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Major Gold Takedown To Inspire "Risk On" During Another Bad News Day
Another day, another $15 gold takedown in a manner of seconds. Liquidations or LBMA intervention, nobody cares anymore. Presumably the agenda of the day is to make investors believe that all is well in Europe, and that among all the upcoming stress test results announcements, the "fact" that a single bank will not be in need of rescuing will be palatable. Of course, this is laughable, and as we discussed yesterday, the bloodbath that will be the Spanish cajas is only starting to be appreciated. But in the meantime, the old-school short covering inspired rally is on full blast. Today downticks are forbidden as China is now perfectly ok. Cause Australia said so. In the meantime, please ignore the short bald guys behind the scenes buying up insolvent government bonds and further diluting the pieces of paper in your wallet.
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Yeah, pretty much being attacked from all sides today. Just an observation: PHYS and CEF seem to be holding up better than spot prices over the past week.
I love watching market machinations.
http://www.youtube.com/watch?v=FTeWGD4Q9T4&feature=related
Sigh... and the CFTC will investigate this when ?
Loonie up way over 1% so far, gold down US$15, more PAMPs going in my safe today me thinks...
Buying my sister a new MacBook Pro to celebrate because the moral of the story is, if you can buy it with paper money, it's cheap. ;) I wasn't buying at (with premium) CA$1300 because I care personally if it does go to US$1100 short term...
Ah yes, the overpriced and under-performant choice :)
Well, whether you're talking about gold or the choice of computer, your sentiments are worth about as much as two ugly, fat chicks wrapped in a flag fundamentally. ZeroPower, quite. Good luck with that.
Gold is a horrible investment now. The current equity rally will be sold off, and equities will waterfall crash by end of October. A deflationary vortex will suck gold into the pug hole. So stop talking up gold Tyler. Liquidations will take it down. Gold will only go to $5000, after the suckout blows off.
Those who fail to learn the lessons of history are doomed to tell the same lie to deaf ears.
Wheat,
Evidently you don't get it......Gold is NOT an Investment.
It's INSURANCE..............
Gold will only go to $5000, after the suckout blows off.
And you think, you will be able to buy it, and get it in your hot little hands then?.
You do not buy insurance after your car is wrecked, or your sick.Same with Gold.
In the scenario you paint(which damn well will happen), eveyone and their dogs will be scrambling.
What return are you getting on cash?,.010%?.1%, with Inflation at near 10%(real Inflation)...........not the bullshit CPI #'s.
Or the 9.5% Unemploymeny rate?......REAL #'s 22%.
And rising..............
Why not Silver?
Good question.
It is essentially redundant to write Gold and Silver everytime you refer to the two most widely accepted precious metals and the only precious metals written into the US Constitution as currency.
The plate spinning is on warp speed at this point. The big banks need someone to step up on buy some shares however these manipulations are becoming more costly, less believable and less effective. Let them play amongst themselves with their false prices in equities. The only trick they had all along was inducing short covering..well now you have all the shorts money guys so now what? Who is left? You have as much of Ben's as he could shove down your throat. ZIRP is doing you no good on the economic front and rates naturally have nowhere to go but up. You have been hiring like mad so now your payouts and operations are inflated and the market is not moving. And now you are one news event away from another leg down.
I suppose the answer is you only have each other to cannibalize now. This game only works if you all hold the largest bag in history so who flinches first?
Are we still technically oversold?
The air is slowly leaking out of the balloon today. Looks like another late day selloff (?) Wonder how many dollars were thrown in the fire today.
Well I am not as sophisticated as you guys are regarding technical analysis although I have learned much since being here and absorbing comments for over a year now. It seems to me that "technicals" are simply an excuse for day traders and momentum traders to move in and hoping everyone acts in concert,Which I can understand, but investing/gambling your money on the whims of the big banks who are designed to harm the retail investor or trader is not for me.
In my opinion they commit these moves to line up more support as the sell blocks come in faster and larger and bingo you have a who knew group of suckers buying ONLY because they expect ramp jobs or manipulations. Seems like a pretty crazy basis for risking your cash.
Au contraire, it seems to me like cash is a pretty crazy basis on which to risk your hard work...
In Soviet Russia, gold take you down.
Doc, '
Explain pls.............
In Soviet Russia, joke explains you.
(for serious, its a Family Guy joke): http://www.youtube.com/watch?v=g_mMKgc5snc
Psychologically I think it was an important day to stop the bleeding.. The big guns came out and refuse to let equities bring on part two just yet. Seems to be a pattern for them. The 800 lb gorilla is just to heavy to hold up. They can pick it up, but they can't hold it up.. And they are wearing out after each lift.
They can push gold down all they want. If the price gets too absurdly low, physical will disconnect.
EUR/USD will go to purchasing parity if not lower (1.15). The Euro is not the viable alternative it was 2 years ago. Everyone knows it. If both currencies have equal or arguably the same fundimental and structural problems, purchasing parity level seems likely.
Don't bet on this being an up day. It is far from over.
wow... Good think I didn't... You nailed that one! Kudos I guess that was a little premature.. ;)
I'm no more reliable than a stopped watch, but from what I've seen there really is no guessing where the market will go. We all know where it should go...
" If both currencies have equal or arguably the same fundimental and structural problems"
Yeah, they have the same 'structural problems'...neither is worth a crap! Russia has already made strong hints that they want to sell their commodities for a 'currency backed by a basket of commodities or backed by gold'...
If Russia issues a currency backed by gold and allows access to that currency via Euro/London banks AND demands payment for Russian commodities in Russian currency...well, it might get very cold in N Europe with no Russian gas/oil...and the dollar/euro will suddenly be red headed stepchildren...Quote Gresham's Law to those that need Russian gas/oil.
I agree they are not worth crap. But they can both purchase things at the moment.
My opinion is that all fiat currencies will gravitate towards purchasing parity while/before commodities and goods appreciate vs all of them.. drastically.
Inflation will hit the entire western world with some kind of harmony. I don't think any of them will escape being that the main components USD, EUR, GBP are all crap and have the system so infected the only cure is amputation.
I exited the farcical paper gold crime scene some time back now. I can barely recall that fresh-faced innocent, led to the slaughter time after time, clinging to my absurdly naive belief in market-integrity. Whether I got what I deserved for such naivety or not, the painful kickings finally opened my eyes. I would never again venture into that alley of pickpockets. I only buy the real-deal physical now. Me, and countless crimex victims like me. The mass exodus out of paper has well and truly begun. Here in the UK, the supply of physical remains very tight. No-one is selling their physical. No, we are dumping paper, and buying physical.
this is really something...take a look at AUY...bids are 5 to 1 to the ask....
and the stock is falling.....
are we talking desperation to keep the peasantry away from something that might actually hold value? be more valuable than the price indicates?
this is really something...take a look at AUY...bids are 5 to 1 to the ask....
and the stock is falling.....
are we talking desperation to keep the peasantry away from something that might actually hold value? be more valuable than the price indicates?
Watch for the Russians to announce their Rubble now backed by gold, followed by Mexico with a silver standard and China right behind them.
so what? even if they did, their political structure is so fucked that nobody would want to rely on the guarantee that they can get gold in exchange for Rubles. just admit it, the spot has followed the futures, not the other way around. it's very basic: prime brokers are pulling in the limits and forcing speculators to liquidate. as the futures decline, spot follows. owning the physical might sound like a good idea but it's a one way trade. as for gold being insurance, there are many alternatives to gold.
As usual, it's up to the USA. We have to vote out the idiots in the White House and Congress first.
absotutely. my fear is that is being priced in too early. it's too early to tell if a GOP landslide will be a sell signal or create room? it's feeling like the early to price crowd is going to run this thing through the summer months but until commodities break out, it's all channel trading. USD/YEN needs to break out first i guess and then the Euro could retrace 1.40 or so. My gut still think this is all about the Yuan. if they keep appreciating, i really think the Treasury bulls are screwed and Hugh will be singing a very different tune.....
"so what? even if they did, their political structure is so fucked that nobody would want to rely on the guarantee that they can get gold in exchange for Rubles."
You made me laugh.
What is NOT FUCKED UP in American politics?
You clearly are a desk jockey, daytrading futures or something, and you have no concept of the risk involved with Russia.
If Russia goes gold backed and demands to be paid in the new gold Rubble for resources then expect the US to attack within a month. No one gets to leave the fiat system so long as Uncle Sugar can still flail it's arms wildly.
Russia's still substantial nuclear stockpile says otherwise.
You forget the insane megalomania of America. Cheney wanted a nuke war with Russia over the Georgia incident. Sure Cheney is gone, but I have no doubt that madness still plagues our leadership. When you are dealing with a psychotic group you can't put anything past them. Hell, with the new spy thing they can even restart the old propaganda about those "Damn Ruskies!".
doncha love how the dollar is falling....and gold is falling in USD too?
doncha love how the dollar is falling....and gold is falling in USD too?
If someone already mentioned this my apologies.
Russia is offering banking in precious metals.
http://www.telegraph.co.uk/sponsored/russianow/business/7874648/Banking-...
Before anyone get a wad in their panites take a look at one year gold performance as of right now... borrowed this from Kitco
Thank you LBMA or whomever you are - just doubled down on my Aug Gold Long - bring it on, bitches
this means i will get more gold this month for my fiat garbage.
How many trolls are here today. I count at least five. New names though smae clowns
With everybody buying now on options expiration, they had to redo their take-down schedule.
Screw the paper, screw the options epiry...
I been buying gold since numismatically worthless double eagles were selling for $65 each...and, I would not trade it for a piece of paper with infinite zeros printed on it.
Thank you for the nice discount JPM/LBMA/Fed!
Instead of calling them names, we should be really appreciative of these organizations for giving us more and more time to convert our worthless fiat into the real thing. I mean if it weren't for these guys, Gold would probably have been out of my reach a long time ago.
So, thanks a lot again folks!
GG? Would you say that in ten years too? We will be all buying Au for a very long time as it looks. Buy, buy, buy! I hope all gold investors are very, very young, otherwise...
Ha, I'm 19 years old. Does that count?
Speaking as a young guy, HELL YES!!! Gold staying down = strong dollar. A strong dollar means the world continues on as "normal". I kinda like the idea of 10 more years of normalcy. I'd prefer not to deal with a fiat collapse, after all we know how "fun" that would be in the real world.
Ehhh I see your point, but I'm just tired of the government kicking everything down the road
If you don't want to live with a collapse then you should have probably bugged out by now. So either take up an extremely dangerous hobby or pick a fight with someone who takes it to the killing level.
So when does the dip become the start of a downtrend? Also you can't have it both ways GG. Either you admit that "paper gold" is still coupled to physical with tight correlation or that no one has yet figured out the whole paper Ponzi derivative market except for a few bugs.
Hehe. 'Shopped!
oh, and wrong to boot. But you already knew that.
Regards
P.S. I didn't junk you (I think it was kinda funny)
RobotTrader, when times get tough we depend on the consistencies of life. We want sexy girls, not some twisted modern version of Norman Rockwell, ok??? Damnit!!!!!!
Gold is being sold because somebody needs "money". There is a liquidity crises raging and the only thing capable of quick liquidation is AU
jcrows,
No, you meant someone SOLD money, and needed FIAT PAPER.(:>)
And Silver is up? The Dollar is down?
This is the early stage of worldwide deflation if you ask me. And Europe is getting hammered.
Is the link the U.S.$, with the serious takedown of the USD, Gold had to be taken down as well as counterintuitive measure.
So 150 posts wiser the following question: how should I trade these markets? I know "!buy gold/silver" but what else can I do other than that? Euro/USD trade I had going is pissing me off with continuous SND and ECB intervention...
resources seem to be the only nexus between competing global economies. i still think the trading around China strategy is the best way to go, namely Brazil. i've left the ETFs and gone with individual stocks for EM and dumped US financials, picking up STD and ITUB. growth in EM is not going away; it is only getting stronger.
Well let's just say that "those in the know" know that there are better instruments to combat the deflationary spiral infecting the world. Maybe USD's or UST's perhaps? Whether you like it or not, the US still remains the sole superpower with the most stable and liquid currency and with the largest economy. International debts are by and large settled in USD's so please move on.
Since the USD is most widely used and has been inflated the most, does it not imply it must also deflate the most and therefore raise it's value? Makes sense to me. You've already experienced the inflation (and bitched about it), now it's time to feel the ddddddeflation, biiiiarrchez.
"...Maybe USD's or UST's perhaps? Whether you like it or not, the US still remains the sole superpower with the most stable and liquid currency and with the largest economy. International debts are by and large settled in USD's so please move on."
Hehe, you just keep tapping the heels of those ruby red pumps together chanting, "There's no place like 2008. There's no place like 2008. There's no place like 2008."
But I recommend you add another line to that mantra, "Would you like that in a pump, or a loafer?".
"International debts are by and large settled in USD's so please move on." All things come to an end. Some sooner than you might think.
How about this for a deflationary scenario:
Deflation for you (IE very limited access to Dollars unless you happen to own those who operate the printing presses), yet prices for fuel and food skyrocket. Like it? Don't worry, you'll learn...
Regards
While it is clear that Summers and company is having the primary Fed, UK and ECB members of the anti-gold cartel bomb gold at the most vulnerable time, over holidays and at the traditional time of year for gold pullbacks, there is something happening in COMEX silver inventories that portends pressure building.
Again, courtesey of the short term manipulators, well informed long term investors have been given a significant discount for physical gold and silver. Silver however seems to have some serious physical off take and that will drive the derivatives higher in silver and that will soon begin to lever gold up in my opinion. $1,300 by labor day? Probably way before then.
My Rules;
1. Buy on pull backs
2. Don't sell but if you have to trade sell 30% into strength
3. Buy physical silver to leverage paper silver and know that silver is a long lever on gold.
Facts: Silver is at less than 1/6th of its inflation adjusted highs and gold is at less than 1/2.
Silver is a tiny physical market, far more rare than gold and an irreplacable metal in technology. It is also a monetary metal like gold. Silver is the most price supressed commodity on Earth with the greatest upward potential for the least amount of cash investment in my opinion. Disclosure, long silver, hold physical silver, gold and mining shares.
About the silver drain on the COMEX:
Massive Drain Of COMEX Silver Inventories Continues
"On June 16th, the COMEX reported total silver inventories of 119.5 million ounces. Ten trading days later, on June 30, total inventories had fallen to 113.56 million ounces, a 5.94 million ounce (4.97%) decline.
There have been significant declines on nine of the last ten trading days, but this story has received almost no coverage by the mainstream media.
One reader of my June 25th column where I broke this story commented that this pattern was consistent with activity a year ago. It is true that inventory levels do fluctuate. For instance, the COMEX gold inventories are much higher now than they were a year ago.
However, some information I have learned in the past five days further demonstrates that the current run on COMEX silver inventories is not just something that happens occasionally in a stable exchange.
In particular, a high percentage of the withdrawn silver has apparently been from two specific depositories, not just all of the COMEX depositories in general. Those who have studied the details closely state that the banks losing the bulk of silver have been Scotia Bank and HSBC.
Scotia Bank has been rumored for many months to have very little physical precious metals in its vaults to cover customer deposits. This can be done, in theory, if the bank owns derivatives to cover their short physical position, but these derivatives are only as good as the other party’s abilities to deliver on demand in event of a possible Scotia default. There is not really any hard and fast information to prove that the derivatives are worth the paper they are printed on. In fact, since the total amount of extant silver derivatives exceed many years of silver mining production, let alone the much smaller amount of available above ground inventories, there is a huge reason to be fearful that the paper silver market could be heading for a crash in the near future.
On one day in June, there were 630,000 ounces of silver withdrawn from other COMEX depositories on the same day that 610,000 ounces were deposited at Scotia Bank. This seems more than coincidental. It looks suspiciously like an emergency transfer from another depository to help Scotia Bank avoid default on making delivery that day.
If this drain of COMEX silver inventories continues, it could literally be the spark that brings down the entire global financial system, Any indication that owners of “paper” silver may not be able to convert their paper into the physical product will only increase the demand to do just that.
As I said five days ago, this run won’t be confined to the silver market for long. Owners of paper gold will see what is happening and almost certainly step up converting their paper into physical metal. By the way, the COMEX recently reported that physical delivery of maturing gold contracts thus far in 2010 is running 39% higher than for the same period of 2009. The parties facing the largest potential losses are naked sellers of gold and silver commodity contracts, where there is no physical inventories to fulfill their liabilities. The entities with such huge positions are major banks. As gold and silver (and probably platinum, palladium as well as many other metals) prices rise because of the supply squeeze, it could easily happen that many major banks and central banks could go bankrupt.
It scares me to think of the worldwide upheaval that could result from this growing run on COMEX silver inventories. I am even more terrified that, not only could it happen, it could bring on a severe financial crisis within a matter of weeks. Those who will be least harmed by these developments are those who get out of paper silver and gold and into physical metals as soon as possible. "
Do you even believe this shit? I mean, golly, look at what you wrote.
I believe this shit. The government/Treserve will default on its obligations in one way or another. Full faith and credit my ass.
Bitchez.
Impressive retort JB. Gosh, I haven't seen anyone use 'golly', well, ever.
Just a suggestion: try refuting the matter of the comment. Oh what? You can't because it's true? I am Jacks's total lack of surprise...
Well, yes, when times get tough gold is the key.... I wonder what they will trade the gold for if and when things get tough??? Pieces of the paper they think are worthless??? Trade it for can of Van Kamp's beans??? "Hey look guys, I got some shiny yellow stuff here that is supposedly more valuable than currency. Beings that this is much more valuable than paper currency now, and highly thievable, what will you give me for it??? Oh? A gun in my face?? You guys play like IDF."
I'll take gold any day; if I'm going to starve to death in the streets, at least I'll look fabulous...
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