Wednesday, January 5, 2011

Sick and Tired

Shit am I tired. Sick, too. But the show must go on.

First up, I get asked often how the EE slams price. Many of you are probably wondering this again tonight. Harvey summed it up perfectly so I'm just going to c&p him here:
"For the past week, we have seen an equilibrium between buyers and sellers in gold at around 75,000 contracts.  Today the estimated volume at the gold comex was 240,871 and when the confirmed volume comes in I can assure you it will be much higher. The modus operandi of the crooked bankers is simple.  They withhold all bids to buy as they tell would be purchasers to hold off as they will get their metal cheaper.  Then they bombard with over 100,000 contracts that are totally un-backed and they trip some of the longs who have stop losses below the spot price.  This trips other stop losses as the price goes lower until it reaches its nadir and the bankers slowly try to cover all their shorts.  This is collusion, as all the bankers are told in advance when the raid is to be expected.  Then they supply paper with no backing to gold or silver whatsoever."

Also, please take time to read Trader Dan, too:

Lastly, I would be remiss if I didn't offer perspective after the 24 hours we've had. DO NOT FORGET that the EE has been relentless now for almost three weeks. Remember this?
This dates back to 12/16 or so. How much price has Blythe dissolved in the almost daily raids since? $6? $8? And yet, your going to sit here and tell me with a straight face that silver has topped or is running out of momentum? Seriously? What f-ing planet do you live on?!? (OK, now I'm getting worked up!) Without direct EE intervention over the past three weeks alone, silver would rest tonight at about $37!!  So I don't want to read any garbage about top and waves and stochastics and momentum. Its all bullshit. The fundos are overwhelmingly positive and the metals are going HIGHER. Period. People like Prechter are as worthless as tits on a boar. Don't listen to them!
If you still need a long-term chart or two to peruse, here's gold:
And here's silver:
All is well. Truth will prevail. It always does. We will win. BTFD. Turd night-night.


  1. Man take a break, The EE won't win we are buying the dips. :) I was was hoping this last "slow" week would give you break.
    Either silver and gold was as solid as you said and folks bought or not and Blythe wins short term. It's a war and not a battle, Hell even Patton needed a nap from time to time.

  2. So I don't want to read any garbage about top and waves and stochastics and momentum. Its all bullshit.


  3. My plan: Be like a bear and sleep for the next 4 weeks.

  4. I bought a roll of 1955 silver dimes on sale today. Every hit I buy a little physical.

  5. Well said Turd. We are all in this together. I will use the dips to buy more. I agree with you. Technicals don't work in manipulated markets! Thanks for everything you do. Keep up the outstanding work!

  6. Im kinda worry because our BOS didnt make any gains during Asian session....

  7. For those interested in possible BOS at least in the gold market, read FOFOA's entry today.

    Really intriguing take on the CBs themselves being BOS in the paper gold game.

    Wonder whether this applies in the silver market, though crucially the CBs do NOT have silver on their books.

    Interesting nonetheless.

  8. Blythe Masters coordinates with China JP Morgan Chase Commodities Director--Jing Ulrich. China buys gold on the down. Prearranged by the government, of course. RIght before the Prime Minister visits, and....coincidentally China announces they will raise the yuan 5%. My best guess.

    and I don't know anything. btw.

    great blog. Thank you Turd.

  9. Martin Armstrong's latest offering:

  10. Every cloud has a Silver lining and the EE are going for broke,they know that soon the day of reckoning has to come.So prices came down but it wasn,t physical being sold it was unbacked paper which means in the long term more huge losses and remember the true price will come.When you get seriously mega rich individuals buying you know the future is bright but you also know that every % on millions invested is serious money and they need to force the price down to buy.Keep the faith its not really what happens in these markets that decides the day its the time bombs in everything else.Happy New Year and buy physical because the serious money is.Every year more Silver is used than mined,the stockpiles have gone and the figures waiting for physical delivery amount to years of annual production that isn,t there,100/1 don,t go and the EE is fighting for survival.This isn,t a bubble this an undervalued,depleting,irreplacable commodity.

  11. All they can do is flush out weak hands and try to perpetuate the lie that stocks, bonds, & the dollar are a better investment than PMs. They are not, and they will fail.

    Yesterday was ridiculous - of course the attack coincided with an anti-gold propaganda campaign by the MSM. It couldn't be more obvious what is going on here. Once the general public becomes aware of these shenanigans the jig is up, hello hyperinflation!

  12. Metal markets were originally designed to sell metals to the highest bidders. Now it's a casino. You buy paper Silver with no hope of redemption unless you invest massively. This game should be played else where. Owning physical will trump this charade in a few more months. All that will be left in the market will be the paper casino. That's when the real fun will start.

  13. Assuming that it is the Fed behind the JPMorgue, they will have no problems whatsoever with margins, just a matter of more QE. In any case, they feel absolutely no pain because it is not their own hard earned money. There is nothing to stop them from selling another million paper contracts to drive Silver down to 50c (OK, I'm exaggerating) to kill all the paper longs. The best way is to buy physicals, but you would need some decent capital to do that.

  14. Geez, who cares? I assume we are all in this for the long haul. Now if you're playing futures and/or calls or whatever my condolences.
    My PM's are locked away basically forever, or until I want to trade for farmland or something, but these short term wiggles are absolutely meaningless.
    Turd, I hope you can chill. Yeah, BS is BS, but it is what it is.

  15. Big upside surprise in ADP employment number:

    USD rallying. Big move down in PMs next?

  16. Several train wrecks are still in motion: State and local govt finances; housing and commercial real estate; Greece, Ireland, Portugal, Spain.

    China has offered to buy bonds all over the EU. Will it offer to bail out state and local govts here as well? No. China wants to exit from US debt and change the world's reserve currency.

  17. Just talked to my coin dealer. I placed an order for 1 oz. gold maple a week ago which hasn't shipped. They have no gold on hand and are getting slammed with orders. They are supposed to get some gold in today... could the shit be hitting the fan?

  18. down 28.9....

    I will start buying on Monday. Who knows what Blythe is capable of this week...

  19. Your stop used to be 29.5
    Then you said 29.3 and 29.2
    Now Silver is below 29.

  20. 28,6 atm
    USDX is closing to 80,5 resistance which he better doesnt break.

  21. Maybe it's because China is not a BOS but a POS and doing exactly what they did to oil in 2008. F*ck the unknown London trader we hear about all the time.

    Fundos and TA mean nothing in a rigged market. That goes for bulls and bears alike.

    China will push PMs to the emerging market IMF rates(just like they did with oil) when all is said and done which is significantly lower. No one has any balls to stop them.

  22. Yep, Head, we've been overrun.
    Let's hope 28.20-40 can hold.

  23. Dearest Turd any updated post about support levels greatly appreciated!