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Second Friday Night Economic Bomb Sends Gold Surging To $1,566 As Ireland Slashes Outlook
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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Bernanke must've uttered a few more words, because gold is going up!
Silver and gold, bitchez!
does the Bernank talk in his sleep?
guess i'll have to ask Timmy!
Apparently the Bernank speaks in his sleep too... guess he dreams about dirty things like gold and holds impure thoughts, eg. silver.
He only talks in his sleep when someone has recently pulled the string coming out of his back.
does he have to?
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.
Is this what they mean by "a buyer in size"?
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.
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'...
A two percent gain is "bat shit crazy"?
Gold rarely goes up more than 1% per day.
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.
Looks like silver backwardation is coming to an end also and eliminated if you only look at 2013 contracts.
http://goldandsilverlinings.com/?p=847
Anyone have an idea why PSLV is dragging??
PSVL sells at a 17 % premium to NAV you can sell PSLV paper and buy the metal at a 17 % discoount of paper .
17%- 22% premium over NAV is the least of your worries - look out if Sprott liquidates his 26%
of the funds shares.... WSJ: http://online.wsj.com/article/SB1000142405274870488940457627729411382680...
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?
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 ...watch out Gold, Silver surfer on 'Mission Catch-Up'
'There She Blows' ...........Err, Downwards!!
...Silver down 1.25% in 5 minutes ....you gotta love a rough ride
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.
And silver drops by .50 back to 48.00 .... yep, this market is ALL about fundamentals.
$47.73 ...and probably further to go too... no worries BTFD at $46.80
CHF BITCHEZ~!
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.
http://finviz.com/futures_performance.ashx
Benzabob's (tm) handywork.
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?
Well, looking from a different perspective, stocks are not fiat. Therefore they have a slightly higher chance of not being worth zero.
You can't wipe your ass with stocks! Oh wait, yes you can!
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 $150k). Inflation and hyperinflation aren't the same thing.
indeed. "in a hyper-inflation stocks up 60% in a week!"
what collapse? ...be an optimist...we always come out okay...just another blimp in the road...
I think it's called "The Hindenburg"
Bernanks stock pumping is important so that we can skim off the proceeds and buy physical gold/silver. I bet he didn't expect that his stock pumping would serve to amplify the upward movement in gold.. my visual has Dr Bernakenstien spinning the ship's wheel on the titanic while unknowingly his friend Mr Morgue is caught in the rudder being stretch to oblivian as an iceburg approaches dead ahead.
Another crazy week...and weekend ahead.
While silver has not broken 50$... ridiculous.
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!"
+ lol
But just look at the gams on gold!
If you'd go down on me once in awhile maybe I wouldn't have to look at gold.
"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. "
"Ok, I'll go down on you. But just this once!"
+69 haha!
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.
So why is silver flat lining it when gold is taking off like this?
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 ;-)
in times like these I shut my mouth and btfd.
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.
So is Plat, and it's $1875.00
Did i just get a "yes" out of "Dr. No?"
Large HF selling SI , Buying GC
When the next real price inflation begins, silver and every other hard asset will indeed, rise in price. But, for it to become the "poor man's gold" that bridges the wealth gap, silver buyers will have to reconcile a major value rise in gold first. The result of the breakup of paper gold leverage. Only then will gold at the gate of the great inflation race,,, a race that, at best, silver follows gold!
FOA, 2001
Perhaps with silver up so much in the past several week relative to gold, someone is playing the spread, or perhaps unwinding one.
Very plausible scenario. Or its just time for Silver to take a much deserved rest. Noticing that miners are behaving well at end of day while the physical is not. Could be back to inverse correlation there OR could be people waking up to latent value in silver miners.
agree.
with silver manipulation in retreat many large gold holders either added silver or smaller ones rotated a portion from gold to silver and now with such a quick return they cannot help themselves and are rotating back.
silver consolidation at these levels is a good thing
Whatever the immediate reason, it boils down to elastic ratio syndrome.
i.e. it's just gold's turn.
When gold is rocketing, nibble silver.
When silver is rocketing, nibble gold.
When they are both rocketing, nibble the nobles.
(buy the rotating dip)
To me its the 100% increase in 8 months while gold is at 18% increase in the same time. I traded some silver for gold yesterday at 33.5 to 1 at the local shop because lets face they are both great but silver is on a drunken sailor tear here and is due a little break. Either way the dollar is weak, but I do plan on trading my gold for silver if it goes back to 35-30 enviroment.
My friend asked about trading silver for gold at our local coin dealer. They said they would only buy the silver and sell the gold using federal reserve notes and would do no direct trading. Did your trading involve money?
only where required by law. And we all obey the law, no matter how outdated, unjust or paternal, right?
It must suck to live in fear; people who do'll believe frickin' anything.
Has it been 8 months? Time sure flies when you're having fun.
Probably time for another margin maintenance hike
Hot air out of Bernanke's mouth, gold caught in the updraft
He certainly is a wind bag.
And the CHF is looking good. Best move I ever made was leaving my saving in CH in CHF and PM.
Yep, me too.
Tyler,
I will be convinced that Gold is safe haven when equities crash and Gold separates it's congruence in movement from it and soars.
THAT"S NOT THE CASE AND HAS NOT BEEN DURING 2008 CRASH and Japanese tragedy. GOLD MOVED SAME WITH EQUITIES...NOT A SAFE HAVEN.
When EU Defaults, USD will Soar!
So, using your logic, the yuan will soar when the U.S. defaults?
I guess my question is, do you think there is still some action in various carry trades ahead of the coming trade wars?
If so, then will the Russian Rouble be a good carry trade after EURO collapse but before ultimate dollar destruction?
One of the best posts I have read for a long time....
ATM there is only one trade on Short $ Long everything else..... Surely everything is a safe haven at the moment...
Also any non Us investor who is long Gold but hasnt hedged the $ exposure.... this trade is not making money at all...
gold will collapse as soon as the first margin calls on stocks will be made
Could very well occur. There are tens of thousands of people waiting to pickup some cheaper gold, there are tens of millions waiting to pickup some cheaper silver. The end game remains the same. Never lose sight of the end game.
Don't forget that the central banks may well dump "some" gold/silver when the equity margin calls start coming in. Think of what that would do to bonds, Treasuries, and the USD. Properly managed, you may start a stampede going in the "wrong" direction.
Just remember, while you are waiting with arms outstretched for that manna from heaven, keep an eye out for any defecating birds flying overhead...
+1. Anyone buying PM at these levels must consider that inflationary sentiment may be peaking and that sentiment in PM is at an time extreme. Let's see, parabolic price move, extreme sentiment, could a top in PM be near?
Did I just say that out loud or was that my inner monologue?
certainly hope so. full of damn greenbacks (now you can all have a good laugh!)
dare to predict another month of similar bla bla USD collapse movements and than strong reversal with PIG default.
As I recall gold did just fine during the Japanese tragedy. In fact that is a great example as to why gold has replaced the US dollar as a safe haven between 2008 and 2011.
With MENA erupting in violence, the EU on the brink of dissolution, and Japan in tatters, the USD should already have been skyrocketing. But it didn't. Gold did instead. Your thesis has been proven incorrect already.
An EU default will mean even more of a pouring into gold as faith in paper currencies and the sovereign debt instruments denominated in those currencies is lost. There will be a rush to find something with more intrinsic, historical value. And the USD ain't it.
can agree with you but time span btw our thoughts is very different. Currencies, especially USD are weapons in this war which will continue longer. Gold is not.
Gold is sign of peace, stability and will not come yet unfortunatelly. Any gold standard btw souvereigns also mean end of fiat and even end of corrupt "democracy" as we know it today. That means that printing presses are off ... I am afraid that we should wait years for that to see.
And there's real danger gold might get confiscated just before "the end of war".
But before, phisical PMs will rule (with corrections)
You nailed it Red, "evidence of the ol' glazzies". Japan's crisis, plus many other things, indicate the exact opposite of the outdated rote big Balooka and his ilk are incessantly swallowing, then regurgitating. They need to eat a slice of humble pie, and the longer they wait the worse it's gonna taste.
These 'Last Year's Men' can't perceive the death of a financial hegemony even as its grim reaper walks right up and repeatedly slaps them in the face. All they can hear is 'USA! USA! USA! USA!' drowning out any faculties for reasoning they might have left after a lifetime of conditioning.
Disillusionment bitchez!
I will be convinced that Gold is safe haven when equities crash and Gold separates it's congruence in movement from it and soars.
Good strategy. You can look at Zimbabwe for a lesson on how to time that move.
(in other words - what makes you think they will ever separate? and that equities will ever crash, at least in nominal terms?)
We may never see the DJI below 12,000 again, ever. But that doesn't mean they won't have crashed at some point.
Yes they're both moving "up", but that doesn't mean they're moving in congruence. Look under the hood some.
I hope you're correct then I can buy the fuckin' big dip.
(Irish Accent)
Awwwwww, Hell! Somebody's going to have to go back and get a shitload of dimes!
And not a word breathed about this or the upcoming hair styling of the Euro banks on the MSM. Go figure?
Subvert the new dominant economic paradigm!
(bumper stickers will be issued)
You'll get pulled over by a cop when he sees the word "subvert." He will have questions by the time he gets to your window.
I am counting on the cop not understanding 3 of the bigger words on that sticker, offenses are directed at mostly younger cops, trained prior to the introduction of the Stanford-Binet application I.Q. test in the early 1990's, after all, we don't wan't bunch of critical thinkers on the state payrolls.
Not sure why but I'm having flashbacks to when Bear and Lehman collapsed. Anybody else have a funny feeling that when we wake up on Monday the news will be that the USA has filed bankruptcy and will be merged with _______?
Libya?
The Kingdom?
lol. Was thinking the same thing, but being in the UK and monday being a bank holiday, I was wondering what the news will be here on tuesday!
And yet the markets continue to ignore and retain today's POMO gains. Have those shorts ready to go in 3...2...1...
Overlay the 60 minute charts of Gold Futures with SPX.....near exact movements.
Move that out to daily...ditto!
Move that out to weekly...ditto!
Had gold diverged away from equities during 2008 crash and soared I'd also buy Gold but this did not happen. Nor will it happen because Precious metals it's in the same market as equities as a commodity.
Both are moving in sync with expectations of QE3.
In a recession/depression cash is king. In the event of soverign default, I would expect the fiat (cash in your hand) to gain in value.
logically and empirically i would think the opposite is absolute truth, however i like to agree with you so i will. Upon what basis does "cash" maintain it's value if the US in actuality "defaults"? And i use the term "actuality" because the US along with all other sovereigns "default" all the time so we would need to define this word very explicitly.
(my definition) default = when borrower does not pay the note (or a reduced amount). If the US gov decided it was not going to pay some of its debts (or all), balance sheets across the world would shrivle since they all list treasuries as assets. With shrinking assets, loans would be called. Businesses would need to pay bills. People would need to buy bread. CASH would be king. "But the US defaulted and the full faith and credit is tarnished" some would say, so the dollar should be trash. I agree its tarnished, but I still need to buy bread. In the absence of other means of exchange, I will use dollars. Biggest reason of all to support the dollar: 40 percent of people in the the US have to pay their taxes in USD. The government doesnt accept euros or PMs. They accept dollars. This is a $1.5T per year demand for FRN wither you like it or not. Ask the english the value of a piece of wood when the government demands taxes to be paid in said medium. It immediatly has value.
EDIT: by 40% of people in the US, I mean about only 40% of people in the US pay taxes from last I heard.
Bazooka,
Do you not think folks WILL not be caught stupid,and flat footed this TIME?.
Everyone (nearly) dumped their wagons, when they should have been backing up the U Hauls.
A lot of smarter folks will not be as stupid this time.
What was a disaster in '08,is going to look like a picnic this trip around.
So you overlaid the price of paper gold with paper stocks and found a correlation. What happens if the paper price goes away? Hint: use the price of physical gold from 2008.
Uh huh, but what happens when the COMEX defaults, and that paper price goes to zero?
2008 was an aberration. We here were all lucky, as it has given us several more years to prepare. If this thing had hit in 2008, I would have been quite fucked, with my tiny stash of numismatic crap silver. Now I've got lots of silver, some gold, nice, arable land, lots of stored food, solar power, pretty much all you could ask for for this type of situation.
I still hope it doesn't happen in some ways. In the same way I don't want to throw up. Even though I know it will feel better afterwards. I just HATE throwing up, just like I HATE experiencing economic collapse.
The euro is up on this?
sure it's up! there are uglier contestants at the pageant.
Ehhh - we can handle this........ such a small country , such a huge debt - looks like we will rock the foundations of the New Holy Roman Empire.
One day, a limit down on King LOLlar will be required.....
Spain, we are waiting for ya!
http://www.washingtonpost.com/business/spanish-unemployment-rate-rises-o...
i thought "inflation and humongous unemployment" were incompatible? but here i read "surging unemployment has occurred in tandem with surging consumer prices." NOT to say that's going to happen in the USA.
US Companies are doing well... exporting like motherf+ckers.... actually not even exporting anymore... they have manufacturers business abroad that sell in foreign currency they are still making the same 1 euro profit per piece they were doing 20 months ago... yet ... they can write it in the books as 1.5 dollars profit ....
lots of people are making money in the market... short $ long everything else.... we will see who get caught when this trade peak and turn
why is silver flatlining? on a normal day it will be well pass $50 today... all my intraday leveraged longs still sitting there in the book ... :-(
Oil poised for $114.
There is no fix for this other than depopulating . . . everywhere.
The revised numbers still lead me to believe that they are smoking Lucky Charms in Dublin ...
I'm glad thus far that I flipped from silver at 49 bucks to gold a few hours later. It just seemed too wierd to see gold sit for 6 months while silver went nuclear. Gold I thought needed to catch up, it would seem that this is case. I still have my core silver which we never sell. (EVER! eberhards, scotias, krugs, maples and eagles). What is very apparent to me is that this is a trading market.
Specs have turned this amarket from one of insurance to spec. Caution is definitely in order around this sector. I got out of my trading silver position becuase I had a 49 dolar target that`s all. I hit my target and sold. Have your own targets and pull the trigger. Or be long but be clear about what your goals are here.
But again, going from physical to physical clearly is the way to play this market. I went to momentary toilet paper to enact it cause there isn`t a mechanism to this except int he paper ETF market which is for fools.
Anyway happy hunting to all
May the bitchez find you long -no pun intended
Time to flip back.
Never let a good distraction goto waste. Sorry, but the Gold and Silver Vigilantes arn't that stupid.
http://silverliberationarmy.blogspot.com/
Why the PM stocks do not keep up with the metals the last few days (weeks)?
Fear of Nationalization.
Exactly, I laugh everytime one of the trolls waxes eloquent on why junior miners are not rising with silver.. Because Governments don't come to your safe deposit box and take your silver, I hope..
Please, dont take attention away from the wedding of the century, please, snor, go back to the parading celebs and banking business as usual
anybody seen CIGA Robot?
anyone remember Dougie Kass's prediction on CNBC "Fast Money" in December 2010, hat Gold would fall by $200-$300 in 2011 and that the rise in Gold was over? Time for him to go on FM again and talk down Gold so we can get to $1650 by the end of May.
Dougie is sort of like an old version of Ritholtz; shills all day and then he eats what he kills. Having said that and judging by his dump in Palm Beach he's done okay (definitely C list) but it is PB and if that's the kind of scene you're into more power to him.
Will gold get to $1570 by the time I head home to get shitfaced?
silly goldbugs....errrr
Gold & Silver Bitches!!
http://www.youtube.com/watch?v=ZNGe7iK1O-4
Can't seem to find the source. Given the size of Irish debt this is more significant than Greece.
http://www.bankofireland.com/fs/doc/press-releases/apriloutlook20114.pdf
silver taking a shit right now
Go Ireland, beat the dogs before they bite you first....
I hope Ireland pulls an Iceland and tells them to go fock themselves with a pint of Guinness. Print your own, you don't need the EU or the Euro-trash.
Why the populations go along with bailing out the bank bondholders is just bewildering to me. Give the government a credit card and they will certainly abuse it.
I think the answer is clear.
In Iceland where they were given a chance to vote on the question, they said "drop dead" to the banksters and refused to take on the bankster debt.
Every since (everywhere else) the predators-that-be prevent the population from having the choice... the bankster predators-that-be bribe the government predators-that-be to agree to bail them out without taxpayer input or choice.
People everywhere need to learn to say HELL NO.
The best way to do that is convert all paper assets into real, physical gold and silver in our own paws and refuse to play the loser game of fiat, fake, fraud, fiction, fantasy, fractional-reserve paper asset ponzi schemes promoted by all predators-that-be and virtually everyone in the predator-class.
JUST SAY NO... and switch to 100% physical assets.
hey, ann! you say JUST SAY NO... and switch to 100% physical assets.
let me add: JUST SAY YES...and switch to physical. take your choice!
Yes? Yes to "pay to bail out the banksters"? Really?
I dunno... monetary stimulus means the ECB, and the Germans might just tell 'em to stuff it. It's not like Ireland controls its own currency.
Some bad reports from Spain and Portugal, maybe it's do or die time for the euro.