What Happened To Precious Metals?

Tyler Durden's picture

Correlation may not be causation but it seems more than a few funds were using precious metals as collateral for their levered longs in AAPL...

Something changed on the evening of 1/23... (hint)...

as Gold's almost perfect correlation with stocks fell apart the moment AAPL reported... margin calls anyone?


...and for those wondering about Gold's relationship with stocks - today's equity push and gold weakness takes the ratio of the S&P 500-to-Gold perfectly to the average level post-Lehman...


Coincidence, perhaps?


Charts: Bloomberg

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ArkansasAngie's picture

Well ... gee whiz.

Whatcha bet they were playing with somebody else's money, too.

Ha ha ha ha ha

Insolvency is a bitch arse holes.

one bet too many


whatsinaname's picture

Are any of the gold and silver miners worth looking at as they plummet alongwith gold ?

Stackers's picture

The Exchange Stabilization Fund is what happened to gold and silver.

trav777's picture

ZOMG, 1660...it's the silverbugz who bought at $49 on that "$60 by next week" call that got blowtorched

Badabing's picture

You have to overlay a chart showing the money supply verses the price of gold and we have a one + year disconnect. Don’t worry something’s got to pop and my bet is gold.

The last time we saw gold get pushed down like this was around the last election.

Nothing these days is real except for the weight of gold/silver.

Fucking banks!

sessinpo's picture

Badabing:   "You have to overlay a chart showing the money supply verses the price of gold and we have a one + year disconnect."


You should also overlay that with the global debt (debt denominated in US dollars) and you would find that the debt is still overwhelmingly larger (Or as I suggest can't be repaid). That is deflationary.


Additionally, I have always suggested in a world of dollar denominated debts, other things of value would have to be sold to raise dollars to meet those debt obligations. Well, this thread would be a perfect example, if one could prove causation. Another thing to note is that, as the thread opines, gold/silver is not the perfect collateral. First, it was probably paper PMs, secondly, if you had the physical, you probably wouldn't be able to use that as actual collateral. The broker/bank wouldn't accept it. They want dollars.

HoofHearted's picture

What happened to precious metals?

They got put into my vaults, taken out for a canoe ride, and the rest is history.

Oh, you really mean, "What happened to the fake price of paper gold and silver?" Then that is different. Yes, people got their margin calls and sold whatever they had of value. It means people like me will BTFD on the phyzz, and really we'll get this boating thing right this time.

Doña K's picture

The elite in Davos are pushing it down as a warning that they control eveything. That is true but... when the sweater starts to unravel there is no stopping.

Just bought some more maples.

NidStyles's picture

I really wish you people would learn the definiion of deflation so you would quite mis-applying it.

Au_Ag_CuPbCu's picture

What happened to that endearing "...got their faces blowtorched off"?

IPA's picture

Just bought my first golden ounce. on a side note, I am going boating this weekend...


Pegasus Muse's picture

Keep in mind that Option Expiry for Feb Gold kicks in on next Monday’s close. There's no relative comparable for the Silver this month. We saw how 1700 was defended with almost everything the Option Writers clearly had, as there were some 8375 Options at stake up at that level. The next big target where much of the cluster of Open Interest lies is around the strike prices of 1680 (2491 Options) and 1675 (4326 Options). It's little wonder the price of gold has been slammed below these levels to ensure all these Options Expire worthless.

This is just more market rigging exercise executed by the criminals running the CRIMEX.

I expect spot prices in gold/silver to head back up next week.

SilverIsKing's picture

If I didn't know any better, I would peg you as Clive Maund's alter ego.

oak's picture

in the middle of december last year, the 150dma cross the 200dma upward. this could be the golden cross in the long term up trend.

oak's picture

also uup, us$ etf, last week the 150dma crossed the 200dma downward, which is the death cross. it could indicate us$ long term bearish.

trav777's picture

the trend has been driven by production, which established a new peak in 2011.

Miners have gotten monkeyhammered, and they're indicating all is not well

Mugatu's picture

For the last 4 years, gold has traded with equities.  Now as stocks are hitting new highs, sheeple will dump their gold for equities over the next month or two.  If enough news outlets tell us things are fine, the sheeple respond....until Summer hits. I am waiting for a big gold dump through Summer (maybe as low as $1200-$1300) and then its off to the races. 

Once this last purge in metals is over, watch for gold to finally return to its inverse relationship with equities.  The play right now is short gold/long equities, but by Summer it will flip to long gold/short equities.

JonNadler's picture

I agree with Trav, of course I agreed with him when he said gold would go back to 600....oh wait not that was when he was known as Jonny Bravo or some other name..masterbates maybe...can't remember

jjsilver's picture


Spot on Pegasus, good work

stant's picture

little turbo timhay ran that joint pissed off the germans on the way out the door. thats why they want thier stuff back

markmotive's picture

Perhaps investors are rotating into equities?

According to this chart, the rally still has legs:


duo's picture

Wait until Geico cancels the insurance policies of PM owners.

derek_vineyard's picture

geez....i thought aapl was a proxy for the equity market.   someone told me that over and over.   wish that author would admit they were 100% dead wrong....and let down the facade they are perfect and holier than thou.

Ham-bone's picture

somebody need a hug???  Tylers propose things and they're not always right (immediately)...

Frozen IcQb's picture

BTFD or sit on your hands. 1970's all over again.

Mugatu's picture

I'd rather BTFB (Buy the Fucking Bottom) than BTFD.  Gold bars will be cheaper next month than this month, so why hurry.  This is the fourth down month on the monthly charts, so we ovbviously are in a downtrend.

NidStyles's picture

Since when can future trends be predicted by past performance? The fundamentals say you are wrong.

JonNadler's picture

This is the fourth down month on the monthly charts, so we ovbviously are in a downtrend."

wonderful logic, why didn't i think of it?

Mugatu's picture

It sounds like common sense, but plenty of idiots just don't get it.  The guy above you didn't.

oak's picture

appreciate if you would name those four down months.

Mugatu's picture

Just go to netdania.com and push up the monthly gold spot charts.  Its not that hard dude.

NoTTD's picture

Well, it can only go down if it's been going down, right?

Papasmurf's picture

They may be cheaper next month, but there won't be inventory to buy.

kliguy38's picture

own the certificates also

ruffian's picture

do your own DD............EOM, GLW, BSX, BAT, SFF

Squid Vicious's picture

If you can find a restaurant chain selling for less than 30X earnings, buy it

edb5s's picture

I am getting killed on FSM...

Lordflin's picture

Nice charts... But I suspect this selling pressure has come from the same place it has the past several years... And the key was not AAPL on this latest of smack downs, but rather that gold and silver were about to move through resistance levels at 1700 and 32.50 respectively.

As a side note... Look who has just been appointed to chair the SEC... This entire thing would be hilarious if it were not for the fact that so many lives are being destroyed as a consequence... If anyone will be laughing it will be because they are still holding physical metal when the curtain comes crashing down.

Soon, I think...

whatsinaname's picture

Gold needing a Select Comfort mattress lately ? SCSS getting slammed lately as folks dont want numbered beds anymore. Having a bed and place to sleep may soon be a basic need ?

SafelyGraze's picture

investors have been using their mattresses as collateral 

admittedly, some might be rehypothecated http://www.youtube.com/watch?v=1vfs7T1aRvw


Manthong's picture

Obama’s skyrocketing electricity prices and (and everything else) means high cost of air pressure.

Long hay and burlap in the Obama/banker economy.

On second thought, I’ll just get the wife a bicycle pump and give her a whack on the butt when I need firmness.

KnightTakesKing's picture

I don't know about you, but for me it's usually firmness then I whack her on the butt.

Buzzworthy's picture

Using "paper" precious metals ...

Mad Mohel's picture

Didn't you hear, there is a new element on the Periodic Table. Paper gold, the symbol is 'Ju'.