Thursday, December 9, 2010

KWN on The BoS: MUST READ!

I apologize if I am inundating you with information but I didn't feel I could rest tonight without posting this.

If you have not already bookmarked and saved Eric King's site, I implore you to do it now. Here's a link:

http://kingworldnews.com/kingworldnews/King_World_News.html

Today, Eric posted an updated interview with his London "source". Now, please understand that The Turd is not big on journalism that uses "unnamed sources" as you often get nothing but rumor and innuendo. In this case, however, you need to pay strict attention. Why? Read this and note the date:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/10_KWN_Source_-_Asian_Buyers_Have_Silver_Shorts_Checkmated.html

This source has been uncannily accurate. He also frequently mentions the group that I commonly refer to as our "Buyer(s) of Size". They are not an illusion. They are real.

Recall, too, this little nugget we passed around this morning:

http://www.24hgold.com/english/news-gold-silver-the-elephant-in-the-room-more-pieces-of-the-puzzle.aspx?contributor=Rob+Kirby&article=2244794602G10020&redirect=Fal

Now, below is today's note. Again, Eric cites his London "source". Note, also, how this projection jibes with Santa's now 10-year old prediction of $1650 by 1/14/2011. Also note how the source references the issue above that was first discussed by Rob Kirby in the summer of 2009. It's beginning to look like we are on the verge of something huge in the PMs.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/9_KWN_Source_-_Gold_Will_Move_$150_Higher_Within_5_Weeks.html

I'll only post more later if I feel its absolutely necessary. For now, please take time to seriously study all of these links and begin to ponder how you will position yourself for protection and, possibly, profit.

Have a great night. Turd out.

43 comments:

  1. I don't mind getting all this info, in fact I love it. I've quickly come to rely on your blog daily for great PM info. Thank you, Turd!

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  2. Turd has left the building..;)

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  3. This is from Harvey today:
    In Israel, in the major newspaper today, commented on the massive number of shorts in silver that have been accumulated by JPMorgan. They mentioned that the total short position by the bankers is in excess of 3.3 billion oz. The newspaper, Globes, the largest economic newspaper in the country stated that the accumulation of copper was to used as a hedge against silver. And are regulators are sitting idly by on this one?
    The author source came from the "stalker" as he informed GATA on this.

    Can anyone find the original article being referred to? I don't see it anywhere in the English language verion of Globes: http://www.globes.co.il/serveen/globes/nodeview.asp?fid=942

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  4. Turd: Followed you here from ZH. Check your blog several time a day to keep abreast of changes and hopefully, allow me to keep out of harms way. I suggest now that you have gone viral, you might want to consider just using initials. It is very hard to explain to someone that I am basing decisions with huge financial implications on information I received from a guy named Turd. Love the site and the insight. May your 15 minutes go on and on and..............

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  5. Technical conditions have been improving hour by hour...we are looking very good here...Turd, thanks for keeping the spirits high during that last raid!

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  6. USDX making another attempt to fall through 80. Maybe it sticks this time?

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  7. GG: At some point, you'd sure think the bond market disaster would catch up with the $, wouldn't you???

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  8. China plans to launch silver ETFs:

    http://agaupm.com/china-ready-for-gold-and-silver-etfs/

    Could it be that our BoS is buying inventory for a Chinese silver ETF IPO?

    That would explain why Asian buyers are in London (historically the biggest bullion market), and why they are buying relentlessly.

    http://www.commodityonline.com/news/ETFs-in-Gold-Silver-to-hit-Chinese-market-34310-3-1.html

    ...China is going to get its first Gold ETF to begin with soon. It will be followed by ETFs in Silver, and other commodities. On Tuesday, China's Lion Fund Management Co announced that it will launch the country's first gold fund worth up to USD 500 million....

    Thomas Lee, a Beijing based bullion dealer said ... that after Gold ETFs, it will be the turn of Silver ETFs to hit the Chinese market. “There is growing demand for silver in China. And ETFs in Silver also make immense investment sense these days,” Lee added.

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  9. Holy toledo, sumo.
    Couple this extra demand with the supply picture that Sprott outlined today and you get an explosion in price. Someday very soon, we'll incredulously look back on $30 silver and kick ourselves for not buying every ounce we could afford.

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  10. I wonder why China is still exporting silver at all. They could simply cut JPMorgue's cheap supply off to store it for own monetary use.

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  11. And silver just touched $29 again.
    If the $ finally begins to "price in" the disaster that is the bond market, things are going to get really hot, really fast.

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  12. Yeah, I'm a buyer below $30.

    Get in and hang on (said the actress to the Bishop).

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  13. Rui and sumo: Chinese demand is a big reason why I own EGO and SVM. You should give them your full consideration.

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  14. Turd, it has to, yes. But, as we know, the major FX pairs (USD vs. EUR and JPY) are merely couplings of one bad fiat vs. another.

    Chris Martenson just put out an interesting piece, with this in the conclusion:
    Gentle inflation will be the outcome of the Fed’s persistent injections of money into the system (now totaling some $34 billion in the first eight days of December) -- if the dollar does not suffer a fall or oil does not explode in price. Should either of those two things happen, possibly in combination, then all bets are off, and we can expect a much more virulent form of inflation to rapidly take root.

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  15. Had SVM for a while. A little upset over the Monday drop tho. I'm little too spoiled by this rocket rise.

    I once recommended it to some folks telling them it will blast past 50/share easily in future, and they regarded me as "watching too much Glenn Beck." LOL.

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  16. The drop Monday was from the placement of a secondary offering. Has made the stock quite cheap.

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  17. GG, "Gentle inflation" sounds like being just "a little pregnant". Good luck controlling that; much like playing with fire if you ask me. Unfortunately, there are too many variables and outside forces at play here and the US does not hold the best hand.

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  18. turd or others, any opinion of SDRG (Silver Dragon Resources)?

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  19. Reading the articles on KWN. Does anyone know or can find out if the owners of the the gold & silver in those banks received the metals that they actually deposited or were given the equivalent? Would tell me if they the banks actually leased/sold/took/misplaced the physicals.

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  20. This is an interesting site to read...in particular the glut of silver he speaks of towards the end...any thoughts?


    http://silver-and-gold-prices.goldprice.org/

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  21. Turd, you say the drop monday in SVM was from the placement of a secondary offering. Could you (or anyone) please explain to a novice what that exactly means? Unfortunately I was stopped out in SVM during the big raid on tuesday but will definitely buy back today.

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  22. Tim, this is my take ya'll: "So in the next few days silver and gold might blast away, or they might sink. Either is possible. In the long term, of course, they are just beginning their mad third leg up, and the bull market will run for years yet."

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  23. Can someone help a newbie to the futures market parse this chart? http://tinyurl.com/GCF1C1540

    Does this mean that a call option that strikes at 1540 on Comex January 2011 gold would cost me $40? It says last settle was 0.4 which I then multiply by 100 because gold contracts are for 100oz., right? Not saying I know enough to actually put money on any of this yet, but I'm learning fast by reading your cross talk! Thanks guys.

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  24. China liking silver should come as a surprise to no one. In China's history it's flirted with a lot of monetary systems but it's had a long term love affair with silver and silver money. Won't say I have a crystal ball into the minds of the Chinese, but I will point out the Opium War was started because the Brits ran out of silver so got the Chinese hooked on opium to have something else to buy Chinese goods with. And that is pretty much public history no conspiracy theory there.

    China has traditionally loved to export and get paid in metals, and silver not gold (historically(. Ran the longest silver standard in history if I'm not mistaken. The opium of today has been T-Bills, we'll see if China can shake that addiction as well.

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  25. borte,
    though I don't know the specifics of the SVM situation, what usually happens with a placement is that the issuing company offers new shares at a discount to the current market price, in order to attract orders and make the offer successful. If the market price stays above the offering price then those people who bought the new shares can sell and make an immeditate profit.
    Alternatively, or additionally, the market will take a view on why the placement is being done. If the placement is to raise money to invest in a new, profitable, project, the stock price may increase in expecation of the increase in corporate value. But, if there's any suspicion that the company is raising money due to some problems (need to pay back debt quickly, for example) then the market will take it badly and sell down the shares. Hope this helps.

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  26. tim: Pay a lot of attention to what Franklin Sanders has to say. He's usually spot on. If he sees a current glut in silver, then there IS a current glut in silver. Does that mean prices will continue to fall? Your guess is as good as mine, but as Franklin says, we need to see new highs to confirm that the uptrend has resumed.

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  27. I've heard many of "owner had trouble getting their metals from banks" stories. Most of them follow the same theme: Owners wanted it. Banks sh*tted in their pants and threw all excuses not to. Owners upset, pushed hard and brought in lawyers. Banks gave in at the end.

    I'll tell you one that's a little more comical. It happened in late 2008 during that chaos when bankers went mad w/ naked shorts and all physical silver was bought up by strong hands.

    This guy bought from a bank an atypical industrial chunk of silver of 760+OZ silver. He was worried about the bank going under so he called them for delivery. Bankers at first played stupid w/ him. He was furious, turned down cash and threatened the banks of legal actions. Eventually he got the chunk of silver delivered to him.

    To his surprise when checking the weight of the chunk, the silver is real but it's 780+OZ not 760+. So he called the bank, telling them they sent the wrong one. The bank didn't even want to talk to him, "So it's more than you ordered for? Fine, keep it." Bankers ended that conversation as fast as possible.

    He was puzzled at first. Quickly he realized they must have sold the same chunk to several people, and it got claimed by someone before he did. When he called in he caught the bankers naked. And since it's a unique 760+ chunk they could not assemble an exact one so they just sent him the closest chunk to shut him up.

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  28. Thanks GG, makes sense. Its on their website now as well.

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  29. Indian retail investors trading commodities:

    http://www.commodityonline.com/news/E-trading-in-gold-silver-copper-catches-investor-frenzy-in-India-34236-3-1.html

    Apparently they can take physical delivery:

    "...Sinha argues that E-Gold and e-Silver are ideal products for retail investors, who want to invest small amounts in gold and silver. These investors can take advantage of recent rally of gold and silver. Moreover, e-Gold and e-Silver gives investors the option and facility to take physical delivery across various locations in India at a single price without having to worry of either purity or weight...."

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  30. @RoCoach There are definitely mixed signals as folks from London are talking about multiple months of backwardation in both gold and silver which is the sign of tightness, and London is a massive physical market.

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  31. Several companies in India want to launch Silver ETFs, but it looks like the necessary Govt. approval is not that easy to get:

    http://www.commodityonline.com/news/Silver-ETFs-to-debut-in-India-34095-3-1.html

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  32. Morning sleepy 'mericans. What's the crack? It seems we're testing the lower limits of those supports pre-open.

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  33. Hi, fiend.
    Some BS economic "news" pumped the USDX up about 0.40 and gold rolled over. 1380 should hold as silver is still above 28.40

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  34. Faros Trading (via King World News) sees USD weakness ahead, recommends buy the EUR/USD on dips:

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/9_Faros_Trading_-_Buy_the_Euro_on_Dips.html

    "...Gold and silver have seen significant rallies, and we believe this is only the beginning...."

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  35. Haha yea that's not very bullish for America is it?

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  36. Like I have said yesterday - today is also Blythes trading day - and a preferred one. Usually the thinnest trading day of the week.

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  37. I'm certainly sitting this one out. Oop, especially now, heading towards 1370 and 28.2. If this holds today and the first couple of days next week, I'll almost be be convinced.

    What do we all think about a Chinese interest rate hike then? It seems unlikely, but if they do it over the weekend, thoughts for PMs on monday? Seems to be me like it's good thing, and confirms they recognise that they're causing inflation, which so far they seem to have denied.

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  38. Fiend: I hope that any china rate hike is, by now, priced in.

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  39. I am having a good day, a very, very good day indeed. I would like to take this opportunity to thank those of you long in the paper market for surrendering your hard-earned dollars so readily. Snatching your dollars is like taking candy from a baby.

    Those of you in the physical market can thank me at your convenience for yet another buying opportunity.

    I would write more but Blythe has to get packed for a quick weekend jaunt to my home in the Bahamas. Stay long. I'll be back next week to take more of your money!

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  40. Dear Blythe,

    if your understanding of your predicament, is that it is a tussle with mere retail investors, boy are you heading for a surprise!

    see you again next week, back in the bear pit.

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  41. The Asians perched to buy the physical silver when the price goes low enough; The JP Morgue trying to get the price low enough to cover.

    A beautiful Mexican standoff - this is going to be fun to watch!

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  42. Turd

    Your charting style is making the rounds.

    http://agaupm.com/move-your-gold-and-silver-away-from-bankers/#more-1671

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