• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

What Happened The Last Time Gold And Central Banks Were So Far Apart?

Tyler Durden's picture




 

From 9/11 on, Gold and the world's central bank balance sheets were as correlated as over-consumption and a hangover (and linked just as causally we suggest). Then a funny thing happened in 2008 - gold slid as the central banks went extreme. Of course, as this divergence occurred, the world's stock markets imploded almost as if the central banks knew their status quo was about to go entirely pear-shaped. From 2008 until November of 2011 (when the world's central banks began their coordinated ease-fest) the correlation went limit up once again. Since then, Gold and CB largesse once again decoupled as liquidity is flushed around the world's markets to suspend reality just a little longer. While this divergence is not as extreme as in 2008, something is afoot.

Then...

 

and now...

 

Charts: Bloomberg

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Tue, 01/01/2013 - 17:36 | 3112854 DoChenRollingBearing
DoChenRollingBearing's picture

This is Yet Another Presentation why all who read Zero Hedge should be buying physical gold.  There are LOTS of things we should also be doing to prepare ourselves for a bad outcome (including preparing for the tail risks of a terrible ending).  Gold, IMO opnion is the main safe harbor for one's wealth.  Get some gold, get it soon.

Wed, 01/02/2013 - 06:49 | 3114331 BigDuke6
BigDuke6's picture

Stacking aint easy.

But its worth it.

Tue, 01/01/2013 - 17:37 | 3112856 rehypothecator
rehypothecator's picture

Europe hasn't recapitalized its banks, Japan is crossing the point of no return, the US, cliff or not, is beyond repaying its debts...  what could possibly go wrong?  Well, at least US treasuries are backed by something, which is comforting, unlike gold.  


http://www.youtube.com/watch?v=aX8lx9Mglcg

Tue, 01/01/2013 - 19:44 | 3112960 tenpanhandle
tenpanhandle's picture

per yer url:

 

I'm surprised words can actually exit that womans mouth considering the vacuum in her head.  Seems to defy physics.

Tue, 01/01/2013 - 18:22 | 3112966 sgorem
sgorem's picture

the ONLY thing that is backed by THIS government is inflated hot fucking air in the form of green paper and coinage costing more to mint than they are worth melted! Does that give you a clue?

Tue, 01/01/2013 - 18:53 | 3113047 rehypothecator
rehypothecator's picture

My apologies for not including a sarcasm tag on the video.  I just love the conviction, certainty and finality of her intonation, coupled with the utter emptiness of her words.  It might be worth watching again, with that thought in mind.  It's a classic.

Tue, 01/01/2013 - 17:37 | 3112857 _ConanTheLibert...
_ConanTheLibertarian_'s picture

So gold has some serious catching up to do. BTGFD!!

Tue, 01/01/2013 - 17:37 | 3112858 btb2010
btb2010's picture

FRB holds gold because it's a tradition!!!

Tue, 01/01/2013 - 17:54 | 3112899 Bananamerican
Bananamerican's picture

...to suppress gold's price

Tue, 01/01/2013 - 19:35 | 3113136 Dan The Man
Dan The Man's picture

dude...great handle!

Tue, 01/01/2013 - 17:38 | 3112859 btb2010
btb2010's picture

 

 

Tue, 01/01/2013 - 17:37 | 3112860 btb2010
btb2010's picture

FRB holds gold because it's a tradition!!!

Tue, 01/01/2013 - 17:38 | 3112863 Fuh Querada
Fuh Querada's picture

Green curve: Viagra

Yellow curve: Valium with sodium bromide

Tue, 01/01/2013 - 17:39 | 3112865 tawse57
tawse57's picture

So a drop in gold may be close. Pity the S&P 500 or DOW is not on those charts as well - would be interesting to see where the dips in the markets came.

Tue, 01/01/2013 - 17:39 | 3112866 Cognitive Dissonance
Cognitive Dissonance's picture

Something stinks in the wood pile.

Tue, 01/01/2013 - 17:41 | 3112868 Bay of Pigs
Bay of Pigs's picture

What is that schmell?

Tue, 01/01/2013 - 17:54 | 3112900 RockyRacoon
RockyRacoon's picture

You mean other than JPM and the CRIMEX?  That's all I caught a whiff of.

Tue, 01/01/2013 - 18:01 | 3112913 Cognitive Dissonance
Cognitive Dissonance's picture

How long does it take for a corrupt body politic to decay and decompose? And left alone to its' own devices, devoid of fawning sycophants, scapegoats and cesspools, would anyone smell the stench of rotting fiat flesh?

Tue, 01/01/2013 - 18:11 | 3112936 akak
akak's picture

You are forgetting that rot, stench, decay and putrifaction only empower the zombieconomy.

Tue, 01/01/2013 - 18:26 | 3112977 knukles
knukles's picture

It's a driect function of the half lives of Dancing with the Stars and Jersey Shore divided by the inequities of selfishness and tyranny of the evil.

Tue, 01/01/2013 - 17:44 | 3112876 Threethreethree
Threethreethree's picture

Shortly after 911 Osama Bin Laden released a written manifesto telling all Arabs and Muslims to buy gold and transition away from the use of the American Dollar.

333

Tue, 01/01/2013 - 17:55 | 3112902 francis_sawyer
francis_sawyer's picture

<== OBL telling Arabs & Muslims to buy gold [with] joobux

<== Jews telling everyone to sell gold for fiat joobux

Tue, 01/01/2013 - 17:50 | 3112893 Atomizer
Atomizer's picture

Ask..

 

Nadhmi Auchi

Antoin ‘Tony' Rezko

Elf Aquitane

Paul Bremer

Daniel Mahru

Carter-Ruck

The Sierra Club

Penny Pritzker

Leo Gerard

Valerie Jarrett

Eric Holder

Orlando Jones

Jon Bon Jovi & Broadway Berry singing

The Joyce Foundation

CCX

Blagojevich

Jabir Herbert Muhammad

Khalil Shalabi

Aiham Alsammarae

  • Geopolitics pass new tax laws so that WallStreet can play with new free monies.
Tue, 01/01/2013 - 17:54 | 3112903 Clowns on Acid
Clowns on Acid's picture

Tyler,

You ave pointed thoisout before. The shadow banking market is collapsing and the excess uSD sloshing around in the system is going to the banks, not the public. When the banks are told to open the sluice gates by the Fed (or Obama) then we will see AU fly.

Te Fed startegy is to save thebanks first, and then if necessay, open the gates of hell.

It's getting close.

Tue, 01/01/2013 - 18:27 | 3112974 sgorem
sgorem's picture

i like you clown, but don't drink, or drop, and type at the same time please....:)

Tue, 01/01/2013 - 20:18 | 3113227 Clowns on Acid
Clowns on Acid's picture

Hehe...was watching football while typing above. Too many balls in the air.

Musta been down arrowed by an English teacher.

 

Tue, 01/01/2013 - 17:56 | 3112904 Motorhead
Motorhead's picture

Or is this one of those correlation, not causation things?

Tue, 01/01/2013 - 18:15 | 3112952 disabledvet
disabledvet's picture

it's a gold thing. "price only moves in one direction." and if not "it's being manipulated." with interest rates this low how the hell can i "manipulate" anything? prices should be SOARING. instead "it's all those fiatsco's" that have soared in value. If this article is correct (and it isn't) we should be on the verge of a massive DEFLATION. Okay...WHERE? the burden of proof is on those who believe in "non interest bearing accounts" being the big winner. well...i'm a saver and a worker...and i'm getting OBLITERATED. so i thank my self that i listened to myself and took thirty percent returns "with interest" instead of prepping for an Armageddon that never came. When are we going to talk about COMPETITION around here? Seems like the idea factory is getting a little stale of late...

Tue, 01/01/2013 - 18:50 | 3113005 akak
akak's picture

I am guessing that your disability is not entirely, and perhaps not even largely, physical.

Please point to the fiatscos that have "soared in value", as I think you are suffering from Cranial-Rectal Inversion Syndrome here.

Tue, 01/01/2013 - 17:55 | 3112905 stormsailor
stormsailor's picture

i have a backpack dredge and know where the gold is in creeks around charlotte,concord,jefferson,kershaw,lovelace,  if it does what i think,  a pleasant afternoon could be extremely profitable.  as it is, i don't own it and do not have to worry about confiscation.  i can get it when the time is right. 

 

nothing like cleaning out the trays and finding a half-ounce nugget

Tue, 01/01/2013 - 18:08 | 3112924 americanspirit
americanspirit's picture

Hi Stormsailor - a backpack dredge hey. Nice idea. I know of a couple of streams nearby that might be worth spending a pleasant afternoon or two doing a little dredging. They have good fishing too. I just googled 'backpack dredge' and it looks like there are a few good choices. Thanks for the tip.

Tue, 01/01/2013 - 18:10 | 3112939 tooriskytoinvest
Tue, 01/01/2013 - 18:12 | 3112946 akak
akak's picture

Why do "madness" and "modern" almost seem to go hand-in-hand nowadays?

Tue, 01/01/2013 - 18:12 | 3112941 stormsailor
stormsailor's picture

try this one.  http://www.keeneeng.com/Merchant2/merchant.mvc?Screen=PROD&Product_Code=... i dredged during the summer in college worked with backpack dredges all the way up to 8 inch.   average cut about 2 ounces a week back when gold was in the 200 range,  long ago.  beat crap out of some boring summer jobs.

Tue, 01/01/2013 - 18:55 | 3113055 tenpanhandle
tenpanhandle's picture

sailor:  we must be about the same age as I dredged for a living right after highschool when gold was 120 or so an oz (1976-77).  I continued dredging into the mid 80's until the jack booted thugs of the USFS waged war on us.  Making a living was pretty tough and I wouldn't recommend anyone quitting their day job to go dredging but the memories were worth millions. The gold was in the times.  Now it is against the law (rules and regs backed by the so called forest rangers weilding 40 caliber weapons) in California aka the "Golden state".

Any dredging now must be done guerilla style in that state.  However a new movement by the elected sheriffs of Northern California is attempting to bring law enforcement back to the people and dredging may have a comeback as Sheriffs refuse to enforce the draconian regulatory rulebook the feds call law.  From what I understand, the County sheriffs have ultimate law enforcement powers in their respective counties above the state and feds and these sheriffs are taking that authority back.

Many other states are restricting dredging under a myriad of rules and regs promulgated by the US Wildlife Service and the US Forest service among others.  Water quality issues are a panacea for the extreme environmentalist to shut down dredging in many places (coming to a stream near you).  Soon dredging will be outlawed everywhere and only outlaws will own dredges.

Good luck to us all.

Tue, 01/01/2013 - 19:26 | 3113117 stormsailor
stormsailor's picture

california gold, have read some accounts of huge nuggets being found in placer deposits.  yep, we are right about the same age.   i live close to charlotte nc.  if you do the research,  more gold was minted from the charlotte mint than was ever minted in california.  all of uptown charlotte is built over old abandoned mine shafts.  i grew up south where there were several old gold mines.  biggest nugget ever recovered in the united states was about 20 miles northeast of charlotte nc.  biggest i ever found was a one ounce nugget that was half crystal quarts, half gold.  in 1980 a collector gave me 5k for it.

 

i had an incredible time in my dredgeing days. 

Tue, 01/01/2013 - 18:19 | 3112961 swissaustrian
swissaustrian's picture

In November 2008 gold briefly went into backwardation indicating severe physical shortages. Physical Silver premiums also skyrocketed. Spot prices plummeted however because leveraged paper players had to cover losses in other markets (stocks, derivatives, industrial commodities etc.) The gold futures and options players (specs) at the COMEX were biased heavily to the long side in the summer of 2008, too. The following waterfall decline occured due to panic liquidations. Commercials (bullion banks) made a killing during that time and covered their shorts.

Fast forward to December 2012: Paper longs again overstreched their balance to the long side as the FED announced QE3+4 again. Commercials took advantage of that by forcing them out again. Meanwhile physical demand seems to be ultra strong again according to several sources. Rapidly falling forward rates are confirming these reports.

Tue, 01/01/2013 - 18:39 | 3112996 forwardho
forwardho's picture

In "reality" there is a direct correlation between AU and any given fiat. As AU goes up in price the value of the fiat is shown to be worth less.

We are trapped in the land of OZ

The ruby slippers have been burned.

 

Tue, 01/01/2013 - 21:11 | 3113361 cynicalskeptic
cynicalskeptic's picture

The ruby slippers were silver in the book - changed to ruby for technicolor......   

silver's been getting severly abused

Tue, 01/01/2013 - 18:33 | 3112997 Mr. Hudson
Mr. Hudson's picture

As long as Bernanke keeps printing money for his friends to buy and sell paper gold, and as long as people buy and sell paper gold, they bankers will always control the price of gold.

Tue, 01/01/2013 - 18:33 | 3112998 radix46
radix46's picture

ECB removed their support for paper gold.

Gold price? Look out beloooooooow!

 

Tue, 01/01/2013 - 18:50 | 3113039 ruffian
ruffian's picture

If the system managers were removing their support form the paper gold market then the Bullion Banks would not have covered nearly 90,000 short futures contracts since 12/5/12. That's 9,000,000 ounces or 280 tonnes worth of paper gold. Why would they do that id the end of the paper gold mkt was neigh?

More likely thay are going to lift paper gold prices, suck in the hedgies and other paper players and then bring the hammer down later. They will need to make this rally look very convincing too as many are suspicious of the bullion banks these days............

Tue, 01/01/2013 - 18:55 | 3113054 radix46
radix46's picture

You are assuming the ECB and the bullion banks are "on the same side".

I don't.

Tue, 01/01/2013 - 19:16 | 3113094 ruffian
ruffian's picture

So the ECB is not on the "side" of the banking system? Who have they been propping up for the the past 4 years then? You think the ECB would allow the bullion banks to default and not give them a heads up? I read FOFOA too and there is nothing to say that even if the MTM party is below Euro 1260 that the BB's could not give the paper players one last good headfake.

Repeat....BB's will be given a heads up when the sytem mangers want to revalue physical. They will not "surprise" the BB's.........

 

Tue, 01/01/2013 - 19:18 | 3113100 radix46
radix46's picture

I agree, they won't surprise them. The BBs know they'll be bailed out by the FED regardless. No surprise.

All paper gold contracts will be cashed out to save the banking system.

Tue, 01/01/2013 - 19:54 | 3113172 JamesBond
JamesBond's picture

there is cash on the sideline just waiting to purchase gold if the price slides; it will be a momentary blip down...

 

jb

Wed, 01/02/2013 - 06:26 | 3114324 radix46
radix46's picture

Good luck with that

Tue, 01/01/2013 - 19:16 | 3113095 jldpc
jldpc's picture

Unfortunately, the ultimate collapse is still far off; this non-reality can go on for years/decades. But having your .45-70 govt for when the police can no longer be paid will give you a few hours more than your neighbors - as the masses on the dole go rampaging for the last of the "free" food. It is self-deluding masturbation to argue what to call this mess in polite economic terms; history is full of failed countries/civilizations. Look back, look around, read about the collapses - France; American Indians; Cuba; South Africa; Russsian Revolution; various Mexican and South American "revolutions," etc. Better to be armed with the weapon than the high finance book.

Tue, 01/01/2013 - 19:52 | 3113166 JamesBond
JamesBond's picture

ahhhh...  the bend over and grab your ankles and open wide position....

 

jb

Tue, 01/01/2013 - 19:59 | 3113182 sink critically
sink critically's picture

While the debates over what the meaning of "is" really is, the junkie keeps pressing the morphine button frantically whilst selling the hope of a miracle recovery. The patient is all but dead folks, and "is" becomes critical to posterity.

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