Gold Surges To Near $1,250, As Stealthy Flight To Safety Accelerates, Stocks Oblivious

Tyler Durden's picture

As stocks continue to correlate with exactly nothing, and are once again lost in their own HFT dreamworld, which fools Atari in believing the toxic crap it is churning millions of times each second is worth something (and the exchanges gladly continue to pay liquidity rebates for said churn), the capital continues to quietly flow to safety. The EURCHF is now persistently hugging the 1.29 line, which a mere month ago would have sounded like suicide for the SNB, the 2s10s30s is unchanged on the day, as the treasury complex refuses to budge, and lastly, gold, which has surged from $1,234 to almost $1,250, as ever more money is put into safe assets. As usual, stocks (especially the high beta variety) are the last to get the memo. Once they do, the snapback will, as usual, be vicious.

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Voodoo-economist's picture

you could at least mention the rather poor volumes ...

dlmaniac's picture

Forget about gold.


SILVER BITCHEZ!!!'s picture

short bill that is. can't reach my lips. my other b i l l , oh he can definitely reach my lips. hey i picked up the last 6 holes with a psychotherapist. he didn't think i was too nuts, my little pine nut. actually i told him about mythology that i have been learning from U. i think he was intrigued, me too. kiss kiss. goddess of memory, she R O C K s.

so what,

money fore nothing and junks for free.

L losers, i always do the L oser sign on my fore head. fore skin

get it†

mrgneiss's picture

The only thing that makes sense is that your are transmitting secret codes in your posts.  Or you have some seriously strong weed.

mrgneiss's picture

The midget walks with a limp.......

Hephasteus's picture

This is Kathy's flirting technique. She comes on to two people at once all the time. I think she has serious problems making decisions.

mrgneiss's picture

I can tell you right now Heph, I've tried that technique before, and it just isn't productive, your "targets" like to feel like they are "special", and this technique does not engender that feeling.'s picture

oHHHHH my targets definitely feel they are special. like drop to their knees special. U should c o m e by in person, and see how special i could make U feel. oh, it come s natural. i just love engaging myself with some men. damn i got my command x button, i am free again. R U a beaver?

Frank Owen's picture

hey i picked up the last 6 holes with a psychotherapist. he didn't think i was too nuts, my little pine nut. actually i told him about mythology that i have been learning from U. i think he was intrigued, me too.

Intrigued? I bet that is an understatement. I found the perfect avatar for you...

Seriously, get some help.'s picture

frank i am innocent. i am like an angel. goddess angel. i really don't think i need help. U do. your sick, mostly.

GoldenEye's picture

GCU10.CMX shows a high of 3,401.50 today whats up with that?

tmosley's picture

It did that yesterday too.  Probably just a glitch.

Spitzer's picture

I am not liking the "flight to safety" title.

Flight to reality or flight to money would be better.

flight to capital....

flight to highly concentrated wealth...

silvertrain's picture

And Silver is right in tow..

NoBull1994's picture

Silver isn't "in tow" it is up 2x the percentage as gold is....

JLee2027's picture

My Gawd, silver is acting like....


money. Can it be?

BlackChicken's picture

Yes it can...  It always has been money; just don't ask the 'professionals' as they will tell you it is just an overbought commodity.  They want your hard earned buying power locked up in little green coupons that they can debase and erode at will.

BlackChicken's picture

Exactly..nice link Joe.

I loved this line at the end: "A family should probably have the equivalent of 1400 ozt. silver or 1400 grams of gold (45.0 ozt), or a combination to make it through the first year of a currency collapse as a minimum."

When I read that I giggled, there is not enough silver above ground to do this for the people living in most states in the US, let alone everyone.  Checkmate.

Here is another link backing this up in a similar but different approach:

tmosley's picture

Must be a hell of a spendthrift if $60,000 of gold is only enough to get through the first year of a collapse.  That amount seems more like one would spend to buy your whole neighborhood and wall it off as your own little duchy.

bronzie's picture

less than 1 oz of real silver available for everyone on the planet - and I've got at least three ounces so two of you don't get ANY!!!

monmick's picture

Actually, silver is leading the way...

AR15AU's picture

Me too...  core position in phys metal of course...  but took this gamble last week and its doin good.


thesapein's picture

Indeed, just as it should be.

DavidPierre's picture

For many years it was argued that silver could not be manipulated for any length of time because the market would seize any discount created and trap the shorts. Instead,  many people discounted that any supply imbalance could exist and chose to accept estimated production and inventory numbers that were widely inflated to explain the low market price for silver.

It should be noted that it was mostly smaller speculative interests on the long side for silver. Since the Hunt Brothers were made an example of in 1980 the larger buyers have been discouraged from taking a position in silver.

Buffet made a temporary splash to get in the silver market on a large scale but then he too mysteriously sold out early in the move and for an investor with his legendary skills, one must wonder what may have gone on behind the scenes to prompt him to abandon what has since been a profitable move higher.

On the short side, there is no room for debate. Large players have been active to amass a huge position that is far greater in magnitude than the interest accumulated by the Hunts in 1980. Yet no regulatory enforcement has been directed against those short.

And for the actual consumers of the metal, there will not be any complaints with a low silver price nor any reason to rock the boat or end the manipulation. Lower silver prices are great for industrial consumers that face narrow margins in an inflationary environment.

We have mostly smaller players that want to see silver go higher, and a large entrenched opposition that operates with the blessing of a biased regulatory agency to dictate the terms of the market action. Is it any wonder that silver has been contained in price even as the supply contracts?

The low silver price for many decades has acted to limit exploration and development of new silver resources. Silver is mostly produced as a by-product of other metals. So in time this has worked to undermine the price manipulation that could not be resolved by speculative interests. We are seeing this right now in real time.

The stressed huge short interest against silver is now drawing in the sharks.

For the first time in many years, large spec-players have entered the arena on the long side.

This is exactly how a dynamic market should correct price imbalances, however that normal market function was held at bay by the corrupt regulatory regime.

The finality of dwindling supply is driving market performance.

Today we saw silver under pressure in the early hours of trading and then some very strong buying appeared to reverse the downtrend. It certainly appears that someone is lurking in the weeds waiting for the Cartel to try and pull their usual scam to drive silver lower and run the specs.

They were met head-on by heavy buying.

The inventory of silver at the COMEX is impacted by regular drawdowns and retail outlets for silver bullion continue to report high demand and often a shortage of bullion supply. It is becoming very difficult for the short interest to pretend that abundant silver is available to justify the low market price for the metal when just about every other commodity has gone much higher in recent years.

The perception of the silver market is set for a profound change.

When the shorts fail to contain the price, it will encourage more retail spec buying. When the market comes to understand that silver is not abundant, and that actual world inventory levels are in severe decline, then the race to buy real bullion will further undermine the ability of the Cartel to restrain the price.

The endgame for this intervention is directly ahead. Not heard of a single silver default for an industrial consumer... YET!

Any hint or threat of silver supply problems will immediately encourage silver users to begin aggressively acquiring and stockpiling the metal...

...the final nail in the coffin for the Cartel.

Combined with renewed spec buying, and short covering from the smaller players involved, the rush to buy and take delivery of real silver bullion will swamp the paper market and rapidly drain inventories. Prices for a product in high demand with limited supply MUST rise sharply to correct years of imbalance. Even then, it will take many more years before large new silver production can begin to meet the rising demand.

It is too early to tell if this endgame is now. It is inevitable that the physical market will trump any paper intervention, no matter how coordinated and powerful.

Now for the first time in decades there is a block of buyers on hand that is willing to step up and challenge the entrenched short interests, and there are no convenient large stockpiles of silver to help thwart this new demand.

The IMF has no silver to mobilize. The Central Banks have no silver. The documented bullion held in worldwide inventory is not sufficient to last for even a small amount of real buying pressure.

Can you say game on?

Mexico Mike @


Visited the Canadian Mint in Ottawa,  on Saturday August 28.
Very interesting tour. After the tour we visited the boutique (gold and silver store). The mint had NO silver maple leafs for sale! The sales girl said they wouldn't have any for weeks! We are getting very close to a massive silver shortage!

Viva LeMetropoleCafe !

SheepDog-One's picture

DOW's got a little 30 point stick save goose from Bernanke, big deal who cares? Probably all be red by close.

scatterbrains's picture

lets not forget crude down almost 3% today

Paper CRUSHer's picture

Thanks for the reminder.I had betta getta checken the ol' Gold/Oil ratio as its been quite a while since i last checked.

Paper CRUSHer's picture

BTW,Natgas looks cheap here.Technicals & other metrics indicate oversold condition.

scatterbrains's picture

the gold/oil ratio at 17ish is suggesting dump gold and buy oil no ?


101 years and counting's picture

its cheap to store gold.  not so cheap to store oil. 

Paper CRUSHer's picture

Hmmmm,better at <15.Ratio range 12-17 over 12 months.Natgas still looking pretty here.

jmf's picture

Moin from Germany,

add these chart to the mix..... ;-)

The Comex gold inventory jigsaw

zaknick's picture

Thanks for the link!

chet's picture

Silver, less affluent bitches!

romanko's picture

not to mention silver

Ragnarok's picture

Very nice.  I can here a whole world of people saying fuck it to the current financial/fiat system. When will the first big player make a move to go long bullion (or close out huge short position)?

midtowng's picture

Have these people forgotten that gold is a barbarous relic? We need to put our faith in our fuedal overlords.