Is This Why Gold Is Selling Off?

Tyler Durden's picture




 

From the morning of Draghi's press-conference on 9/6, Treasury bond prices and Gold have danced an interesting waltz around one another. After recoupling on 9/26, they once again divorced for two weeks, only to reconcile their differences once again today. Is the toing-and -froing of inflation views driving gold and bonds  - and does that mean Gold is almost done with its drop here as Both the Long-Bond and Gold are now both up 1.22% from QEternity.

 

Gold vs Long-Bond price post-Draghi

 

and following QEternity - they are now perfectly recoupled at +1.22% - coincidence?

 

Charts: Bloomberg

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Fri, 10/12/2012 - 14:19 | 2882385 FreeMktFisherMN
FreeMktFisherMN's picture

Time for gold and silver to explode irrespective of the broader 'risk-on' market. 

Fri, 10/12/2012 - 14:22 | 2882398 ZerOhead
ZerOhead's picture

I admit I'm not a chartist but that looks a lot like two infinity signs on those graphs...

Fri, 10/12/2012 - 14:28 | 2882417 I think I need ...
I think I need to buy a gun's picture

AN IPHONE 4 COSTS ABOUT 5600 YUAN OVER IN CHINA CAN YOU IMAGINE THAT PRICE HERE? wHAT IF THE EXCHANGE RATES CHANGE.....gold GOES NO WHERE UNTIL AFTER THE ELECTION AT THIS POINT, tHEY WILL REVALUE IT ONCE, AT SOME POINT. tHE GLD CHART WHICH MEANS NOTHING TO MOST AT ZERO HEDGE SHOWS A TEMPORARY TRIPLE TOP WHICH IS SHORT TERM BEARISH. BATTON DOWN THE HATCHES THE SHIT SHOW IS JUST ABOUT TO BEGIN AFTER OBAMA GETS REELECTED.

WRITE IN RON PAULS START MAKING A DIFFERENCE

Fri, 10/12/2012 - 14:50 | 2882502 Dalago
Dalago's picture

The graphs kinda look like weird boobies.

Fri, 10/12/2012 - 15:14 | 2882584 fourchan
fourchan's picture

 

 

as he fiat stream slowly makes its way into companys balance sheets,

the illusion of recovery will mezmorize those in the market, into thinking all's well.

they will sell gold to take more risk in the created market. this ponzie of the fed will show itself,

and the massive inflation before the crash will signal golds launch, now is just the time to get it on sale, a sure bet.

Fri, 10/12/2012 - 15:13 | 2882590 malikai
malikai's picture

Indeed.

Fri, 10/12/2012 - 17:33 | 2883116 Arcturus
Arcturus's picture

Why write in RP. I will just vote for Gary Johnson, he is on the ballot.

Fri, 10/12/2012 - 14:28 | 2882419 TheCanadianAustrian
TheCanadianAustrian's picture

Clearly a dead snowman pattern is forming in the technicals.

Fri, 10/12/2012 - 14:36 | 2882449 LongSoupLine
LongSoupLine's picture

Hmmm, I see an Exploding Texas Pattern.

Fri, 10/12/2012 - 15:14 | 2882586 malikai
malikai's picture

Bikini holding a pair.

Fri, 10/12/2012 - 14:28 | 2882420 blunderdog
blunderdog's picture

I see the good doctor Hunter S. Thompson's sunglasses in the first one...

Fri, 10/12/2012 - 14:38 | 2882458 Blasé Faire
Blasé Faire's picture

My thoughts exactly when I saw it.  And it only makes sense, right?  This pattern will continue infinitely until the end of QEternity.  QE Infinity yields an infinitely repeating series of infinity-symbols.

Fri, 10/12/2012 - 14:19 | 2882386 BKbroiler
BKbroiler's picture

yo, don't hate, correlate

Fri, 10/12/2012 - 16:25 | 2882872 XitSam
XitSam's picture

re-hypothecate

Fri, 10/12/2012 - 14:19 | 2882390 DoChenRollingBearing
DoChenRollingBearing's picture

These day-to-day price movements do not matter.  Buy physical gold now!  The best diversification in town.

Fri, 10/12/2012 - 14:44 | 2882478 Freegolder
Freegolder's picture

These price movements are of electronic/paper gold contracts only (as you know). There is currently no accurate price for physical gold, but when it comes, it will be 20-50 times higher today's false paper price.

All in is a great alternative to diversifying a little into gold, but only for those with a good understanding of the likely monetary changes ahead.

Sadly, Fofoa and his chums are more interested in videoing each other in an orgy of sycophancy these days, so not much more of value there. Fofoa himself comes across as somewhat of a dope, I do wonder if there is a ghost writer somewhere in the background who is a bit sharper than the guy in these videos?

http://news.bbc.co.uk/1/hi/england/leicestershire/4504526.stm

 

Fri, 10/12/2012 - 14:56 | 2882527 The_Euro_Sucks
The_Euro_Sucks's picture

I seen at least 1 admission that some1 else wrote a piece posted under FOFOA his name (I read his whole blog + most of the comments). If you compair his earlier work with the quality now I say yes, there is one (or more) ghostwriters at FOFOA. It sure seems a promotion to me. Still what I learned there (and from another and FOA) has proven invaluable to me. Many things I wondered about for years make sense now. 

Fri, 10/12/2012 - 16:05 | 2882767 Freegolder
Freegolder's picture

Most of Fofoa is just rehashed Another/FOA anyway, but for a period it was well done.

I agree at least one ghost writer, and the BBC article is a spooky coincidence, same name, and the same big plane hired.

All a bit fishy.

Fri, 10/12/2012 - 16:37 | 2882923 The_Euro_Sucks
The_Euro_Sucks's picture

I agree completely with you. Since Iam not a schooled economist I had a very hard time understanding Another. I had a hard time understanding FOA since he explained more. FOFOA broke it down to understandable concepts so even I could understand. That I give FOFOA (and his ghost writer(s)) all the credit (pun intended) for because the concept is great. It has the potential to solve a lot of the mess we are in. So even though I think its a meme, for the change its a good one. I wish more of the elite meme's was of that honesty and clearity. If freegold can pull it off... after the tons of pain humanity can advance again finally. I sure hope so. Way better then the plan for a new american century for example.

Fri, 10/12/2012 - 17:00 | 2883027 dbomb12
dbomb12's picture

I think John Embry really knows whats going on

Today John Embry told King World News, “We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800.”  Embry also stated, If the commercials run into trouble (with their massive short positions), KWN readers will see a move in gold that will leave them breathless.

Fri, 10/12/2012 - 17:41 | 2883136 Arcturus
Arcturus's picture

Though I do believe there is a war raging, the east is winning not by raising the price of gold but by keeping it as low as possible to buy as much physical as possible at fire sale prices. They are playing the game like chess masters

Fri, 10/12/2012 - 14:20 | 2882391 Pooper Popper
Pooper Popper's picture

Giggity Gold!

Fri, 10/12/2012 - 14:23 | 2882400 Bastiat009
Bastiat009's picture

Day to day moves don't matter when gold goes down but when it goes up it's vindication time for the goldies.

Well, gold is back to the early days of September, you know before the QE thing.

Fri, 10/12/2012 - 14:29 | 2882422 Winston Churchill
Winston Churchill's picture

So gold is back to $1680.

Which charts are you looking at,'cause I want to buy some gold at that price  please.

Fri, 10/12/2012 - 14:34 | 2882439 fuu
fuu's picture

He only posts on down days for gold, it's his schtick.

Fri, 10/12/2012 - 14:45 | 2882487 Magnix
Magnix's picture

It would be nice if it was below 1600

Fri, 10/12/2012 - 15:06 | 2882563 knukles
knukles's picture

Why get greedy?

How's about a $1.60?
Truly reflect the price of a barbarous relic nobody should want or care for....

Fri, 10/12/2012 - 14:25 | 2882407 Reven
Reven's picture

QE was priced in, but a Romney win, and therefore a deflationary cut to Government spending, isn't priced into gold yet.

Fri, 10/12/2012 - 14:49 | 2882499 seek
seek's picture

You must have a different playbook. Mine says there's only one party with two candidates, and whichever wins, government spending goes up.

Fri, 10/12/2012 - 14:51 | 2882508 fuu
fuu's picture

You actually believe Romney will cut government spending? Lulz. His "plan" is to lower Federal Revenue while increasing military spending.

Fri, 10/12/2012 - 14:25 | 2882409 thomasincincy
thomasincincy's picture

OT: Jeopardy

Werewolf

Silver

Werewolf in London

Silver Bullets

JPM

Fri, 10/12/2012 - 14:27 | 2882415 Aegelis
Aegelis's picture

"Money
Well, get back
I'm all right Jack
Keep your hands off of my stack"

Fri, 10/12/2012 - 14:29 | 2882421 luckylongshot
luckylongshot's picture

Poor JP Morgan, on the wrong side of the market and no matter how much they short it their losses just keep getting bigger...so long Jamie.

Fri, 10/12/2012 - 14:42 | 2882470 Quinvarius
Quinvarius's picture

I looked how fast that banking short position in silver blew up.  They have to be getting pretty uncomfortable here.  They started that position before QE3 and all the miner strikes.  Then they just kept piling it on.  SLV has been flatlined on inventory levels for a long time after losing exactly 10% from peak inventory (what does that suggest?).  I think they mined that well dry.  I don't know what they are going to do this time.

I am pretty sure that there is something bad for the bankers going on in the gold market at the moment now as well.  There are too many oddities taking place.  My spider sense is tingling.

Fri, 10/12/2012 - 14:53 | 2882516 seek
seek's picture

Next stop, jacking up margin rates, and after that, whatever the next MF Global move looks like. Must not permit physical delivery or inventory loss.

There's a lot of odd things going on in paper metals right now -- to me, the charts seem to be showing in addition to the regular manipulation, some sort of HFT-type trades happening as well.

Fri, 10/12/2012 - 15:06 | 2882561 Quinvarius
Quinvarius's picture

Margin games are always a possibility.  But I think the real production/replacement breakeven cost of silver is in this general area.  For gold it is probably still negative on replacement costs, but running mines are probably getting $200-$300 per ounce on top of all costs.  There is probably not a good argument from the idiot miners to protect hedges with a margin raise yet.  The COMEX claims to have inventory, they were almost done in 2010.  So they don't have a direct reason to raise.  Only bank traders have a reason to raise.  It might be too soon after LIBOR to get that worked out.  Plus the old CME CEO got shitcanned after the MF Global theft.  I am pretty sure they are running a more scrutinized operation now.

Fri, 10/12/2012 - 16:04 | 2882737 Lore
Lore's picture

South Africa was the fourth largest producer. That's a big swipe of production taken offline.  Should have some impact, in the REAL market at least.

The question everybody wants to answer is: HOW MUCH REAL GOLD IS OUT THERE, AND WHO HAS IT?  China isn't talking, Russia isn't talking, the un-Federal Reserve isn't talking.  Big scandals are brewing: tungsten, Libya, Suisse, etc.  Jeff Christian's 100:1 quote still haunts him. 

Impossible to know what is true at this point. EVERYBODY IS LYING ABOUT EVERYTHING.

Fri, 10/12/2012 - 19:35 | 2883435 Ctrl_P
Ctrl_P's picture

May I suggest a towel?

Fri, 10/12/2012 - 15:00 | 2882544 Bay of Pigs
Bay of Pigs's picture

What losses? They've been fleecing the public and making money on these raids for 12 years now.

As in billions of dollars worthThey are doing this with the FED's and UST's full support and approval.

Fri, 10/12/2012 - 14:29 | 2882423 Silversem
Silversem's picture

Time to leverage the goldprice using CFD's!

Fri, 10/12/2012 - 14:29 | 2882425 Gringo Viejo
Gringo Viejo's picture

Selling off because Asia has not completely cornered the physical. It's coming. Patience is all that's required.

Fri, 10/12/2012 - 14:30 | 2882429 Jason T
Jason T's picture

1980 to 1999 was a 19 year correction.. September of 2011 until April 2013 will mark 19 months.. so thus, a 19 month correction.  This is Martin Armstrong logic.

i'll take a buying up in April of 2013.

 

 

Fri, 10/12/2012 - 14:34 | 2882442 Quinvarius
Quinvarius's picture

That doesn't even make any sense.

Fri, 10/12/2012 - 15:41 | 2882666 Jason T
Jason T's picture

Fractal pattern..

http://en.wikipedia.org/wiki/Fractal

 "the same from near as from far"

19 months, 19 years, 19 minutes.. 

 

Fri, 10/12/2012 - 14:33 | 2882433 LawsofPhysics
LawsofPhysics's picture

Wait a second, just checked and my physical hasn't done anything, paper will do all kinds of crazy shit because it's manipulated three ways to Sunday.  No worries. As far as my portfolio goes, gold is not an investment, it's a safe store of value and purchasing power.

Fri, 10/12/2012 - 17:02 | 2883035 dbomb12
dbomb12's picture

Gold today Gold tomorrow

Dollar today Gone tomorrow

Fri, 10/12/2012 - 14:40 | 2882461 SmallerGovNow2
SmallerGovNow2's picture

Thanks Tyler, knew you would get around to it...

Fri, 10/12/2012 - 14:58 | 2882533 scatterbrains
scatterbrains's picture

talk about to-ing and fro-ing how's about some 1325ish for a meet up?

http://fiatflaws.blogspot.com/

Fri, 10/12/2012 - 14:59 | 2882536 Bastiat
Bastiat's picture

Off topic but . . .

http://miami.cbslocal.com/2012/10/12/secret-service-agent-found-passed-out-later-arrested-in-miami/

I'd be drunk too if my job was to take a bullet for that clown.  The thought the Biden would be next in line though might keep me going, sorta.

 

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