Narcoleptic Tuesday

With the holiday yesterday, I figured that today would be either Happy or Terrible. I sure didn't expect this snoozer.

Even though the U.S. economic data was lousy today, the metals seem stuck in neutral. Oh well. Actually, it's kind of nice, for once. A nice, bland and boring far. However, I'll be watching for that same, evil Globex algo to rear it's ugly head at around 1:00 EST. Let's see if gold then drifts lower into the close and loses another $6-8 between 1:30 and 4:00.

Here are some charts as you start your week. First up, here are the hourly finviz charts. Note that since the miserable, contrived beatdown of 1/3-1/4, both metals have moved up nicely, contained within broad, upward-sloping channels.

And these daily charts that I printed yesterday neatly summarize where we are in the bigger picture:

OK, here are some other, random items...

Anyone following along in the comments to yesterday's thread would have seen this story already. It seems that the Indian government would like to discourage gold investment by its citizens. As ZH rightly points out, with items like gold, you often get the opposite effect. If anything, the post contains a very instructive chart that I've copied below.

While at ZH, I found this fantastic new piece from JS Kim. I agree wholeheartedly with many of his conclusions, particularly the ones about "financial advisors". Though there are a very select few out there who "get it" and are actually trying to help their fellow man, most are simple snake-oil salespeople who are driven by commissions and fees. Years of self-reinforcing behavior have convinced them that they are the smartest people in the room and that their "advice" is valuable and worthy of your hard-earned dollars.

Earlier today, The Doc (who isn't sleeping much these days so he has some extra time on his hands) posted this first-hand account of metal demand in China. Admittedly anecdotal, it nonetheless tells a story you simply won't hear anywhere in the MSM.

And here's another reminder...Paul Coghlan is hosting a FREE charting webinar again tomorrow. The one last month received rave reviews for its value so I would encourage you to sign up. Like the previous one, this webinar will also be recorded and posted for later review if you are unable to watch it live. However, you still have to register to view it. You can do so by clicking here:

And, frankly, that's it for today. Short and sweet. As I wrap, I see that the metals are moving a bit higher. This is nice but they need to sustain these moves. Silver is still battling its 50-day moving average, currently near $32.04 on the Mar13 contract. Besting that, its next goal is horizontal resistance and the 100-day MA near $32.65. Gold, too, is butting up against its own 50-day, currently near $1697 on the Feb13. Keep an eye on those levels with crossed fingers.

Have a great day!



Silverman's picture

More fun

Mr. Fix's picture

Far fetched?!

Far-fetched is just an opinion, until it actually happens.

Far-fetched is exactly what to expect here, since the times we live in are so unprecedented.

Just look at the combination of facts that we have to examine right now,

wouldn't all of them have been considered “far-fetched” just a few years ago? (or just weeks ago)

I am just watching one “far-fetched” and completely outrageous occurrence after another pop-up.

The only thing that makes absolute and complete sense now is that whatever comes next will be completely far-fetched.

we no longer live in times where “things happen because they always happen that way”. 

Our government is obviously preparing for a bloodbath, all I'm trying to figure out, is their plan.

Nothing I have said is all that “far fetched” once you add up all of the facts, and take into account the personalities of the players involved. 

Mr. Fix's picture

The meanings of .. HEH .. HFT .. MOPE

Hot, Explosive, Historic.

High Frequency Trading.

Management Of Perception/Economics.

You will find these examples close enough for your purposes.

Gent's picture


Thanks, Mr Fix

I hadn't found these in Turdisms

TomMack's picture


heh,hot explosive historic   as to the price of silver

mope,  management of perceived economics  as to main stream bs reporting

hft,  high frequency trading  algos

best as i can remember

ps stack

fubm   fug you blythe masters  rapid rise in silver after a beat down by the EE  (evil empire)

EDIT  too slow nice fix!

StevenBHorse's picture

China and the big payback

Nice appropriate and timely post about the Opium Wars. 

Follow the money and you can see it was TPTB that broke China, and led them to the 100 years of Humiliation. 

It's been said by many that China is supposedly helping the current PTB in creating a New World Order.  I don't believe this to be anywhere close to the truth. 

Enter the big Payback.  China has formed alliances with some of the other emerging countries, and will double cross the western PTB. 

China never forgets. 

People seem to forget that China wrote the proverbial book on warfare, The Art of War.  They will kill their enemy when its most vulnerable, and not a moment sooner. 

They have likely been planning this war for 25 years +.  When they win, they will see themselves atop the catbird seat of global finance controlling the new global reserve currency.

I wish I was a skilled writer like some of you.  But this is essentially the way I have drawn out this scenario in my stall with chalk.   

gdog's picture

via King World

King World News is pleased to break the news first in the world for our global readers that the World Gold Council has now confirmed the Chinese are going to back the yuan with gold.  Today a legend in the business, Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, informed KWN of this development and also stated, “... the gold and silver bulls are going to begin to trample the bears at some point in the near future.” 

Green Lantern's picture

Bang Bang Control

A topic I've stayed away from for a few reasons.  One being it's much more complex than Piers Morgan and Alex Jones make you want  to believe.  Second, it takes too much time to write about it and to connect to our main interest.  The price of metals.  But since I seem to have insomnia, I figured I'd punch out my own sort of high octane speculation on the issue and tie together gold and guns by the end.   I have a little different take than Mr. Fix but same ball park.

It seems to me that some things aren't as covert as we want to make them.  Sometimes it seems that way because we are looking at a small box, the US picture.   However, if you look at certain trends and just off the top of my head Gun control Homeland Security #2.  Gold repatriation #3 and money printing.  ( You are asking yourself what do all these have in common if anything?)  All these things are being rolled out on a global scale and  not unique to the US.  There is alot of centralization going on in the world not to mention the idea of a one world currency, one world band,  the idea of the
 SDR which hasn't gone away. But let's stick with guns.   This actually ties into DPH's opium wars.

Pick a country and do a google on their gun control policies.  Interestingly you'll find that many countries have recently or currently rethinking their policies.   After 9-11, homeland securities and especially airport security became a world wide phenomena.   It might be interesting to look to the "security" experts and their companies and their ties to the elite.  There is always a thread that can be traced if you think to look at it.   Obama doesn't sit at a typewriter writing these things.  They are handed to him by think tanks and high paid consultants who have more than one client.

Just a few days ago, the former Prime Minister of Australia wrote a full page editorial in the NY Times on how they dealt with guns. To me it looked like a full page ad for Obama's policies because if you compare the two, they seem almost identical.
 In recent, days I've seen talks comparing us to Japan, Norway, Israel and even Vietnam and I forget who else.

Remember that guy in Norway who killed 77 people.  That was done despite gun control laws.  And the stats show even with tighter gun policies, crime is rising in Norway. But if you look at their laws, looks like somebody has been comparing notes.

My favorite is the comparison between the US vs Japan.  That one had me scratching my head for awhile.   Read the reports and the blogs and everybody will tell you that Tokyo is a supremely better place to live than let's say New York City.  No violence tolerance, no guns, no swords, no nothing and Extreme powers granted to the police according to what I've read.  Yet such a great place to live right?

Some things about Japan excite me, many others don't.  Any countries with a monetary policy like Japan is bound to have other blemishes festering under the surface if you decide to look.

Rarely do these articles quote any other statistic than rate of gun violence compared to the laws.   I decided to look at a few other statistics.  And I bet if we did this longer we could find lots of interesting statistics that aren't pretty.  I picked a few.  Suicide rates for one.   Psychopaths and sociopaths who are the main culprits in mass shootings want to silence and destroy something.  However that something is within themselves as much as it is their victimes.  That's why they usually take the gun and turn it on themselves.  They all have death wishes and are suicidal. 

These Asian countries  have extremely high suicide rates.   S. Korea, Japan and China way on top.  USA fairly low on the list.  Yeah, we got a messed up system but we still have a few liberties left.  They haven't all disappeared.   American's don't seem as fond as taking their on  lifes as Japanese.  There is a little history here for another time.   This is just the tip of the ice berg at interesting statistics that you can begin to correlate.  Here is another one I looked up.  Worldwide Police Brutality stats.

Google this article.  They are big on having a society with law and order but not too big on individual liberties.  Safe streets at what cost?

COLUMN ONE : Victims of a Safe Society : Behind Japan's low crime rate and civilized streets is a criminal justice system criticized as the most backward in the industrialized world.

Also, there is a good youtube video of either an american or British fellow who tells of crimes that I've never heard of in the west except on rare incidents.  high molestation rates on public transportation, men and women segregated in some cars in the evening on some lines and accusing people of crimes they didn't commit to ruin their career
 Very Zen.

Lastly, the statistic that nobody seems to mention about guns is that often guns in the hands of criminals are procured through the black market.  Don't know about the mass shooters but all you guys looking for ammo, have you tried the black market?.  And this is where it get's scary and what I am going to say is all speculation but when you crush a market, inevitably a black market appears.   Even when I was riding a cab in London, the cab driver told me how to buy black market cigarettes.   I just recently got the inside tip in NYC but haven't penetrated the right botega's yet.  As I mentioned before, Catherine Fitts Austin writes brilliantly on the purpose of the war on drugs and how drugs syndicates are tied into the big banks and money laundering.   There is big money in drugs and at the same time you can move into
a neighborhood and decimate it.  The trend of medicinal pot seems to be coming in when states are at an all time economic low and need new tax income.   Why would guns be any different?  Anybody
remember the gun running scandal with Hillary Clinton and Mexico? Ring a bell?  I'm sorry but if they can obscure the true numbers of amount of gold in the world and profit from in it, create a black market
of drugs and profit from it, do you think they can put the gun manufacturers out of business and profit from it? 

I suspect Joseph Farrell and Catherine Austin Fitts are very much right about a secret financial system and guns, gold and drugs are all interconnected.   Not too different from Roman Times or even the Opium Wars.  

Why when it happens in a history book, it's cool?  When it happens during the times you live in, it is freaked out conspiracy? 

old tradesman's picture


old tradesman's picture

without this we have nothing

local political representation., as the electoral college came with the horse and carriage,     It shall be gone with the state reps and senators,  not living within the states in which they represent.  Why should in the computer age?. a rep or sen live in the state he  or she represents?    OH DONT LET ME FORGET THIS (STACK YOUR A$$ OFF)

ivars's picture

GSR yesterday continued move

GSR yesterday continued move down with 52 in sights:

52 would mean (silver price 32,7-33) reaching a median on this pitchfork today or tomorrow:

Pegasus's picture

Cheaper than Dirt

Just about every friggin handgun at CTD is out of stock! Every damn one. Check out this page for .357 Revolvers:

Byzantium's picture

@ ancient money, re question for Turd

Thank you for the response; I am on UK time so was asleep when you posted (as you likely are now).

Everything that you wrote makes perfect sense, but for two caveats:

  • All the same factors applied in April 2011, August 2011, and recently at the £35 cap, but they still took the price down.
  • Silver as we know, is a Giffen good. At this time, maybe silver demand will increase whatever they do, but maybe it will increase least if they suffocate the price again, and train buyers to defer their purchases again, while making some existing investors throw in the towel.

In other words, if we put aside the issue of 'would they attack the price again,' then let us just assume that it is possible, and if they do, the core question still stands: You are Blythe, you are looking at the chart, what do you need to do to sabotage the technical picture again, and when do you make your move?

As another poster says, my Spidey senses are tingling on this one. Silver will not break free because the cartel stop trying, but because their manipulations will finally fail.

Katie Rose's picture

nine deer, six goats...

My sister says I need "to 'fess up."

When I went out to feed my goats this morning there were seven Mama deer and two little ones lined up on the other side of the fence waiting for their "welfare alfalfa."

I was stunned! They were just patiently waiting for their food, standing in a line, confident that I would arrive and meet their needs.

I've decided that I am getting a first hand lesson in Keynesian/Socialistic economics.

Right now I am milking two goats, one of whom is pregnant. I will stop milking her at the end of January. These two goats are barely providing enough milk for my family. (It is winter and milk production will explode in the spring with the arrival of the babies.)

So the reality is two milking/working goats are providing the way for four other goats and nine welfare deer.

Sounds like the good old USA to me. A few work so that many can eat for free.

There is good news, though. I have learned from my mistake. The goats are going to be fed before I let them out in the morning. I can pull the plug now on the welfare deer. I must pull the plug on the welfare deer. Otherwise they will destroy our gardens and flower beds this spring and summer.

I am going to rotate the goats so that every year I am milking three goats all through the winter months while the other three are pregnant. I am going to get this figured out eventually. wink

I had good intentions when I began to feed the deer. Congress had good intentions when they began their many programs. And I am not just talking about human welfare programs, but corporate welfare as well. Military Industrial Complex anyone???

We all know that the road to perdition is paved with good intentions. I am not going to borrow money to buy alfalfa for the "welfare deer." blush

It is past midnight and I hope this will make sense in the daylight. My good intentions of feeding the hungry deer will lead to my ruin if I keep it up. I can not afford it. The USA Government can not afford its spending, either. Yet it just keeps spending...

I am fortunate I do not have to get re-elected. I do not need to bow to corporate or special interest groups. I can get my fiscal house in order. That's why I stack precious metals.

There is so much I am learning on this little farm. Every day I get a new lesson in living. Today's lesson is all about welfare deer....

old tradesman's picture

@ katie rose

keep feeding the deer!   Im not that far away!  just give me your hunting section and all be there when I get my tag!!!  Ill bring eight friends!!!

just joking Ive got all 4 freezers full(of bacon!)cheeky

Byzantium's picture

@ Katie Rose

Brilliant post!

Old Tradesman and his eight friends notwithstanding, you will soon have an army of deer if you continue. And if you do not have enough alfalfa for them all, a riot might break out between the deer.

Byzantium's picture

@ gdog, re gold backed yuan

be wary of KWN. I read that Blog post just now, and as expected, they somehow passed by the opportunity to quote the relevant passage from the World Gold Council. Did they lose the document that is the source of the piece?

You have to be wary of Eric King's commentary and reporting too; when his guests call for an up-leg in gold, Eric will ask 'would you be shocked to see $3000 gold this year?' The guest replies 'well, it is not impossible, I wouldn't be shocked.' Eric then makes a headline out of this: "Respected PM analyst <guest> shocks KWN by calling for $3000 gold this year."

I read all the KWN pieces, but you have to have your bs filter on, to filter out the rhetoric from the real news.

old tradesman's picture

ok nobody noticed the reagan clip i posted above

at 1 minute reagan says we have 15 billion oz of gold and we dont own any of it!!!!!!!!!!!!!!

old tradesman's picture

must listen interesting

whats interesting is that he doesnt know any whole salers that sale to jpm?

achmachat's picture

old tradesman's clip

That Reagan quote is the weirdest thing. There must be some context to it that we don't get to hear in this short clip.

Byzantium's picture

@ achmachat

Maybe the context is that Reagan was shot early in his first term (though of course he survived). It is said that within his first three days of office, he went to the Fed, and asked them to justify why the USA needed the Federal Reserve.

I wonder whether the quote about not owning an ounce, was made before or after he was shot?

ClinkinKY's picture

Morning Toon...I mean creepy video

Remember when past presidents were "worshipped" like this? Yeah, me neither.

When he changes tungsten into gold, I'll believewink

achmachat's picture


I did some research.... this was WAY before his term as president.

It was from a televised campaign address for the Goldwater Presidential campaign in 1964!

Urban Roman's picture

Reagan's point

was that the gold would not make a dent in the national debt. It was all owed to creditor nations. 

Of course, he went on to what, triple the debt? Anywho ... it goes round and round. 

It's not a coincidence that the US began to import oil in the decade that preceeded Reagan. That dependency accelerated during the '80s. By the '00s, the US was importing about 2/3 of its oil. There's a mini-boom on now, with all the fracking and unconventional, but that will play out in a few more years. 

I think all this power grab by the government has to do with the anticipated reaction to the inevitable decline. 

And, that was a great essay, Katie Rose! Beware of angry entitled deer! 

Thanks for the research, achmachat. Technically, of course, the gold was/is owned by the Fed... but I don't think Reagan was going on about any secret-illuminati-banker mumbo jumbo, I think he was merely pointing out that it would no longer cover the national debt, even in 1964. Nixon would close the gold window, when was it, in 1971? In 1964 it was still fixed at $42 an ounce. 

ClinkinKY's picture

Ah, here's the Morning Toon


ClinkinKY's picture

One More

Six-Year-Old Boy Suspended From School After Pointing Finger Like Gun, Saying ‘Pow’

Posted Image

sengfarmer's picture


I meant to comment on your post at the end of the Sunday Evening Post thread.

You said you thought the Chinese ALWAYS go crazy this time of the year for silver and gold.

Your statement implies this is not unusual and really shouldn't effect the silver and gold supply.

The fact is this is a very new and monumental silver and gold demand. Until 2 or 3 years ago the Chinese citizens were FORBIDDEN to possess gold or silver and the penalty for possession was BEHEADING.

Now their government is ENCOURAGING gold and silver ownership by its citizens. 

How is the market  going  to satisfy that huge pent up demand?  If you think there aren't any shortages in the silver market now just wait.

57Goldtop's picture

Old Tradesman

Excellent post with the Reagan 1964 speech bits. 

Before I woke up and based on the history I studied in university, I believed that the two most impactful and important American speeches were JFK's inaugural and MLK's I Have a Dream. Aside: I have a Drone vs. I have a Dream made me laugh so hard I may have hurt ribs.

I don't care what country you live in, Reagan's 1964 RNC address is more interesting than the other two I referenced. I share this with Americans often and few even watch it. When the Ron Paul movement got momentum I had my teenage daughter watch this and I believe it had a profound impact. The parallels with Paul's message are chilling.

So, go from 1964 to his Presidency and getting shot and his policies before/after. Perhaps this speech can also be more impactful, as history needs it to be.

Harald's picture



indosil's picture

Silver Bars Being Secured By HSBC – Buys $876 Million Worth From

Silver Bars Being Secured By HSBC – Buys $876 Million Worth From Poland

Tyler Durden's picture

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