Buy PHYSICAL Gold. NOW: The Discount of a Lifetime: Or Why You Must Abandon the Fake Paper Gold Market

Gordon_Gekko's picture


For previous articles by the author go to: Gordon Gekko's Blog -


They just showed their hands. The paper Ponzi pyramid is wobbling. It’s time to go in for the kill.


Let me explain. But first let’s get a handle on what’s happening:


“We’ve traded gold for nearly four decades and we’ve never … ever… EVER… seen anything like what we’ve witnessed in the past two trading sessions,”


Dennis Gartman, via The New York Times


“This is an orchestration (the smash in gold).  It’s been going on now from the beginning of April.  Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance…it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.


The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates.  Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail.  So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.


And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency.  The Japanese are now going to print money like the Fed.  They are lobbying the ECB to print more.  So I see this as a dollar protection policy...I know where the gold is coming from in the market, it’s just paper.  It’s naked shorts, there is no gold there.  If somebody wanted to take delivery on those contracts nobody would be able to provide it.  I don’t know what the source of the (physical) gold is...


..I think the power of the West has already been lost.  When you have off-shored your manufacturing and professional service jobs, you’ve hollowed out your economy.  So gold or no gold, the United States economy has been severely damaged and I don’t think it can recover...


This gold business (smash in price) is something to do with the dollar….They are trying to destroy gold as a (safe) haven from the dollar in order to carry on the Fed’s policy of negative real interest rates.  That is what is driving the illegal policy of selling naked shorts in order to manipulate a market.  If you and I were to do something like this without the government’s instruction or protection, we would be arrested.  So the fact that it’s illegal, being done by the authorities, tells me that they are seriously worried about the dollar.


(All emphasis mine.)


Paul Craig Roberts, Former Assistant Secretary of the Treasury (via King World News)


If there is one thing this latest shock-and-awe “theater” in the Gold market tells us, it’s that the government and banksters (i.e. the oligarchy) must be REALLY pissing their pants. It doesn’t show their strength – it lays bare their weakness. They just made it abundantly clear (again) how important Gold is in their scheme of things. A rapidly rising Gold price would reveal the utter fraud of their paper money Ponzi scheme and reveal them as simple hucksters, charlatans and scamsters counterfeiting money and hiding behind all the elegant regalia. The emperor would be naked. Can’t let that happen. The franchise of the paper dollar – arguably the most profitable franchise in history enabling theft on a global scale - must be protected at all costs. Something is or must be about to go seriously wrong with their empire of fake paper money (perhaps the recent gyrations in the JGB market is a tell).


With this recent paper Gold market “drama” they have only shown their desperation and weakness. The level of their desperation this time is so great that they had their bought-and-paid-for shills in the media mouthpieces attack and mock Gold and its buyers even before the sell-off (which further goes to proves that it was orchestrated; I’ll provide more evidence below). Consider this in an article “Lust for Gold” which appeared in the New York Times on the 11th April by none other than the lead bankster shill and cheerleader Paul Krugman:


After all, historically, gold has been anything but a safe investment…John Maynard Keynes famously dismissed the Gold standard as a “barbarous relic”, noting the absurdity of yoking the fortunes of a modern industrial society to the supply of a decorative metal…for a while, rising gold prices helped create some credibility for the goldbugs even as their predictions about everything else proved wrong, but now gold as an investment has turned sour, too. So will we see prominent goldbugs change their views, or at least lose a lot of their followers.


Its funny how the paperbugs liken Gold buyers to a cult, while not realizing they themselves sound like one, with their irrational faith in and defense of paper money (well, not completely irrational - they know where their next paycheck is coming fromJ). While I may provide a full rebuttal to Mr. Krugman in a later article (it barely deserves one, childish and inane as it is), I will point out this: If Gold is so inconsequential and such a “barbarous relic”, why is the government lapdog media busy trying to discredit it and all those who buy it? I mean just look at the sheer gloating:


From the Business Insider:


The WSJ also joined in the fun:



I’ll tell you why - because underneath all the bullshit they are spewing they know that buyers of Gold are not actually buying anything but voting against their paymaster government and bankster oligarchy. There is nothing spectacular about Gold except for its ability to reveal the truth about the scam being run by our ruling feudal masters, and this is the one and only reason why Gold and all those who buy it are so vilely derided by the establishment.


The global economy is still in shambles and the oligarchy have shown that they can’t do ANYTHING of ANY real consequence except manipulating the public opinion – either via “market” shenanigans or media mouthpieces. Just think about it – a global empire, a powerful and apparently invincible oligarchy threatened by just an inanimate piece of metal. But they know that because all their power is based on lies and deception, a simple truth - the rising price of Gold indicating the massive dilution of currency - can completely destroy it. Having become thoroughly corrupt, impotent and incompetent, unable to fix anything (they couldn’t run a lemonade stand if their lives depended on it) and fast becoming desperate with Gold having risen more than seven-fold from about $250 in 1999 to $1900 in 2011 exemplifying the worthlessness of their paper money and reality catching up to them, they did the only thing they knew: attack the messenger - Gold. It’s a short term fix which perpetuates their paper money franchise and thus their power, but longer term it’s meaningless. It doesn’t fix the massive misallocations which have occurred and are occurring due to central control of money via the paper money system and it doesn’t change one bit of the truth of the present dilapidated state of our economy and society which is a direct result of it. In fact it’s making the situation worse as by not allowing the misallocations to correct and reallocation of capital to productive hands to occur, huge amount of scarce resources – both human and material – continue to be wasted on unproductive enterprises.


Unless and until the following factors are no longer true, there is and will remain a case for buying Gold. These factors did not vanish overnight because of a single orchestrated plunge:

1.      Exponentially increasing Government and private debt

2.      Exponentially increasing money supply

3.      Consistent rise in the price of items of daily need (yes I know there is no “inflation” but anybody who goes to the supermarket knows what a crock of bullshit the government CPI numbers are)

4.      Rising unemployment and falling incomes

5.      Corrupt government and politicians


The banksters are acting like a child throwing a tantrum because daddy (Gold) is going to take their toy (paper money) away from them, so they simply wail and try to hit back at daddy, as if that would accomplish anything. People who know the truth should simply sit back and laugh at the banksters and their shenanigans while using the opportunity to buy even more.


The Discount of a Lifetime


The way this price fall occurred makes it clear that there were NO fundamentals behind the move and, paradoxically, strengthens the case for Gold even further. Let’s take a look at exactly how this latest plunge in Gold price happened (via Ross Norman):


The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.


Two hours later the initial selling, rumored to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.


The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".


The CME's 10% reduction in the required gold margins in November 2012 from $9133/contract to just $7425/contract made the market more accessible to those wishing both to go long or as it transpired, to go short. Soon after we saw the first serious assault to the downside in Dec 2012, followed by further bouts in January 2013 - modest in size compared to the recent shorting but effective - it laid the ground for what was to follow. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As baddies go - they fit the bill nicely.


The value of the 400 tonnes of gold sold is approximately $20 billion but because it is margined, this short bet would require them to stump up just $1b…. By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie ; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still1.


(All emphasis mine.)


If someone is selling anything, the rational thing to do would be to get the best price possible, right? Would you get the best price if you sell your lot in one go flooding the market? Would you want to overwhelm all the bids and crush the price? Yes, but only if exactly that was your objective – to crush the price. Nobody sells 400 tons (!) of gold in one go if they are trying to get the best possible price. So this wasn’t a case of varied market participants selling their gold holdings having considered the fundamentals for Gold and arrived at the conclusion their long position didn’t make sense anymore. This was a case of concerted selling by one single entity whose sole intention was to drive down the price. Not only that, nobody sells $20 BILLION worth of Gold in ONE GO without some sort of state/CB backing. You think some piddly hedge fund manager would have the balls to do this while risking prosecution and jail time? So not only was this market manipulation, but state-sponsored market manipulation completely unrelated to the reality and the fundamental basis for buying Gold, which remains as strong as ever.


But it gets better. While this is the probably the most spectacular takedown of the Gold price ever, but by no means is it the first or the only one. Anyone who has actually traded the Gold futures market for any length of time knows that this happens on a regular basis. So basically the government/Central Banks use the paper gold futures market as a price control mechanism for Gold (of course, they can’t impose price controls on Gold overtly as it would reveal the lie - if Gold is a barbarous, meaningless relic why would you need to impose price controls on it?). But what happens when price controls are imposed on something? Shortages start to occur resulting in an even greater moonshot in price than would have otherwise occurred. A “black” market (which is actually the free market at play and depicts the true price of the commodity) eventually emerges where it sells at a premium to the official price. There are two reasons for this:

1.      Buyers - aware that the commodity/good is available at a discounted price - beat a path to the door of whoever is foolish enough to sell it at the government mandated price. Availability at that price soon runs out.

2.      The good becomes even scarcer as the costs of producing and selling it are no longer covered by the government mandated price. Aware of this, sellers withdraw from the market and demand ever higher prices for the good.


And remember: for marketable goods, the “out” is money, but the only “out” for money is a superior form of money. When the paper currencies become unstable, the only “out” is Gold so you can be sure there will be no lack of buyers, only sellers – and there is no upper limit to high it can go. Theoretically, the price will be infinity when no seller is willing to sell Gold in exchange for paper. You want to be “out” of paper before we reach that event horizon.


If the rigging in the futures market keeps continuing, the futures price at some point will decouple from the physical and become meaningless. This is exactly why you should use this opportunity to buy as much physical as possible at discounted prices while there are foolish sellers still willing to sell at the stated official (futures) price. I’m sure many of you remember Gold’s spectacular fall from about $1000 to $680 circa 2008. How many of you have regretted not buying at those levels while you have been watching Gold’s inexorable rise since? You’ve been waiting for a price drop, haven’t you? So what are you waiting for? We saw the same scary headlines in the MSM that we are seeing now with the same bullshit reasons – while the reality hasn’t changed ONE BIT. Some media mouthpieces are proclaiming a bear market in Gold has begun while others are hoping that their paymasters’ moronic ideas are finally working but remember this is the same media that sold you real estate before the bust, the same media that sold you DOW 36000, the same media that sold you Obama’s “hope and change” and has pilloried gold and gold buyers whenever its price crashes but has been largely silent throughout the past 13 years of the gold bull run. There’ve been many of you saying Gold is too expensive and waiting for an opportunity to buy in. Well, the banksters in using the futures market as a propaganda vehicle against Gold have unwittingly provided you with one. Overcome your fears for fortune favors the brave. It’s time to go in for the kill.


Don’t Pick Pennies In Front of The Steamroller – Get Out Of The Paper Markets


First, you must be clear why you are buying Gold. Sure, paper gains are nice to have but are only a side effect. The real reason is this (from one of my previous articles):


Any type of financial asset that has a counterparty – which is pretty much all the paper assets in the world – bonds, futures, any and all derivatives and yes, even the paper currency – will crash. What will they crash against? Yes, that’s right - Gold. All the world’s capital – trillions, perhaps quadrillions of it - will come rushing into the very tiny physical (NOT paper) Gold market. Remember, the world’s real physical capital – real assets such as land, oil-refineries, mines, infrastructure, etc. will not vanish, only it will be re-priced in terms of Gold and its ownership transferred to those who hold it. Since everything stays on this planet, it is a zero-sum game and the winner will be Gold. In other words, an ounce of physical Gold will command a lot more in real purchasing power than it does today. Just like a national currency is a claim on goods and assets within that country, Gold will be a claim on global goods and assets worldwide.


In other words, wealth preservation in the face of a currency collapse and an insurance policy against the idiocy and depredations of our monetary masters.


For those of you who have read my work, this current smash shouldn’t come as a surprise. In fact – not to beat my own drum – but if you understood and followed my advice, you would have been out of the paper markets and not affected one bit by these shenanigans. If you wish to trade the paper market for short term paper gains, by all means do it (at your own risk though - and you just saw what that “risk” looks and feels like), but in the end always – ALWAYS – convert those paper gains to real profit by buying the physical metal because Gold will never ever attain its true price in the futures markets. They can always issue an unlimited supply of naked paper contracts. The following extract from one of my previous articles explains the reality of the futures market:


The futures market is nothing but a tool for the dollar managers (US Government/Fed/Bullion banks) to manage/control the price of Gold. Any rational observer with an iota of brain who has watched the gold market for any reasonable length of time can tell that the price is intentionally driven down during the Comex trading hours. If you don’t believe this, either you’re in denial or worse – collusion - and IT WILL end up costing you big time. Given the massive, concentrated and long-term (the entire past decade - they haven't been net-long - not once - during that time period) nature of their short positions, it really isn’t that hard to deduce that the banks do not nearly have enough metal to cover their shorts and that the sole intention of the massive short position is to control the price. Whenever the price rises (or threatens to rise) the big bullion banks ala JP Morgan create massive naked shorts introducing fake supply of Gold in the market, thus driving the price down. “But the price has been rising for the past decade, hasn’t it? So how can you say they are driving it down?”, many people ask. Well, the constraint on the bullion banks has been the availability of the physical metal. If the metal is not available, the fraud of the paper market is exposed and they lose their price managing ability. So they allow the price rise to a level at which there are some weak hands willing to sell and then they hold it there till all the sellers have been exhausted (I am assuming the Fed has already sold all the US Gold during the past decade). So strong are Gold’s fundamentals that despite the massive rigging, all they have been able to do is slow its rise. The weak hands who sell the physical metal at every price rise have helped them in this endeavor. But soon, as the bond market implodes, they will run out of sellers. Treat the availability of real metal at today's paper price a gift and buy as much as you can.


To those who think that the Comex shorts will be crushed one day and the price of paper Gold will do a moonshot, to them I will say that you are dreaming. The Comex shorts will be crushed, but not in their own casino! If and when a majority of paper Gold longs demand delivery a force majure (who do you think the US Government will side with?) will be declared with cash settlements and/or offers of equally worthless GLD shares (don’t tell me you didn’t know about this). By some accounts, this is already happening. What will happen to the paper price then? That’s right – it will utterly collapse even as the physical’s price is rocketing. Paper gold holders will dump it all to buy the physical – which, unfortunately – will most likely not be available at all…in light of the sum total of the recent developments mentioned in this update I think it is too risky to be trading right now and one should just sit 100% in physical Gold and some currency for day-to-day needs…Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal….


They don’t have nearly enough Gold to cover all the contracts they’ve sold in the market. If you’ve bought one, stand for delivery. I’m sure many will be offered cash premiums in place of Gold. Refuse. Demand the metal. This is the right time to tighten the screws on them while they are vulnerable having sold 400 tons of non-existent Gold in the market. Getting out of the fake paper market and collapsing it will have a threefold benefit:

1.      Buying physical with cash preserves your anonymity and safeguards your wealth in your hands away from the prying eyes of the looters posing as “the government”.

2.      Counterparty risk is eliminated as there is none. You’re home free.

3.      The fake paper market will collapse due to non-availability of the physical and non-participation of the majority. The sooner it happens, the sooner Gold will attain its true value and the emperor will be naked for all to see. This fake money system needs to collapse so the work of reallocation and rebuilding can begin. The cancerous tumor of banksters needs to be eliminated from the economy.


Make no mistake, this is a war. A war for your freedom, liberty and life. They have won the battle but they are not going to win the war. It is upto you to make sure they don’t take you down with them. Those buying gold are not in it for the short term pleasure of paper profits but because they understand that it is the only way to safeguard your wealth and a claim to a chair when the music of the paper pyramid Ponzi finally stops.


To me, the only question is: Who Would I Trust With My Wealth?




Or This:



The best time to buy is when there is blood in the streets. That time is NOW.


So don’t panic. Just buy the physical, sit back, relax and enjoy the show!




1. Some people may find this description of events to be too “conspiratorial”, but rest assured, if anyone does the diligence, I’m sure they won’t find things differently. This is how things are “done” in the “markets” today.





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dirtbagger's picture

Its like an endless recording loop.  Buy gold, buy silver can only go up - sounds like the NAR.  Preaching the same at $1900 an ounce.  Most of these PM pushers never talk about the volatility and perhaps NOT EVERYDAY is not always a good time to add to one's holdings.   This type of bleating is agreat disservice to those who add gold (physical or paper) to their portfolio for the first time at the top and got burned.

Agree that now is a good time to add to positions.  PM's still could trade lower, but should not be a concern for long-term investors.   Chop off the peak on the 10 year Kitco chart and it looks a bit above $1200 is likely to be the maximum downside.  Not an anti-gold bug, physical gold holder (eagles and kruggerands) since 2003.


Never One Roach's picture

Seems like a No-Brainer to me. With the entire global financial system in tourble....physical anything -- anything you can hold in your possession, that is --  seems like a very good idea.

The Onion Of Twickenham's picture

On today they are struggling to meet demand for gold:


Due to record orders we have had to set a temporary minimum order of £500. We are also unable to offer usual next day delivery. Orders will be dispatched ASAP in the order that funds are received. We expect to dispatch most orders within 1 week.


Also, the price of a kruggerand is £97 above the gold spot price.

Kina's picture

ANd the truth is the season of highest global uncertainties has only just begun.


So those who think Japans hyper printing Yen isn't any cause to be interested in gold, or the US printing $1.4 trillion each year and every year is of no concern to gold, that Europe is bankrupt, insolvent, with a series of collapses inenvitable is of no concer to gold......that bullion banks in dire straights and reportedly about to default....this is of no concern for gold.

AND central banks loading up on huge amounts of gold, countries asking for the gold back.... is of no concern to gold price....



And ounce of gold in 1913 and today have the same purchasing power. But the anti gold people would have kept their $35 which today has 1% of the purchasing power. Those stupid 1913 gold bugs...

Wow talk about extreme levels of denial.


Kina's picture

I think ZH must have really butt hurt Ritholtz.

Talk about goind all emotional and ignoring the facts in front of him.

LoL  His screaming is weird.

groundedkiwi's picture

Once upon a time you could circle the wagons. Alas now the wagons would be taxed prior during and after the circling.

Gordon_Gekko's picture

Barry Ritzwhateverthehellitis in a nutshell: " "

nicoacademia's picture

i'll buy when gold hits 1000.

Prairie Dog's picture

More crackpot paranoiac nonsense. yall zerohedgies should love it. get your gold coins and your Glock and hunker down for armageddon!

boeing747's picture

Silver eagle at Ebay: $40 just finished bidding, so spot physical silver price around $37 if you deduct shipping, handling and ebay listing.

strannick's picture

Buying gold is a revolutionary act. Jefferson and Jackson are high 5ing you down through the ages...

fourchan's picture

i agree, supporting this failed fiat experiment/fraud is like calling the founders fucking idiots. 

they knew what they were doing and exactly why.   their cause was individual freedom, the feds is slavery to debt.

1000 splendid suns's picture

It's the dawning of the Age of Aquarius. Can we just just hang the oligarchs, have an official meeting ceremony with extraterrestrials, get the free energy up and running and get on with it already.

TalkToLind's picture

Gold and silver are getting flash crashed again.

MFLTucson's picture


“We’ve traded gold for nearly four decades and we’ve never … ever… EVER… seen anything like what we’ve witnessed in the past two trading sessions,”


Dennis Gartman, via The New York Times


The man has no creditbility at all!

AUELOX's picture

I'm lazy, so I shortened the spelling.  AU E LOX

2 cents's picture

Somebody help me out here.

If the bullion banks caused the gold/silver price crash, and they  bought long contracts from those entities that bailed, thereby cancelling out their huge short position........why couldn't they couldn't they start shorting all over again?


fijisailor's picture

Just got back from the local bullion dealer in SW FL.  They were out of all gold and silver bullion rounds at the official price plus a reasonable premium.  They said they would sell a lot higher if there was interest.  They said the US Mint is no longer selling gold or silver bullion until who knows when.

Westcoastliberal's picture

Some of you guys are so fucking gullible..."save your family, sell your gold now while you can". Bullshit!

Just saw this add-on post by former asst treasury secretary Paul Craig Roberts.  He tells it like it is; read this and the article he posted just before this one:

mogul rider's picture




wow after having your fucking heads handed to you that maybe just maybe you'd stop listening to the pumpers who are now officially broke.

jesus you are gullible. I thought these trolls would have slunk back to their caves to call their coin shop to finally sell their 7 ounces they have.

My gold is still in the basement but it is for WWZ not now.

Cash will be king becuase it is. Japan is yoru guide. The physical Yen saved those who had it. not gold. stop fucking lying to people - jesus you are sad

Understand the diff..

Your argument has been proven wrong


move the fuck on...



Deo vindice's picture

I down-arrowed you once, but would have twice.

Once for your utterly inane argument, and the other for your inability to express yourself without the over-the-top foul language.

Both show a serious lack of moral comprehension.

Popthestock's picture

Sell your gold, before you really hurt yourself and your family financially.

TalkToLind's picture

Politicians, central bankers, the military/industrial complex, the entitled/welfare class and career government employees thank you for your support!  Long live the US Dollar!

HoofHearted's picture

Help, help I'm being oppressed.

I'm hurting my family terribly havng bought gold from 800-1000 and selling some off at 1700. (Do you want to see receipts? Too bad, as I believe in the underground economy.) Buying back just this week is absolutely killing me. (And keeping a core holding in gold with some tradable physical metal has been just a terrible play.) My wife hated the fact that I've given her gold jewelry with diamonds and sapphires. Hell, I haven't been getting any for months because of that. 

You, Sir, are an idiot. Gold hasn't hurt me any financially. And you likely didn't even read the article, because it says that there's nothing special about this little rock EXCEPT that it exposes the Ponzi game. And that makes it very special. So kiss our asses and go crawl back into Mommy's basement. 

Popthestock's picture

Gold bugs think they are something special, and you actually believe that someone would target your so precious rock. They couldnt care less about gold. Gold bugs actually believed they would get rich buying gold haha. Sell your gold, before you really hurt yourself. good luck gold bugs.

Day_Of_The_Tentacle's picture

Did you ever go back and read my reply? We had a discussion a couple of weeks ago, and I wrote a longer response. You never answered back, so I wonder if you saw it. Some of the stock market action we are seeing now, is what I was talking about back then. Unless you are a paid shill, please read it, and consider your exposure to the stock market at least. 

sitenine's picture

Wow. Who let you in here? This is no place for children! Had you half a fucking brain in your head, you'd already know that gold is not sought to make one rich. The price of gold is irrelevant because gold is a store of value, but I get the feeling you don't even know what that means either. Way to show your ass though. Feel free to retort, as I'm relatively short on entertainment today. Thanks.

Prairie Dog's picture

There's nothing but children here

Bendromeda Strain's picture

At least you have been here some 30 odd weeks. Undetected apparently as you should have had your ass kicked roundly a few times. Like gold, it's "tradition" you know. But this "popthestock" clown at the 3 week mark? That is precious. Did someone show Pisani how to use the Intertubes? lulz

What was the name of that asshat that jumped from CNBS to FauxBidness? You know, the Beaker look alike that didn't know what a VIX was? I think they're here...

Bastiat's picture


Big whos-who of racketeering bankster filth at the White House on the day before the pm take down.  Surprise surprise.

Bansters-in-my- feces's picture

Hey Chumba.....

Your probably a bitch ass girl.

Bansters-in-my- feces's picture

If you buy futures contracts and don't take delivery you are a Traitor to us all.

sitenine's picture

Ha! If you buy futures and you actually EXPECT delivery, then you are an idiot.

Caracalla's picture

Analysts are now recommending that I buy tungsten instead of gold??  What is a person to do in these days? 

LuchadorChumba's picture

Buy Physical Gold now? Huh? Que? That 'Tyler' never said 'what' you were supposed to be fighting for! I'm here to clear that up.

Lucha for the system, use the system, do not go against it. The luchador uses the ring ropes to his own advantage. Si amigos, I'm here to fight!

It's a fight to keep the system, to navigate it's built in pseudo-demise. Correctamente me estudiantes... the 'system' is supposed to crash, the 'crash' es parte de la systema grande.

Did you forget to wear your cup? Donde esta su mouth guard? If you didn't wear it, you deserve a few broken teeth, baboso.

Escucha! Get on your knees and wash my feet in Mescal. I will let you eat the gusano, the worm.

If I can install a central banco and nadie does anything about it for 100 anos, do you think I can't make Au, that shiny gold stuff go to $100 FRN? Que lastima!

If I can have the majority of readers and estudiantes aqui brush their teeth with a nerve toxin todos los dias, everyday, do you think your brain is sharp enough to realize you should've taken your dinero out of el banco last week? Instead... you just smile and chat about how muy malo the system is.

If I can enlist su ninos to die for me, so that I might keep the luchador gold plated (soon to be tungsten if someone else wins) wrestling belt, do you think estoy bromiendo, joking? (gracias por serving me pais)

You know who your luchador lord and saviour is... me... Chumba Cruz! (If I catch you listening to that Xavier hoto I'll curb su cabesa)

If you don't tag-team with me, you're against me.

If you don't honor the knowledge of 'what' is subordinated to what... as in a quadrillion derivative vs su banc account, then what bruises the ring will bring you (not to mention the hpv vaccines su hijas are gonna need when they ooogle over the most rich luchador of them all - que rico).

If you believe your religion and science are more than dogmas that 'I' created that are more vicious than me pitbull, what tail chasing su tienes to look forward to.

Viva El Luchador!

You could've made so much money
Gordon_Gekko's picture

Hey Chumba, its nice to see you here (if you're THE Chumbawamba)

WhiteNight123129's picture

Hey Gordon,

The Gold move is 100% Japan related.

Japan has 20 times debt to GDP or war like Debt.

Japan consumes 20 % of budget interest even with very low rates.


Japan has now a trade deficit because of Fukushima and because they move some their logistics out of the country to hedge against earthquakes.

More people are now moving out of the workforce then entering so in aggregate they are di-savings, creating problem for demand for JGBs.

So the debt situation is the most serious.

There is a way to avert that, and taking down the Gold price.

Japan wants to inflate away in an orderly way (like Britain post world war II) However the currency had declined by 25% in a short period of time
At the same time the Gold price in Yen was breaching a 30 years all time high.

The backdrop of this breach was a QE announced which is 2 times larger in proportion than the US.
Normally an old all time high breached after 30 years with such a backdrop would mean Gold off the races in Yen.
That would have potentially created a panic since Gold since Gold is purchased in panic.
Gold shapes inflation expectation and the secondary effect could be a disorderly JGBs.
Remember that the JGBs were showing great volatility BEFORE with 2 stops in JGBs market.
So who did the take down?
My answer is Global central banks who have debt problems and need to maintain negative interest rates on their Gov bonds.
Why? If the JGBs go disorderly, it would immediately trigger uneasiness with other sovereign bond markets.
Hence the Gold price in Yen, which could be the fuse for this event had to be squashed.

Who squashed it?

People who can do it. And they should do it in order to avoid a big problem for Japan and the rest of the world.

People from ECB (Draghi), to BoE, the US Fed.

How did they do it?

First a short recommendation by Goldman on Wednesday last week

Next Draghi says Cyprus has to sell its Gold.

However, how reliable is Goldman in warning its clients about an impending bubble?

Absolutely not reliable.

Remember Abigael Cohen in 1999 (Goldman was the biggest IPO promoter of internet bubble)

Fabrice Tourre was structuring crap to be sold to clients (while Goldman was short subprime with AIG)

Goldman made a call for 200 USD oil back in 2008.

So this is why Gold had to be squashed, the JGBs  were stopped because of daily limits while the Gold price in Yen was moving strongly above its 30 years all time high while Japan was announcing massive QE.

We had a 7 sigma move in Gold, even in 1970s you never saw a 7 sigma move, while at the same time the government with the highest risk of disorderly adjustment being halted for excessive move down? How often are the JGBs halted?? And on the same day that Gold has a 7 sigma move down.


Soros had figured it out that central banks would not let a panic start on the Gold in Yen terms, and he sold his Gold back in September and started to buy puts on the Yen.


TrumpXVI's picture

I buy (gold & silver), because I hate.

Westcoastliberal's picture

Good article on how the screws were put to the GOLD market (via nakedcapitalism)

Au's picture

Went to my local dealer today to buy some gold coins, sold out.

Godisanhftbot's picture

 this is how you lose 90%.  you make excuses every 10% down

TalkToLind's picture

I've just checked my physical stash -- 100% of it is still there...still shiny and still heavy with thermal conductivity like a MoFo.

fourchan's picture

same here, all shiny and unimpressed with papers dance to zero.

Renfield's picture

Thanks, GG. Your writing is very clear and I can send this article to some family who are confused (and scared) about what they are hearing from the MSM vs. what their lying eyes are telling them.

We've been out of the paper market altogether since 2009 and our motto has been "just buy". We've just bought - again - paying premiums of $100 on gold and $7 on silver, but we HAVE what we bought and that is for our retirement.

One caveat: we regard our gold as long-term savings only. This isn't to be spent on bread or we still have to have some little pile of fiat for "just in case". The other Must is a nice store of physical supplies - food, hygiene, etc. But that's another article. And another article, of course, is what to do about the inevitable govvy backlash against gold as fiat falls. Will it be criminalisation? Confiscation? Extortionate taxation? Will it become "black market" for awhile? Will it be safe to exchange for "gold-backed" currency from any national bank that announces one? What if you're in a "non-gold-backed" currency country when that happens?

I envy your stomach if you really have the time & fortitude to address Krugman point-by-point. Is it even necessary? All you needed to do here was show his picture - he is the public face of the Dem/MSM/Nobel "economists". Is even rebuttal necessary, at this point, as every recovery claim he and his govvy cohorts is so obviously unravelling? He is already discredited by reality. Personally, I'd love to see more from you on topics about what to do "after the fall", when gold becomes a public focus, and what to do "the day after" a "gold-backed" currency is announced by Russia or China or Germany or whoever.

Maybe that's too speculative yet. Anyway, thank you for another clear, "sendable" article!

sitenine's picture

You want physical PM? Good fucking luck! The time has come - you either have it, or you don't. We are about to see a backwardation the likes of which God himself has never seen, and VERY few will be willing to sell anyway because future delivery is IMPOSSIBLE! If you have phyz, prepare to name your own price. If you have no phyz, too fucking bad for you. Thanks for summing this up for us GG.

THE DORK OF CORK's picture

OK Gordon - the stuff happening these past few days was probably a CB thingy........


But why has Gold been weak for so long ?




How about this.

Gold price movements explained…..
Before euro , before 1980 /86 or indeed before 1970 but especially after 1986s  oil glut.

Before EMU :Euro countries internal goods cheap / external (China ,oil ?) goods expensive.

During euro bliss years : Internal goods expensive / external goods cheap…..

Euro 9th circle years : both internal and external goods too expensive for now limited level of cash flow….

Italian or Spanish family can no longer buy day to day goods with present cashflow.
They sell their assets…..

Gold moves back to London.
Price falls…..
The UK maintains its real goods trade deficit.

Its a failure of globalization.

Gold might move up in Euro countries which go back to national currencies but the $ & £ maintain their supremacy.