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WOW!

251
104
Wed, Jul 13, 2011 - 11:41am

 Well, the doldrums look like they've wrapped up about a month earlier than expected.

Gold is just fantastic. It needs to hold these gains until the Comex close. As stated yesterday, a close above the previous intraday high of 1577.80 would be extremely bullish...as if the chart wasn't already bullish enough!

Silver is scaring the living daylights out of the shorts today. They should be scared at this point. Silver has finally broken through the down-sloping trendline from May and appears poised to go tackle the all-important 39.50 level. It, too, needs to hang onto these gains into the close. I'd like to see it print a Comex close above 37.88, which is the intraday high of 6/10/11.

Crude, copper, the grains...it's all good as The Bernank has apparently decided that there was no point in further lies/deception regarding the eventual continuance of QE to infinity.

More later. TF

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  251 Comments

MIDDIE · Jul 13, 2011 - 11:42am

What a day so far!

BlueStreak · Jul 13, 2011 - 11:46am

Captain Silver · Jul 13, 2011 - 11:46am

Weeeeeeee!

dolphindude · Jul 13, 2011 - 11:46am

I used up some of my dry powder this morning. As soon as I saw silver break through $36.80, I loaded up on Endeavour Silver (EDR.TO) and Silver Wheaten (SLW.TO). Thanks Turd for providing the most advantageous timing. Watching the Bernank at the moment.

ScottJ · Jul 13, 2011 - 11:48am

Could it be that there never was summer duldrums and that this was just a double bottom retest before new highs? 

Perception is reality.....

If this wasn't summer time this would just be a healthy correction back to 1480 before forming the double bottom "W" chart sending gold to the stratosphere.....

Never was summer duldrums....

It just fit the model of gold going down at the time.....

--

P.S.

Ron Paul Asks Bernanke if Gold is Money

**Full Ron Paul Segment Below**

Video unavailable

--

J.P. Morgan: "Gold is Money. Everything Else is Credit."

P.S Part 2: -- At 1:53 in the youtube clip, Ron Paul quotes....

"Even if it has been money for 6000 years and SOMEBODY reversed that as economic law"

Look at the smile on his face as he finishes asking this question! I wonder what/who that Someone is... :)

**Full Ron Paul Segment Below**

Ron Paul vs Bernanke: Is Gold Money? - July 13, 2011
Tesla · Jul 13, 2011 - 11:48am

Silver, gold, crude, copper, the grains -= oh my!

666 · Jul 13, 2011 - 11:48am

for 666

Bernake is special

Be Prepared · Jul 13, 2011 - 11:49am

I am always apprehensive when there are such significant moves, but there are definitive reasons for this move that transcend the summer pattern.

snoochieboochies · Jul 13, 2011 - 11:49am

I'm on the sidelines right now but its great to see silver going up again!

Shill · Jul 13, 2011 - 11:49am

Just hearing Ben say " Gold is not money " means for me anyway the End game is closer than we all realize.

Dr G · Jul 13, 2011 - 11:51am

Turd, thanks for your hard work and analysis. We all see the charts and hear the events with our own senses, but it's always a pleasure to read your thoughts.

Some slight slippage in both metals now. Silver worries me the most. I would expect it to be up on the day but still down quite a bit from it's intraday high. That could play out with silver still up $.75-1 on the day. It wouldn't surprise me at all.

Dr G Be Prepared · Jul 13, 2011 - 11:53am

@ Be Prepared

A pullback will come, but gains will still be had today. That's what matters. Don't let that get you down. The overshoots are to be expected but the trend today is clear as a bell.

ewc58 · Jul 13, 2011 - 11:53am

Gold is Money and Nothing Else

-JP Morgan

Throwing Sliver Hammers · Jul 13, 2011 - 11:54am

I've talked my Family and friends into buying Silver. My sister 200+ OZ. a buddy 100 OZ. and my boss over 300+ OZ all under $30. Makes me look and feel good that they have protected themselves. Plus it make my silver worth more!

Dr. Sandi · Jul 13, 2011 - 11:57am

The check is in the mail. Or so I'm told. So the money for my SILVER is on a FedEx truck somewhere around town.

The silver price was supposed to stay sick until AFTER I got that check. So now I'm only hoping that since the dollar took a major dump at the same time as silver and gold took off, that means the fixers will boot the buck temporarily back up and knock silver and gold back down for another day or two.

AT LEAST UNTIL I GET THIS CHECK CASHED!!!!

Come on you crooked bankstards, give a girl a break here!

diegeiro · Jul 13, 2011 - 11:57am

Seems to me the look on the face of The Bernanke at the end of that Q&A says it all.

ewc58 · Jul 13, 2011 - 11:57am
Dr G · Jul 13, 2011 - 11:57am

Is it bad if I ONLY want to hear Ron Paul and Bernanke go at it and don't care to listen to any of the other bozos question the Bernank.

2 hours of Paul vs Bernanke is something I would PAY to watch in a theater. And the sequel too!

brokeboater · Jul 13, 2011 - 11:57am

I bought when I wanted to sell, and I just sold when I wanted to buy. A nice little 10% pop. For a change, I took the profits and let the hog go hungry. Friday before the big Monday massacre, I had my finger on the sell button, up a juicy 20% in a couple of months, but the hog pushed me out of the way and took the controls. A couple of days later I panic sold at a small loss. Not this time. Good luck all.

gniuz · Jul 13, 2011 - 11:59am

Tnx for the Bernanke clip. What I like most about this clip is the way Ben looks after Ron has finished. Check it!

· Jul 13, 2011 - 12:02pm

My take on Bernanke’s speech:

Bernanke is continuing to claim we are in a “recovery,” based on the questionable data. Terms like modest and soft are his only admission of any weakness at all. He blames the price of energy and the Japanese earthquake for the problems, solely.

Next he claims that FOMC projections (read: opinions), if realized, predict a strengthening economy in Q3 & 4. Bernanke is citing some statistics, using the term central tendency, yet he does not refer us to a report or study. Presumable, these are based on opinions and beliefs of the FOMC members.

Our economic challenges, so amply discussed on ZH are, in Bernanke's words “headwinds.” The metaphors suggest a “ship of state” sailing against the wind, which we know is possible by tacking. But is the metaphor of the ship and wind reflective of reality? No. But once a person buys into a metaphor (green shoots, headwinds, soft patch, temporary shock) then that powerful linguistic device tends to shape your subsequent perspectives. Metaphors are extremely powerful rhetorical devices and should have no place in rational discourse about important policies.

He is actually admitting to the employment problems as he goes deeper into the speech. But then he begins to set us up: “the ability and willingness of consumers to spend will be an important determinant of the pace of the recovery in coming quarters” A willingness to spend? What about the ability to produce? And where will these unemployed people get this money that they might be willing to spend? Then he says the good news is that mortgage delinquencies are down. Wouldn’t that be because those who are not able to afford have already defaulted. Just wait until the unemployment rate takes another large jump.

He repeats that higher oil and higher car prices due to lack of Japanese parts are the reasons for 4% inflation.

So Bernanke and the FOMC are optimistic that inflation causes are temporary and we are really in a recovery, though recent data was negative. The response? Keep interest rates low. On QE2 Bernanke reminds us that the Fed did not do any government spending, they only purchased securities—and they can sell them whenever they want. Bernanke says QE2 was “a significant achievement. ” He says their expectations of increasing employment were “modest.” But wasn't employment boosting the reason for QE in the first place?

As he ends, he calls the cause of economic problems “temporary shocks,” yet another metaphor, and presumes that further methods to “ease financial conditions” will lead us to a full recovery. Then, according to his master plan, they can slowly and steadily unwind all their security purchases once we are in a full recovery. Then the USA will be back to normal. Ben has a plan.

Significant Omissions? No mention whatsoever, not even a hint, that the rest of the world has severe economic problems. No mention of the fragile banking system linked together with highly leveraged derivatives and Credit Default Swaps. If one fails (like Lehman Bros) then the interconnections begin to heavily pressure all the rest. No mention of the possibility that things are worse now than the BLS data show or that things might get worse later. No mention of the impending government showdown over debt ceilings.

Sounds like a plan Ben. I think I’ll keep prepping and stacking.

Full text of speech: https://www.federalreserve.gov/newsevents/testimony/bernanke20110713a.htm

tmosley · Jul 13, 2011 - 12:05pm

This move is a symptom of a dollar collapse rather than an advance of gold or silver.

Beware.

Throwing Sliver Hammers · Jul 13, 2011 - 12:06pm
Be The 3rd Guy $1,100
Super_Douche · Jul 13, 2011 - 12:06pm

Maybe he means gold is not money, because you can't eat it. This is an argument I have heard several times by anti precious metals people. Just a thought?

Dr G tmosley · Jul 13, 2011 - 12:08pm

@tmosley,

Always beware, but are you suggesting the dollar is suddenly going to overcome it's illness? The movement in the PMs is always related to events.

Tim · Jul 13, 2011 - 12:08pm

Wow that guy from the real world is killing benny bernanke

Tim · Jul 13, 2011 - 12:10pm

There it is folks

The Real World Boston guy : ...Does that include Qe3

Ben: Yes

agNau · Jul 13, 2011 - 12:16pm

Posted that this would be different cycle. Posted that increasing numbers of participants "globally", both large and small scale investors, would drive these prices higher and we would not see the normal cycle. The final tipoff was the surge in the market. Even the shorts covering could not have driven the markets like we have seen. LOT's of $fiat spent with that push.....all invested in increasingly worthless paper. AND now, the Bernank say's we have not done enough! Bring it Bennie!

bullwhip29 · Jul 13, 2011 - 12:18pm

The EE could attempt to carpet bomb us at any time. Not sure yet if they are out of ammo or this is another setup like end of April/early May.

eom

Boardwalk · Jul 13, 2011 - 12:18pm

Cream Minerals UP 12.2% today!!!!!!

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