No Joy in Mudville

Thu, Oct 30, 2014 - 11:19am

Like you, I was hoping that we could file away these longer-term charts with the downward price targets. Unfortunately, the price action of yesterday and today means that we have to revisit them.

Let's start with the HUI. We've been repeatedly mentioning that there was a likelihood of the index falling all the way back to the lows seen in 2005 and again in 2008. Well, here we are. I've got a low so far today of 167.92. Not quite the 160-165 that we've been discussing but awfully close.

And, just so you know, things don't have to stop here. Perhaps the ultimate goal is to bankrupt the entire industry but shorting them to death and damnation. Maybe. Check the chart below. Could the HUI fall to 100 or lower? That seems laughable and unlikely but, in the end, WTFK? I know that many of you own these damn things and I've suggested nibbling away at these levels but you must be cognizant of the fact that greater forces than Turdville are at work here and if they want to sell these poor companies down to zero they're going to try to do it.

And here are your 5-year, weekly gold and silver charts. Earlier this month, we figured that The Cartel and the spec algos that are short had to be absolutely salivating at the prospect of running the stops below $1180. They were unsuccessful back then but look to be ready to try again soon. The question becomes: Does this set off a waterfall similar to April 2013, where price almost immediately falls to $1050? Perhaps, instead, it's a fake out and price almost immediately reverses near $1155? Something tells me we may not have to wait long to find out...

And silver is just awful. Like the miners, it has been shorted to death with absolutely no care for fundamentals or economics. Seriously, it's now down over 5% on the day. Why, exactly? Just a handful of hedgy algos piling on the paper shorts, chasing the downward momentum to lower and lower lows. At this point, and especially if gold plunges through $1180, it sure looks like silver is headed to the early 2010 lows near $14.65.

So there you have it. It is what it is. Instead of an A2A today, I'll be in the TurdTalk chatroom beginning at Noon EDT where I'll be glad to attempt to answer any and all questions you have.


About the Author

turd [at] tfmetalsreport [dot] com ()


Safety Dan
Oct 31, 2014 - 9:35am




Safety Dan
Oct 31, 2014 - 9:40am

Q.E. central bankers deserve

Q.E. central bankers deserve a medal for saving society

The final word on quantitative easing will have to wait for historians. As the US Federal Reserve winds down QE3 we can at least conclude that the experiment was a huge success for those countries that acted quickly and with decisive force.

Yet that is not the ultimate test. The sophisticated critique - to be distinguished from hyperinflation warnings and "hard money" bluster - is that QE contaminated the rest of the world in complicated ways and may have stored up a greater crisis for the future.

What we can conclude is that extreme QE enabled the US to weather the most drastic fiscal tightening since demobilisation after the Korean War, without falling back into recession. Much the same was true for Britain.

The Fed's $3.7 trillion of bond purchases did not drive up debt ratios, as often claimed. It reduced them.

Ambrose is a paid whore/mouthpiece for the 'establishment'---and will print whatever he's told to print. This should be kept in mind should you read this commentary posted on The Telegraph's Internet site at 9:00 p.m. GMT on Thursday evening.


Safety Dan
Oct 31, 2014 - 9:42am

Vladimir Putin is the Leader

Vladimir Putin is the Leader of the Moral World — Paul Craig Roberts

Vladimir Putin’s remarks at the 11th meeting of the Valdai International Discussion Club are worth more than a link in my latest column. These are the remarks of a humanitarian political leader, the like of which the world has not seen in my lifetime. Compare Putin to the corrupt war criminal in the White House or to his puppets in office in Germany, UK, France, Japan, Canada, Australia, and you will see the difference between a criminal clique and a leader striving for a humane and livable world in which the interests of all peoples are respected.

In a sane Western society, Putin’s statements would have been reproduced in full and discussions organized with remarks from experts such as Stephen F. Cohen. Choruses of approval would have been heard on television and read in the print media. But, of course, nothing like this is possible in a country whose rulers claim that it is the “exceptional” and “indispensable” country with an extra-legal right to hegemony over the world. As far as Washington and its prostitute media, named “presstitutes” by the trends specialist Gerald Celente, are concerned, no country counts except Washington. “You are with us or against us,” which means “you are our vassals or our enemies.” This means that Washington has declared Russia, China, India, Brazil and other parts of South America, Iran, and South Africa to be enemies.

This is a big chunk of the world for a bankrupt country, hated by its vassal populations and many of its own subjects, that has not won a war since it defeated tiny Japan in 1945 by using nuclear weapons, the only use of such terrible weapons in world history.

No one can read Putin’s remarks without concluding that Putin is the leader of the world.

It's a long read, but an absolute must read, especially those who are serious students of the New Great Game.


Safety Dan
Oct 31, 2014 - 9:51am

The US air war against the

The US air war against the Islamic State costs $8.3 million a day
28 October 2014, (Agence France Presse - Raw Story)

So $8.3 million GDP growth a day. Zorg explains

Oct 31, 2014 - 1:19pm

Down days

They don't bother me at all, not sure why. Its like on Rocky when he keeps getting back up

ROCKY 1 Final Fight Best Scene.wmv

I already feel like opening the debate with my wife about some significant purchases of shiney physical metal. If the swiss vote yes I'll be wanting to sell the house to buy gold!

Oct 31, 2014 - 6:28pm

Anyone know how to

put up the 20 year Gold price Jap Yen?

turnoffthewater Bugzy
Oct 31, 2014 - 10:25pm

Re:Anyone know how to

Go here:

down to the chart and choose your paper flavor.

Nov 1, 2014 - 11:26am
sierra skier
Nov 1, 2014 - 12:29pm

It works but comes out in

It works but comes out in thumb nail size. Thanks Bugzy

Nov 1, 2014 - 1:36pm

Japan's household spending drops 5.6 pct in September

TOKYO, Oct. 31 (Xinhua) -- Japan's household spending in September dropped a price-adjusted 5.6 percent from the previous year to 275,226 yen (2,517.9 dollars), marking the sixth consecutive monthly decline, government data showed Friday.

The drop, compared with August's 4.7 percent decline, underlined that spending by wage-earning households remains in deep freeze after the consumption tax rose to 8 percent from 5 percent on April 1.

The data, released by the Ministry of Internal Affairs and Communications, also showed the income of salaried households fell a real 6.0 percent to an average 421,809 yen (3,856 dollars) for the 12th straight monthly slide.

Nov 1, 2014 - 1:41pm

Asian Infrastructure Investment Bank contributes to global gover

NEW YORK, Oct. 31 (Xinhua) -- Institutions like the Asian Infrastructure Investment Bank (AIIB) are very useful addition to the existing multilateral institutions and beneficial to global governance, said a former International Monetary Fund (IMF) official in an exclusive interview with Xinhua recently.

Eswar Prasad, the former head of the IMF's China Division, said there will be a lot of discussions about how China and other Asian countries are joining together to create these new multilateral institutions in the upcoming Asia-Pacific Economic Cooperation (APEC) meeting to be held in Beijing early November.

Twenty-one Asian countries last Friday in Beijing signed the Memorandum of Understanding on Establishing AIIB which will be an inter-governmental regional development institution in Asia with Beijing to be the host city for its headquarters.

"Some economies like the U.S. certainly feel a little threatened that their place in the global economic order is going to be threatened, but my personal views is that this is good for the global governance," argued Prasad, professor of trade policy at Cornell University based in Ithaca, New York.

In his view, the more competition there is among international institutions like the IMF and the World Bank, the better it is for international governance.

The professor noted institutions like the AIIB can play a very useful role in terms of intermediating finance since many economies in the Asia-Pacific region face a common big question that is how to get financing for infrastructure projects.

"But I think it's certainly a good idea to have multiple sources of financing not just through private markets but also through multilateral institutions," he emphasized.

Nov 1, 2014 - 1:55pm

China’s yuan rises against dollar, set to rise 0.5 pct in Oct

imageSHANGHAI: China's yuan edged higher against the dollar on Friday, buoyed by strong corporate dollar sales, traders said, and it is set to show a gain of 0.5 percent in October, the fifth straight month of mild appreciation.

"Many companies are selling dollars this morning, continuing a recent trend," said a trader at an Asian bank in Shanghai, adding that the corporate dollar sales might indicate the market is betting on strong exports again in October.

Spot yuan stood at 6.1103 per dollar by midday, 0.09 percent firmer than Thursday's close.

The People's Bank of China (PBOC) fixed its midpoint at 6.1461, practically unchanged from Thursday's fix.

October trade data is due on Nov. 8. A run of higher export figures has helped the Chinese currency rise more than 2 percent since May.

Nov 1, 2014 - 1:56pm

Putin awards a posthumous Order of Honour on Total's Margerie

  • Christophe de Margerie, CEO of the French oil and gas company Total SA, speaks during an interview with Reuters in Paris July 7, 2014. REUTERS/Benoit Tessier

    View Photo

    Reuters/Reuters - Christophe de Margerie, CEO of the French oil and gas company Total SA, speaks during an interview with Reuters in Paris July 7, 2014. REUTERS/Benoit Tessier

MOSCOW (Reuters) - Russian President Vladimir Putin has awarded a posthumous Order of Honour to Christophe de Margerie, chief executive of France's Total oil company, killed when a business jet collided with a snow plough during takeoff at Moscow airport in October.

The order was granted for de Margerie's "major contribution to Russian-French economic and cultural relations", the Kremlin said in a statement on Saturday.

De Margerie was a strong opponent of Western economic sanctions against Russia over its actions in Ukraine, while his good relationship with political leaders was considered one of the main strengths of the charismatic and outspoken manager.

Nov 1, 2014 - 11:41pm
Nov 2, 2014 - 12:36pm

ANOTHER(THoughts!) said re miners

"At the end you will be at the end of a long line of stockholders trying to sell their portfolios". Sometime around 1998 on old Kitco Forum.

Looking logically at this latest mayhem, we should ask ourselves if the elites running the fiat system would not find it advantageous to destroy gold miners? We could could also look at the current chaos as an expression of total war where destroying the industry is the same as carpet bombing the opposition.

And this is just the latest escalation in that war...



Nov 2, 2014 - 1:05pm

how low could paper gold and paper silver go?

The effort we are seeing, IMHO, for the past three years has the goal of seeing the phony spot at pre bull levels of $250 and $4 respectively. As long as the metal holds out, they will attempt to do this. This effort "normalizes" things for the great unwashed, at least in appearance.

If they succeed, besides this showing that the elites and globalists have won and so has the American Empire, it will mean complete global monetary collapse and almost certainty WW3.

Keep in mind that Washington thinks it can win a nuclear war. All it takes to keep even Russia and China in line from pursuing a rational global monetary policy is to threaten them with a preemptive nuclear strike. Would a rational country risk that end by attempting to supplant the dollar as World Reserve Currency? The level of irrationality currently displayed in the White House indicates that this is a fair prediction for what is just around the corner - and it may have already happened. Assuming it gets to run things as the triumphant empire, it will mean that Washington is still supreme on the new dung heap of the old global economy - relatively speaking.

What this means (assuming there is no war) is that gold and silver bullion will go underground until the collapse occurs, and if there is any economic activity remaining in any remaining states, that gold may actually buy something. Be prepared to be criminals and terrorists as declared by Washington.

Yeah, I think things are getting to look that bleak.



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