ‘Freedom to Fascism’, with anti-Fed messages
  • Anyone who operates private barter and trade networks
  • Anyone who stores gold and silver or uses them as an alternative to the dollar

Aug 30, 2011 - 11:33am

The Bad Timing Of Obama's Jobs Speech

Beginning with this first post:

I've been trying to outline when events might happen between now and Sept. 21 to provide an educated guess on the effects on the metals. Since this post, Fed Hack Evans is now playing into this scenario by leaking his thoughts on his so-called idea that "More Monetary Accommodation is Needed" which is just another way of saying, "we need QE3".

Now this article shows up speculating on the timing of The Manchild's Speech:

It seems the Manchild might not get the undivided attention he expects!


"According to the White House, the speech is scheduled for sometime after September 6th — the day former Massachusetts Gov. Mitt Romney is set to unveil his own job creation plan.

Romney and the other Republican presidential candidates will then face off in a debate at the Reagan library on September 7th. For Obama to give his speech before the debate would put his plan up against a firing squad in prime-time.

That leaves Thursday, Friday, or Saturday for Obama to present his case. But the fact is, a speech then won't pack the the same, desperately needed, punch — Sunday is the 10th anniversary of the attacks of September 11, 2001.

News outlets and networks across the country are planning commemoration events and broadcasts to coincide with the anniversary, meaning Obama's speech is almost certain to get less airtime than other major presidential addresses.

Less media attention means less public awareness of the president's agenda — and a reduced opportunity for Obama to use the bully pulpit to preempt the inevitable Republican attacks."

If this summation is true, It seems Monday, Sept. 12th (Night Football Night) is also OUT. Therefore, it seems Sept. 13th is the most likely day as expected. This will give more time for the media and other Fed hacks to come forward and sell the idea of increased spending (QE3).

maravich44 margaritatime
Aug 30, 2011 - 11:35am

@ margaritatime.

+1. I agree, good point.

Aug 30, 2011 - 11:35am

And GDX goes it a

And GDX goes it a party :) HUI 601.35 and busting.

Tom L
Aug 30, 2011 - 11:38am


Fair enough. I took exception to the way you dismissed the new wrinkle here, which is the potential cirminalization of this. I'm a veteran of boots on the street as well. I've walked that walk when no one else was interested. I've run for State House, ran an LP local chapter, served on the state LP Ex. Committee, stood on street corners, traded Liberty Dollars and the whole bit.

If they are criminalizing political action through the justice dept. via an 'attack' on the monetary system using language in the Patriot Act as cover, then I'm ready to get serious. But it does start at the keyboard, this is our biggest weapon, not our guns.

The ballot box is mostly worthless. This fight for the money is the front lines of the war. I know you know that.


p.s. 601 on the HUI... woot!

Tom L OC15
Aug 30, 2011 - 11:41am


Because this is not a trade for me. This is an accumulation. I expect those to be in the money at OE. If I'm wrong, I'm okay with it given my investment. There will be action on the nearest price in the active month. So, after Sept. OE I expect the 13's to be liquid enough to move them.


Vypuero Tom L
Aug 30, 2011 - 11:42am


Just put in an order for some October $17 options - will see if I get them

Tom L
Aug 30, 2011 - 11:44am

@SVM Oddities from Yesterday

The premiums on SVM are now working to my advantage... thankfully. It's infected the OTM Sept calls I'm holding. $11's are up to $0.35. I'd written them off for dead. Getting out of them for close to a profit would be a gift from the gods.

The stock ignored the 50 DMA. Wow.


BagOfGold olderman
Aug 30, 2011 - 11:45am


It is very sad to say...but a package of open pollinated organic the near future...may very well be worth an ounce of gold!...Nourishing food will sustain us...frankenfood will kill us!!!...

I care for everyone!...The time is near!...Please do something for yourselves...NOW!!!...

Bag Of Gold

Tom L
Aug 30, 2011 - 11:46am

Silver attack

Trying to stuff the HUI back down below 599. A hold here would be huge.


Aug 30, 2011 - 11:48am

The ballot box is mostly

The ballot box is mostly worthless. This fight for the money is the front lines of the war. I know you know that.

I do Tom and I share your thoughts,. Your correct on the fight for money. I know what is money always have, my dad like his dad taught me that at a young age. But unless something is truly done the Mirage will continue. Again actions speak volume, words are just that Words. Similar to a lot of our laws, words. I am an active 2nd amendment Gun advocate and I have been too many a rally and spoke at the podium many many times, never once was I approached or threaten to be arrested and labeled a terrorist.

You act like a dumb ass you get treated as such, such as the saying goes. Play stupid games win stupid prizes.

Be well Tom

Aug 30, 2011 - 11:50am

Wow, EE just ran the PM stops

This is in advance of the 2 pm release of Fed's Aug 9 minutes. Must be some real dynamite in those minutes given the last minute attempt to covers some shorts for cheap. Hope those waiting to pick up their PMs at a lower price took advantage and loaded up. Can't wait to see those Fed minutes!!!

Aug 30, 2011 - 11:52am


It's only treason if you think they're on your side.

Aug 30, 2011 - 11:52am

metals vs. equities

My two cents:


Lots of severe swings lately; Economy, jobs and housing not looking good in US or abroad for the foreseeable future.

Lots of upside potential. More QE.


Lots of severe swings lately; Economy, jobs and housing not looking good in US or abroad for the foreseeable future.

Lots of downside potential. I wish I could see some upsides other that inflation.

maravich44 BagOfGold
Aug 30, 2011 - 11:52am

@ BagOfGold.

. You are something special. Thank You.

Aug 30, 2011 - 11:53am

Beware Wed/Thursday (Leading into NFP?)

If there is going to be a smack-down for Non Farm Payroll (as there ritualistically is), does that mean that we have Wednesday/Thursday EE raids coming our way (that means starts tomorrow (or even today?). I think it would be safe to assume this until we see this pattern break, we should respect the fact that it often occurs. They smack-down gold/silver prior to payroll numbers so it can rise back to prior highs, therefore mitigating the damage. After all, they can't have gold and silver hitting new highs on weak data at such a critical crux such as this time.

Could we see the second margin hike in gold that was hinted at on Interactive Broker (private client that has led CME margin hikes) come into play in the next two days setting up for an abysmal Non Farm Payroll number? It is clear that they are struggling to take down the market in their "usual ways," and I am thinking that they will have to pull out another margin hike for gold contracts in order to achieve their goal. Their "failed raids" have been very effective for them still, as they have neutralized gold/silver from going up and creating an even more bullish pattern. While it may not be what they ideally want, I am sure it is better than the other option for them and let the metals gasp.. **be in a free market**

Any thoughts? I don't think they are out of ammo before the next move (which will test and break $2000)... just yet.....

But soon....

Anyone else thinking this? I am a perma-bull but I wouldn't bet against the ritualistic patterns we have observed in metals until proven otherwise.

Just food for thought.



**Attached are Last 4 Non Farm Payroll Charts** --- Do you see the pattern?? (Tomorrow is the blue line, Thursday is the Red Line).**

August 5th Non Farm Payroll:

July 8th Non Farm Payroll:

June 3rd Non Farm Payroll:

May 6th Non Farm Payroll:

Aug 30, 2011 - 11:54am

Someone sure hates the GDX @

Someone sure hates the GDX @ 63, and the HUI @ obvious.

Wish these mining companies would buy back their share and kill the shorts. I read SVM is considering such a move.

Aug 30, 2011 - 11:56am

Fed Minutes

I'm being careful here. Those minutes will have to point out the arguments of the dissenters, and could spur "concern" in the market that there will not be enough support for overt QE+++, and therefore for recession, etc. That would be portrayed as negative for gold, shares (general and metals) and most commodities.

I'm just theorizing that the relative strength of dissenters versus doves portrayed in the minutes is where all the action is, and that the dissenters will sound strong in resolve, just knowing who they are and their recent speeches.

It will be an "interesting" few hours.

Aug 30, 2011 - 11:57am

The gears of war

Israel Sends Two More Warships To Egyptian Border To Preempt Expected Militant Attack Submitted by Tyler Durden on 08/30/2011 11:17 -0400

While it is unclear if geopolitical news, or expectations of imminent QE3 is what just drove WTI to $89, the update from AP that Israel has sent two warships to the border with Egypt will likely not help the oil deflation case. From the AP: "The Israeli military says it has sent two more warships to the Red Sea border with Egypt following warnings that militants are planning another attack on southern Israel from Egyptian soil. Earlier this week, Israel's military ordered more troops to the border following intelligence reports of an impending attack. Israel's...(cont.)

Aug 30, 2011 - 12:00pm


what just happened to silver , was there an oil inventory report?

Dr G
Aug 30, 2011 - 12:01pm

@ScottJ, goof points

@ScottJ, good points regarding the jobs data, but don't forget that it's much easier for them to simply LIE about the data. Does anybody really think we added 400k in July? That number should be revised down to a negative number if they are being honest...but they aren't. How will the released BLS number fit in with Obama's jobs plan is the real question. Would it benefit him more to have a higher or lower August jobs number released?

Aug 30, 2011 - 12:01pm


press release

Aug. 26, 2011, 8:01 a.m. EDT

Silvercorp Metals Inc.: Update on Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA, Aug 26, 2011 (MARKETWIRE via COMTEX) -- Silvercorp Metals Inc. /quotes/zigman/33670 CA:SVM +7.73% /quotes/zigman/33653/quotes/nls/svm SVM +5.45% ("Silvercorp" or the "Company") announces that to date, pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011, it has acquired a total of 1,624,233 of its common shares at an average price of CDN$8.18.

The Company is purchasing its own shares because it believes that prevailing market conditions have resulted in Silvercorp's shares being undervalued relative to the immediate and long term value of Silvercorp's portfolio of producing and development properties in China and Canada. The Company notes that the short interest position in its common shares has climbed from 3.6 million as of July 29, 2011 settlement date to 9.6 million as of August 15, 2011 settlement date, the most recent date for which short interest data is known by the Company. Under the existing NCIB the Company intends to acquire up to 10 million common shares. All common shares purchased under the NCIB will be cancelled.

Aug 30, 2011 - 12:02pm

Thanks DHP~ Great read.

Thanks DHP~ Great read.


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 5/20

5/20 7:00 pm ET CGP speech
5/21 10:00 ET Existing Home Sales
5/22 2:00 ET FOMC minutes
5/23 9:45 ET Markit PMIs
5/24 8:30 ET Durable Goods

Key Economic Events Week of 5/13

TWELVE Goon speeches through the week
5/14 8:30 ET Import Price Index
5/15 8:30 ET Retail Sales and Empire State Manu. Idx.
5/15 9:15 ET Cap. Ute. and Ind. Prod.
5/15 10:00 ET Business Inventories
5/16 10:00 ET Housing Starts and Philly Fed
5/17 10:00 ET Consumer Sentiment

Key Economic Events Week of 5/6

5/9 8:30 ET US Trade Deficit
5/9 8:30 ET Producer Price Index (PPI)
5/9 10:00 ET Wholesale Inventories
5/10 8:30 ET Consumer Price Index (CPI)