Second Friday Night Economic Bomb Sends Gold Surging To $1,566 As Ireland Slashes Outlook

Tyler Durden's picture

And another economic fail, this time an attempt from Ireland to bury bad news on a royal wedding, later afternoon Friday:

  • Ireland revises 2011 GDP growth to +0.8% from +1.7%; 2012 to +2.5% from 3.2%
  • Irish govt revises 2013 deficit forecast to 7.2% from 5.8%; 2012 to 4.7% from 2.8%.
  • Ireland revises 2011 debt/GDP forecast to 111% from 98.6%; 2012 to 116% from 102%

Which only means more stimulus. And since fiscal is out of the question (austerity remember, duh) it means monetary. Which means gold surges to $1,566.

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Johnson Sandwich's picture

Bernanke must've uttered a few more words, because gold is going up!

Silver and gold, bitchez!

sabra1's picture

does the Bernank talk in his sleep?

sabra1's picture

guess i'll have to ask Timmy!

Johnson Sandwich's picture

Apparently the Bernank speaks in his sleep too...  guess he dreams about dirty things like gold and holds impure thoughts, eg. silver.

randocalrissian's picture

He only talks in his sleep when someone has recently pulled the string coming out of his back.

knukles's picture

Next big propellant for gold....
Back to the "is there enough for good delivery" question.  Remember, that theme started in the gold pits long before the silver run in earnest began.  In large part jacked up by the JPM short theme... is there enough silver to make delivery.

Used to be the same meme in the gold market.
Just wait till it returns with a vengeance.

SWRichmond's picture

Is this what they mean by "a buyer in size"?

redpill's picture

There has to be something more going on here, with silver sitting pat and gold going absolutely bat shit crazy, there has to be a rumor of something big in the gold market specifically.

Pool Shark's picture


May not be about just gold.

Silver flat, and base metals are all off too (even with the weaker dollar).

Sounds like it might be something a bit more 'macro-economic'...


Idiot Savant's picture

A two percent gain is "bat shit crazy"?

tmosley's picture

Gold rarely goes up more than 1% per day.  

redpill's picture

Over the span of a couple hours?  God damn right it is.  Hell on a daily basis a 2%+ gain in London PM fix has only happened one other time this year, on Feb 4.

tiger7905's picture

Looks like silver backwardation is coming to an end also and eliminated if you only look at 2013 contracts.

Ray1968's picture

Anyone have an idea why PSLV is dragging??

riley martini's picture

 PSVL sells at a 17 % premium to NAV you can sell PSLV paper and buy the metal at a 17 % discoount of paper .

Rainyday_man's picture

17%- 22% premium over NAV is the least of your worries - look out if Sprott liquidates his 26%

of the funds shares.... WSJ:


JPDG's picture

Not sure about PSLV, but no doubt the J.P Morgue are doing their magic at price manipulation because... *looks at calendar* 

Oh yeah, options expiry is tomorrow.  Huh, go figure?

Zero Govt's picture

too much 'rolloercoaster action' last week (10% down, then 8% up) ...investors are knackered and need a f'n breather!

....but if my nose is correct it's about to explode judging by the triangle its been forming the past 4 hours out Gold, Silver surfer on 'Mission Catch-Up'

Zero Govt's picture

'There She Blows' ...........Err, Downwards!!

...Silver down 1.25% in 5 minutes gotta love a rough ride

Hugh G Rection's picture

Meanwhile silver is hovering above $48 after 2 margin increases in 48hrs.


C'mon douchebags, just increase it to 100% and when the realization hits that you can no longer monkey hammer Ag into submission...then, accept your shame and commit seppuku with silver filet knife.

SilverRhino's picture

And silver drops by .50 back to 48.00 .... yep, this market is ALL about fundamentals.


Zero Govt's picture

$47.73 ...and probably further to go too... no worries BTFD at $46.80

Tail Dogging The Wag's picture

Gee, last time I checked the Swiss National Bank held huge reserves of US Dollars... those pillars are being eroded by hyperinflation hungry termites. Why sell USD to buy CHF? green confetti for more colorful confetti. Thanks, but no thanks.

mind_imminst's picture

No doubt this is extremely positive for stocks!!! Everything is positive for stocks nowadays. Good news, bad news, no news, whatever. I know the markets can remain irrational for longer than an investor can remain solvent, but it is getting just wierd. I know emerging markets are helping things out, but the western world collapsing has got to mean something, no?

Dr. No's picture

Well, looking from a different perspective, stocks are not fiat.  Therefore they have a slightly higher chance of not being worth zero.

SWRichmond's picture

You can't wipe your ass with stocks!  Oh wait, yes you can!

gkm's picture

Yes but what exactly is a company worth with no intrinsic hedge against hyperinflation?  Thankfully there's SNAP.

I saw a clip from Crammer the other day where he "explained" that there is no inflation because if there were stocks wouldn't do well in that environment.  He's right (for once).  Except there is one locale where stocks went up 60% per week.  They didn't have inflation there either.  If you guessed Zimbabwe, you get a gold bar (with the low payment of $150k).  Inflation and hyperinflation aren't the same thing.

disabledvet's picture

indeed.  "in a hyper-inflation stocks up 60% in a week!"

Arius's picture

what collapse? an optimist...we always come out okay...just another blimp in the road...

RichardENixon's picture

I think it's called "The Hindenburg"

scatterbrains's picture

Bernanks stock pumping is important so that we can skim off the proceeds and buy physical gold/silver.  I bet he didn't expect that his stock pumping would serve to amplify the upward movement in gold..   my visual has Dr Bernakenstien spinning the ship's wheel on the titanic while unknowingly his friend Mr Morgue is caught in the rudder being stretch to oblivian as an iceburg approaches dead ahead.

takeaction's picture

Another crazy week...and weekend ahead.

lolmao500's picture

While silver has not broken 50$... ridiculous.

Re-Discovery's picture

Silver's mad at you.  I mean, she gives and she gives and she gives and this is the thanks she gets?

"Stop looking at Gold.  I know you were looking at her.  And right in front of me.  You ALWAYS look at other precious metals.  What, am I not good enough for you?  I bet some other guy will think I'm good enough!"'s picture

But just look at the gams on gold!

Hugh G Rection's picture

If you'd go down on me once in awhile maybe I wouldn't have to look at gold.

Re-Discovery's picture

"Sorry, buddy, I'm Silver.  I don't have to go down on anybody!  Someone will always spend money on me.  If that's what you're into, go get Gold.  I'm sure she'll go down on you.  She'll probably just lay there.  I mean, everybody's had her. "

Re-Discovery's picture

"Ok, I'll go down on you.  But just this once!"

gunsmoke011's picture

I guess after raising margin by 20% in a single week - the CME has decided to take the gloves off and turn a blind eye to JPM writing future FTD paper shorts as fast as their robo signers can write them.

MsCreant's picture

So why is silver flat lining it when gold is taking off like this?

Dreadker's picture

So we can all buy a bunch of it!  It has faith in us and is giving us all a breather then it'll sprint after is mate gold ;-)

Tail Dogging The Wag's picture

in times like these I shut my mouth and btfd.

Dr. No's picture

Silver is a commodity for consumption and for speculation.  Gold is for central banks.  They dont have to move lockstep and silver is much more volatile.

DosZap's picture

So is Plat, and it's $1875.00

disabledvet's picture

Did i just get a "yes" out of "Dr. No?"