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Spot Gold Passes $1,500, Silver Approaches $45, As Dollar Plummets

Tyler Durden's picture


A series of earnings misses was yawned upon by the market. But a couple of earnings beats and the market goes insane. Or, more specifically, the dollar plummets. While anyone can plug whatever narrative they wish to what is happening in the market, here is Reuters' take: "The euro rose to a 15-month high versus the dollar in thin trade on Wednesday, buoyed by an improvement in risk appetite and expectations of further euro zone interest rate increases. A decent response to a Spanish bond auction also helped boost the euro which rose to $1.4548 on EBS, up 1.3 percent on the day and at its highest since January 2010. Traders said stop-losses were triggered through last week's high of $1.4521 and on the break of $1.4530." Whatever it is, the DXY just took out a multiyear low below 74.50 - the lowest since December 2010, the EURUSD is trading above 1.45 and after gold futures touched upon $1,500 yesterday, now it was spot's turn which cut through $1,500 like a hot knife through butter and never looked back. If the DXY drops below 74.25, watch out below (or above if you are gold). Looks like Jim Rogers' "confetti" scenario is playing out: after crossing $44 yesterday, silver is preparing to take out $45.






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Wed, 04/20/2011 - 07:05 | 1187314 tallen
tallen's picture

Silver to $45 by the end of the day? :D. Buy Silver crash JPM!

Wed, 04/20/2011 - 07:05 | 1187316 spiral_eyes
spiral_eyes's picture

parity, bitchez.

Wed, 04/20/2011 - 07:42 | 1187403 French Frog
French Frog's picture

1 $ a day

keeps the silver shorts at bay

Wed, 04/20/2011 - 07:45 | 1187414 TIMMAYYY
TIMMAYYY's picture

can anyone explain how long it will take before jpmorgan is dead...


i was promised a quick execution.

Wed, 04/20/2011 - 08:08 | 1187462 Sudden Debt
Sudden Debt's picture

I like slow executions :)


3 more months before the will admit it unless they can cover it up.

But jan. 2012 is kill time.


It's the process that is set in motion. You don't kill a dragon swiftly. You have to bleed it first.


Wed, 04/20/2011 - 08:12 | 1187474 TIMMAYYY
TIMMAYYY's picture

what do i do till then...4/20

Wed, 04/20/2011 - 11:37 | 1188349 Temporalist
Temporalist's picture

I don't believe in dragons; I believe in vampires though.

Wed, 04/20/2011 - 10:35 | 1187973 French Frog
French Frog's picture

Good point: JPM were supposed to be history once we reached$30 ... $35, then $40 and we are now knocking at $45; can their position really be that short when the price has almost doubled since we originally heard about this when the price was in the $20s? 

I'm just asking, nowt'else

Wed, 04/20/2011 - 07:59 | 1187439 Sudden Debt
Sudden Debt's picture

EVERYBODY who I ever talked about silver is now asking question where they can buy it :)

This run still needs to start :)


Soon we'll be at 2 to 4$ a day :)



Wed, 04/20/2011 - 08:24 | 1187517 Xibalba
Xibalba's picture

Waiting for a pullback?  Take a number....

Wed, 04/20/2011 - 07:23 | 1187364 Long-John-Silver
Long-John-Silver's picture

Buy Silver, Save yourself!

Wed, 04/20/2011 - 07:25 | 1187368 writingsonthewall
writingsonthewall's picture

This FIAT currency appears to be going the same way as all the others....


...but I thought "it would be different this time" - oh how foolish.

Wed, 04/20/2011 - 07:48 | 1187416 duo
duo's picture

The Eagle has landed on $50 (APMEX ASE price).

Wed, 04/20/2011 - 11:01 | 1188119 dark pools of soros
dark pools of soros's picture

100 oz bars @ $4,750 over at scottsdale but with a 3 WEEK wait now!


Wed, 04/20/2011 - 12:07 | 1188495 Temporalist
Temporalist's picture

I've decided never to buy from those religious fanatics; besides that they're overpriced.

Thu, 04/21/2011 - 00:42 | 1191291 dark pools of soros
dark pools of soros's picture

i rather buy from my local shop dealer, but the price in gas is getting higher than scottsdale's markup  :(

Wed, 04/20/2011 - 07:52 | 1187429 Twindrives
Twindrives's picture

Ben, Barry, and Blythe..........kiss my white gold ass.

Wed, 04/20/2011 - 07:05 | 1187317 Debtless
Debtless's picture

A 30 month silver 5-bagger for me. Best investment I have ever made.

Wed, 04/20/2011 - 10:08 | 1187850 RockyRacoon
RockyRacoon's picture

"Investment"?   You're doing it for the wrong reason.

Wed, 04/20/2011 - 10:44 | 1188014 Hacked Economy
Hacked Economy's picture

Unless he means "investment" the same way I would put it...out of FRNs and into real money.

Thu, 04/21/2011 - 21:54 | 1194997 RockyRacoon
RockyRacoon's picture
1. The action or process of investing money for profit or material result.

2. A thing that is worth buying because it may be profitable or useful in the future.

"...useful in the future" would be the operative definition here.

Wed, 04/20/2011 - 07:05 | 1187318 DavidC
DavidC's picture

What I really don't understand is that if there is an inverse relationship between the currencies (as the Dollar falls, Sterling and Euro rise), should there should also, therefore, be an inverse relationship on the indices?

I appreciate that all the currencies are on a race to the bottom but it's the relative values that are imoportant isn't it?


Wed, 04/20/2011 - 07:13 | 1187334 Debtless
Debtless's picture

Isn't the only relevance their purchasing power? Meaning the zero sum game of FX piggybacking really means nothing when you figure fiat across the board is losing ground to PMs and other raw goods and have been for years. 

Wed, 04/20/2011 - 07:15 | 1187347 A Man without Q...
A Man without Qualities's picture

yes, it's crazy - Dollar falls, causing US equities to rally, causing European indices to follow suit.

It made me laugh that the Japanese markets totally ignored the sharp export drop and rallied nearly 2%.


The fact is, markets went insane from the moment of the Intel beat last night, and as we know, the Fed is the biggest hedge fund in the market and they have all the data in advance, so why the urgency to drive markets so high?

What is the fear.


In other news, the Finish government will not vote on Portugal aid until after the May summit, so there is a big problem agreeing any package... but it's just another piece of reality to ignore...

Wed, 04/20/2011 - 07:18 | 1187357 Debtless
Debtless's picture

I think that when equities fall this time - unlike 2008 - everyone has been awakened to SHORTING. So when the bottom goes this time, IMHO - everyone will be looking to make money on the fall - which will create a crash like never terms of depth and speed. 

Wed, 04/20/2011 - 07:30 | 1187379 topcallingtroll
topcallingtroll's picture

The same thing could happen to gold and silver.

Wed, 04/20/2011 - 07:47 | 1187419 Long-John-Silver
Long-John-Silver's picture

The US Dollar is a popping bubble. Gold and Silver purchase the same commodities they always have.

Example: Gasoline is 25 cents a gallon if you pay for it with a 90% Silver Quarter.

Wed, 04/20/2011 - 08:08 | 1187469 A Man without Q...
A Man without Qualities's picture

I am sure this is very well known to the OPEC cartel when the US pressures them to increase production to lower the price....

Wed, 04/20/2011 - 08:31 | 1187535 tmosley
tmosley's picture

Good lord, where are you buying gas?  The moon?  You should be able to get two gallons for that much.

Wed, 04/20/2011 - 10:16 | 1187895 RockyRacoon
RockyRacoon's picture

Picky, picky, picky....

Wed, 04/20/2011 - 11:05 | 1188141 dark pools of soros
dark pools of soros's picture

but you get much better milage on the moon

Wed, 04/20/2011 - 09:04 | 1187605 kumquatsunite
kumquatsunite's picture

You don't pay for gas with a silver quarter; you pay for it with a United States dollar. And everything else, last time the checker filled my little recyclable grocery bags! Just saying.

Wed, 04/20/2011 - 09:19 | 1187643 Richard Head
Richard Head's picture

Thanks for the contribution, shithead.

Wed, 04/20/2011 - 09:26 | 1187668 THE DORK OF CORK
THE DORK OF CORK's picture

You may rationally use physical dollars and hold a checking account with dollars but are you stupid enough to have term deposit account in $

Wed, 04/20/2011 - 10:25 | 1187932 RockyRacoon
RockyRacoon's picture

You don't pay for gas with a silver quarter; you pay for it with a United States dollar.

You have unwittingly outlined the nature and the depth of the problem.

Wed, 04/20/2011 - 10:48 | 1188024 Hacked Economy
Hacked Economy's picture

Actually, Kumquat, I read a story about an Oregon gas station owner who was accepting pre-1965 quarters as payment.  One quarter per gallon.

Wed, 04/20/2011 - 08:00 | 1187446 Debtless
Debtless's picture

oh i fully expect the PMs to follow the liquidity down the bowl. And i also think their rebound will be quicker than what we've been seeing since 08 as many will have woken up to the casino paper games. Trick will be getting out high and entering again low...or riding out the storm. You never go broke taking profits from the table.

Wed, 04/20/2011 - 10:38 | 1187978 Spastica Rex
Spastica Rex's picture

Kenny? Kenny Rogers?

Wed, 04/20/2011 - 07:30 | 1187384 The Profit Prophet
The Profit Prophet's picture

The FED is in complete control of this "market".......they will bid any major drops and sqeeze every short.....they must!  Short this market at your peril.  The next great collapse in the market will be when central planning fails, so any market "shorting" profits will be as worthless as the foolish gains made during the manipulated melt-up.

T.E.I.N. everyone! 

Wed, 04/20/2011 - 07:38 | 1187399 cossack55
cossack55's picture

Methinks you'se beez correct. (Chicago speak)

Wed, 04/20/2011 - 07:52 | 1187425 The Profit Prophet
The Profit Prophet's picture

We will soon be sleeping with the radioactive fishes...

Wed, 04/20/2011 - 07:48 | 1187411 AGoldhamster
AGoldhamster's picture

Tend to be in your boat too. But it might come as a surprise. Guess how many now have the guts to short Silver!

In regards of the main market - what if the New Madrid fault line blows up - over night? A gap of 1000 DOW points lower over night? How many then will have the guts to short into that fall?

With again the Fed at the other end of the "party"?

I think it will not be that easy, as you think ...

Nevertheless - keep time frame mid of May - 2nd week of June in your mind. Mark it in your calendar. Now. If I had to guess - pretty close to end of May. Or maybe within the first two weeks of June.

Wed, 04/20/2011 - 11:28 | 1188298 technovelist
technovelist's picture

In regards of the main market - what if the New Madrid fault line blows up - over night? A gap of 1000 DOW points lower over night?

Hardly. That would be insanely bullish, as it would mean QE3 to the moon!

Wed, 04/20/2011 - 07:48 | 1187415 Popo
Popo's picture

Everyone has been 'awakened' to shorting?   Please explain. 

Institutional short interest (which is what counts) has certainly not experienced an 'awakening'.  If anything short-funds have been utterly decimated, packed their bags and gone home.    If you're claiming that there has been an increase in margin-accounts at the retail level -- I would love to see some evidence of that.   I believe the opposite to be the case there as well.

If you're claiming that interest in short-ETF's has increased -- that too is questionable given the shellacking that QID, DOG, SDS, SKF and SRS have taken over the past 3 years.

When the market turns -- I expect the vast majority of small players to be on the wrong side of the trade.    Getting in short on an already plummeting market is one of the most dangerous moves in the book.  And is an easy way to get your face ripped off.



Wed, 04/20/2011 - 08:06 | 1187461 Debtless
Debtless's picture

What i meant was shorting has never really been an option for retail traders, and after being exposed to windfall profit news from the last crash for those who bet it would fall may have enlightened many to the other side of the trade. So i'm assuming since my advisor has opened recently the option for me to plan a short when it falls - i'll assume others have also planted the seed. Instead of watching your IRA or 401k get decimated this time - I'm suggesting that many are waiting for the first shot to be fired. IMHO.

Wed, 04/20/2011 - 08:23 | 1187508 trav7777
trav7777's picture

the TSE should have crashed after Fukushima and the tsunami, but look at long as the currency has any power, they can buy the market

Wed, 04/20/2011 - 09:11 | 1187621 kumquatsunite
kumquatsunite's picture

126 Million people in Japan. Holding up the sky, till it falls.

Wed, 04/20/2011 - 07:38 | 1187398 writingsonthewall
writingsonthewall's picture

I think European markets are rallying on the news that the BoE are not even close to raising interest rates.

Free money always brings people to the party..


Wed, 04/20/2011 - 07:44 | 1187404 duo
duo's picture

Intel earnings day has been a short-term market top over and over again, especially in the spring of 2000.

Wed, 04/20/2011 - 08:01 | 1187451 Jack Sheet
Jack Sheet's picture

@David C

Check out this weekly report from Faros over at King World News. It's a bit technical but you will get the gist after a few weeks' worth of bulletins. It focuses on the flow of funds which we know from Martin Armstrong is critical for asset prices.

PS This is the home page. For some reason it is currently not displaying the blog headers. Just wait till it does and scroll down the blog window (3rd pane down form the top)  to Faros Trading weekly currency report.



Wed, 04/20/2011 - 08:21 | 1187509 DavidC
DavidC's picture

Thanks Jack,
I go to KWN regularly but haven't looked at Faros. I will do.


Wed, 04/20/2011 - 07:07 | 1187320 Broken Window
Wed, 04/20/2011 - 07:13 | 1187336 Stormdancer
Stormdancer's picture

Euro troubles will be allowed to come to the fore pretty soon....I'm betting they'll try to see-saw them down without completely losing control.  Dangerous, dangerous game....

Freak me out...AUD sniffing 1.07 (1.06728)

I think I'll sell some AUD today (only $800.00...thats all the teller machine will let me have :)

Wed, 04/20/2011 - 10:12 | 1187864 TwoShortPlanks
TwoShortPlanks's picture

That's 20oz of Silver!!!!!

Wed, 04/20/2011 - 07:14 | 1187338 overmedicatedun...
overmedicatedundersexed's picture

The longer the MSM stays silent on PM's the better..let Ben pretend ,let wall st pretend..the longer it is a non story the better for PM prices.

PM's are a very small market vs FX, Bonds..Ben is trying to float the Bonds so PM's are ignored until some big MSM outlet starts pointing out how PM's are going ballistic..then watch out until then stay long PMs.

Wed, 04/20/2011 - 07:12 | 1187341 gordengeko
gordengeko's picture

Nothing shocks me anymore.  SP futures up 17.

Wed, 04/20/2011 - 09:47 | 1187767 Pegasus Muse
Pegasus Muse's picture

There are no markets anymore, just interventions.

-- Chris Powell, GATA

Wed, 04/20/2011 - 07:12 | 1187343 nontaxpayer
nontaxpayer's picture

Should I leave some silver profits for the next man too?

Sell some, correction, recap technical support levels by Turd Ferguson et al, buy back at lower levels OR just let it ride laissez-faire?

Wed, 04/20/2011 - 07:18 | 1187348 Debtless
Debtless's picture

If we look at recent history Options Expiry week (next) usually produces a nice dip - which doesn't last long. A great opportunity between now & next Friday. Good luck.

Wed, 04/20/2011 - 07:16 | 1187352 Stormdancer
Stormdancer's picture

Might consider a ratio trade if you've been in some of your silver long enough to benefit.  I traded a fraction of my stack for gold five days ago.

Silver tends to amplify gold's moves ...both ways.  If we get a correction silver will most likely correct harder than gold.

Wed, 04/20/2011 - 07:27 | 1187378 A Man without Q...
A Man without Qualities's picture

I'm not going to pretend to be an expert, but what I have decided to sit on my hands until we get to $50, at which point I will think about shorting via futures (but keep the physical).  My gut tells me a correction will come eventually, but they are ramping the markets so hard at the moment, I just don't see silver coming off until we see a sell-off in equities.   

Wed, 04/20/2011 - 08:03 | 1187449 Stormdancer
Stormdancer's picture

I'm betting we don't make it through June before that sell-off materializes.  Sooner if a thing or two goes wrong in just the right way in Japan....or somewhere else.  Tokyo is overdue a big one....

Wed, 04/20/2011 - 08:11 | 1187482 A Man without Q...
A Man without Qualities's picture

Sure, but it also requires central bankers to not go bat shit crazy with the money printing.  Everything so far has led to a fierce response, so the sell off needs to be allowed to happen....


Wed, 04/20/2011 - 08:21 | 1187510 Stormdancer
Stormdancer's picture

I acknowledge your point...but I also think events could overwhelm even the central bank's prodigious interventions.  And, we could also see a day when the banks decide to pitch it all overboard on purpose.  There are more than a few signs indicating that choice just might be getting more and more attractive.


As always, time will tell :).  And those with PM's have time :)

Wed, 04/20/2011 - 09:10 | 1187612 The Profit Prophet
The Profit Prophet's picture

The banks owe their continueing existence to the FED & Treasury....they will not jump overboard without the FED screaming the word "JUMP"....and the FED will never tell them to jump....only to "PUMP".

T.E.I.N. everyone!

Wed, 04/20/2011 - 09:30 | 1187679 Stormdancer
Stormdancer's picture

The Fed owes its existence to the banks....not the other way 'round.  And when a new, global financial regime is the goal, everything....including Goldman, JPM, Deutsche Bank, Societe General....ALL of them are sacrificial lambs.

Wed, 04/20/2011 - 08:57 | 1187598 kumquatsunite
kumquatsunite's picture

Isn't the real question: How close to the top do you want to play kissy kissy? The focus on the "top" is always a fool's game...lots who bought Washington Mutual or Exon have played and been sent home crying.

One of the fun aspects of flashing some shiny high numbers is to bring more into the market, and the concomitant price deflation, thereof. Also, just as an cherry tree don't grow to the sky. Take profits!

Wed, 04/20/2011 - 09:31 | 1187685 tmosley
tmosley's picture

Hi there, new sock puppet for one of the old trolls.

"Member 2 weeks, 4 days"

Wed, 04/20/2011 - 10:33 | 1187960 RockyRacoon
RockyRacoon's picture

Haven't figgered out your game yet, CumSquat, but hang in there so's we can size you up.  We always need a new punching bag -- keeps the senses sharp.   If you're a paid troll, we'll send ya packing.  If you are simply naive, you'll get a quick and dirty education.  

Wed, 04/20/2011 - 10:52 | 1188058 Hacked Economy
Hacked Economy's picture

Yeah, I guess ya gotta go through the process and pay your dues (like a fraternity??).  I was the punching bag in a few forums for my first week.  LOL!  It's all long as you're not a troll.  Then you're on your own.

Thu, 04/21/2011 - 21:54 | 1195000 RockyRacoon
RockyRacoon's picture

Welcome to the asylum!  The inmates run things around here.

Wed, 04/20/2011 - 07:19 | 1187349 Bob
Bob's picture

Austerity, bitchez--or pay the price!  Mister Market has spoken . . . for the banksterz.  What a persuasive ventriloquist dummy he is. 

MAD all over again. 

Wed, 04/20/2011 - 07:19 | 1187351 Übermensch
Übermensch's picture

The upside limit for Gold and Silver is the downside limit of paper money. John Williams

Wed, 04/20/2011 - 07:18 | 1187356 Racer
Racer's picture

"Earnings" soar because of currency collapse..

US companies are now currency traders

Wed, 04/20/2011 - 07:30 | 1187386 anony
anony's picture

'Cept for Steve, who just lost  $1.2 Billion by having $60 billion of FRNs on his Balance Sheet.

Hopefully, he deployed most of it elsewhere the last few days, but I doubt it.

Wed, 04/20/2011 - 07:22 | 1187361 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

Gold and silver are not rising. This is all Alice in Wonderland. Everything else is deflating. We will call it inflation or hyperinflation but it will really be the biggest deflation ever of everything against real money: gold and silver

Wed, 04/20/2011 - 07:25 | 1187366 Stormdancer
Stormdancer's picture

That's how I'm seeing it too in the long term...well...medium term too :)

Wed, 04/20/2011 - 08:28 | 1187523 UGrev
UGrev's picture

I see it as a compound of both dollar falling and proper valuation of the metals. I wouldn't think that the metals would rise so fast just on the dollar falling like it is. But both? makes more sense to me. 

Wed, 04/20/2011 - 08:34 | 1187536 Stormdancer
Stormdancer's picture

On second thought I was being a bit simplistic.  I think you're right..both dollars and PM's are moving toward their true, unmanipulated valuations :)

Wed, 04/20/2011 - 07:21 | 1187362 tellsometruth
tellsometruth's picture

Netdania is so entertaining of late:

For those that do not know, select "instruments" to toggle around the Fiat dances of death after the EUR/USD chart loads... That 74 support is about to fall...

This is going to the classic rating agency calling it at the last minute...two years S&P how about this month...Moody's really??? Oh thats right you pay structure and bonuses make the tellingsometruth too difficult

Wed, 04/20/2011 - 07:28 | 1187367 THE DORK OF CORK
THE DORK OF CORK's picture

Looks like the dollar is dying.

The Euro conspiracy / artificial strong dollar policey of the Clinton years is now killing the dollar.

Dollar reserves are moving into Gold - hence the Euro strength in Gold this morning.

The Euro is a monster in the American closet


Wed, 04/20/2011 - 07:47 | 1187409 Spitzer
Spitzer's picture

Yep and there has been a small king Euro contingent that has been saying this for a year or 2.

Wed, 04/20/2011 - 08:09 | 1187472 THE DORK OF CORK
THE DORK OF CORK's picture


I don't have to like it to understand at least part of what is going on.

I am not a believer in either monetory system - either the hybrid congress controlled base money / fractionally multiplied wall street trash or euro gold which is much too royalist for my blood.

Anyhow euro gold seems to be winning.

Wed, 04/20/2011 - 08:26 | 1187526 trav7777
trav7777's picture

the problem however is that the Euro itself is totally fucked by the ponzi scheme run between the mercantilist core and the periphery PIIGS.

The ECB *cannot* honestly expect to use the USD as a funding carry currency to try to suck in enough capital to patch over Greece and Portugal, but it appears they may be doing exactly that.

A eurozone nation is currently paying 20%!  This is going to require massive new debt or printing.  Think about what the Fedgov would do if a state went BK.  This is what is going on here.  The euro is going to go through convulsions again and likely the POG will go ballistic in euros when it does, just like last time.

Don't look at the DXY for true dollar value; look at POG and Brent.  When the euro goes through its next inevitable bout of printing, the DXY will spike but nothing will change in terms of the true value of the dollar

Wed, 04/20/2011 - 08:45 | 1187569 THE DORK OF CORK
THE DORK OF CORK's picture

Trav - the dirty little secret is that sov debt is not really debt - it is very like a transactional currency with just a time coupon.

The Euro masters want high yields on the sov debt periphery as this will prevent players running to Gold ( they may not want a higher gold price yet as servile goverments in Ireland and elsewhere will sell remaining state assets to the ECBs clients).

The Euro engineering was perfect - it wanted a credit bubble - as goverments are limited in how much goverment money they can print the debt becomes a weapon.

The only other mechanism to clear the debt is the freegold on the asset side of the balance sheet.

This divorces citizens from their goverment as they can do nothing to help their debt plight.

In a world with strong CBs and limited goverments lone individuals will be easy prey for the CBs client corporations.

The Euro is the ultimate expression of a sovergin killer  - whatever the faults of the US system congress has control of the base money.

In Euroland they have control of everything so therefore they do not have to engage in messy activities such as bribing or threatening congressmen.

Wed, 04/20/2011 - 09:36 | 1187714 Urban Redneck
Urban Redneck's picture

Sovereign debt is the currency of central banks.  It comes in a more central bank friendly denomination (knock of those 3 pesky 0's), It has a slightly less negative real rate of return (and since central banks need a large constant stockpile for trade purposes it is more desirable to lose less wealth), and they are stored in electronic book entry form (which makes for easier and faster transfer than going through one of the international messaging mechanisms (e.g. Swift). 

Wed, 04/20/2011 - 08:47 | 1187570 THE DORK OF CORK
THE DORK OF CORK's picture

double post

Wed, 04/20/2011 - 07:25 | 1187369 THE DORK OF CORK
THE DORK OF CORK's picture

double post

Wed, 04/20/2011 - 07:24 | 1187371 Cdad
Cdad's picture


Apparently, you did not notice all the commentary that there is a correction directly Gold.  Never mind about the world's reserve currency.  Bernanke is never minding it.

As for the kid in the hockey helmet standing in the center of the room clapping for himself [S&P] correction needed there.  After all, risk appetite is on...although apparently in some other useless currency.

Wow...this is the earliest that I have tumbled down a cosmic bunny hole in quite some time.  

Wed, 04/20/2011 - 07:25 | 1187373 DavidC
DavidC's picture

Well, again, rather than equities going up I would have thought that the big money would be going into the genuine stores of value, namely Gold and Silver.

If rates spike, for whatever reason, the equity markets will fall.

The US might like to think it is the centre of the Universe, but it's not (I refer to the US as an entity, not as its individuals, who are being raped by this insanity).


Wed, 04/20/2011 - 07:30 | 1187385 gall batter
gall batter's picture

"If I am wrong, I'm insane... but if I'm right, it's even worse than if I was wrong."   From original "The Stepford Wives". 

Wed, 04/20/2011 - 07:31 | 1187381 hugovanderbubble
hugovanderbubble's picture

Tyler, Please when u have time, please look at MuniBonds CDS...

Wed, 04/20/2011 - 07:29 | 1187382 gkm
gkm's picture

Read this article  , note the date, and then look at this chart  and again reference the same date.  

Then read this article,8599,1881330,00.html


Wed, 04/20/2011 - 07:33 | 1187388 BigDuke6
BigDuke6's picture

Let us celebrate this day where we are proved right again with some pornography disguised as latin dancing.

What a body...

Wed, 04/20/2011 - 07:40 | 1187396 Forgiven
Forgiven's picture

In London today, it looks like an ounce buys a share of JPM.  The comedy of it all!


Banksters: Jump you effers Jump!

Wed, 04/20/2011 - 07:38 | 1187397 Dangertime
Dangertime's picture

Hear that?  The fat lady just sang her first note of the silver song.  Anyone who is still holding paper silver at this point would be stupid not to sell.

Wed, 04/20/2011 - 07:44 | 1187407 cossack55
cossack55's picture

They demonstrated their level of stupidity by buying paper silver to begin with.  Same old, same old.  Want the benefits without the responsibility.

Wed, 04/20/2011 - 07:41 | 1187401 tarsubil
tarsubil's picture

I think silver is playing catch up to gold personally. I should have bought more. Damn!

Wed, 04/20/2011 - 07:44 | 1187408 firstdivision
firstdivision's picture

It is so amusing to watch the Euro rise so quickly as the probability of default also rises within the Eurozone.  This market has been in full retard mode for 2 years now. 

Wed, 04/20/2011 - 07:46 | 1187412 gall batter
gall batter's picture

Meanwhile, this at Google News: "President Barack Obama and the White House announced this week a plan to fight the abuse of prescription painkillers in the U.S."

Nothing about the dollar or PMs.  We're going to need painkillers.

Wed, 04/20/2011 - 08:00 | 1187447 topcallingtroll
topcallingtroll's picture

Our clueless president who never had a real job, never ran a business, and never had to meet a payroll while foregoing his salery.

I have more experience than this joke, since i have.done all three.

Troll for president.

Wed, 04/20/2011 - 09:55 | 1187803 oddjob
oddjob's picture


Thu, 04/21/2011 - 03:07 | 1191509 Hephasteus
Hephasteus's picture

Since obamas drug companies are making money off the abuse. I'm sure they will fight with all the zest and enthusiasm of a poisoned, irradiated cripple.

Wed, 04/20/2011 - 07:47 | 1187418 undercover brother
undercover brother's picture

Kamikaze Ben B. will go down in history as the man who crashed a country.

Wed, 04/20/2011 - 07:56 | 1187430 topcallingtroll
topcallingtroll's picture

I see a lot of people celebrating and hoping for a complete currency collapse.

I doubt .most of them have enough precious metals to see them through when they and everyone else are unemployed.

Wed, 04/20/2011 - 07:59 | 1187444 Forgiven
Forgiven's picture

There are many of us that loaded up on the basics and paid down all our debts before we loaded up on physical.  It won't be Mad Max, but it will be ugly.  The measure of true wealth has never been paper.  I pity those that haven't taken any precautions for the day fast approaching.

Sites like: have been warning people alert enough to listen for a LONG time.

Guys like: have warned about the coming economic belly flop.

Sites like ZH as well.  Some people never listen, never learn, and in their folly will suffer the consequences.

Wed, 04/20/2011 - 08:05 | 1187460 topcallingtroll
topcallingtroll's picture

You are a small prepared minority

Wed, 04/20/2011 - 08:27 | 1187518 mrgneiss
mrgneiss's picture

We are prepared for the collapse.  We hope for and will celebrate the downfall of the greedy bankers that have brought this on.

Wed, 04/20/2011 - 08:58 | 1187597 Stormdancer
Stormdancer's picture

You are a small prepared minority

Right.  Got over the shock of waking up, put the wishing aside and got busy while there was still time.

Wed, 04/20/2011 - 08:04 | 1187452 overmedicatedun...
overmedicatedundersexed's picture's the FRN not the dollar..for the the dollar has not existed since 1971. please stop your terrorist propaganda..everything is going as planned for the one world currency debut.

PM's will then go thru levels we have never dreamed for millions across the globe will not trust the IMF or UN paper fiat after seeing the FRN extinct

Wed, 04/20/2011 - 08:10 | 1187477 topcallingtroll
topcallingtroll's picture

I just want a trip free life.

I have spent time in the third world
and dont wish to see it happen to
the usa, even though most likely
I would still maintain a great lifestyle.

Wed, 04/20/2011 - 08:26 | 1187516 Stormdancer
Stormdancer's picture

And your wish has exactly what to do with unfolding events?

Wed, 04/20/2011 - 08:25 | 1187513 graspAU
graspAU's picture

The last time you could go to the treasury and exchange a paper warehouse receipt for a constitutional (silver) dollar was in 1968.

Wed, 04/20/2011 - 08:39 | 1187549 fuu
fuu's picture

Freedom's just another word, for nothing left to lose.

Wed, 04/20/2011 - 08:07 | 1187459 ak_khanna
ak_khanna's picture

The way Banksters are currently minting money.

They are driving the USD index down and pumping up everything else. This process will continue till there are no long positions left in the USD index and no short positions in any of the commoditie­­­s, stock or currencies other than the USD.

The operators are then likely to take the long position on the dollar and short position on everything else. They would then use their money power to move the markets in the direction which would get them the maximum profit while screwing all other traders / hedge funds / investors.

The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves­­­. They effectivel­­­y use the media to lure the other players in the market to a position where they would incur maximum loss.

The markets will turn downwards only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls


When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.


Wed, 04/20/2011 - 08:13 | 1187489 A Man without Q...
A Man without Qualities's picture

There should be a limit on the number of times you post the same thing.

By the way, want to buy some Viagra?


Wed, 04/20/2011 - 09:08 | 1187613 Iam_Silverman
Iam_Silverman's picture

"The way Banksters are currently minting money."

Just to elaborate here - you are so right, real money is minted (as in coins, silver and gold Eagles, Maple Leafs, etc.).

Debt based notes (FRN's, i.e.) are printed.

Wed, 04/20/2011 - 08:16 | 1187486 Ferg .
Ferg .'s picture

I'm close to throwing in the towel on the USD . I've been trading it based almost solely on its supposed "safe haven" value , but now that that seems to be rapidly deteriorating I can't think of a single reason to be bullish . A few things I was mulling on the way down to my local shop this morning :

1.) The DXY has broken support after support this year with little or no difficulty .

2.) It's performance during the March risk selloff was poor ( against the AUD it gained 500 pips despite racking up 650 pips on a much smaller decline in equities back in November ) .

3.) US Economic data has been stable for months now ( or at least there have been no calamitous releases ) and yet the USD has declined against every variety of currency . Safe havens : JPY and CHF . Commdolls : CAD , AUD and NZD . Neutrals : EUR and GBP .

4.) The loose monetary policies of the Fed continue to diverge from those of other central banks and will probably continue to do so indefinitely ( market seems to be pricing in QE3 already ) .

5.) The liquidity advantages and better spreads of the dollar pairs are no longer attractive  during bouts of risk aversion .


One thing I will say is that , from an Elliot perspective , the DXY could be concluding an extended 5th wave and thus we might see a correction soon enough. Not sure how confident I am in that though ; I think the USD could possibly be just months away from becoming ( or at least beggining the process of becoming ) " confetti " , as Jim Rogers put it .

Wed, 04/20/2011 - 08:24 | 1187511 mrgneiss
mrgneiss's picture

Uh, hello, what did you think would happen with fiat debasement?  Did you just start reading ZH?  Turn off CNBC NOW!  I hope that the shop you were on your way to this morning was your coin shop.........

Wed, 04/20/2011 - 09:01 | 1187577 Ferg .
Ferg .'s picture

Oh I'm under no illusions as to what's happening with fiat debasement . Fiat currencies have an abysmal record historically ,  and I don't think that our current rainbow of currencies is any different . However , the point of collapse is not yet here and until it arrives I'm willing to attempt to trade one shoddy currency against the next . My point with regards to the USD is that , despite it's persistent devaluation , up until quite recently it has behaved in a predictable manner . Moreover central banks other than the Fed , like the BOJ and the BOE , have very loose monetary policies in place . It's only in the last few months that I'm getting the sense that the USD is closing in on the capitulation line and thus I'm thinking of switching over permanently to the CHF for risk aversion trades .

And I'm a Bloomberg man actually !

Wed, 04/20/2011 - 09:09 | 1187617 Iam_Silverman
Iam_Silverman's picture

"And I'm a Bloomberg man actually !"

Aren't those mutually-exclusive terms?


Wed, 04/20/2011 - 19:15 | 1190402 Ferg .
Ferg .'s picture

Bloomberg are a class above !

Wed, 04/20/2011 - 09:12 | 1187625 pops
pops's picture

"I don't want Fop, god damn it.  I'm a Dapper Dan man."

Wed, 04/20/2011 - 08:29 | 1187528 Debtless
Debtless's picture

I am now ready to exit the paper markets completely. I've made enough now, more than i expected. Time to book the remainder of my profits, sure up some dry powder, grab the popcorn and sit on my remaining PM stack to watch any fireworks for a few months. Thanks to all who've been on the other side of my trades. And a special thanks to the FED, you fucking dolts.

Wed, 04/20/2011 - 08:52 | 1187588 Ferg .
Ferg .'s picture

Not a bad plan I must say . Personally though I think the paper markets still have some life in them though and I'm willing to stay in the game a little while longer . After that it's time to stick with the PMs and see if everything does indeed collapse . If not and the price of gold and silver hits the dirt I won't really care . To me they're not so much a speculative investments as they are protection in the event of a financial calamity and widespread currency collapse .

Wed, 04/20/2011 - 09:55 | 1187799 The Profit Prophet
The Profit Prophet's picture

Good call Ferg.  Those who are still in the "profit" mindset regarding their physical PMs haven't internalized the necessary paradigm shift to truly "profit"....which should now be defined as: increasing your chances of surviving the coming financial calamity.  To sell physical PMs at any fiat price level is to give into the greed temptation that destroyed the former system, and to put yourself at future risk.

T.E.I.N. everyone!   

Wed, 04/20/2011 - 08:28 | 1187525 Dr. Porkchop
Dr. Porkchop's picture

Since it only costs $5 to dig out of the ground, that's like a $40 profit!

Wed, 04/20/2011 - 08:40 | 1187559 trav7777
trav7777's picture

all our salaries are going down against things from every other country. 

Wed, 04/20/2011 - 09:11 | 1187624 Iam_Silverman
Iam_Silverman's picture

"all our salaries are going down against things from every other country."

And...many things from our own country too!  Take for instance things like FOOD!

Wed, 04/20/2011 - 09:34 | 1187702 Sudden Debt
Sudden Debt's picture

Don't worry. I got already 2 raises this year. I'm good :)



Wed, 04/20/2011 - 10:06 | 1187851 oddjob
oddjob's picture

Deflationists have sworn off all imported goods.

Wed, 04/20/2011 - 10:11 | 1187873 TwoShortPlanks
TwoShortPlanks's picture

I'm still looking for MathMan....nope, he's not under this rock either...

Wed, 04/20/2011 - 10:17 | 1187890 JacktheTab
JacktheTab's picture

What about that "you've been warned" price beat down on gold that Tyler posted last week?? 

Wed, 04/20/2011 - 11:00 | 1188102 dark pools of soros
dark pools of soros's picture

feels good to have bought at that $26 dip!!

Wed, 04/20/2011 - 14:41 | 1189292 jmc8888
jmc8888's picture

I think at this point they are just using mad-lib sheets. It's not as if it's any less accurate.  Bring out the monkey and the dart board as well.

But to redefine and raise CNBC journalistic standards, they are probably now using a monkey to throw darts at a board full of mad-lib's.  Now that's a step up.

Insert CNBC anchor...."Silver is up because....dammit I don't know how to fit in a noun beginning with h"

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