Wednesday, December 29, 2010

More Mustard Gas

Our metals have continued to hang in there and actually gain ground so far in the overnight/Asian session. As I type, Mar11 silver is 30.65 and Feb gold is 1414. A couple quick nuggets I found from earlier:

First, read this blog post from Eric King. Eric interviewed James Turk today and posted a few highlights:

Second, you have to watch this quick video from CNBC. The Great Peter Schiff was interviewed by the FOAD earlier today. Peter makes almost every point you've heard The Turd make in this blog ad nauseam over the past six weeks. The FOAD is dumbfounded and incredulous. He's a perfect example of the status quo, Keynesian-stupor market enthusiast. And fools like the FOAD are the first ones to claim that gold has "reached a top" or is "in a bubble". What a jackass.

Lastly, here's your latest USDX 120-minute chart. The "umbrella" still contains it.
Sleep well and dream of what your PMs might do tomorrow if the USDX trades down near 79 :) Turd out.


  1. $34.91 for 2010 Silver Eagles at APMEX. It is called "appreciation" (as aopposed to "depreciation") for being in the (above average IQ) minority who believed in silver.

  2. Oh I'm a believer! I'm even starting a new belief in copper.. or do you think that's premature?

  3. Seeing that clip made me realize how refreshing it was to watch the Jim Rickards lecture for 2 hours. Letting someone produce a coherent argument without hex-split screens and flashing lights everywhere - What a novel idea.

  4. LOL, "I'm sorry Peter, I'm being told that we are out of time" - amazing how that happens every single time that a guest goes against the propaganda machine.

    The Rickards lecture was the most valuable continuing education time I've spent in several years. Thanks to the individual that posted!

    The Silver Ninja is still in stealth attack mode under the cover of night.

    Thanks for the blog, Turd.

  5. Thanks for all your updates Turd, mucho appreciated. I had to lookup

  6. "I'm told we're out of time..." Don't you just love CNBC producers... Especially telling is the next segment aired (for which Peter Schiff had to be bumped over): Tech Toys for 2011.
    Thanks for burning the midnight oil on the blog, TF, your insights continue to be appreciated.

  7. @Duke - fellow minds think alike. I wasted some time writing the note above b/c I had trouble loading the clip -- I was beginning to think that the Turd's post sent so many of us to the same link that CNBS's servers were having trouble with the spike in traffic... ;-)

  8. Silver BREAKOUT!!! over $30.80

    What do you guys think Gold/Silver will be doing during 2011 in the environment Celente predicts in his interview today w/ KWN:


  9. @ Theos
    I also watched the Jim Rickards video. He believes that the US still has the most gold-- 8,000 tons. Jim Willie disagrees - he thinks Clinton/Rubin sold it off. So is it in Ft. Knox, or not? The answer to that question makes the difference between a US dolar backed by 20% gold or a US Dollar that is pure fiat.

  10. Regarding the 8000 tons gold, the story I heard is that it's load of mess. The way they sold a lot gold over the years was via book keeping rather than physically shipping it to the owners, which gives them an option to go rouge and default on the book keeping if all else fails. It's said Germany had 2000 tons gold @ NY Fed. If it's still there then Fed could come in to snatch it and tell Germany to shove it. It'd be ugly if it had to come down to that point.

  11. Just got this link from a friend. Is it true? Meaningful?

    One year silver and gold lease rates were the most volatile, with lease rates rising from roughly .125% per year to .75% per year. 2-6 month lease rates for silver rose from negative territory (indicative of zero lease interest) to a range of .25% to .5%. The 1-month contract was unchanged.

    Lease rates for gold all moved into positive territory, with the 1-month, 2-month, and 3-month contract each rising to .25%. The 6-month gold lease rate rests just below .5%, while a 12-month contract rose to .75% from .125%.

  12. Rui, I think what Jim Rickards was saying was the gold from NYFRB held on behalf of other sovereigns could be moved to Fort Know, and then a receipt would be issued. This gold could now be used to back a global reserve currency. Presumably the receipt could be used to back their own currency. This sounds a lot like Bretton Woods I. Back to the future?

    Turd, thanks from down under, you have a few fans here too. We are keeping up our end up, buying during the Asian session.

  13. Don't forget the gold coated tungsten bar discovery that was quickly covered up in 2009. It would not surprise me one bit if we find out someday that government insiders robbed the country blind in the 70s and 80s, replacing most of the gold in Fort Knox with tungsten bars. The country's gold assets are probably long gone, and the trail is cold.

  14. Until absolute proof is supplied, the Gold is present in Fort Knox and in New York.


  15. Um, no. Until an audit is performed, the only gold in Fort Knox is Post-It notes that say "I Owe You One Ton AU -- Bob Rubin".
    People who claim to have money generally have to supply proof. When they refuse, repeatedly, they should be disbelieved.

  16. Hmm ok,untill absolute proof is supplied the gold bars are present in Fort Knox and New York.
    But the gold is not.

  17. Time to bad mouth someone else. Check this out. Blythe is the middle man. China may be her source.

  18. This just in from the United States Mint:

    Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

    Although the demand for precious metal coins remains high, the increase in supply of planchets—coupled with a lower demand for bullion orders in August and September—allowed the United States Mint to meet public demand and shift some capacity to produce numismatic versions of the American Eagle One Ounce Silver Proof Coin.

    However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced.

    The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

  19. So let's assume that James Turk is correct and that there is some sort of "Lehman" event in early 2011. And as he said, this time there is a rush to safety (PMs) rather than a rush to liquidity.

    However, don't you think that many would still rush into the USD? If so, how would that affect the M0 money supply (the billions being hoarded to protect the major banks)?

  20. What great terminology! "Lehman Event". We should coin that phrase. In fact, how about a Lehman Scale, with the original Lehman Event defined as having a magnitude of L1.

    I can see the WikiPedia entry now:

    "The financial energy release of a Lehman Event, which closely correlates to its destructive power, scales as the 3/2 power of the monetary amplitude. Thus, a difference in magnitude of 1.0 equates to an increase of 31.6 in the financial destructive power. Fiscal Seismologists theorize that the world financial infrastructure cannot sustain a Lehman Event of magnitude greater than L3."

    What we feel coming is a Lehman Event of about magnitude L5.

  21. Oh, and ....

    Fed delenda est.

    I'm going to end all my comments with that from now on, everywhere.

  22. Who knows if Blythe will stick with her modus operandi, but the usual script would have an outside reversal day before long. Now today, the silver market has opened higher and the dollar lower. Should a dollar rally now commence, engineered or otherwise, it could be quite useful to her. And the big hammer has yet to be taken out...

    Please forgive my idle speculation. I am just trying to learn this market.

    p.s. the HUI is taking a dive.

  23. Keep your powder dry boys! As Turd indicated a couple of days ago, I'm watching for a pullback in Silver to $29.50 soon (maybe today)before the next launch into the New Year to at least $32. Never owned it but will be buying AGQ if that happens.jd

  24. @california womanl

    It doesn't make sense that China would short silver without good reason. Maybe they want to keep prices down to buy physical. That makes sense, however, I think it is far more likely JPMorgan is manipulating the price to appease the Fed and their cronies.

  25. China has every reason to short silver and gold. They are in the long process of converting trillion$ of FRN instruments they hold from paper to metal. They want the dollar high and the metal cost low while they convert.