Thursday, December 30, 2010


The PMs held in well overnight. Silver almost made it to $31, reaching a high of $30.93 before slowing.

You most likely noticed the same old early morning EE nonsense today. You may have thought, "gee, that looks familiar", and you'd have been right. As a refresher, here's the chart from yesterday. Note the exact time of the raids:
Now, here's the same chart for today:
Ole Turd, the crazy conspiracy theorist. Take a long look at these charts and YOU DECIDE if there is an epic battle taking place between the Evil Empire and the BoS.

Our U.S. dollar continues to roll over. Here's the updated version of the chart we've been following:
We'll see what happens as we go through the day. Crude is off almost $1 so that may inspire Blythe to be more aggressive than yesterday. However, as long as the USDX keeps drifting lower, she's going to have a hard time creating much downside momentum.

10:30 UPDATE:
The metals are hanging in there but Blythe has now shown that she's not going to give up so easy today. Think about it...if she isn't successful in raiding today and/or tomorrow, silver will end the week, the month and the year over $30. In Blythe's mind, this simply cannot be allowed.
Volatility is about to increase. Let's hope the BoS are waiting to stick it right up her....

12:15 UPDATE:
Well, its safe to say that the raid is on. The question becomes: when will the BoS join the battle. I still suspect that the line will ultimately be drawn at $30. NO WAY, NO HOW Blythe voluntarily allows a close tomorrow over $30.

Have a great day! TF


  1. Good work Turd. It is pretty unbelievable that the market raiders would come out today but, they do every chance they get. I thought we would consolidate today, but with Asia wanting so much gold, my numbers were a little low. Oh well.

  2. So far so good.Yes looks like a repeat of yesterdays action.It should rise from now on for half an hour or more maybe.

  3. PS We are at an inflection point. Platinum is where I want it, but silver and gold are still riding high. I wish I could say the second half today was going to net gain, but I do not think so. I think Blythe and the EE try to ram it a little more.

  4. George- If we see dollar strength, then PMs will rise, but with Blythe goating Bernanke, and Bernanke wanting a weak dollar, unless there is surprise buying in a few minutes, I think we will have to wait until tomorrow.

  5. DXY is down .410% and a sudden raid on the metals. I wonder if the people orchestrating this manipulation understand that they are COMMITTING TREASON.

    We as Americans need to get busy... and fast.

    If America has any dignity, it will defend itself from the foreign invasion of the elite (Turd calls this the Evil Empire). HSBC, Wells Fargo, Jp Morgan, Bank Of America...

    We know who owns you all at the top....

    Puppets to the Rothchilds, the Rockefellers, The Warburgs...

    Your time is nearing the end. I can only hope that EVERY single person behind this scheme is tried for treason in a world public court (I can dream can't I?)

    Blythe Masters, your ship is sinking...

    I am a bit frustrated knowing these people get away with so much!! Wake up America!!

  6. The law that requires "in quantities sufficient to meet public demand" has been changed. See the following link:

    For those who don't want to bother with the click through, Timmah is going to be setting production levels next year. At least, that is my read of the legislation.


  7. On the other hand if they want to give us a buy the dip moment,ok,thats fine.

  8. Turd,
    Was wondering if you might comment on a specualtion I have read and a suspicion I share:

    If I were a BoS, I would be looking to start "manipulatin" the market to the UPSIDE. How? For one, by making the price of silver as high as possible by the end of this calendar year. I think we are right now seeing this struggle unfold. The speculation is that the higher the price is, the MORE algorithmic buying kicks in based on end of year "stats", if you will. SO more bang for your buying buck, as higher prices become "self perpetuating" in the first weeks of January.

    Personally I am hoping for $32 by Dec 31 and $36 in first few weeks of January.

    Remember the next CFTC "position limits" meeting is January 16.

    Any thoughts?

  9. Yes, Cris, exactly! I mentioned this yesterday.
    The BoS could use the same, algo-tripping dirty tricks against the EE, in the opposite direction. Close over $31 on 12/31 and set off a wave of buying next week.

  10. Let me add my two cents worth. All this effort, and silver is down a whole two cents.
    Ding dong the witch is dead

  11. EE seems scared to death of going into the New Year and another public holiday with metals at record highs,except Copper of course.

  12. Painting Lower Lows....

    For the big daddy manipulation coming in 10 minutes?!?

  13. Why do buyers want the price HIGH?

  14. We want the bullshit manipulation to end, and I want my holdings to reeflect their true value.
    The EE are criminals, and I want to see them suffer and be eliminated.

  15. joe, I agree, it seems they are hungry for the metal and are simply aggressively buying the dip. You would manipulate the price UP only if you were the OOS (Owner of Size), not BOS, imo. jd

  16. Frankly the more they manipulate it downwards the sharper the upside correction.

    It would take a 2008 like event to nuke the PMs in any significant way now.

    BOE looks like they have no choice but to print.

    ECB is already printing but claims that they are soaking up liquidity.

    QE2 is going to morph into QE-infinity, the congress and Ron Paul are not going to get a chance to stop the Bernank.

    BOJ is already making noises about intervention to weaken the yen.

    And we are supposed to believe that fiat is going to hold its value?

  17. Hypothetically, if a new dollar were to emerge after a collapse and they pegged it to gold, let's say at $5,000/ounce like what Rickards believes, then would silver be pegged against Gold at a certain ratio like 30:1?

  18. From a sheeple manipulation perspective, perhaps Blythe is willing to let silver rise into the end of the year.
    She already lost the battle in 2010, so whether the headlines for 2010 read, "Silver up 75% in 2010", or, "Silver up 78% in 2010", it won't matter. The overall message is the same.
    If it starts the year at $32, and then she slams it hard back under $30 in early January, the MSM headlines will read, "Silver already down 8% in 2011".

  19. @thecoloredsky

    If history is anything to go by they'll peg gold at some ridiculously low value.

    Confiscate it, then revalue it.

    Its probably best to convert bullion to some other hard asset in stages when TSHTF.

  20. Ladders....

    147 contracts of bid side sitting at 1403.2. If that level is breached we will see 1397 in short order (nano-seconds).

    The bid ladder at 11:51:44 is showing 150+ in contracts.... the offer a mere 45. This is all while the price is falling.

    Does this sound like an efficient/fair market?

  21. I showed a number of friends my YTD silver charts, calculated the profits based on my holdings, and sat grinning like the Cheshire cat. Two of them took me up on an offer to let them piggyback my next order. Chalk up two more converts to the cause, and 200 more ounces of silver off the market.

  22. Turd I gotta hand it to ya, you nailed this reversal on the head with laser precision. Although I don't think we will get a whole lot lower I have taken some profits and will buy the f**king dip tomorrow :)

  23. Qussl3,
    Ridiculous. Who are "they"? Gold is priced internationally.

  24. Hit it again Bitch, er.. I mean Blythe! I gonna pick up some AGQ today or tomorrow.jd

  25. Duke,say a few things about AGQ and how best to use it if you like.

  26. @Duke,

    I have been in AGQ for a while. I've been using my (considerable) paper gains in AGQ to finance purchases of physical.

    AGQ may well implode if spot goes parabolic, but in that event I am hedged by my holdings of physical. The best of all worlds for me is a slow, steady increase in the spot price of silver. AGQ should be able to withstand an orderly increase in price, and the 2X gains in AGQ more than offset the increase in the price of physical.

  27. Pat,

    Back in 1933 there was Executive Order 6102. The government "confiscated" gold at a price of $20/ounce. After it was done, "they" as in the "Treasury/Government" revalued gold to $35/ounce. I believe this was done along with England at the time. That's what we were talking about in a general sense.

  28. The spreads on the the AGQ options are just too much for me. You have to post some serious gains to be able to make a solid profit. I can buy 5-7 SLV options for the price of one AGQ. And the spread is WAY tighter, and in turn make just as much money if not more.

  29. blythe, not sure I understand "...the 2X gains in AGQ more than offset the increase in the price of physical."? I have only traded the GM etf's since late 2007 - made a lot of money until June 2009 and within 4 months had lost 80% of my gains. Been buying physical since 2007 and got very serious in the last quarter of 2009.

    I've never traded AGQ and would never hold for any longer than a few weeks, but I'm giving hard consideration to taking an initial position today for a short term (2 week max)trade. If it worked, I would be out once spot hit $32. jd

  30. It's not 1933 anymore, commerce is worldwide, so an individual country attempting to confiscate and fix price is impossible today.

  31. @Pat

    Actually global trade was booming pre 1929, and in real dollars we've only recently (post 200)eclipsed pre 29 numbers.

    The political economy and fiat systems are very old games played in cycles.

    The illusion of dramatic progress has little to do with democracy, rather it is largely due to the massive energy density of oil.

  32. Pat you are right, not arguing. But the US does still hold the most amount of gold in the world against any other nation and if global sentiment agrees to keep the US as the world reserve currency, then it's still possible. The only other option would be all the Euro nations combine their gold and they could create the world currency in Euros and set the price. This is all assuming that the US dollar collapses.

  33. Good luck trying to get your "internationally" traded gold out of the country! What do you think those "enhanced screening techniques" are all about - it isn't ONLY to prove to you who is really in charge.jd

  34. @Pat

    Actually a global gold revaluation would not require global confiscation.

    As the USD is the reserve currency, and looks to remain as such; theoretically only the USD need be revalued.

    In such a scenario, only the govts which look to transfer wealth from its citizens to itself would attempt confiscation.

    Confiscation is not a requirement for revaluation, although logically govts would want as much gold as possible to inflate the value of their fiat.

  35. I've been holding both AGQ and UGL and am trying to figure out the right time to get out into physical. I know the obvious answer is ASAP, but I don't have very much money anyway so the risk isn't as high for me.

    Any thoughts as to timing?

  36. Just picked up a silver eagle tube. Also closing out my super tiny SLV position. Running out of cash lol.

  37. Picked up some of these week before last and they showed up Tuesday - they were so pretty, I slept with 'em. Had to stop by Home Depot yesterday afternoon to buy some 2x4 bed slats due to the increase in the weight of their value.

  38. @ Duke I might have mentioned this earlier, but I still get a (rueful) kick out of this one -- got it a few weeks ago:
    Here's to hoping it never hits face value...

  39. Nice Duke! I buy from gainesville as well. They seem the cheapest but I find their live spot prices awfully strange.

  40. @Duke,

    I hold AGQ and have held for a while--I don't trade it. I got in low enough to have a decent sized position. It is painful to ride down, but fun on the way up. More power to you if you are a trader. I work all day and don't have time to trade.

    AGQ uses derivatives to hit 2X the performance of spot, up or down. As AGQ rises I periodically sell some AGQ and buy physical with the paper gains. The 2X leverage of AGQ generates returns more than adequate to offset the rise in spot. AGQ hedges the price increase in physical.

    AGQ may well implode in the event of a COMEX failure which triggers a parabolic rise in silver. Hopefully not. But if it does the parabolic rise in my physical holdings will more than offset the loss of my initial investment in AGQ. At least that's the hedge I am counting on . . .

    The real dangers right now for silver investors all come from government intervention. In chronological order it goes like this: manipulation, regulation, taxation, confiscation. We're in the manipulation phase right now.

    You all deride Blythe, but she has been the best friend net buyers of physical could have. She is going to look positively benign compared to the figureheads which prevail in the regulation, taxation, and confiscation phases. I foresee a 10%-20% annual "property tax" on declared PM holdings, followed by outright confiscation.

  41. CD, instead of that eagle in the middle it should have this image:

  42. Blythe Masters,

    "Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change."


    Looks like we already are nearing the regulation and taxation phases. And it's in the stupid Healthcare Bill! Unbelievable.

  43. Blythe, I understand what you were saying now -"hedging" the opportunity cost of not owning the physical at any point.

    I also have a full time job (thank God) and am not smart enough to trade this market. I don't know, I would never, ever want to "hold" a leveraged instrument (again) through an intermediate term correction - life is too short. Additionally, I sure don't want to be holding it, or any other paper, when the "reality" kicks in. jd.

  44. LTCGs from gold bullion sales are also taxed at 28%, rather than the lower LTCG rate for other assets - they're not going to make it easy.

  45. DXY losing any momentum from earlier, silver slowly climbing back up.

  46. Another beatdown commencing this afternoon. Likely to continue in the A.M.? jd

  47. Where is Turd?
    Just read on Bloomberg that he and Blythe are headed to Hawai for their honeymoon.True..??

  48. Thats true understand there were some very heavy,clanking suitcases,well over their baggage allowance.

  49. @ColoredSky,

    Yes, I have been aware of that law for some time and have been structuring my affairs accordingly. Many states are starting to impose separate reporting requirements--recording IDs, etc. Private buyers/sellers are still functioning well. Craigslist is a good thing.


    I got a bit nervous about holding AGQ too, especially in the down market--2x really magnifies swings. I'm an investor, not a trader. I develop a thesis and invest accordingly. As long as governments continue to pray to the ghost of Keynes PMs will be going up, and governments can't stop praying without exposing their incompetence and their impotence. This is now a slow motion money-printing train wreck--completely unstoppable until it implodes. People holding their wealth in FRNs are going to be left penniless.

    AGQ should keep going up as long as the silver market remains orderly. In my mind the real risks of AGQ are an upside explosion resulting in a COMEX failure and/or a government confiscation of fiat at a fixed (low) price. I think I've already recouped almost my entire initial investment in AGQ, which has been converted to physical. If we get an upside explosion I am in extremely good shape with my physical, even if AGQ implodes. If we get government confiscation I will probably die in the shoot out so I'm not that worried about it. :)

    I'm still a net buyer of physical. I get up every day and thank God for JPM and Blythe (hey, that's me!) for keeping me in the game. I don't understand the people on this board who rip on Blythe. She's the best friend we've ever had.

    I need to get back in character and start posting as Blythe's alter ego again . . .

  50. Previous post should have read "by fiat" rather than "of fiat." My bad.

  51. Hey! I just started reading your blog and your charts on the "EE" attacking silver in the morning is very interesting.

    Whats EE and BoS stand for?

    Do you have a summary page or month where I can read up more on what this battle is all about.

    Thanks! Your posts are great!

  52. @Done -- see sidebar on the right for past posts. The glossary you are looking for is Turd's Glossary:

  53. @ Blythe. You must live in the USA, Baby. Here we buy 50 peso gold Centanarios and silver Libertades a three minute walk from Banamex and Banco Azteca. It's strictly a hush-hush/don't ask, don't tell transaction both ways. We have Hugo Salinas Price; the USA is stuck with YOU. Crap all you want to on the gringos, but you've done well keeping bullion coins cheap for the rest of the world and screwing the world and your own country in the process.

    You need to get laid tonight (if anyone will have you.) Hahahaha.

    ¡Pendeja Puta!