Gold and Silver Fun and Games

Wed, May 23, 2012 - 4:00pm

This is just getting to be far too predictable.

Let's see, first it was the April12 gold. Then it was the May12 silver. Today it was the June12 gold. What do I mean? Today was, once again, one day prior to option expiration and today, once again, we get a round trip in the metal as the poor losers who are left trading and hedging get their arses handed to them by the controlling powers of The Cartel.

As a refresher, what we saw in March and April, we saw again today. Namely, the handful of poor saps who had sold put options on the front month, thinking they had free money (Wouldn't you have thought that selling the June 1550 put looked like a safe bet back in February? Heck, maybe even late last week?) Lo and behold late yesterday, with just two days left before expiration, gold gets smoked on the Globex and is driven below its 10-day MA. WOPR selling ensues and before you know it, gold is near 1550 and headed lower. YOU, the poor sap that is short 100 June puts, have no other option but to sell short 100 June12 contracts, just to hedge yourself. Your selling (and everyone else caught in the same vise) sends gold even lower, toward 1535. All of this selling is gladly soaked up by The Cartel until...snap, boom, bang...they spring the latch on the trap and begin rallying gold back higher. Your new short hedge is suddenly squeezed and you eventually cover. This is particularly likely once price rallies back through and above that personally dangerous 1550 level. With gold back at 1560, you are now left with your original 100 naked puts that will expire worthless at 1:30 tomorrow as scheduled, however, you were just lightened of some considerable funds by the coercive, manipulative power of The Gold Cartel. Wash, rinse and repeat next month in July silver if prices continue down at these levels.

The selling of yesterday and today has established the basing/trading ranges that we began to discuss here yesterday. See this for a refresher: Of that post, this line in particular is the most relevant:

"Now, please don't misunderstand what I'm telling you here. I'm still extremely excited about where the metals are headed, particularly silver. The ranges I've described above are for the short term, maybe the next week or two and into early June."

Here are your charts that show these new ranges:

Here are some other nuggets that I've picked up as I've gone through the day. First, Jesse had this little ditty about KosherDakota who, as you know, is one my favorite Fed douchebags. This guy is a complete clown. Anyway, the speech Jesse references is not the first time KD has muttered this current bit of nonsense. I actually saw a headline on ZH about a week ago where this buffoon said the same thing that he said today. I was going to write about it at the time but by the time I doubled back to C&P it, the ticker had moved on. At any rate, enjoy the nonsense.

Trader Dan has a good comment today on commodities, in general. He also made an appearance on KWN. I highly recommend both: &

If you haven't yet, you should speed through this. I often listen to Coast-to-Coast as I'm shuttling LT#1 back and forth to ballet class. I caught part of this episode the other night. The stuff with Peter Schiff is definitely pertinent and well worth your time.

Video unavailable

And this is interesting. With the FB/silver spread now at just $4 or so, can the closure of the latest Hat Contest be very far away?

Have a great evening! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


The Green Manalishi
May 23, 2012 - 5:21pm

Copper ETF plan would ‘wreak havoc’

US manufacturers have attacked plans by JPMorgan Chase to launch an exchange-traded fund backed by physical copper, arguing that the product would “grossly and artificially inflate prices” and “wreak havoc on the US and global economy”.

May 23, 2012 - 5:23pm

Re: Buffet and BNI... hmmmmm.....did someone know Obummers answer to the oil pipeline all along?

May 23, 2012 - 5:27pm

"a disaster that would leave the door open to other disasters"

Greece exit would trigger wave of disasters for Europe’s banks

Elena Logutenkova, Liam Vaughan and Gavin Finch, Bloomberg News May 23, 2012 – 11:11 AM ET |Last Updated: May 23, 2012 2:29 PM ET

A pedestrian passes the headquarters of Greece's central bank in Athens, Greece

Europe’s banks, sitting on US$1.19-trillion of debt to Spain, Portugal, Italy and Ireland, are facing a wave of losses if Greece abandons the euro.

‘[A Greece exit is] a disaster that would leave the door open to other disasters’

While lenders have increased capital buffers, written down Greek bonds and used central-bank loans to help refinance units in southern Europe, they remain vulnerable to the contagion that might follow a withdrawal, investors say. Even with more than two years of preparation, banks still are at risk of deposit flight and rising defaults in other indebted euro nations.

“A Greek exit would be a Pandora’s box,” said Jacques- Pascal Porta, who helps manage US$570-million at Ofi Gestion Privee in Paris, including shares in Deutsche Bank AG and BNP Paribas SA. “It’s a disaster that would leave the door open to other disasters. The euro’s credibility will be weakened, and it would set a precedent: Why couldn’t an exit happen for Spain, for Italy, and even for France?”


May 23, 2012 - 5:30pm


Dow closed down 6.66 points. Hmmm....


May 23, 2012 - 5:33pm

700 million euros taken out of Greek banks on Monday alone!

Rattled Greeks not alone in massive bank savings exodus

People withdraw money from a branch of National bank of Greece in central Athens on May 17, 2012. Greeks are afraid they could be hit by rapid devaluation if the country leaves the European single currency.

LONDON/ATHENS — Greek savers may be gripped by a “great fear that could develop into panic” in the words of President Karolos Papoulias, but many Greeks shifted their money to safer havens in Britain, Switzerland, Germany and Nordic countries long ago.

Worries about a run on Greek banks has rattled Athens this week, after savers withdrew at least 700 million euros on Monday alone, according to minutes of Papoulias’s comments to political leaders posted on the presidency’s website.

It is not only Greeks who are worried about their savings. Data shows depositors have also taken flight from banks in Belgium, France and Italy. And on Thursday, Spain’s Bankia was reported to have seen more than 1 billion euros drained by its customers in the past week.

‘The entire Greek banking system is in danger: the banks are now facing the worst of all outcomes, deposit flight’

Greeks are afraid they could be hit by rapid devaluation if the country leaves the European single currency, while customers at Bankia have been rattled by the government’s takeover of the recently floated bank on May 9 and growing uncertainty about the final cost of Spain’s banking reforms....

May 23, 2012 - 5:36pm


Turd you want the entire summer for what? buying? or explosive.

May 23, 2012 - 5:37pm

I wouldnt mind

If prices stayed here all summer so i could keep buying. This could be a once in a life time opportunity to buy your gold/silver related assets. I've been buying, but always want more for the big grand daddy prize of them all

May 23, 2012 - 5:41pm

Can't lose, only can be cheated.

You know, during the last 3 months, the heaviest retail buying in a sub-3-day period,(determined by my methods,) was actually the period around February 29th. To be clear, I'm not referring to volume, but clear buying (inventory reduction.) That was our 3-month high! It also included an obvious, robust, small-retail purchaser component.

...So, price goes down - inventory gets depleted rapidly. Price goes up - inventory gets depleted rapidly. My long physical position can't lose! Right?

Only new cheating strategies by the overlords can trump this view.

May 23, 2012 - 5:47pm

this summer

nothing like last summer.....ELECTION....n europe HOTTER

and then another debt ceiling raise by a lame duck congress[and possibly a prez too]

May 23, 2012 - 5:53pm

6.66 down

I was wondering if that would hit the forum..........looks like the rest of the stock week will.....well , be weak.

May 23, 2012 - 6:03pm

Good to post comments again

I missed reading the comments yesterday, all of them (no IU here). I guess Turd was exercising his cult/dictator role as: owner, manager, barmaid, dancer, bouncer, and janitor of HIS site (sarc just in case). I like the idea of Turd's cess pool forum (mudsharks's i think), sort of like taking the fight outside. Generally though I think we need to give each other the benefit of the doubt writing is much harder than talking when trying to communicate. Zhedge is available if your feeling spunky and go a few rounds. Just my opinion.

stack stack stack they will crack

May 23, 2012 - 6:12pm

any LCS news?

any reports on how this craziness has impacted LCS sales?

Fr. Bill Prize Fighter
May 23, 2012 - 6:22pm

She asked you what??

Prize Fighter wrote:
[while you were making a wire at your bank] She then asked the required wire question, "What are you purchasing?" 'Sound money' was my answer. Cricket cricket.

Interesting. Required question?

I ask because I've made several wires this year, maybe a dozen (I'd have to go across the room to a filing cabinet to find out and I'm too comfortable right now in this chair!). Anyway, I have never been asked what I am going to do with the money (coming in or going out), nor what I was purchasing.

Sheesh, I might not be purchasing anything! Maybe I'm making a big payment against principle for a loan. Or, maybe I'm an absent minded old coot (instead of just an old coot), and I've let myself get too close to some payment deadline to use the postal service. Or, maybe it's time for my daughter to plunk down several Large for tuition for this semester. Could be any number of things.

Is there some statute requiring her to ask you this question? Is my bank derelict in NOT asking me this question?

Number 47
May 23, 2012 - 6:24pm

Repost from end of last thread.

A lot of talk about selling last year. I actually sold some, mainly due to The Plant Guy over on kitco. A true curmudgeon of a man but he correctly called that 50 would be a ceiling for silver. I agreed. I believe he sold his entire stack, (forklift sized if you believe what you read)

fast 07-Oct-11 21:26
2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120773368102) EUR 128.00
Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 23-Sep-11 11:43
1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120773368896) EUR 37.00
Great transaction, well packaged and as described 21-Sep-11 10:11
1 oz generic silver bar. 999+ fine silver. Mint sealed (#120773227865) EUR 38.00
Good ebayer++ 09-Sep-11 14:33
1 oz generic silver bar. 999+ fine silver. Mint sealed (#120772093879) EUR 34.00
100% satisfied. Thanks. 15-Aug-11 01:27
2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120749548296) EUR 125.50
nice coin ++++++++++++++++++++ 08-Aug-11 17:55
1996 small date silver panda 10 yuan. Double sealed. (#120752090416) EUR 57.63
Everything perfect. Highly recommended. Thank you. 05-Aug-11 13:30
1986 Silver chinese coin set 5 yuan. Historical figures (#120752291482) EUR 204.50
Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 28-Jul-11 10:51
1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120749549442) EUR 51.50
Excellent 19-Jun-11 18:31
1964 kennedy half dollar, 90% silver coin. (#120712853591) EUR 11.10
Excellent 19-Jun-11 18:31
1952 Liberty bell half dollar, 90% silver coin. D mint. (#120713052206) EUR 11.27
Excellent 19-Jun-11 18:31
1964 kennedy half dollar, 90% silver coin. (#120713050758) EUR 12.49
really a super coins, thanks! 13-May-11 04:34
5 x American dimes 90% silver coins. Assorted dates. (#120713054583) EUR 12.50
good thanks 12-May-11 11:59
2 x silver threepence UK coins. (#120707173273) EUR 0.99
Thank you great service 10-May-11 08:29
1925 south africa 3 pence silver coin (#120707128178) EUR 0.99
great product, swift delivery, hope to do more business here in the future. 04-May-11 15:40
1943 mercury dime 90% silver coin. (#120712861390) EUR 2.00
1964 kennedy half dollar, 90% silver coin. (#120712855063) EUR 15.02
Great EBayer very prompt service !!!! 03-May-11 14:39
1964 kennedy half dollar, 90% silver coin. D mint mark. (#120712854187) EUR 12.99
Great Seller, quick delivery, item as described, would definitely buy again 01-May-11 22:48
1954 Washington quarter dollar 90% silver coin. (#120712857705) EUR 5.15
Fantastic ebayer. Great item. Well packaged. 30-Apr-11 08:31
1940 mercury dime 90% silver coin. (#120712860981) EUR 2.59
nice coins 29-Apr-11 21:11
1964 kennedy half dollar, 90% silver coin. (#120712652396) EUR 11.00
Super fast delivery... thanks 28-Apr-11 18:32
1953 Roosevelt dime 90% silver coin. (#120712862739) EUR 1.57
Great ebayer. Recommended A+++++ 28-Apr-11 18:31
1964 Roosevelt dime 90% silver coin. (#120712862189) EUR 1.57
Super fast delivery... thanks 28-Apr-11 18:31
1967 Austrian silver 25 Schilling coin. (#120712666560) EUR 7.70
Perfect transaction, prompt delivery. Thanks. 28-Apr-11 17:17
Sterling silver teaspoon inscribed 'Toronto'. (#120712864214) EUR 5.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
1964 kennedy half dollar, 90% silver coin. (#120712854565) EUR 11.40
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
1943 Washington quarter dollar 90% silver coin. S mint (#120712858315) EUR 5.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646880) EUR 38.03
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712647027) EUR 38.53
Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646687) EUR 40.00
Nice coins, fast dispatch good ebayer 27-Apr-11 21:31
2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646530) EUR 40.00
delighted with the coin and the prompt delivery good service, Many Thanks Rachel 27-Apr-11 21:02
1943 walking liberty half dollar, 90% silver coin. (#120713051392) EUR 13.05
Great coin great service great price, Many Thanks. Rachel 27-Apr-11 21:02
1964 Washington quarter dollar 90% silver coin. (#120713049060) EUR 5.09
Delighted with coin Great service Many Thanks Rachel 27-Apr-11 21:02
1935 5 reichsmarks, Silver Third Reich coin. A mintmark (#120712663010) EUR 12.57

That is one page of my feedback from the last run up, I've highlighted a few. Talk about selling into mania, I have 4 more pages from the same time. I made off like a bandit and reinvested into gold and numis. I was really just clearing out a lot of crap I had accumulated, some of the coins were nearly smooth, (I didn't con anyone, very good pics) I would post the rest but it takes ages removing all the usernames of buyers. Needless to say, I didn't pay anything like this for the bits and bobs, sure did well afterwards on purchases though.

May 23, 2012 - 6:25pm

hard and fast

I’m Buying Silver - Mike Krieger
MAY 23, 2012

« Previous News ItemNext News Item »
As of a few minutes ago, I put in my largest order for physical silver since 2010. I am not trying to be a hero or call the bottom, but because many people do ask me for my opinion on the precious metals I decided to make the buy public. The rationale for me is extremely simple. First, I find silver under $30/oz to be a total steal as I expect it to trade well into the hundreds of dollars an ounce in the years ahead. Furthermore, I think the Central Planners of the world will be forced to act sooner rather than later. As someone that did the vast majority of his buying years ago, I have been much more patient with my buys in the last few years. I suspect there are many others out there just like me. The minute these markets turn they will be in there bidding for physical silver, which I believe cannot be bought in serious size. The market will turn hard and fast. That’s my story and I am sticking to it.


May 23, 2012 - 6:27pm

Silver Trade

I just sold all my silver and bought Facebook!!!!! I am so smart...smrt....I am so smart

up .32 cents in after hours

The tide has turned, facebook stock is the only safe haven left.

May 23, 2012 - 6:31pm

re..quired question

I too have been asked that question - surprised me. I was honest, and proceeded to explain to the young teller what was going to happen to fiat currency. Ended up writing down this website, too.

I have either given myself away (for the millionth time) to the Canadian secret world of domination through random data collection, or created a young gold bug. He had emigrated here as a kid from Lebanon, and was not at all resistant to the idea that things can crumble fast.

May 23, 2012 - 6:33pm


I wish I lived in Canada for the collapse. I think it'll be much easier to get along than what used to be known as the greatest country in the land.

Number 47
May 23, 2012 - 6:43pm

My bank too.

They ask in Ireland too, I used to tell them and try to convince them we were headed for a shitstorm, now I just say 'payment of invoice'.

In 2007 I had 15000 euro in my current account that I took from the credit union, (they don't do payments) and when i went in and asked to make a payment the guy behind the counter got a real glint in his eye and tried to get me to take a loan. I was honestly shocked, 'why would I need a loan?' I asked him. 'Maybe for a holiday or a new car' was his reply. I pointed out I had cash for both and he looked at me like I was stupid.

That was the day I realised things were very wrong somehow and started reading. I'm getting close to the day of reckoning now, the day I get to go around all the people who laughed and mocked my warnings from 2007, 2008, 2009. I gave up after then. Too many blinkered eyes. Looking forward to getting to say 'I told you so'. It looks to be nearby.

May 23, 2012 - 6:44pm


A little off topic...

First I came across this: I don't know much about the electricity and I have a source inside a public power district so I decided to contact them to see what they knew. The immediate response was this really hasn't been on our radar but I'll ask around. About an hour later I find out they contacted their power suppliers analyst and he confirmed that the price for 2013 is likely to be 5-10 times what it has been for this year on the spot market (it is a small power district). When I asked what that would mean for consumers, the reply was that the power cost is generally 50-75% of the bill in today's market, the rest is delivery cost, profit (except for COOPs and PPDs), billing, etc. Here's some scary math: A person has a $100 electric bill today - $50 is delivery costs, $50 is power cost Deliver costs increase generally with inflation, so lets "say" 3% making deliver cost $51.5 next year Lets say conservatively power costs increase 5 fold, making power cost $250 Next year that same $100 electric bill is now $301.50, a 10 fold increase would make it $551.50 Could this be the straw (bale?) that breaks the camels back?

May 23, 2012 - 6:44pm


I do feel lucky - and apparently we are the 9th happiest people in the world. Ignorance being bliss, this is not necessarily good news.

May 23, 2012 - 6:47pm


Beez & Physical_Only... thanks for the comments. You know it is quite interesting when we consider that gold was heading towards $1900 in SEPT and silver $45 right after the downgrade of U.S. DEBT. But all of a sudden and out of the BLUE, both gold and silver got hammered. Some say that gold was heading in a PARABOLIC MOVE. Well that may be true if we live in a VACUUM, but we must not forget, our DEBT PAPER is really worthless. If the truth had gotten out and the world realized it.. GOLD would have moved up to $3,000 within a few days.

Here is JIM WILLIE's chart from his article today:

The huge increase in INTEREST RATE SWAPS is why I believe GOLD and SILVER had to be severely CAPPED. If you look at silver below, you will notice that the ACCUM-DIST de-coupled in SEPT 2011.... a month after the US downgrade.

All I can say... it is going to be interesting to witness the last greatest bubble to burst -- the US Treasury Bubble.

Desert Fox
May 23, 2012 - 6:52pm

Cricket, Cricket

So this young kat goes to pay off his student loans in cash. {100k+}

Thought it would be funny. Nobody at the bank was laughing and evidently there wasn't much silence.

What the hell do the white shoes want from us? {besides compliance}

May 23, 2012 - 6:58pm

@Desert Fox Re: Crickets

Should have used pennies... LOL! (just kidding, but I would love to go to the bank and pay off my mortgage someday with small bills... )

May 23, 2012 - 7:27pm

Dollar bills are garbage...according to the Cleveland police

I tend to agree, so I'll keep trading those Benny Bucks in for silver (REAL money) for as long as I can!

Man Ticketed for Dropping "Money" on the Ground

CLEVELAND — A random act of kindness lands a man in trouble with police.

Last Monday, May 14th John Davis was exiting I-90 at the West 117th ramp when he saw a man in a wheelchair. The man was pale, thin and holding a sign that had a religious sentiment and also a request for help.

John thought to himself, “I think we’re all to help the less fortunate.”

The middle class family man from Elyria works hard for a living and enjoys giving back especially to people who are physically challenged.

“I have a brother that’s paralyzed,” said John, “My brother’s in that same situation and struggles.”

John reached into his wallet and grabbed a couple of bucks to give to the man. As he approached the light at the exit, he rolled the money up vertically and stretched his arm out of his window. He says, the man touched the cash and one of the dollars fell to the ground.

The man then bent over and picked it up.

Moments later as John travelled North on West 117th he says a Cleveland police officer pulled him over.

“He proceeds to tell me he’s pulling me over for littering,” said John.

Rest of the story and video interview of the victim at the link:

[Moderator note: PLEASE try to take care not to copy & paste entire articles]

May 23, 2012 - 7:39pm

We are at the singularity in the markets anyway

All the old cycles - throw them away. Everything from here on out will fluctuate at greater intensity and at more frequent intervals.

At least until it all shakes itself apart.

Look, just hold on. Hold. On.

May 23, 2012 - 7:56pm

Damn Fine Post

Damn fine post Turd! I am going to send that over to some of my family members that just haven't quite "Got It" yet. That should help open their eyes, seeing through the eyes of a trader.

Titus Andronicus
May 23, 2012 - 8:12pm

Found a way to create more Turd file space: resize!

I found a way to clear things out for new space: resize your old pictures. You can make them smaller, or nearly delete them by resizing to 1 x 1 or 2 x 1. (I think you need to make sure you uncheck the "Create a new image" box).

Doesn't delete, but you can reduces old files to a very small size. (Remember that monster file you uploaded that takes a huge part of your file space?)

You can use this to make room for more files.

May 23, 2012 - 8:21pm

Freak of the World ~Trying to pick the...


Video unavailable
Puddle of Mudd Freak Of The World
May 23, 2012 - 8:23pm

A brief musical interlude

Video unavailable


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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
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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
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Key Economic Events Week of 5/6

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

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