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Golden Showers As Goldman Tells Clients To Sell Gold
It's around that time of day again - when precious metals are sold hard for whatever reason you care to come up with (collateral requirements, margin calls, alchemy perfected). However, today there is a more mundane reason: Goldman Sachs has suggested its clients sell Gold on the basis that the gold cycle will turn in 2013 thanks to improving US growth offsetting the need for further Fed easing. Of course, Goldman telling its clients to 'sell gold' means Goldman is...
Via Goldman:
Gold prices range bound in 2012 despite perfect set up
Gold prices have remained range bound in 2012, despite a steady decline in US real rates and rise in central bank holdings that would ordinarily be supportive. To understand this dislocation we expand our modeling of gold prices to include the impact of the US Federal Reserve easing. We find that gold prices “look through” easing that does not require Fed balance sheet expansion –like Operation Twist – increasing instead on announcements of easing through expansion on the Fed’s balance sheet.
Improving US growth outlook offsets further Fed easing
Our economists forecast that the US economic recovery will slow early in 2013 before reaccelerating in the second half. They also expect additional expansion of the Fed’s balance sheet. Near term, the combination of more easing and weaker growth should prove supportive to gold prices. Medium term however, the gold outlook is caught between the opposing forces of more Fed easing and a gradual increase in US real rates on better US economic growth. Our expanded modeling suggests that the improving US growth outlook will outweigh further Fed balance sheet expansion and that the cycle in gold prices will likely turn in 2013. Risks to our growth outlook remain elevated however, especially given the uncertainty around the fiscal cliff, making calling the peak in gold prices a difficult exercise.
Gold cycle likely to turn in 2013; lowering gold price forecasts
We lower our 3-, 6- and 12-mo gold price forecasts to $1,825/toz, $1,805/toz and $1,800/toz and introduce a $1,750/toz 2014 forecast. While we see potential for higher gold prices in early 2013, we see growing downside risks. As a result, we find that the risk-reward of holding a long gold position is diminishing and recommend rolling our long Dec-12 COMEX gold position into a long Apr-13 position and selling a $1,850/toz call to finance a $1,575/toz put to protect against a decline in gold prices. Since 2009, this strategy achieved a better Sharpe ratio than a long gold position.
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Paper gold? Yes I agree, sell that shit or take delivery.
Tungston Sachs!
This can mean only one thing. Goldman is buying gold.
Take that you muppets.
'Sell gold"...
and buy silver...
OR
keep gold...
and buy more silver...
Hmm yes. Improving economy, less government spending and so less need for QE, therefore declining gold price. Got it.
GoldmanSachs, friend of the workin man, we're all in this together. Thanks Goldman.
But, but here in the Greater Toronto Area, their are 5 different tv commercials on local 24hr news station advertising and asking me to bring in my Gold (and Silver):
...
-Harold the Jewelry buyer...'let me put cash in your pocket'
-Russell Oliver...aka, 'the Cashman...give you money for your gold ohhh yeaaaa'
-Pinco Gold...'we give the most cash..and u can take that to the bank'
-Oren Jewelers...'you know Oren, ive been to other places, but you give me the most cash
-And some other dude i cant think of his name?
...
And as you can see from my memorizing them all...that they have been on air for quite some time now.
.
If that isnt any indication NOT to sell your PMs...theni dont know what is...
Ummm, typically if anticipate interest rates rise (aka inflation) hold gold as hedge on inflation. With Abby Cohen calling a bottom in interest rates, that suggests she thinks Fed will tighten (or at least let rates find a non hyper manipulated level) and I'm sure if GS is going along with that call, the firm firmly intends to make competitive dealer bids for their customer offloads - - - and promptly move those purchases of gold from the dealer acct into GS investment portfolio - probably in Switzerland or Kyle Bass' UT vault.
This is just the cartel trying to ramp the metals lower ahead of the QE4 announcement next week by the Fed out right monetizing $45bil/mnth in U.S. debt next year with probably the tag line of "and will continue as long as economic conditions remain slugish" or similar.
lol if sachs is saying "sell", you know it is buying hand over fist, against its own clients who are idiots.
You guys totally confused me.
Do we follow the squids, or don't we?
Never mind, I'd never like them.
You can always make money fading Goldman's tips.
Interest rates more-or-less at zero, and someone is calling a 'bottom' in them.
No shit, Sherlock.
the golden fleece
Fuck GS... or... Thanks GS for driving the price down so I can load up and BTFD...
Since bearings don`t pee, the best I can do is ooze grease, and maybe fling some dirt, onto Goldman Sachs.
The corn call from an earlier posting is ridiculous. The company I work for lists ethanol prices as a key driver to our costs for raw materials. I am in that buyer's office weekly to check his head.
The supposed drought-driven corn shortage is a fallacy. Crops that were to be lost in the northern areas were planted and harvested in the south. I had hedged on our products' estimates as early as July but the buyer has reported net impact of drought is not nearly as worse as expected.
As I said on the the GS reco's, I'll happily trade the reverse on that list of goods from that earlier post, and I'll happily buy any gold that anyone here is selling.
Bitchez.
Be careful... the drought isn't over.
We buy alcohol. Our vendor's ethanol suppliers price a year forward.
my ounces laugh at these "price of ponzie paper" fluctuations.
Sell paper shit and buy physical. The price cannot be better.
Idiotic Goldman Sucks... the China's best friend.
Dreck-Sacks
How much paper can we put you down for?
As much physical as you are willing to part with.
It ain’t even paper !
Digital Gold....
Zeros on a hard drive !
this kinda reminds me of a horse race...one horse leads everystep of the way except the step that counts....the last one..
And every great journey also ends with a single step.
Keep talkin' Goldman, physical is taking off big time...
Good....sell the paper and make the physical get back down to $1550 and I will simply buy more physical...like the Chinese!
We're all (for some reason the striketrough isn't showing when it posts, but imagine the next word struck through) Keynesians Chinese now.
And the South Korea cb...
How to catch Goldman Sachs with its pants down?
IF THERE IS LESS NEED FOR THE FED TO EASE, GOLDMAN SHOULD RECOMMEND PEOPLE TO SHORT THE TREASURIES. (LESS NEED TO REPRESS YIELDS), ARE THEY DOING THAT?
Liar pants on fire!
okay, the muppets who fall for this one, really, really, really deserve to be fleeced.
the moon really is made of cheese, isnt' it?
Everyone deserves to be fleeced, except for the primary banks in the market.
* This message has been brought to you by the SEC & CFTC.
Yes please. So we're goin $2400 soon then?
Where is the Anti Goldman ETF
Not there and, if it were, Goldman would own it.
PHYS and PSLV.
Noose Corp.
By the people, for the people.
Hey citi firing 11,000.... a sure sign of economic improvement
Somehow this was leaked yesterday. Imagine that!?!?!?!?
So is it a "generational selling opportunity"?
you may never have an opportunity to get fleeced like this ever again!
Yea, you will.
.... If you have any money left.
BTFGD.
Makes sense. The govt should also increase corporate taxes to take advantage of the windfall coming to corporations because of economic prosperity.
More Goldman muppetry
time to back up the truck again - thanks GSAX !!! ;)
So a three month target of 1825 = sell?
I thought the same thing. 3 month = 1825, 6 month = 1805, 12 month =1800. Higher prices than today, and those are some bold numbers they are predicting. A whole $25 drop. But, I am all for sales. Please make it go back into the $1500's range!!!
I agree - dump away muppets, I'd dearly love to pay < $1500/oz, and sub $20/oz silver would be great too.
There are two ways to make money in this world: Work hard or be morally bankrupt and lie cheat and steal.
false dilemma
Agreed, in this country, you can make money doing absolutely nothing.
http://www.youtube.com/watch?v=lAD6Obi7Cag
Sorry, always have to accompany a post of that video with a post of a much better Dire Straits song.
http://www.youtube.com/watch?v=_SEULZIHru0
Yes, but to become relatively rich to others, all you must do is buy the physical now.
Not likely... that would require a perfect timing decision (when to unload), at best. More likely is that plebs can save some semblance of our present purchasing power through physical... but relatively rich compared to a broke dick society isn't saying much... saving present purchasing power isn't saying much either.
Time to fleece the Muppet's of their gold
Just in time for Christmas!
It'll be a merrier Christmas for Goldman Sachs if muppets sell. Destroy Goldman Sachs!!
Ahem, goldman......
Go fuck yourself. Not everyone round these here places is as green as a frogs cock.
Anyone have a chart showing the corelation of gold/silver value and new money creation via fed/ecb/etc? Every month gold/silver should automatically go up X percent due to the further debasement of the currency's purchasing power....is it?
Sell the paper, for a long golden shower.
Have Goldman Sachs EVER got a gold call right?
every single time... it has been right for them.
I wish I could up-vote you more than once for that one. It really captures the whole GS ethos.
I helped raise his total. This is really good news for gold! Almost as good as Jim Cramer telling you to sell gold!
Precisely why I think most of these comments are funny. They somehow think GS is stupid, blah blah, when in-fact their analyst calls are never to make their clients money. I think ZH needs to have Cognitive D do an "Understanding Psyops Series" for those obtuse by the face value.
The only thing worse than being manipulated via mind control is being told you're being manipulated while still being manipulated. Understanding the mind control mechanism and resisting it are to entirely different things. Many have the capacity to understand, few the ability to resist.
<The key is not to resist, but to let it flow through you. This means abandoning many beliefs (which are rarely truths) few are willing to let go of.>
Good stuff, CD. I just put that in my "quotes file".
or is this a short term set up where should the SPX crack lower... 1250ish or so and the margin calls that will hit the pm's temporarily will cause some fools to believe that the pm's really are finished ? The reality being at that point the pm's will be at their lowest buying points going forward the next few years ?
that is to say, GS knows they are taking the stock market down, and never wanting to let a crisis go to waste, wants to get everyone panicked about the pm sell off that will accompany it and get everyone to sell right at the very bottom of the next major bull run in gold....all the while GS will be buying the pm's.
I guess they're still called GOLDman for a reason.
Sounds like a major buying oppurtunity is coming!!
'Fuck You' was already taken, thats why they called themselves 'Golman Saks'
goldman says sell, BUY, BUY, BUY! fuck GS
How are those motherfuckers not in front of a firing squad yet?
because they own the firing squad?
Nice! +1
They also trade on the squad's pension funds.
Hey Lloyd, ask your clients where I can back up my pickup truck.
Time to buy more. Thank you, you fucking useless squid.
Can there be a bigger buy signal?
You just can't make this stuff up...
Sell you gold because more QE is coming ????
If Goldman is telling people to sell that means they will be buying as soon as the price is right to them.
LOL, right before Obama's speech to remove the debt ceiling. Perfect timing!!
Guess how cheap the Gold affiliates/hedgies will be picking up gold for? Amazing!
Golem's Sacks?
Gollum ?
I would like to say Thank You ! To the spawn of Paulson-Corzine.
This is exactly what I was hoping for.
Thanks for the advice Goldman. I'll be loading up......Improved economic outlook my ass.
Golden Slacks- 'SELL GOLD!' therefore gold is about to rip higher.
Time to buy gold.
Has Russel Napier issued a call on Gold 2013 yet?
Strange, I just bought 3 more coins this morning
Without a doubt Goldman is on the other side of that trade.
That must have been the research paper authored by Abby Cohen.
Dont forget the 18,000 from hostess and Detroit going bankrupt with IL. CA. with its over 1 trillion GDP and N.Y next up on the list, yes indeed the forcast looks real bright for the future
Fuck yous Goldman.....
Gold is not "range bound".....
Gold is KEPT "range bound"
Fuck yous Goldmanites.
Is anyone a Goldman "client"? Does anyone know a Goldman "client"? I really, really want to see the face of one of these total idiots. I just can't visualize what this type of moron must look like. Does a so-called "client" have a brain? This "client" thing really bugs the hell outta me since I can't get a visual representation.
Oh look, Ma, I found me a Goldman "client". Now I can just picture one as a Down Red Arrow, which is very apropos.
This is just a heap of steaming bull shit they are trying to use to explain the smackdown still in progress. The target here is the end of the year print. They want the PMs (especially silver) to be lower on the 31st than they were last year, to make it all look like a bad idea, a rotten investment.
Take a look at Kitco's historical gold chart for December '11- it started the month at 1750, ended at 1540.
Silver got the same treatment- started at 33, ended up at 28. So far the numbers are about the same this month.
An entire year of monetization and horrific financial news, no worries, it ends with cheaper gold and silver.
More BS from the scumbags downtown.
timing of next add is a bitch, bitchezzzz. waiting on 30 ish.
with 27.65 close out last year, i see a very low/near flat 30 close year end. patience bitchez, patience.
MFCSers
@ Conax 3035432
This is just a heap of steaming bull shit they are trying to use to explain the smackdown still in progress
there is lots of support under the gold price at 1670-1660. that support consists of a 50 week moving average, a dailly 150, a daily 200 and a daily 400....gs is talking their book encouraging muppet selling to take out that support......probable take down target is open gap in the range of 1635-1625.
I just wanted to reiterate- I don't believe they will be able to tank it as easily as last year, just that they are attempting to do so. I have no idea where it will bottom this month, but your analysis seems fairly sound.
I know I would trade a Christmas Club account full of digital confetti for a fistfull of kruges, anytime. Blythe's temper tantrums would not put me off.
@ Conax 3037028
I have no idea where it will bottom this month,.....
i have no idea where we wind up either....i'm like everyone else.....just wanted to get out of harms way and wound up with a ticket for a roller coaster ride................
Can we sue GS for willingly misguiding investors?
Want to see the metals really rip, wait until they remove the debt ceiling. Unlimited credit card. Turbo Timmy already primed the pump.
Now Obama will push for unlimited debt and no debt ceiling.
It's a bitch when Washington is addicted to credit/debt. More and more until the credit rating goes to junk.
year end monkey hammer time
12/31/11 = 1564.95 G, 27.65 S
wouldn't want it the best performing asset class...
some fear in the air, i do get a wiff.
nice! love the smell of fear!
MFCSers...
The fucking popups on this site are slowly driving me away - I am really PO'd about it.
GS is too damn shrewd to believe the crap they spew for the muppets. There is no economic growth. The US economy is disintegrating. I am on the ground and small businesses, the plankton of economic life on earth, are dying slow deaths. Business owners are bailing out in fiscal 2012 - Obamacare and the re-election of the illegal alien Manchurian candidate with the "wealth redistribution" claptrap were the final straw. No more hamster wheel for producers. They are downsizing and going to ground. They have had enough of the futility of breaking one's arse to get ahead only to have it stolen by the state to buy votes of overfed, uneducated, oversexed entitled human trash and greedy corrupt banksters. Come the second quarter 2013 and you will see the bottom fall out of tax receipts and the federal and state deficits explode higher. The REAL economy, the one that actually produces real things, is dying. The FED is buying 80% of debt now. In 2013 it will be buying it all. If you believe for an instant that a social welfare state that punishs industry and hard work and rewards theft, envy, entitlement and a consumptive lifestyle can grow and prosper, then you are a fool and deserve the coming reaping.
Yep, there is nothing gained by them except intrusion to the experience. They're great at killing battery life and screen area on mobile devices as well.
Hi, man. A word on popups- Run Firefox with ad-block (an add on) and there will be no popups at all.
I agree, the Main street economy is dying- but could the PTB deliberately screw the economy if that's what it takes to get people frightened of the bogeyman of deflation? Would these shitheads really gut it just to make their market props so important they can kick them out and crash the entire thing at a moment's notice, thereby repossessing farms, homes, businesses and vacuuming up all the cheap PMs at the same time?
Is this another shearing of the sheep like they did in the 1930s? Only the blankfein knows.
What a magnificent rant. Couldn't have sunmmarized it better.
Use firefox, with ad-blocker and this freeware:
http://noscript.net/
"The fucking popups on this site are slowly driving me away - I am really PO'd about it."
I keep a couple of sheets of tnfoil by my monitor to drape over the left and right sides as necessary.
Tinfoil is not just for hats anymore. It can block annoying ads too.
Just the other day saw a photo of Lord Bankfiend himself leaving the whitehouse with SS escort past the press.
Fat finger; deleted.
Goldman Sachs is.....
BUUUUUUUYIIIIIING!!!!!!!
Tuco
"The Bank of Korea increased gold reserves 20% last month to diversify investments, boosting holdings for the fourth time since June 2011 and underscoring increased demand by central banks according to Bloomberg. The bank added 14 metric tons in November, bringing the total to 84.4 tons, the bank said in a statement today. By value, holdings increased about $780 million to $3.76 billion, equivalent to 1.2% of total reserves, the bank said. “Gold is a physical, safe asset,” the Bank of Korea said in the statement. The precious metal “is a way of diversification, which helps reduce investment risk in terms of foreign-exchange reserves management,” it said. The Bank of Korea bought 16 tons in July, 15 tons in November 2011 a further 25 tons over a one-month period from June to July last year."
“Gold is a physical, safe asset”
Did Goldman miss that part?
a "safe" asset? I look at my safe and there's no gold in it, the whole Kitco pool account safe
Im still laughing at the headline!
Phew! How relieved to know that if Goldman says sell, then it must be a good timne to start buying. Thanks for the heads up Tyler.
Goldman's real clients get a magic decoder ring.
Dogmatic believe in any investment thesis is niave. Gold does not HAVE to go up over the long term. Everyone loves to hate GS but the fact is their analysis COULD be right.
Goldman gives the muppets good advice? Talk about a fat tail!
I recall in 2011 all the major banks came out and said to BUY GOLD. With calls of $2200-2500. I was so excited at this call. Well that was the peak in Gold it went down 1 month after that and has been sideways since.
Goldman says SELL GOLD? You get a bit nervous at first, just like I was excited by the BUY GOLD call at first. But If this is like the 2011 call by all the banks in the same 2-3 week period then this will propell us to $2000 in the coming months.
Does the letter from goldman say anything about the debt ceiling being raised? QE3++? The Bond Bubble?
They can't literally be selling "green shoots" to their muppets can they?!?!?!?!
Goldman should recommend to short treasuries if the Fed needs less printing, FUCKING LOGICAL FAILURE BLATANT HERE PEOPLE!
Goldman must be short gold
And looking to cover.
I told these idiots not to say this anymore as everybody rushes to buy more physical everytime they open their stupid mouth and the little gold we have at Kitco dissapears, Oh my, my gold pool accounts, my poor, "poor" pool accounts.
Buy! Buy! Buy!
cramer sound board: http://www.cnbc.com/id/100000942
In the interest of making profits, GS, like all brokers, must fleece the average "Joe investor" and then entice him back into the market to be taken again. This is how the big boys make book. You can bet that GS is doing the exact opposite of what they telegraph to the world. If the economy improves that much, interest rates will tick higher, bonds will sell off and the the deficit will still rise because of the higher cost to finance it. Thus, more QE is likely baked into the game of keeping the false currency afloat. But, just in case gold becomes obsolete, I am stocking up on Pet Rocks and pyrite.
Once bitten, twice shy; are there any GS clients who aren't rabid from the tentacular bites?
The most terrible truth is that there are people who have accustomed themselves to that clammy embrace.
There are people who aspire to grow such tentacles upon themselves.
Cthulhu n'Ryleah a'ftagh.
"Once bitten, twice shy; are there any GS clients who aren't rabid from the tentacular bites?"
You can fleece a sheep every year. But you can only skin him once.
- old con man's proverb
If u really know what is going to happen, you can become a billionarie! I'm keep'in my PM's none the less and GS can fuck themselves.
I will NEVER believe or trust Goldman Sachs, or any other companies that can only survive thanks to bailouts paid by me, but that said, gold is once again falling fast. I for one don't know what will happen but I know that has happened or is happening and for now I see that QE3 has had no effect on gold or on the US$ just like the eurozone crisis has had very little on the euro.
Don't ask me why, don't ask me how.
Goldman is a company run by crooks and employing young immature people with very little culture.
"Improving US Growth Outlook"?? Easy to say as Goldman slashes its expectations for Q4 GDP to 1%. Long term growth, doubtful.
Business Insider, Dec 5, 2012
"The latest data has prompted Goldman to cut its Q4 GDP forecast. It now sees just 1% growth." "As a result of our analysis, we have cut our tracking estimate of Q4 real GDP growth from 1.3% to 1.0%."
http://www.businessinsider.com/goldman-slashes-q4-gdp-forecast-to-just-1...
If Goldman Sachs suggests it....
Great track record they have....
Long record too...
Hmmm
If GS had said to buy gold would any of you be selling it?
Maybe a more germaine rhetorical question relative to GS ability to predict the future would be:
If Goldman Sachs told you that someone found a fully functional laptop in a garbage room in downtown New York, would you believe that the person who discovered it was able to login to the email account and identify the owner? Of course you would.
Next question.
They would bite off their own testicles before they ever said that.
If snake bites are so violent, then why do they use a snake on the logo at my doctor's office. Are they looking for business?
Silver heal thyself.
http://tradewithdave.com/?p=14000
My expanded modeling suggests that Goldman's recommendations are equivalent to the bucket of barn litter I cleaned out of my chicken coop yesterday.
Scratch that. That barn litter will help produce black gold next spring in my compost heap. My vegetable garden will not be Muppetized!
Fuck, not yet, I'm not in a position to buy phyzz.
Hold back on your muppetry for a few weeks.
Local (in a city with population in the 7-figures) bullion dealers getting "cleaned out." Say resupply is slow as well. Safe sales are also ramping.
SELL!!
I shall not sell. When I think of my grandma, when she was young, it was worth $20.67/oz....If I die, will AAPL still be around as a going concern? Not sure. Gold? Of course. Buy real estate instead? 6,000 years of jewish survival tells me that real estate is not the way to go. You need mobility. Just like they escaped Assyria, Egypt, Jerusalem, Alexandria, etc. today, we will need to escape too.
Exactly, my ambiguously Hebraic ZH compatriot!
Gold! It is the only real option for wealth preservation now more than ever. Never before has the world built such a bubble of paper debt and derivatives. Never before has government been so rapacious and simultaneously so capable of manipulating the markets and stealing wealth and property through taxation, inflation and regulation. Never before have we had ZIRP and such massive monetization for years with no end in sight. The entire world is living off wealth borrowed from future decades. If you are holding your wealth in paper, you are holding one of those IOUs from the future and it is printed in flash paper. Your IOU will not be redeemed for present value - you'll be lucky to get anything of value for it. You must hold gold.
What astounds me is that gold has not already exploded in price. The bankers and government have done an outstanding job dumbing down 99% of the population about what is money and why gold is so special in that regard. What is more astounding is that the present gold bull is being driven entirely by only 1% of the population, those intelligent and couragous enough to invest based on facts, history and common sense, not the unfounded gibberish and misinformation of MSM talking heads and self-serving corrupt politicians. When that 1% becomes 5%, we will see a gold price for the history books.
I'm told the Babylonian Talmud advises to invest 1/3 of your money in land (real estate) , 1/3 in business (stocks) and 1/3 in gold.