Gold Surges To Fresh Record Spot Of $1,367.65 On Report China To Put More Reserves Into Gold

Tyler Durden's picture

And so gold takes off, as the CRB index passes 300, with America blissfully unaware $100 oil and 20% U-6 unemployment is next, leading to a total collapse in the economy. The catalyst: Bloomberg reports China to put more reserves in gold. This time gold is flying even as the dollar is not getting crushed, implying that capital flows are not simply "gold on, dollar on." The surge in gold is once again making relative stock gains for the day priced in gold negative. With nobody daring to actually short stocks on fear of random buy-ins (such as the one in IWM today) Gold continues to be the way to express a negative bias on stocks, and one which on a pair trade basis has been profitable on any historical horizon basis as gold's "beta" is better than that of stocks.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
poodillynutshot's picture

I heard they make gold out of rocks, is that true?!

Sudden Debt's picture

No No!

The FED puts it's gold INTO rocks, so it's more difficult to steal.

That's why when they would audit the FED for it's gold, the FED can show the auditors the place where they would need to mine those rocks out of which they can extract the gold.

Best security system in the world...

 

dlmaniac's picture

I was wondering why gold took off on 10Y auction day. Let's see what happens tomorrow on 30Y auction. Maybe the rest BRIC will declare to join the happy "US Dollar hunting" ride.

Tense INDIAN's picture

actually the chinese caught the US making GOLD from tungsten

dlmaniac's picture

Yesterday Truman was proposing about selling all US gold. Now China dragon is openning their mouth ready devour whatever amount of gold they dare put on the market.

oddjob's picture

That is true,but it takes much less time,effort and resources to make fiat money from dead organic material.

GoinFawr's picture

"I heard they make gold out of rocks, is that true?!"

Moonrocks, I think, according to the chart anyway...

 

SWRichmond's picture

Gold continues to be the way to express a negative bias on stocks

...except miners

:)

 

Jake Green's picture

The dow is 11111.11

is that some kinda sign to their illuminati friends?

Sudden Debt's picture

The target for the DOW is 14140.

Then it will become clear Benny B. is doing a dutch joke on the maket.

A dutch Calculator spelling joke. It's also used in other languages. 

In Dutch is 707 + 707 = 1414. In calculator spelling this is LOL + LOL = hIhI. The word LOL means fun

TheDriver's picture

Indeed. Among others, USSIF.PK has kept me smiling for the last three months.

John McCloy's picture

My ears are bleeding from having to listen to Maxine Waters on CNBC. Did they bring her on simply to prove how incompetent our representatives are?

Yikes's picture

I saw the promo last night about her plan for Foreclosures.  I almost puked.  What'd she have to say?  Wait, let me guess.  The poor people need to be forgiven these loans.  Socialism baby!  Am I close?

bigdumbnugly's picture

you MUST take evasive action beforehand, john.

you can either poke your eardrums out with a sharp stick - or crank up some metallica.   i always choose #2 here...  win - win.

Cdad's picture

No, they brought her on for electoral reasons.  But my ears are bleeding too...because she actually made a good point...one the media continues to try to cover up...systemic fraud...but my bleeding is increasing because she, Waters, is also guilty of fraud.

Wait...I should just say "Rome."

You know what...never mind...WFD!

Dagny Taggart's picture

Why do ya'll torture yourselves with CNBC? Although others too drink kool-aid , less pain from Bloomberg or FBN? At least we see Reggie and get Gasparino bankster gossip. I still flip over for Santelli rants near closing.

Calculated_Risk's picture

Those channels cost extra $ where I'm at.

 

espirit's picture

We that are able don't watch it for the disinformation, we watch it for tantalizingly tight sweaters. lol

Lets Hang Parliament's picture

Dagny

Atlas Shrugged....deja vu or what?!!

John Gault

 

michigan independant's picture

defiant Maxine Waters disputed charges that she violated House ethics rules and released documents Friday that could undercut the complaint that the 10-term California Democrat sought federal money to bail out a bank where her husband owns stock. http://www.msnbc.msn.com/id/38691762

Worthless individual indeed. They have been dismissed since NAFTA to local affairs only and that person is the poster child on why they are Pets on a leash. There are still two related categories of Genuine Globalists: Internationalists, whose ranks are filled with "political bureaucrats" whose activities include "forging legal agreements and pacts between nations and, increasingly, between blocs of nations"  and Transnationalists, "money men and company men who operate at a certain rarefied level"  Genuine globalists, unlike Provincial and Piggyback globalists, have their own institutions to advance their agenda: financial institutions like the International Monetary Fund (IMF), trade agreements like the General Agreement on Tariffs and Trades (GATT), and international political organizations like the United Nations.

Yikes's picture

Damn, that snowball is getting big.

Dixie Normous's picture

The 3 month chart on Gold is awesome.

Dixie Normous's picture

Dude, you need a disclaimer of some sort:

Caution: My charts and trendlines may cause Acid flashbacks, even if you've never taken Acid.

MsCreant's picture

Nah, no flash back. That was an epileptic seizure. 

99er's picture

I swear...I never inhaled.

Cognitive Dissonance's picture

I did......and that was some good shit man.

Don't bogart that joint.

http://www.youtube.com/watch?v=V6yMj0JGLWs

 

boricuadigm-shift's picture

"Don't bogart that Gold, my friend, Pass it over to me"

 

Thanks for the education CD.  :-)

Miles Kendig's picture

:D  You're still smokin' after all this time.  Just please don't resort to pickin' produce...

http://www.youtube.com/watch?v=J2ue8z6gGpI

Low n slow is the way we go..

http://www.youtube.com/watch?v=0O5Q9tYJaHs

Cognitive Dissonance's picture

Lots of good times "wasted" with Cheech and Chong.

Ah, the good ole days when you weren't so worried about getting buggered by the government and its masters.

Miles Kendig's picture

No shit.  Even if their pacemakers are under recall and their wheelchairs are supported by those ninja arms...

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

Sudden Debt's picture

So true :)

Your shart makes me see the same stars after being hit in the face by Tycon

Temporalist's picture

When I figure out what a Tycon is I will know wheter to laugh or not.  Although calling that chart a shart is perfect.

Calliope22's picture

It is an extended spoonerism ;-)

Cvillian's picture

Ask and you shall receive Turd Ferguson. TD, has anyone ever asked that you put the same "home, DARPA, contributors...." navigation pane at the bottom of the screen? Would be an easy way to get back to home page after one reads the comments section...

Cvillian's picture

Cheers. Learn something new every day.

Sudden Debt's picture

I've got another one for you:

Press all those key at the same time:

CTRL-P-ALT-R-T-F5-SPACE-ESC-SHIFT+*

UGrev's picture

Mouse gestures plugin. Seek one for your browser. A swipe left with the mouse and you go "back". 

Pladizow's picture

Suspicion towards a currency, one awekend, develops insomnia. - James Dines.

truont's picture

Why would China signal that they are going to increase their gold reserves?  Why didn't they just buy gold on the sly and then inform the markets once they were done (as in 2009)?

I think they just want to kick the FED in the nads, and this is one way to do it.

How does it feel, Benny?

Yikes's picture

HEH.  Has a ring of truth.

apberusdisvet's picture

Especially since the FED has been giving the manipulators the cash to support the short positions.

Sudden Debt's picture

The FED is armtwisting Obama to sell all the gold, so China says:

GIME GIME GIME!