Before I do anything else, I must thank you, my dear reader. In just 23 days, we have accumulated over 103,000 total pageviews. A mind-blowingly large number! We had 10,000 pageview days on both Thursday and Friday of last week. Thank you. Thank you. Thank you. If this rate of growth continues, I plan to use your generous "donations" to build a better, more user-friendly site. A true forum where we can openly share thoughts and ideas. I'll keep you posted. Now, back to the countdown...
Many new readers have requested a glossary of Turdisms that this site uses. For future reference and entertainment(?), I present below a few definitions.
The EE: Is, of course, The Evil Empire. The EE consists of the evil, colluding consortium of "bullion banks" that, at the behest of the Federal Reserve, actively suppress the prices of gold and silver through methods such as the seemingly endless creation of paper metal and "offer bunching". The primary, co-conspirators are HSBC and JPM.
The Death Star: The Comex. This is where the EE wields their power. The survival of the rebellion may ultimately hinge upon its destruction.
Blythe: Blythe Masters is the Head of Commodity Trading at JPM. Sort of a female Sith Lord but I more frequently picture her as the Wicked Witch of NY. Which leads us to...
The Flying Monkey Brigade: Blythe's chimpanic JPM minions who blindly execute her (sell) orders.
On our side we have:
The BoS: Our buyer(s) of size. They first showed up in late August and have since provided a near-daily bid for both gold and silver. The BoS have been particularly active in the silver pit. See chart further down in this post.
Santa: I first discovered the wisdom of Jim Sinclair a couple of years ago. It didn't take long for my friend, Mr. Hyde, and I to get all excited and start trading on Jim's wisdom. Of course, at about that time, The EE attacked and down went gold and down went our trading accounts. Exasperated near the bottom of the move Mr. Hyde asked, "Why should we listen to this guy on the internet anyway? For all we know, he might as well just be Santa, typing gold updates from the North Pole." From that point forward, Mr. Sinclair has been lovingly referred to as "Santa". Coincidentally, this Christmas at the Ferguson house promises an abundance of good cheer, in part due to Santa's terrific insights.
The Canadiens: There are a lot of good mining companies based in Canada. It would follow, then, that there are a lot of good metals analysts up there, too. From Organ to Nielson to Sprott and Embry, much wisdom is to be gained from listening to The Canadiens.
Trader Dan: Trader Dan is The Man. If you don't already, make it part of your daily routine to visit JSMineset every day at about 2:00 EDT for his daily updates. Dan knows his stuff. Heed what he says.
ZH: ZeroHedge.com is the best financial news and discussion website. Period. If you're not on there several times a day, you simply do not know what's really going on in the world.
Other terms include:
POMO: US Federal Reserve Permanent Open Market Operations. The process by which the Fed is overtly monetizing US debt. The first POMO schedule lasted from late August to early October and was about $27B. The next took us to early November and was about $43B. The current POMO schedule ends this Thursday and will finalize around $105B. And you wonder how the stock market keeps rallying? POMO is your answer. This week should bring the announcement of the next POMO schedule. Probably another $100B or so over the next five weeks. If that's the case, don't you dare think about being short anything for a while except, maybe, long-term treasuries.
HellyBenny and Timmuh: Probably need no explanation.
CNBS: The utterly worthless financial news channel that, for some reason, people actually watch.
A-cups: The often-sanctimonious Erin Burnett.
FOAD: Mark Haines is a Fat Old Arrogant Douchebag.
LIESman: The moronic Keynesian shill of an Economics reporter.
Mandy: Mmmmmmandy. Need I say more?
Headiromo: The remarkably self-important afterhours host.
OK, that's enough. If I've missed any, let me know in the comments below and I'll try to add it later.
On to the PMs. Everything, and I mean everything, looks great for the PMs as we head into this week. From the charts to the fundos to the chatter, it appears to be "all systems go" for liftoff. Therefore, you should be nervous. It is in times like these when the EE often counter attacks. Just look back four weeks ago for your latest example. The Fed announced QE2 on 11/3 and, by 11/9, the dollar was diving and the PMs were soaring with no conceivable end in sight. Well, we all remember what happened next. Out of the blue, we get margin requirement increases and a sharp correction in price. Silver shed $4.30 in a week and gold lost $95! None of the fundos changed, however, and we've since recovered. If you don't think that the EE has more tricks up their collective sleeves, you're living in FantasyLand. They may hit us again this week or they may not but hit us again they most certainly will. Be cautious and you'll make a lot of money in this market. Get greedy and you'll be wiped out faster than the free booze at the company Christmas party.
Lastly, you no doubt know by now that I believe technical analysis (TA) is worthless in this environment. Gold and silver are trading on fundos only. Short-term charts can be quite helpful, however, as they are uncanny predictors of where the EE will construct barriers and where the BoS will likely step in. For today and for perspective, however, I present the daily charts below. On these charts, you can clearly see the emergence of the BoS in silver and the extent to which silver has dragged gold along in its wake.
It is clearly going to be a very, very interesting week. I seriously have no idea where gold will finish on Friday. Without EE intervention, silver may see $32-33 and gold may reach $1500, thereby fulfilling my "$1500 by 12/10/10" prophecy from last summer. If the EE attacks, they'll probably try to paint double-tops in both gold and silver early this week and we end up on Friday near 1380 and 28. We'll see. One thing I do know, however, is that its going to be crazy and fun. Get some rest. See you Monday. TF