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Mon, Oct 31, 2011 - 4:16pm

It's Monday afternoon. What a perfect time to do some housekeeping. I've got a few things here I've been meaning to mention so, here we go.

First, some longer-term charts. Take a look at the long-term Pig. Even with today's rally, nothing much ever changes. The POSX has been rangebound for over five years now. This means that, relative to all of the other fiat currencies in the world, Pigatha has held its own.

paper_10-31pmpigw.jpgpaper_10-31pmpigd.jpg

Ahhhh, relative to all other fiat currencies. However, relative to true money, the ancient money of kings, The Pig has declined considerably. Note that, over the same time period, gold has appreciated about 170%. Priced in dollars, gold has risen from roughly $600 to $1600.

paper_10-31pmgoldw.jpgpaper_10-31pmgoldd.jpg

And silver has appreciated about the same percentage amount, in dollar terms, rising from about $13 to $34.

paper_10-31pmsilvw.jpgpaper_10-31pmsilvd.jpg

Of course, don't even bother trying to tell CNBS, your stockbroker or your father-in-law this stuff. Until it all comes crashing down, they'll continue to maintain that the only "true safe havens" are the U.S. dollar and dollar-denominated "assets" such as treasury bonds and certificates of deposit.

OK, next up is this terrific piece of work from Jeff Nielson at BullionBullsCanada. It was Jeff's drumbeat that first alerted me to the fraud that is GLD and SLV and he's at it again here. Please take the time to read this carefully and then pass it along to anyone you know who is foolish enough to own shares of these shams.

https://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=22649:d-day-near-for-gld&catid=48:gold-commentary&Itemid=131

And then there's this, which I got from turdite "strobe". Obviously, I've disregarding the "Canada-only" part:

"Hi Turd, I have a bit of news on a new gold fund that will soon be launched in Canada. I have a contact who works in this area and they've been keeping me up to date on this product. The press release was for distribution only in Canada so I didn't post it on the forums, but thought you might be interested. Looks like it will target the same market as PHYS.

https://www.mint.ca/store/news/royal-canadian-mint-announces-offering-of-new-gold-investment-product-13100003?cat=News+releases&nId=700002&parentnId=600004&nodeGroup=About+the+Mint

The latest I've heard is that the Mint will start their roadshow next week and the first tranche will close on Nov 22. One share will be C$20 and represent a fraction of an ounce to be calculated at closing. They wanted to split shares into 1/100th but decided it was too much logistical headache. Mint takes 0.35% annual service fee. Guess we'll see how closely this tracks physical in the next few months."

Lastly, a friendly turdite contacted me last week and offered a free trial in his service to any fellow turdite who would like to give it a try. It's a equity trading site and it can be found here:

https://www.stockreflex.net/

Here are his instructions for anyone who wants to give it a spin:

"What we should do is tell anyone who's interested to send a note to contact[at]stockreflex[dot]net saying "Turd Sent Me" and I'll send them back a registration code. I'll keep the opportunity open for 7 days for anyone who wants in."

Oh, and one more thing...about this whole MF Global situation. As you know, I've always had my option account at Lind-Waldock and Lind was recently purchased by MF Global. Now, MF Global is apparently going out of business. For now, MF has assured me that my puny little account is safe. The cash is held separately and my so-far-out-of-the-money-they're-basically-worthless positions will soon be transferred to another broker/dealer. As soon as I settle on a new broker, I'll be sure to let you know.

Have a great evening! TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  404 Comments

JackPutter · Oct 31, 2011 - 8:50pm
backseatdriver · Oct 31, 2011 - 8:51pm

The IMF

The IMF should be on a very short list of about 5 organizations/cartels that anti-keynesians should start calling, The Real Axis of Evil.

Mao was unfortunately right about political power growing out of the barrel of a gun. 

Just my 2 cents and worth every penny. 

BSD

Maximillion cpnscarlet · Oct 31, 2011 - 8:53pm

Dry skin

I had same problem last yr, stress related trigger as your immune system gets low (so PM paper trading will always cause it). Kill the bacteria with colloidal silver, loads of moisturizer & learn to chill, worked for me :)

backseatdriver · Oct 31, 2011 - 8:59pm

This is ridiculous

Why in the world would TIA-CREF loan Corzine anything? This gets deeper by the second. 

BSD

MF’s Corzine Key Man Bonds Fail to Make First Payments: Corporate Finance Q By Shannon D. Harrington - Oct 31, 2011 5:09 PM PT

Bond investors lent MF Global Holdings Ltd. (MF) $650 million three months ago in a bet Jon Corzine would succeed in turning the futures broker into a mini-version of Goldman Sachs Group Inc. The firm filed for bankruptcy before making its first interest payment on the debt.

Investors from mutual fund manager Franklin Resources Inc. (BEN) to teacher retirement plan manager TIAA-CREF purchased $325 million of 6.75 percent senior unsecured debt, according to data compiled by Bloomberg. The bonds, due in 2016, dropped 2.5 cents to 47.5 cents on the dollar in trading yesterday after the New York-based brokerage sought court protection.

https://www.bloomberg.com/news/2011-11-01/mf-s-corzine-key-man-bonds-fail-to-make-first-payments-corporate-finance.html

¤ · Oct 31, 2011 - 9:04pm

White House says growth to be pushed at G-20

Oct. 31, 2011, 4:07 p.m. EDT

White House says growth to be pushed at G-20

By grobb[at]marketwatch[dot]com (Greg Robb), MarketWatch

WASHINGTON (MarketWatch) — President Barack Obama will push his fellow leaders at this week’s summit of the Group of 20 leaders in Cannes, France to take renewed measures to protect the global economic recovery, White House officials said Monday.

“We will have a variety of conversations in Cannes about steering the global economy to a stronger place,” said Lael Brainard, the Treasury’s undersecretary for international affairs, at a press briefing.

The primary focus on the meeting will be Europe’s efforts to combat the debt crisis.

The U.S. wants the G-20 to close ranks behind the debt deal reached last week.

“We want to see the G-20...come together behind that plan, and in support of it, to project confidence in the efforts to address the situation in the euro zone,” said Ben Rhodes, a deputy U.S. national security advisor.

Obama will meet with President Nicolas Sarkozy and German Chancellor Angela Merkel on Thursday ahead of the summit.

White House officials said the Europe debt plan has all the right elements, but want to discuss the next steps of the process, details of the agreement, and it’s implementation.

It is not clear whether the U.S. push for growth will conflict with Europe’s existing austerity measures...

https://www.marketwatch.com/story/white-house-says-growth-to-be-pushed-a...

¤ · Oct 31, 2011 - 9:07pm

Nasr: Why Contain Iran When

Nasr: Why Contain Iran When Its Own Aims Will Do That?

Iran Containment Measures

Illustration by Genevieve DF Simms

By Vali NasrOct 31, 2011 7:00 PM ET

Iran is once again in America’s cross hairs. Even before the allegations of an Iranian plotto assassinate the Saudi ambassador in Washington, concerns about Iran were high, with an impending U.S. troop withdrawal from Iraq possibly leading to increased Iranian influence there. U.S. opinion and decision makers are expanding their estimate of Iran’s adventurousness and calling for new containment measures.

In both exercises, there is room for misjudgment. In fact, Iran has not become more ambitious of late; rather, its aspirations have been underestimated. As for attempting to rein in Iran, that could prove both counterproductive and unnecessary.

Until recently, the U.S. government regarded Iran as subdued, weakened and relatively isolated. There was considerable evidence for this view. Iran’s leadership is deeply divided. Its economy is reeling as a result of economic sanctions, which have reduced trade and therefore contact with the Arab world.

What’s more, Iran’s standing in the Middle Eastappeared to be declining after the Arab Spring. The “Arab street,” once enamored with Iran’s bluster, is now turned off by the country’s suppression of dissent at home and its support for the oppressive Syrian regime. Iran’s Revolutionary Guards are helping Syrian President Bashar al-Assad put...

https://www.bloomberg.com/news/2011-10-31/why-contain-iran-when-its-own-...

¤ · Oct 31, 2011 - 9:09pm

From todays ChinaDaily.com

US currency bill would see 'retaliation'

Passage will hurt the interests of both countries, Chinese officials say.

Shenzhou VIII spacecraft launched

The spacecraft is heading to rendezvous with the Tiangong-1 for China's first space docking.

President Hu confident in Europe

Continent has ability to overcome present difficulties, Chinese president says.

China rebuts US hacking accusation

The US claim is totally factitious, made with ulterior motives, and does not warrant refuting.

https://usa.chinadaily.com.cn/

cpnscarlet · Oct 31, 2011 - 9:14pm

TIAA-CREF

Okay students, today we will learn why your teacher can't retire until she's 124 years old.

¤ · Oct 31, 2011 - 9:16pm

From todays Spiegel.de/international

Another U-Turn

Merkel Responds to Euro Crisis by Shifting Left

Another U-Turn: Merkel Responds to Euro Crisis by Shifting Left

Chancellor Angela Merkel has performed another big U-turn by calling for a minimum wage, which she had opposed until now. She is sharpening her party's social profile in response to the euro crisis -- and, possibly, to secure her power by preparing another 'grand coalition' with the Social Democrats. By Veit Medick more...

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Settlement Protest

Germany Threatens To Halt Submarine Sale to Israel

The German government is threatening to halt the delivery of a submarine capable of firing nuclear warheads in protest of the Israeli government's recent decision to build new homes in the Arab part of Jerusalem. Earlier this year, SPIEGEL reported that Germany's subsidized submarine sales program is linked to World War II reparations. more...

https://www.spiegel.de/international/

ewc58 · Oct 31, 2011 - 9:18pm

Good stuff Turd. I'll bet Comiskey comes up on his feet fast...

Just popped over to KWN and clearly the big news there: Eric King has swiped my Surfer my avatar for the Turk blog update. Do I get a royalty for that? If not, I can settle for Ag $60 -75. Some might actually think that's the big news, 'course that's just silly...

James Turk - Silver Formation Projects Spike to $60 - $75 Level October 31, 2011 After the explosive upside activity in the gold and silver markets last week, today King World News interviewed James Turk out of Spain to get his take on where the metals are headed from here. When asked about the action in gold and silver, Turk responded, “I like today’s action very much, Eric....

¤ · Oct 31, 2011 - 9:22pm

"...laser will be 200 times more powerful than..."

World's most powerful laser to tear apart the vacuum of space

A laser powerful enough to tear apart the fabric of space could be built in Britain as part major new scientific project that aims to answer some of the most fundamental questions about our universe.

Image 1 of 2 World's most powerful laser to tear apart the vacuum of space Image 1 of 2 A laser powerful enough to tear apart the fabric of space could be built in Britain as part major new scientific project that aims to answer some of the most fundamental questions about our universe Photo: ALAMY By Richard Gray, Science Correspondent

7:00AM GMT 30 Oct 2011

Due to follow in the footsteps of the Large Hadron Collider, the latest "big science" experiment being proposed by physicists will see the world's most powerful laser being constructed.

Capable of producing a beam of light so intense that it would be equivalent to the power received by the Earth from the sun focused onto a speck smaller than a tip of a pin, scientists claim it could allow them boil the very fabric of space – the vacuum.

Contrary to popular belief, a vacuum is not devoid of material but in fact fizzles with tiny mysterious particles that pop in and out of existence, but at speeds so fast that no one has been able to prove they exist.

The Extreme Light Infrastructure Ultra-High Field Facility would produce a laser so intense that scientists say it would allow them to reveal these particles for the first time by pulling this vacuum "fabric" apart.

They also believe it could even allow them to prove whether extra-dimensions exist.

"This laser will be 200 times more powerful than the most powerful lasers that currently exist," said Professor John Collier, a scientific leader for the ELI project and director of the Central Laser Facility at the Rutherford Appleton Laboratory in Didcot, Oxfordshire.

"At this kind of intensity we start to get into...

https://www.telegraph.co.uk/science/science-news/8857154/Worlds-most-pow...

· Oct 31, 2011 - 9:23pm

MFG

Is anyone else getting the feeling that this is becoming a gigantic TPTB/Govt rabbit hole?

¤ · Oct 31, 2011 - 9:24pm

ewc

See how we almost think alike?

Space....the final frontiercool

ewc58 · Oct 31, 2011 - 9:28pm

Yes, I just got a text from

Yes, I just got a text from him. He seems upbeat. He's been around long enough to know that he'll land on his feet. I feel badly for all of the longtime Lind Waldock employees. Some on the trading desk I used had been there 10-20 years. Sucks.

Matt Foley · Oct 31, 2011 - 9:29pm

Damn DPH

Slow down on the useless news stories man, jeeez. It's like 6 in a row dude.

cpnscarlet TF · Oct 31, 2011 - 9:30pm

@Turd - With teacher's

@Turd - With teacher's pensions at risk in this, the sound of the current WH resident talking about a bailout can be heard all the way down to UFT headquarters. Must save municipal employees! Jobs Saved (and their pensions too).

JackPutter · Oct 31, 2011 - 9:34pm

White knights will appear from time to time

When industry insiders finally figure that the societal fabric can be shredded, some don't want that;

https://www.spiegel.de/international/business/0,1518,793917,00.html

¤ · Oct 31, 2011 - 9:35pm

Damn Matt

Contribute something instead of a whine or take a Evelyn Wood speed reading courseenlightened

backseatdriver · Oct 31, 2011 - 9:36pm

TF

Precisely, but one of these rabbit holes. FRN wormhole. Its like we are passengers on crazy Wonkas River Ride. Who the heck knows what is on the other side. My guess is that its not lollipops and gumdrops.

BSD

https://www.youtube.com/watch?v=rMFNQDtGin8

ThatGuy · Oct 31, 2011 - 9:37pm

New guy

Hello Everyone,

I have been reading this site for 4 months now, but never made a post. Thanks to Turd and everyone help, I have final been able to talk my wife into paying some physical medals. Anyone in the Denver metro that know a good dealer?

Thanks.

sixdollarsilver · Oct 31, 2011 - 9:39pm

MFG

Yep.

​Round and round and round it goes, where it stops, nobody knows.

¤ · Oct 31, 2011 - 9:40pm

Bummer

What a shame they let him go and all of those other people. 

Jobs are scarce and MFG's demise might have been from Corzine running the ship into the ground possibly. We may never know.

But we'll probably pay for it in some manner as taxpayers.

¤ · Oct 31, 2011 - 9:40pm

ThatGuy

Welcome aboard!

D E · Oct 31, 2011 - 9:41pm

You can't make this shit up -- cont'd

https://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/ Regulators Investigating MF Global for Missing Money By BEN PROTESS, MICHAEL J. DE LA MERCED and SUSANNE CRAIG

9:20 p.m. | Updated

Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm, which is run by Jon S. Corzine, the former New Jersey governor, several people briefed on the matter said on Monday.

https://www.youtube.com/watch?v=RAKsMnAM8vk
¤ · Oct 31, 2011 - 9:48pm

Yeah

It looks like a very small AIG situation to me but a stealthy one that will happen and get covered up and papered over and made whole.

We just won't know about it. The public at large i should say.

 And I'll dare say (only because your in the room TF) that if the OWS people were going to protest and really start bitching about some wall st/govt. types that Corzine is the perfect example to jump on the bandwagon against. 

I don't think they will as it seems to me that there is a huge left element from Obama's camp that won't bang on the Dem.'s. I also realize there are some righties there at the protests banging there own drum. I don't look at it as us/them right/left etc. I will just for this Corzine situation or if it turns into a OWS theme or not. I don't think it will and it gets buried and Corzine gets taken care of and the EU interests get taken care of also.

It stinks, and you know that's what's going to happen, it'll get taken care of by his old cronies that are everywhere that it matters. Period.

This can get continued in the OWS forum which I'll link to this shortly.

https://www.tfmetalsreport.com/forum/2593/ongoing-occupy-wall-street-cov...

ewc58 · Oct 31, 2011 - 9:50pm

How Bix sees MF, the ZH piece and the links to derivatives

Word from EVERYWHERE is that the global derivative implosion has begun and THERE IS NO STOPPING IT NOW! It is now out in the open with MF Global and the dominoes are falling fast. Here's the latest from Zerohedge.com: Panic Behind The MF Scenes As Company Refuses To Disclose Information To Regulators Even In Death "Whatever MF is hiding is not something that will hurt it or much less its stakeholders for which the management team obviously never cared one iota. After all the company is already dead. Whatever is on its books has huge impacts to those either behind the corporate veil, read Mr. Corzine, who may or may not have regulatory issues arising from 10(b)-5 "concerns", or more probably, to other banks and Primary Dealers." And there will be more...MANY MORE! The Quadrillion dollar derivative mess is unraveling as we speak. Time to get your last pennies out of the bank...if you still can. We will kick ourselves for believing that paper and electronic blips were REAL assets. HA! And you thought those tulip bubble people were delusional...at least they ended up with nice gardens! The European implosion can happen at any moment followed quickly by the US implosion. When this is over those with money "in the system" will end up with NOTHING! All the pieces are in place. WE THE PEOPLE are ready to kick the banksters to the side of the Road!

Tom L · Oct 31, 2011 - 9:51pm

10 Year Silver Chart

Turd,

Thanks for the historical perspective. I've been waiting to re-post my 10 year monthly chart I threw up a few weeks ago until October was complete. Now it's complete and it should be obvious to all and sundry where this is headed. 

https://stockcharts.com/h-sc/ui?s=$SILVER&p=M&yr=10&mn=7&dy=0&id=p95457931188&a=245843211

I have to believe with silver refusing for 2 months to close under the center black line that this correction is over. Note the similarity of the price in silver coming up to the Lehman crash in 2008 (starting with the 2 candles before the black pitchfork top point) and the action over the summer. They are identical patterns. Huge price spike candle, followed by a strong near bearish engulfing candle. This is followed by a 3-4 month rally to a 2ndary peak and then Blammo! Here comes the sell-off. In the Lehman flush of 2008 it was a 3 month dive which sent the monthly RSI down below 50 for the first time since the bull market began. Now look at 2011. Notice how October's price action did not keep going down? Rather it has held that center line and bounced. Conclusion, this correction is over.

Ta,

JackPutter · Oct 31, 2011 - 9:52pm

My experience at the coin dealers

When gold was at this level before the first top, and then the price peaked and started to go lower there were still a steady stream of buyers whenever I was there. A few sellers were present also. At this point it was about 10-days to get 500 face of 90% silver coins. A box of ASEs took 2 weeks.

On the second rise there were alot of both buyers and sellers. When the Sept. takedown hit there were mostly all buyers. The silver was selling fast and it was 3 weeks to get a box of ASEs.

Things are pretty quiet now, but it takes 3 weeks for the 500-face of coins to show, and the ASEs are taking longer each time.

There's never been a problem or much delay of the gold bullion, or coins.

I feel that this MF global thing isn't going to stay quiet. I also don't think people will get away with things this time, that they may have gotten away with in 2007-2008. I also don't think it will take as long for reactions. 

No major discounts in metals this time around, there might be a little sell off, but don't look for a repeat of 2008.

¤ · Oct 31, 2011 - 9:54pm

JPY/USD

Check out this chart.

For some reason you have to click on the 5 day first and then the 1 day after. Look at that swing yesterday and the one that just happened several hours ago.

Nothing unusual there.

https://www.marketwatch.com/investing/currency/usdjpy

¤ · Oct 31, 2011 - 9:56pm

Thanks Tom

Good stuff as usual yes

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