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Build In Oil Inventories Leads To Plunge In... Gold

Tyler Durden's picture




 

Exhibit A in Efficient Market Theory. A few minutes ago the DOE released its crude oil inventory data for the Week of March 25. With Crude inventories expected to decline from 2,131K to 1,500K (you know the whole economic improvement thing and what not), instead we got a build to 2,945K, with Cushing surging from 177K to 1,689K. What would one expect should get killed on this data? Oil right? Yet below we get a glimpse of what mega leveraged and ultra trigger finger happy correlation desks trade like these days.

So let's get this straight: a surge in crude, which implicitly means the economy is slowing down as everyone realizes, and which means the Fed will likely have to step in again soon, is bearish for gold?

 

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Wed, 03/30/2011 - 10:44 | 1116846 LawsofPhysics
LawsofPhysics's picture

BTFD

Wed, 03/30/2011 - 10:51 | 1116885 SheepDog-One
SheepDog-One's picture

Pass me some more crazy pills, if enough are swallowed, maybe we can come full circle to sanity land.

Wed, 03/30/2011 - 11:05 | 1116936 Cdad
Cdad's picture

Nope Dog,

You'll arrive at a unicorn ranch...which can be fun.

As for gold plunging as a proxy for oil, while another Apple analyst commits credibility suicide upgrading the thing as margins collapse faster than the supply chain, causing the stock to fall as the NASDAQ rises [even though Apple is 25% of that index], while casual diners rise despite massive off loading of shares...which is curious...ummm....

Yeah, give me some more pills too and we'll ride unicorns this afternoon....K?  Let's see if Bob Pisani wants to join us...cause I'm sure he is very excited.

Wed, 03/30/2011 - 11:23 | 1117022 66Sexy
66Sexy's picture

Fuck this fake economy.

I used to trade, now i am 'opting out'.

I no longer choose to participate. I would rather lose my money chasing pipedreams in vegas than buy at these levels.

Have fun, or fuck it.

Wed, 03/30/2011 - 11:31 | 1117084 Cdad
Cdad's picture

When a market rewards the last and worst trader of the day, each and every day, it is no longer a market.  It is officially a Ponzi scheme.  So should the morons rush into shares of  Chipotle or Apple today, and should they be carried to profits by the close yet again, you will then know what the condition of the market is.

It isn't a market.  It is the wasteland that Ben Bernanke made when he printed our dollars into oblivion and gave them to J. Dimon and L. Blankfeind and such...because Ben still detected that subprime mortgage paper was still deflating, and this after the first TARP bailout of the banks did not work [because bankers sopped it all up playing stock market and taking huge bonuses].  Ponzi freakin' wasteland!

But what are you bitching about?  We're all meeting at the unicorn ranch today.  Chin up, dude!

Wed, 03/30/2011 - 11:32 | 1117092 TruthInSunshine
TruthInSunshine's picture

A unicorn ranch!

Why didn't I think of that?

My only apprehension is that they eat skittles, and those have really gone up in price because of The Bernank & The Quantitative Easing.

Wed, 03/30/2011 - 12:03 | 1117308 Cdad
Cdad's picture

Brother Truth,

Skittles?  Really?  I thought unicorns ate Ipads...which are getting cheaper all the time, I am hearing....not that Apple shares know this.

Skittles?  Man, nothing is going right today.  Surely some more easing would fix things....OR...

100,000 bankers fired out of NY, NY...a thinning out of the criminal syndicate known as Wall Street.

But what do I know...this is my first trip to the unicorn ranch, and I am not a "preferred" banker...so, you know, it doesn't matter what I think.

Man...I miss shopping stories.

Wed, 03/30/2011 - 12:55 | 1117599 TruthInSunshine
TruthInSunshine's picture

I tried feeding them iPad, because it was cheaper than skittles, but the meat had more gristle. They thrive on skittles and earl grey.

Oh, and I agree with you about that whole Wall Street Epic Criminal Racket comment. But for now, the sheeple are buying lots of iPad with their UE and non-payment of mortgage money.

So it's good for the next couple weeks, or months, or however, until it's not, at which time it will be very, very dark.

Wed, 03/30/2011 - 12:08 | 1117331 Carl Spackler
Carl Spackler's picture

I've been raising unicorns on my farm for some time.

Having a problem keeping their horn on, though.

Hmmm. Maybe I should be feeding them some QE3 mix instead of grass and grain.

Wed, 03/30/2011 - 13:24 | 1117755 LooseLee
LooseLee's picture

Bob Piss-On-Me: leading establishment conformist shill at the NYSE for cnbc. What a disgrace!

Wed, 03/30/2011 - 20:35 | 1119677 StychoKiller
StychoKiller's picture

He also defiled a Shao-lin temple, go kick his @ss, LooseLee!

Wed, 03/30/2011 - 11:01 | 1116910 the mad hatter
the mad hatter's picture

BEN SHALOM BERNANKE: motion is seconded.

BALIFF: all in favor say 'aye'

TREASURY SECRETARY GEITNER, PRESIDENT OBAMA, MIDDLE CLASS TRYING TO PROTECT THEIR SAVINGS: 'AYE'

BALIFF: all who object say 'nay'

DUMBASS TRADER WHO DIDN'T GET MEMO AND STILL BELIEVES IN FUNDAMENTALS: 'nay'

JUDGE JOE BROWN: IT IS SO ORDERED, BTFD.

Wed, 03/30/2011 - 10:46 | 1116849 alien-IQ
alien-IQ's picture

and now the DXY appears to be following suit and taking a nose dive.

perfect...just....fuckin...perfect.

Wed, 03/30/2011 - 10:45 | 1116855 CitizenPete
CitizenPete's picture

Awesome, BTFD

Wed, 03/30/2011 - 10:45 | 1116856 TruthInSunshine
TruthInSunshine's picture

These are the schizophrenia markets, because you'd have to be schizophrenic to think that there's any correlation to reality -

- whatsoever.

Wed, 03/30/2011 - 10:55 | 1116896 rocker
rocker's picture

CNBC ask today: What will it take to get regular investors back in the market? 

Does the public understand it is a rigged game to take their money.  Yup !

Wed, 03/30/2011 - 11:14 | 1116986 NotApplicable
NotApplicable's picture

All regular investors are now investing in the supermarket.

Wed, 03/30/2011 - 12:47 | 1117553 Mr Anderson
Mr Anderson's picture

Didn't mean to junk  you, my apologies.

   The I phone did it I swear

Wed, 03/30/2011 - 10:45 | 1116857 ms1408
ms1408's picture

This is just manipulation to discourage future/options holders from standing for delivery.

Wed, 03/30/2011 - 10:47 | 1116858 aVian
aVian's picture

more games

Wed, 03/30/2011 - 10:47 | 1116863 RobotTrader
RobotTrader's picture

My condolences to Jim Puplava, Eric King, and Chris Martenson.

Retail index now printing new highs, while gold and oil get slammed.

Wed, 03/30/2011 - 10:49 | 1116872 SheepDog-One
SheepDog-One's picture

LOL, Catfishmouth drama queen wildly exagerates a PM holder total drubbing, while reality shows PM's are still up for the day. 

Wed, 03/30/2011 - 10:56 | 1116907 rocker
rocker's picture

The TBTF and the HFT's are pushing all the scumbag banks up today. Check out FAZ. Whoooooooo.

So the rigged game continues.

Wed, 03/30/2011 - 11:34 | 1117096 DoChenRollingBearing
DoChenRollingBearing's picture

The bots have gone crazy!  No humans are left in equities!

Gold?  Yes, BTFD.

Wed, 03/30/2011 - 11:04 | 1116913 El Hosel
El Hosel's picture

   Gold has been bouncing around $1400 since last fall, BFD, BTFD.

 Gold is up 200% versus the RTH since 2005

 

Wed, 03/30/2011 - 11:01 | 1116926 alien-IQ
alien-IQ's picture

Robo...what the fuck happened man? You used to provide interesting posts with some occasionally valuable insight...but lately, you've become this piggish troll whos post add about as much value and content as Harry Wagner.

it's sad to see.

Wed, 03/30/2011 - 11:07 | 1116955 Robot Traders Mom
Robot Traders Mom's picture

Are you serious? he has always posted some dumb chart from yahoo finance showing the 1 month gain in some fraudulent tech stock. I would hardly call that valuable.

Don't encourage him. He is a 20 year-old punk who has no money to invest and no job. That is why he trolls.

Wed, 03/30/2011 - 11:34 | 1117097 Ethics Gradient
Ethics Gradient's picture

There are, of course, other possibilities.

Wed, 03/30/2011 - 11:08 | 1116961 Spalding_Smailes
Spalding_Smailes's picture

Because when he post solid info the doomer sect like sheep dog ect .... Blast him every single time for bringing another viewpoint. So its real fun to rub this shit in said faces.

All the doomer's ignore the fortune 500 like Cat, Mcd's, Pepsi ect ..... Stupidity.

Wed, 03/30/2011 - 11:11 | 1116981 SheepDog-One
SheepDog-One's picture

Aw the Smailes kid is defending his pal Catfishmouth, thats sweet.

Wed, 03/30/2011 - 11:18 | 1117016 Spalding_Smailes
Spalding_Smailes's picture

Nice none answer ..... 

 

Got CAT ?

Got Flour ?

Got Pepsi ?

Got Macy's ?

The back bone of the USA is getting stronger, no more depression, the credit implosion was 3 years ago but you still run around like a fool yelling bloody murder .....

Wed, 03/30/2011 - 11:26 | 1117069 El Hosel
El Hosel's picture

   Smails,

Is an economy being propped up by trillions of dollars a sign of strength? Lets stop Gov interfering in all the markets and see who yells bloody murder. 

Wed, 03/30/2011 - 11:34 | 1117112 Peterpaul
Peterpaul's picture

Don't forget MO! What's more American than home grown tobacco?

Wed, 03/30/2011 - 11:27 | 1117064 Robot Traders Mom
Robot Traders Mom's picture

I actually like reading your posts, as much as i disagree because you bring some good arguments into the mix.

Robot doesn't do any of that. He posts a stupid fucking chart of Apple and says something dumb about how the ipad2 has exceeded even his demand. That is what trolls do.

Wed, 03/30/2011 - 11:35 | 1117120 TruthInSunshine
TruthInSunshine's picture

Smailes brings good arguments into the mix? Really?

The back bone of the USA is getting stronger, no more depression, the credit implosion was 3 years ago but you still run around like a fool yelling bloody murder

Ahhh, no.

Wed, 03/30/2011 - 13:16 | 1117724 Bay of Pigs
Bay of Pigs's picture

+1

Spalding's sense of reality is distorted. He still can't/won't acknowledge the eleven year bull run in gold. His arguments are weak and off base when it comes to PM's.

Robo's personal attacks on those gentlemen is utterly laughable. 

Wed, 03/30/2011 - 11:57 | 1117276 DosZap
DosZap's picture

Spald,

 No we do not ignore them, it's just that alll their profits are in offshore banks, and in offshore workers pockets.Because their products are made everywhere except HERE.

They may as well not even be here for the few that remain on the American payrolls.

It's that, and their exports that are making them profitable, it's not coming back at us,or to us.

Wed, 03/30/2011 - 12:47 | 1117566 Mr Anderson
Mr Anderson's picture

Unless you happen to own stocks of said companies.

Wed, 03/30/2011 - 11:16 | 1117000 Gold 36000
Gold 36000's picture

No way!  Gold is going to 36000.

 

This is a new era.  This time it really is different.  The old rules don't apply anymore!

Wed, 03/30/2011 - 12:06 | 1117334 Millivanilli
Millivanilli's picture

robottrader, you are a true shit fur brains kind of dude, but I like your girly pics!

Wed, 03/30/2011 - 10:48 | 1116867 lizzy36
lizzy36's picture

Perhaps gold/silver is telling us that there will be NO QE3 in 2011. 

Wed, 03/30/2011 - 10:55 | 1116898 Dr. Richard Head
Dr. Richard Head's picture

Short term action in this heavily shorted, naked albeit, silver market is not telegraphing anything regarding QE3.  Long term trend is another story.

You know what would happen without QE3 right?  Something about the inverse relationship between bonds and interest rates might give you a clue.  Again, what is that % of debt servicing as it relates to GDP?  Hmmmmm.....

I wish there would be no additional QE at this point. It would be nice to hear the music stop as I alrady have my seat.

Wed, 03/30/2011 - 10:50 | 1116876 smeagol
smeagol's picture

from the plunge on the chart, watching in realtime, I thought world peace had just been declared. I BTFD

Wed, 03/30/2011 - 10:50 | 1116878 bob_dabolina
bob_dabolina's picture

I think higher inventories is extremely bullish for everything.

You see, Bernanke sees this and figures more QE will be needed.

Wed, 03/30/2011 - 10:52 | 1116880 Yardfarmer
Yardfarmer's picture

after years of watching the charts, I personally have observed that if there is to be one, a PM smackdown consistently takes place with unfailing regularity at 10:00 a.m. eastern time. i fail to see how this has anything to do with the supply of oil. please enlighten me.

Wed, 03/30/2011 - 10:53 | 1116892 SheepDog-One
SheepDog-One's picture

Yea its just more random BS as usual. People trying to link 1 minute snapshots of insanity to another are in for a lot of brain damage.

Wed, 03/30/2011 - 11:18 | 1117009 NotApplicable
NotApplicable's picture

10 AM EDT = 3 PM London = Afternoon gold fix.

Question is, do the attacks come before, during or after the fix?

Wed, 03/30/2011 - 12:02 | 1117303 DosZap
DosZap's picture

After,Londons close is the deathknell 9 of 10 times.

Just like after the US Mkt closes(when you cannot buy except w/charge cards), the bottoms are made.

Wed, 03/30/2011 - 10:52 | 1116883 ufamizm
ufamizm's picture

Just painting the quarterly tape. 

Wed, 03/30/2011 - 10:52 | 1116886 chinaguy
chinaguy's picture

gold's down -0.01% for the day...this is a plunge?

Wed, 03/30/2011 - 10:56 | 1116903 SheepDog-One
SheepDog-One's picture

Yea really, and people are shocked by a manipulation event in the totaly manipulated markets? People living on the edge of their seat minute to minute in this Ponzi are in for a lot of brain damage.

Wed, 03/30/2011 - 11:05 | 1116953 FastBoat
FastBoat's picture

Yeah, plunge seems a little strong doesn't it.

Wed, 03/30/2011 - 14:47 | 1118219 MrSteve
MrSteve's picture

Whoa dude! Way worser than a plunge, its a WIPEOUT- cue the Surfaris, NOW!

Days like today are when you tell your friends about buying gold and looking into what an old junk silver quarter is fetching, in paper certificates, by way of an illustration.

 

Wed, 03/30/2011 - 10:57 | 1116897 zeek
zeek's picture

gotta love Will... a classic clip that is not to be forgotten, especially given the state of the world today...

thanks for the laugh!

Wed, 03/30/2011 - 10:54 | 1116901 romanko
romanko's picture

I think our evil masters are pounding gold so that the london pm fix hits below 1420, or unchanged for the month/quarter, this being Mar 30th. They're painting the tape.

Wed, 03/30/2011 - 13:20 | 1117745 DosZap
DosZap's picture

roman,

yes they are, they know there are enough fools out there that will sell their physical at the drop of a hat.

And that's exactly what they are setting us up for.

Cept, I do not buy it.

IN many ways we are so much worse off than '08, it's unfathomable, not just US, and there is only the light at the end of the tunnel, and it's a TRAIN.

Wed, 03/30/2011 - 10:56 | 1116902 SDRII
SDRII's picture

Oil inventory data is to WTI what consumer confidence was (has been) to the equity info campaign

Wed, 03/30/2011 - 10:55 | 1116904 Innocent Bystander
Innocent Bystander's picture

oil priced in gold = oil priced in $, follows oil demand goes down >oil price goes down is $ >oil priced in gold should go down? so gold goes down.. just asking

Wed, 03/30/2011 - 11:08 | 1116964 guilty bystander
guilty bystander's picture

Hi alter-ego :)

Wed, 03/30/2011 - 11:15 | 1116993 Innocent Bystander
Innocent Bystander's picture

There you are ...finally !

Wed, 03/30/2011 - 11:35 | 1117111 guilty bystander
guilty bystander's picture

Aye, been reg'd for a while but never felt compelled to post anything. Love the site though, visit daily.

Wed, 03/30/2011 - 11:44 | 1117136 I Am The Unknow...
I Am The Unknown Comic's picture

ummm, will we be invited to your wedding?  I know that the Queen of England said through the English embassy in DC that the reason why the Obamas (B and M) were not invited is because the wedding is considered a "family affair" with a guest list limit of 1,900 people.  Wow...and I thought Mexicans had big families!  

So, anyway, if you two have fewer than 1,900 people in your collective multiple psyches/personalities and relations, could we at ZH all be invited...at least in our minds?

Wed, 03/30/2011 - 10:57 | 1116905 Long-John-Silver
Long-John-Silver's picture

Demand Destruction Bitchez!

 Remember the Staycation Summers of 2008 and 2009? The Tourist Industry nationwide took a huge hit, and it's back for 2011. Double Dip will be most talked about event in 2011. Too bad for the Redneck Riviera. Last year was a disaster due to the BP oil spill and Staycation 2011 will finish them off.

Wed, 03/30/2011 - 11:03 | 1116941 TruthInSunshine
TruthInSunshine's picture

I am thinking of buying some 'reduced' gulf front property so that I can extract oil from the beach & do some slant drilling.

Wed, 03/30/2011 - 11:11 | 1116983 Gold 36000
Gold 36000's picture

you better buy now because these deals are going to be gone soon.

Wed, 03/30/2011 - 11:16 | 1117011 Long-John-Silver
Long-John-Silver's picture

No. Real Estate in Florida continues to plunge even as they increase property taxes in a failed attempt to keep tax revenues level. Death Spiral is a fitting description.

Wed, 03/30/2011 - 11:39 | 1117134 TruthInSunshine
TruthInSunshine's picture

you better buy now because these deals are going to be gone soon.

You sound like a Realtor.

The real deals are 20 to 30 months away, friend-o. Maybe longer.

 

Wed, 03/30/2011 - 11:12 | 1116988 Long-John-Silver
Long-John-Silver's picture

Florida is so regulated you must get a permit to put in flowers.

Wed, 03/30/2011 - 12:58 | 1117621 TruthInSunshine
TruthInSunshine's picture

That is definitely true.

And I apologize for calling you a Realtor. I rarely lose my cool like that.

Wed, 03/30/2011 - 11:12 | 1116977 Gold 36000
Gold 36000's picture

There are some amazing property deals in florida and the gulf coast if you can pay cash.  Houses selling at 80 percent discounts.  Some of them may need a little work, but a 200,000 house selling for 40,000 can easily justify 20,000 in repairs and still be a great investment.  It only cost one guy I know 15,000 to rewire and replumb a house, and then he did the drywall himself.  Otherwise it might have been another 4000.   Anybody can learn to drywall after watching a youtube video.  I will take a 200,000 five year old house for $60,000 fully refurbished anytime.

Wed, 03/30/2011 - 11:00 | 1116911 Sandy15
Sandy15's picture

If everyone bought one contract of gold, it would squeeze the Bernack's shorts that he puts on gold and silver.

 

Funny how the dollar went down too.  Normally gold goes opposite the dollar.

Wed, 03/30/2011 - 10:59 | 1116912 trav7777
trav7777's picture

Cushing inventories are mostly irrelevant to world oil prices; this suggests that the spreads will remain wider than typical.

Shutdowns due to Japan and trade disruption will not be unnoticeable.

Wed, 03/30/2011 - 11:30 | 1117076 LudwigVon
LudwigVon's picture

True, world oil price is ref off Brent. 

No the shutdowns were not unnoticeable to the Japanese, as they were limited to ~5gal per car. I guess you can only drive so far from radioactive lava when you are on an island anyway.

 

Wed, 03/30/2011 - 11:00 | 1116916 tempo
tempo's picture

Increased uncertainities likes surging long term interest rates ($usb), out of control deficits, Germany/EU in disarry, Japan's unresolved nuclear issues, lack of real economic growth/employment, China's bubble, and higher food/fuel inflation will push gold prices higher.  Gold miners will outperform.

Wed, 03/30/2011 - 12:53 | 1117591 Mr Anderson
Mr Anderson's picture

Already been priced in

Wed, 03/30/2011 - 11:00 | 1116917 chistletoe
chistletoe's picture

Seems to me like a lot of readers on this website

have grasped the significance and utility of purchasing and storing tangible goods,

gold, silver, non-perishable food, and what not.

Why is it such a surprise, then,

if other people, who happen to have access to large fuel tanks and lots of cash or credit,

are purchasing and storing large amounts of oil?

Wed, 03/30/2011 - 11:04 | 1116934 SheepDog-One
SheepDog-One's picture

Yep, well the problem comes when you want to turn around and sell it. Unless those folks just like keeping tanks of oil around.

Wed, 03/30/2011 - 11:08 | 1116958 Gold 36000
Gold 36000's picture

that is the key!  We have a lot of hoarding going on in anticipation of inflation.  When real inflation never materializes, just the slow drib and drab of 3 percent YOY at best, then all these people are going to try to sell, or they will just start digging into their hoarded pile of food and coffee.  An either case you have a supply demand mismatch that favors deflation.

Wed, 03/30/2011 - 12:58 | 1117618 Mr Anderson
Mr Anderson's picture

Question-

Doesn't anyone know what percentage of Americans have hoarded gold/silver?

Doesn't anyone know what percentage of Americans have hoarded food?

Doesn't anyone know what percentage of Americans have hoarded fuel?

Hoarded is the wrong word, how about hedged against inflation.

 

Wed, 03/30/2011 - 13:26 | 1117781 Bay of Pigs
Bay of Pigs's picture

1-2% tops...

Wed, 03/30/2011 - 10:59 | 1116919 RobotTrader
RobotTrader's picture

It is possible that oil could rise further from here after this correction is finished.

But that will be because of exponential global growth in consumer spending, as evidenced by today's breakout in the retail index.

Wed, 03/30/2011 - 11:24 | 1117051 LudwigVon
LudwigVon's picture

;)

But that will be because of exponential global growth in consumer..

lol

Wed, 03/30/2011 - 11:41 | 1117150 DoChenRollingBearing
DoChenRollingBearing's picture

In South America, retail IS exploding!

Here in Lima (Peru), it´s no longer a joke to say there is a Starbucks on every corner.

Let´s see how Peru and Brazil do if / when Chinese and Japanese demand for base metals goes adios...

Wed, 03/30/2011 - 11:01 | 1116920 treemagnet
treemagnet's picture

Am I the only one that thinks everyday is getting more out of synch with the underlying reality?  I'm not surprised by anything anymore.

Wed, 03/30/2011 - 11:04 | 1116921 Spalding_Smailes
Spalding_Smailes's picture

This is just the opening act .....

 

You can blame the EE, Blythe, Opec, Sheen, Haarp,Computer algo driven markets ... whatever ..... Gold is going down and Turd and the doomer sect will be wiping said egg whites of said face for months .... After the middle east shit blows over and they stop QE it will be a bloodbath in the commodity space.

Gold has done shit since Oct 20th, nothing, so the only way to make money is trading miners, etf's and options and over that 5 month span that has been a fools errand .... All this talk about wealth preservation is bullshit 95% of the people on ZH are trying to make money, period.

Wed, 03/30/2011 - 11:17 | 1117012 Richard Head
Richard Head's picture

Good for you, I really hope you're putting your money in robot trader's stock tips. 

Wed, 03/30/2011 - 11:23 | 1117024 Internet Tough Guy
Internet Tough Guy's picture

You were more entertaining when you just pumped AIG.

Gold isn't a fly by night chinese internet stock. Smart people don't measure their wealth in yo-yoing bubble fiat currency.

You and MoMotrader aren't smart people.

Wed, 03/30/2011 - 11:24 | 1117059 NotApplicable
NotApplicable's picture

There are no such things as traders in a rigged casino, there are only marks who believe they know better and can time/front-run the trades, and there are rubes who do not realize that they are in a casino.

As for your forecast, well, all I can say is bravo, Johnny!

Wed, 03/30/2011 - 11:30 | 1117086 Spalding_Smailes
Spalding_Smailes's picture

I have tossed out more 20-30% stock runs on ZH then anyone else ...... Not buy and hold, buy sell after 30% then run. 

X,RIMM,ZEUS,XOM,JOBS,GLUU,TTWO,AIG,MPEL,IMAX,NVDA,ARMH,SPRD..... ect ....

 

I would grab Tata Motors ..... TTM it's a steal at this price and you can hold that for years in your IRA.

Wed, 03/30/2011 - 12:23 | 1117430 tmosley
tmosley's picture

You time those markets, driver.

Also, your lips are moving.

Wed, 03/30/2011 - 13:07 | 1117666 Mr Anderson
Mr Anderson's picture

Mosley,

I respect your intelligence on this formus.

Would you say that those who buy physical are about wealth preservervation, while those that buy ETF's, Options, etc are about making money.

Wed, 03/30/2011 - 11:51 | 1117227 firstdivision
firstdivision's picture

Your argument has several gaping holes.  First is the ME.  Give me a time when the ME was never a powder keg?  Second, your assumption that gold will collapse due to QE ending.  Once QE ends, the next step is to raise rates.  What do you think will happen when rates go up?  Also in an earlier statement you made the allusion that the credit problems were so 3 years ago and did not pose a problem now.  Nothing was done with the problem derivatives, and to add fuel to the bomb, even more derivatives have been written. 

Wed, 03/30/2011 - 11:03 | 1116925 I Am The Unknow...
I Am The Unknown Comic's picture

personal nuclear meltdown....all fundamental investing models and theses breaking down....danger Will Robinson....

Before I bug out, will somebody, anybody, even with the most asinine explanation available....just anything, really.....I'm grasping for straws here....PLEASE 'splain to me how it is at all fucking possible that oil, the dollar, gold, silver, and the euro all tank at the same time?  The yen obviously did not spike upward.  What was it....did the Zimbabwean dollar spike?  WTF??? 

Update:  wait wait wait wait wait just a second, I think I may have it figured out....is the Fed experimentally withdrawing liquidity again today?

Wed, 03/30/2011 - 11:05 | 1116954 romanko
romanko's picture

this is the final battle between the USD and commodities - gold in particular has been targeted because the reserve status of the USD must be defended at all costs

Wed, 03/30/2011 - 13:01 | 1117632 SRV - ES339
SRV - ES339's picture

I tend to agree 'rom', and would take it one step further to treasury auctions (> $100B from Monday to today)... now bringing just about everything else down probably wouldn't hurt the auctions would it... just sayin'.

Wed, 03/30/2011 - 11:07 | 1116957 TruthInSunshine
TruthInSunshine's picture

There's a reason why dozens of (literal) investing legends have closed their shops and returned investor capital in the last 6 months.

Wed, 03/30/2011 - 11:28 | 1117078 NotApplicable
NotApplicable's picture

I consider that to be the biggest "tell" yet. When even the sharks avoid Uncle Ben's chum, one has to wonder why.

Wed, 03/30/2011 - 12:35 | 1117510 viahj
viahj's picture

PDs had to dump their commodities to raise cash to purchase the 7yr auction today because no one else would...?

Wed, 03/30/2011 - 11:02 | 1116927 Clint Liquor
Clint Liquor's picture

The whole Keynesian economic model is acting like a wounded animal in it's death throes and investors are seeking correlations and predictability?

Wed, 03/30/2011 - 11:06 | 1116948 SheepDog-One
SheepDog-One's picture

Im not even attempting to make any sense of the insane 100% manipulated 'markets' and economic data...when its rigged its rigged and no need to worry about it! 

Wed, 03/30/2011 - 11:03 | 1116929 Goldenballs
Goldenballs's picture

Any official organisation cannot be trusted,they are all scum,time to look after oneself the world is f****d as each swing becomes more violent,normality becomes total instability.

Wed, 03/30/2011 - 11:03 | 1116931 99er
99er's picture

/ES and /ZB

Decisions decisions...

http://www.zerohedge.com/forum/99er-charts-0

Wed, 03/30/2011 - 11:05 | 1116940 Gold 36000
Gold 36000's picture

Yep just wait.  Deflation is coming soon.  qe2 will end.  Bernanke is getting tired of being laughed at.  He is about to become mean and prove that he is still significant.  We will have deflation soon.  Perhaps after a deflation period QE3 might start up again in one form or another.

 

Gold 36000

Because this time it really is different.

Wed, 03/30/2011 - 11:09 | 1116963 SheepDog-One
SheepDog-One's picture

Deflation in what?

Wed, 03/30/2011 - 11:12 | 1116980 Spalding_Smailes
Spalding_Smailes's picture

The shadow banking credit casino ..... It's not like it was in 2006. Try getting a loan for something over $ 50,000 ....

Wed, 03/30/2011 - 11:14 | 1117002 Cdad
Cdad's picture

Subprime paper, Dog.  Sheesh...lay off the fluoride, brother.

Wed, 03/30/2011 - 11:47 | 1117161 LudwigVon
LudwigVon's picture

I am so sick of people saying there is no deflation. Wake up!!! Prices do not rise and fall in aggregate, they are all INDIVIDUAL. We have price inflation in some assets during a deflationary period with a keen risk of hyperinflation or loss in faith of the currency.

Cumulative Trillion dollar Real Estate complex marked-to-market.

Rental rates.

Business lines of credit.

Auto prices.

Real wages.

Consumer revolving credit.

Timely monthly mortgage payments.

Medium and long duration U.S. paper. 

FRN relative value.

Total jobs nationally.

Total workforce, in persons.

Labor hours worked.

Trillion dollar Derivative complex marked-to-market.

Subprime and option ARM backed paper.

Wed, 03/30/2011 - 11:19 | 1116995 plocequ1
plocequ1's picture

Uhhhh, No. Please dont ask me to explain. Your statment is a big fat NO. QE will continue and thats that.

Sincerely yours,

The owners

Wed, 03/30/2011 - 11:06 | 1116946 campag
campag's picture

for the last 3 years or so anyone trading on fundamentals got run over. please learn !

Wed, 03/30/2011 - 11:16 | 1117008 blunderdog
blunderdog's picture

Gold price volatility?

This is nothin.

Wed, 03/30/2011 - 11:18 | 1117017 tiger7905
tiger7905's picture

Latest comments from Rick Rule on uranium and energy. Says nuclear power can't go away but could be some good buying opportunities. Also see's oil going much higher.

http://goldandsilverlinings.com/?p=393

Wed, 03/30/2011 - 11:25 | 1117050 GFORCE
GFORCE's picture

Golds been a benefactor of inefficient markets on the way up so it's only fair.

Wed, 03/30/2011 - 11:28 | 1117070 Stuck on Zero
Stuck on Zero's picture

Isn't it obvious by now that GS and JPM are operating the Strategic Petroleum Reserve for their own purposes?  The end of the last oil price explosion in 2008 came with a sudden dump of oil from the SPR.  GS and JPM were there ahead of time with the shorts. 

Wed, 03/30/2011 - 11:27 | 1117072 chinaman
chinaman's picture

I am disgusted with the manipulation of PMs. This morning gold was up $13 and the last i saw just now was down $4 to US1414. Fuck those manipulators !! should be hauled up and execute Chinese style...

 

Wed, 03/30/2011 - 11:45 | 1117101 Hephasteus
Hephasteus's picture

Oh noes. We betta tap the strategic oil reserves to keep prices down.

http://www.youtube.com/watch?v=LloIp0HMJjc&feature=related

I see what they are doing. They can't work gold and silver any more so they are doing the concentrated rise and smash on platinum and oil. Probably to drop oil to drop gold.  Probably smash oil and platinum right before options expiration.

http://www.youtube.com/watch?v=Z6hL6fkJ1_k

Wed, 03/30/2011 - 13:17 | 1117730 Mr Anderson
Mr Anderson's picture

Anyone who wants to tap the Stragegic oil reserves, should be arrested and tried as a traitor.

The oil reserves are to protect this country and to ensure we have the oil to produce food to feed the people.

Lets go drain it, then have an economic meltdown. GREAT IDEA

Wed, 03/30/2011 - 11:35 | 1117108 dogismyth
dogismyth's picture

i simply must say....fuck everyone because no one has a clue.  We are all discombobulated.  But I do enjoy the hilarious comments.  The only one that makes sense is....we will soon be deflating....AGAIN!  Buy gold now!  Bahahaha......

 

CONGRATULATIONS.....YOU WON!!

 

This is not a joke!

Wed, 03/30/2011 - 11:46 | 1117171 Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck the Federal Reserve Corporation...!!!

Fuck the USA Goverment.

FUCK the TBTF

SACHS of Fucking SHIT...!!!

There got that off my chest ...AGAIN.

Wed, 03/30/2011 - 11:47 | 1117179 Quintus
Quintus's picture

I see that Crude has now completely recovered all it's losses after the Inventory report.  Gold and Silver have not.

Isn't it remarkable that a correlation can be so very strong in one direction, and so utterly irrelevant in the other?

Sure.  Nothing to see here.

Wed, 03/30/2011 - 12:03 | 1117305 rd
rd's picture

The news sound perfectly bullish for oil IMHO. It makes perfect sense if you consider that speculators are hoarding oil and the more inventories rise the more speculators feel validated and compelled to proceed with their strategy. There's a lot of demand for storage currently and I'm quite sure it will increase further.

As for gold, perhaps speculators are rotating some positions away from it towards oil.

This calls for a bit more investigation. Sounds a bit rash to claim it's a violation of the Efficient Market Theory.

Wed, 03/30/2011 - 14:02 | 1118010 css1971
css1971's picture

Oil correlates directly with inflation. More expensive oil == higher inflation. Higher inflation == higher commodities.

Or to put cause and effect into their correct order. Higher oil prices drive up the costs of producing commodities which drives up inflation figures. Gold hedges inflation, so surplus inventiries means lower oil prices means lower gold prices.

 

Wed, 03/30/2011 - 12:10 | 1117351 eureka
eureka's picture

Ben Shalom and Barrack Hussein....

is the U.S. Unicorn being dragged around the arena

by the squable between jews & arabs...?

Wed, 03/30/2011 - 12:13 | 1117374 treasurefish
treasurefish's picture

Silver is either in a bearish or bullish wedge formation. Unfortunately, I can't tell which one.

http://www.finviz.com/quote.ashx?t=slv

Wed, 03/30/2011 - 12:40 | 1117533 bothsidesnow
bothsidesnow's picture

Close above 37.20 today = bullish.

Wed, 03/30/2011 - 12:55 | 1117593 latizziforchizzi
latizziforchizzi's picture

BTFD!!!!

Wed, 03/30/2011 - 13:00 | 1117623 Die Weiße Rose
Die Weiße Rose's picture


I don't believe those EIA OIL Inventory supply data,

and I reckon the figures are totally rigged,

in order to manipulate world markets -

There are just too many Hedge - funds and private Equity groups having storage tankers and ghost - ships going on time-travel and the figures are just as fake and contrived as

the CPI figures (excluding Food and Energy shit) the employment figures at 8.9% as bad as the dodgy GDP figures that are basically derived from NO sales and huge Inventory overhangs.

The figures are rigged and

the only figure I believe in is Lady gaga's

and the US national Debt at 14 trillion as well as

the growing annual Interest bill on that 14t Debt of 450 billion or so.

The rest is of no interest to me, since it is just pure fantasy, hopeum and make-believe

or else the economy would self-destruct, since the economy is basically

a contrived fantasy of the paper-shuffling ponzi-scheme we call wall-street.

And that is a global trend of course. Yes,we are all America now.

 

We got Earth-quakes, floods, fires ,earth-quakes, nuclear disasters, tsunamies

famine, unemployment, Europe bankrupt, mid-east wars, Revolutions,

death and destruction,yet the markets are doing "better than expected".

Markets and Commodities are going up and up, profits going up and up...who's buying ?

The only thing left holding up the world economy seems to be blue sky, hot air in a

bubbles filled with fantasy and better than expected figures.

It's a rigged global numbers game and the FED is running the Casino,

with the help of the China central totalitarian regime.

The whole world-financial system is as crooked as a corkscrew.

If you expect less than zero than even a hole in the head

might be better than expected.

That's what I reckon...

Wed, 03/30/2011 - 15:17 | 1118375 MrSteve
MrSteve's picture

I reckon the pestilence problem is covered under the radiation poisoning, so you have the Four Horsemen covered.

With a massive inflation in the world's reserve currency, you get a massive world inflation in all the related currencies. Inflation brings instability, so we see governments being changed like underwear and new social tensions boiling over when there isn't enough money to cover the kids' next meal.

 

Confusion reigns because standards like the value of a currency are in flux, usually downward. Since folks can think for themselves but have been conditioned to not do so, they appear to be stupid. When they get hungry, they will figure it all out by chasing whatever bogeyman is put out there for their consumption.

 

There is nothing new about this; check Gibbons and Jared Diamond's works on collapse.

Thu, 03/31/2011 - 01:18 | 1120401 waterdude
waterdude's picture

Lot of zeroes in the deficit? Check out the average "zerohedge" comment trail. Sounds like a group of high-school nerds wingeing when the QB walks by with a cheerleader on his arm. Get over yourselves, chuckleheads! A losing trade means the trader got it wrong and not the market - same as it ever was.

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