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The Gold And Silver Morning Takedown Is Back

Submitted by Tyler Durden on 04/12/2013 08:25 -0400

It's been a few days since the once ubiquitous morning take-down in precious metals showed its face but this morning with the USD leaking only modestly higher and Treasuries notably bid, gold and silver are gapping down in a hurry. Gold (-2%) is back to the May 2012 lows (within $10 of July 2011 (pre-QE2) levels and silver (-3%) is testing down to recent lows also. Other commodities (like Oil and Copper) are also in pain this morning...

Gold in EUR is its lowest since October 2011.

and Oil and copper are joining the party...

and this flight FROM safety as bonds are bid...

Charts: Bloomberg

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Fri, 04/12/2013 - 09:00 | 3440226 A82EBA

are they shorting gold by printing out of thin air? who gets that bill later? it must take a lot of $ to take gold down like that. why not take it to $800 and be done with it?

Fri, 04/12/2013 - 09:15 | 3440303 Confundido

Who gets the bill? Cypriots; and the Portuguese come next.

Fri, 04/12/2013 - 09:04 | 3440245 saints51

Come on Silver. DIP LOWER. Got my PM in the cart F5'ing this mother fucker. One more dip preferably to 26.62

Fri, 04/12/2013 - 09:06 | 3440250 Temporalist

Barrick Gold Faces Fresh Setback With Mega Mine In Chile

"A Chilean court has suspended work at Barrick Gold Corporation‘s Pascua Lama mine after indigenous communities complained that the project is threatening their water supply and polluting glaciers."

http://www.forbes.com/sites/greatspeculations/2013/04/11/barrick-gold-fa...

Fri, 04/12/2013 - 09:14 | 3440298 fijisailor

Yea my wife is from mineral rich Bolivia and they're producing almost no mineral wealth. The indigenous will save the world. /sarcasm

Fri, 04/12/2013 - 21:41 | 3443733 MeelionDollerBogus

+1 for saving water supplies, respecting people’s land and limiting gold supply so price goes up

Not that I mind a low buying price but pressure takes time to have full effect, I think timing for this will be suitable.

Fri, 04/12/2013 - 09:05 | 3440252 Hobbleknee

Who's the cockfag giving everyone minus points?

Fri, 04/12/2013 - 09:09 | 3440269 IridiumRebel

Evidently Fag.com is down and he swung over here........

Fri, 04/12/2013 - 09:12 | 3440284 saints51

The bitcoin hackers. They are DDOS attacking the red arrows.

Fri, 04/12/2013 - 09:49 | 3440452 SmallerGovNow2

Noticed that too.
Some Obama progressive troll no doubt.

Fri, 04/12/2013 - 09:58 | 3440481 Jam Akin

It is The Muppet-in-Chief

Fri, 04/12/2013 - 12:44 | 3441548 earnyermoney

Ben Bernanke, Paul Krugman and MDB?

Fri, 04/12/2013 - 21:43 | 3443737 MeelionDollerBogus

Million Dollar Krugman just got a prescription for treatment of Sandy Vagina, whereby the prescribed animal spirits voodoo ritual requires pressing, licking, molesting, cock-slamming, etc., anything resembling a red triangle. Just cuz.

Fri, 04/12/2013 - 09:07 | 3440259 Hongcha

Sub-$1,500 gold is in the cards.

Fri, 04/12/2013 - 09:17 | 3440307 somecallmetimmah

Bring it.

Fri, 04/12/2013 - 21:44 | 3443738 MeelionDollerBogus

You called it! Now let’s see how long that can last…

Fri, 04/12/2013 - 09:20 | 3440270 Village Smithy

Permission to come aboard Captain Sprott? If you want to get any satisfaction at all out of watching this Bernanke orchestrated train wreck then you need to at least get yourself some Sprott metals, sit back with ZH and some good single malt and get ready for the show. (Yes my physical friends the real thing is better but I have a family and the thought of my physical asset purchases becoming public knowledge when my supplier's computers are hacked really scares me. Any suggestions regarding the possibility of anonymous purchasing are welcome.)

Fri, 04/12/2013 - 09:29 | 3440347 Temporalist

Go to your LCS (local coin store) or coin show or pawn shop or buy jewelry at yard sales, start your own "We Buy Gold" business and have gold buying parties...

Fri, 04/12/2013 - 09:42 | 3440408 Village Smithy

Yes as in most successful endeavours, patience and perseverance are the key.

Fri, 04/12/2013 - 13:57 | 3441902 css1971

We Buy Gold stores pay 40% of spot for the gold content.

Fri, 04/12/2013 - 14:34 | 3442078 akak

"We Buy Gold" customers are (at least) 60% idiotic.

Fri, 04/12/2013 - 09:11 | 3440273 musket

These criminals are getting rich off the bounce back.....if you know when the trigger is being pulled and prepare to buy at the precise time the selling stops then you're golden. Every time bad news is on the horizon this happens and not necessarily daily. I wonder if they feel like the North Koreans are going to launch this weekend...or have knowledge somehow in advance? Maybe just maybe they have contacts with the Chinese who clue them in. Just think....they can poke Kerry the wooden idiot in the eye since he's there right now, infuriate the South Koreans (who have been asked not to start the war) and scare the holy hell out of Japan.......strategic trifecta!

Glad I'm not at either Guard Posts Collier or Oullet right now

Fri, 04/12/2013 - 09:16 | 3440301 NoWayJose

So a bad employment report sent gold higher a few days ago, and now a bad retail spending report crashes gold prices? This should remove all doubt that gold prices are driven by any economic news. Keep stacking higher knowing that not only PMs cheaper, but that you are using devalued fiat to buy it.

Fri, 04/12/2013 - 09:15 | 3440302 Quinvarius

Buy it.

http://research.stlouisfed.org/fred2/series/BASE

It is just a redistribution of US government gold at historical lows in the final analysis. The Obama bottom.

Fri, 04/12/2013 - 10:01 | 3440486 Al Huxley

I've also been both following the numbers and posting the link whenever I have an opportunity. This is what REALLY happens behind the scenes when you pump 85 billion / month of new money into the system. So all the fuckheads talking about gold being done either have to explain why this chart's suddenly going to reverse (and without totally anihilating the 'economy' to boot) or alternatively, come up with a good reason why the long-term correlation between money supply and price of gold will no longer hold.

Fri, 04/12/2013 - 10:07 | 3440522 Quinvarius

They are really going to shit when QE5 pops here in a few months. A direct global banking recap is required. It is as predictable as both QE3 and QE4 were.

Fri, 04/12/2013 - 09:28 | 3440344 CuriousPasserby

BTFD!!!

Fri, 04/12/2013 - 09:29 | 3440348 Oligarch

This is probably just the beginning of the bear market in gold.

Fri, 04/12/2013 - 10:01 | 3440497 Al Huxley

See my comment above. Explain to me how the money supply's going to continue to go vertical, but the price of gold is going to go down. And go down in the face of record demand for real gold from China, India, Russia, etc....

Fri, 04/12/2013 - 10:30 | 3440660 SmallerGovNow2

I second your request for this explanation... Defies all logic and economic fundamentals...

Fri, 04/12/2013 - 10:43 | 3440729 OneTinSoldier66

Let me guess. You believe that counterfeiting paper money out of thin air is moral and the right thing to do, as long as it's done by Oligarchs. Correct?

Fri, 04/12/2013 - 09:28 | 3440349 Downtoolong

Looks like it’s setting up to be a big risk-off day for everything; Stocks, Oil, PM, Bitcoin, whatever. So sad, not one of these so-called financial guru hedgers even has the balls to ride it over the weekend. Even sadder that their only shelter is so-called safe government bonds.

Fri, 04/12/2013 - 09:31 | 3440355 spinone

Bullshit. Try to buy it at that price

http://www.ebay.com/itm/1-oz-Gold-American-Eagle-Random-Year-/121066752860?pt=Bullion_US&hash=item1c30240b5c

http://www.ebay.com/itm/2013-1-oz-Silver-American-Eagle-Coin-/121053908641?pt=Bullion_US&hash=item1c2f600ea1

Fri, 04/12/2013 - 09:34 | 3440367 Temporalist

Even generic rounds are $32

http://www.ebay.com/itm/2-1-OZ-INDIAN-HEAD-BUFFALO-NICKEL-SILVER-ROUND-C...

Fri, 04/12/2013 - 09:42 | 3440407 fijisailor

I always check price and availability at gainesvillecoins.com. That is my test for premiums and there has been an increase but not like on ebay.

Fri, 04/12/2013 - 12:24 | 3441442 akak

Tulving is currently as low on inventory of gold, silver, platinum AND palladium as I have ever seen him.

Fri, 04/12/2013 - 21:43 | 3443740 MeelionDollerBogus

http://www.comparegoldprices.com

http://www.comparesilverprices.com

Fri, 04/12/2013 - 09:35 | 3440373 johny2

The game is obvious. They have gone all in, pushing the stocks up and now they think that with a bit of Soros talking about "boring" pms and a bit more of shorting the pms on the market they can make illusion into reality. but the reality is that all around the world, the real assets are going up in the dollar nominated value, so the dollar will have to go down.

Fri, 04/12/2013 - 09:43 | 3440417 agent default

The Dollar is being dumped as a reserve and as a world trade currency. I think it was last week that China and Australia signed a trade agreement to bypass the Dollar completely. On a side note, does anyone have any volume data on today's action? Because if it turns out that somebody sold a couple of years of production within five minutes, then you know they are desperate.

Fri, 04/12/2013 - 09:47 | 3440443 johny2

bargain! but i expect even better bargain shortly, as long as the stocks last.

Fri, 04/12/2013 - 09:35 | 3440375 SmallerGovNow2

Fuck you JPM, GS, and Bubble Ben...

Fri, 04/12/2013 - 09:40 | 3440395 observer007

Official Paper from ABN: Why The Bank Halts Physical Gold Delivery

Due to the merger of ABN AMRO and Fortis Bank Netherlands in 2009, ABN AMRO was forced by the European Commission to sell part of its commercial banking portfolio in the Netherlands to Deutsche Bank.

http://homment.com/abn-Gold-stop

Fri, 04/12/2013 - 09:39 | 3440400 Platinum_Investor

Tulving has 12 items of Silver SOLD OUT. Demand is soaring at the US Mint. Yet the paper shorts still are playing games.

Fri, 04/12/2013 - 09:42 | 3440409 css1971

Americans are getting a sale here. Other currencies aren't.

Fri, 04/12/2013 - 09:42 | 3440403 css1971

This is a risk off run to USD. Gold's just acting as a bystander here.

To make it easier to understand what's going on you need to stop using USD as your measuring stick. Try a different currency for example.

Fri, 04/12/2013 - 09:50 | 3440459 foxenburg

@css1971. Hmmmm. I've just priced it in everything from roubles to rand. All just as bad.

Fri, 04/12/2013 - 13:52 | 3441886 css1971

Yeah you're right. Something else going on.

Sat, 04/13/2013 - 18:30 | 3445298 mkkby

Guys, guys... this isn't so hard to understand.

The PM market is a PAPER market. It's driven by hedge funds playing the charts. They jumped on a trend -- like they do on every trend -- and drove it to 1900. Now they see the trend is over, so they're selling and moving on. GS lit the trigger by recommending a short position, but the stops below 1550 were there for the taking.

Physical buyers are a tiny minority, which includes some very large long term players -- China, Saudi's, etc. They buy under the table so as not to affect the paper market.

Fri, 04/12/2013 - 09:48 | 3440429 luckylongshot

Well having spent my life looking for inefficient markets, the gold and silver markets today are the holy grail. Not only do you get to bet against the banksters but all you have to do is be patient. Sooner or later either fundamentals will kick in or someone somewhere will take them down.

Fri, 04/12/2013 - 09:45 | 3440432 Quinvarius

Gold prices are the one thing they can never control. They can print money to prop stocks, save banks, prop bonds, and finance the government. But once they are out of gold, it is over. That is why long gold is really the only bet you can make if you are bearish on anything. These prices will not even show up on the chart when this is over. This is a gift...not so much for the miners whose jobs the government is killing, but a gift for your future.

Gold isn't easy. But this is a historically unsustainably cheap price. This is cheaper than just before the Nixon shock. You have to make up your own mind. Who knows what the governmnet is trying to do. But their efforts are dust in the wind.

Fri, 04/12/2013 - 09:47 | 3440441 Monedas

Don't buy to sell .... hoard to barter !

Fri, 04/12/2013 - 09:48 | 3440447 jmcadg

Paper selling to buy the physical. Move on.

Fri, 04/12/2013 - 09:49 | 3440450 YHC-FTSE

Shit I thought they only did this on Mondays. WTF are they going to do next week?

Fri, 04/12/2013 - 09:52 | 3440464 ZZR600

Someone trying to restock empty warehouses on the cheap?

http://bullmarketthinking.com/comex-gold-inventories-collapse-by-largest-amount-on-record/

Fri, 04/12/2013 - 10:04 | 3440512 Monedas

To stop the hemorrhage .... apply tourniquet and amputate the limb !

Fri, 04/12/2013 - 10:11 | 3440540 Al Huxley

The problem with that plan is, breaking the paper price encourages voluntary selling of PAPER, but generates BUYING of physical. So all this does is maybe free up a few ozs from retail selling of GLD that can be used to settle all the REAL buying happening as the large buyers take the real stuff on the cheap. It might be expedient in the short term, but if they don't stop it soon even the GLD slush fund is going to run dry.

Fri, 04/12/2013 - 10:21 | 3440619 Againstthelie

The alternative?

Gold bouncing off the major support and then rising again, attracting more buyers. Many physical buyers would rush in, once the bottom is in.

Gold reacts differently to assets: the higher the price, the more demand.

That's the reason why they have been hammering it down in european trade, the more the Cyprus crisis escalated. A rising gold price is a sign to the sheeple. If it falls, the sheeple look elsewhere...

Fri, 04/12/2013 - 10:01 | 3440496 Conax

Anyone that sees Chilton out in the world should walk up and hock a lugie in his Hulk Hogan hair, tell him it's from me. How can the CFTC cash their paychecks without shame?

The other day I read they were investigating some paper trade in Europe, as if that was any of their business.

Fri, 04/12/2013 - 10:03 | 3440504 FieldingMellish

Just need those last few bulls to turn bearish...

Fri, 04/12/2013 - 10:14 | 3440546 Quinvarius

It will never happen. Gold holders just get more scared the paper system is about to collapse when paper gold is pushed down. It makes them buy even more and take delivery. Knowing how the paper system works, when gold gets sat on by people with no gold, all I think is that there will be a paper default.

Fri, 04/12/2013 - 10:13 | 3440573 e-recep

after chavez asked for the delivery of venezuella's gold in august 2011 the gold price has been climbing up very quickly but coming down slowly. so the time it spends coming down is much longer. consider it as a torture to the investor. how does he spend most of his time? watching gold go down. yep. that's what they want, they want the gold hoarders to hurt most of the time.

Fri, 04/12/2013 - 10:29 | 3440658 OneTinSoldier66

I've read a couple of articles on Silverseek recently that claim, and have some charts to back up said claim, that the premium over spot (paper influenced) price is on the rise. In other words, the influence that the paper price has on the spot price may be starting to lose said influence.

I haven't read all four pages of comments, so someone may have pointed this out already.

Fri, 04/12/2013 - 10:42 | 3440743 MrBoompi

I guess since nobody seems to have any money the only way for the insiders to make any is by naked shorting.

Fri, 04/12/2013 - 10:45 | 3440755 somecallmetimmah

Holy Jesus, I hope this deep dive holds..Daddy needs a new box of Bullion!!!

Fri, 04/12/2013 - 10:49 | 3440766 realtick

gold & silver are the WTC1 and WTC2 of the metals complex

The Dustification Of The Bullish Scenario For Gold

http://chartistfriendfrompittsburgh.blogspot.com/2013/04/the-dustification-of-bullish-scenario.html

Fri, 04/12/2013 - 10:49 | 3440770 GrinandBearit

My dry powder is being put to use in 3, 2, 1....

Fri, 04/12/2013 - 10:48 | 3440771 Kreditanstalt

This doesn't seem like a "takedown"...someone, somewhere is short of money and needs to sell...

Fri, 04/12/2013 - 10:49 | 3440776 chasman

So....Heres a question? We all know paper PM ETF's etc are all leveraged 100-1....ie: GLD,SLV,etc......is it posible they (who are they?) are trying to hash out the high leverage and bring the leverage down to reality to whats actually physical and will destroy paper notes linked to the PM's....any thoughts?????

Fri, 04/12/2013 - 11:40 | 3441152 screw face

DUH! +1

Fri, 04/12/2013 - 10:52 | 3440786 GrinandBearit

What a gift! Yes... more, more!

Fri, 04/12/2013 - 10:53 | 3440792 Yikes

It's getting monkey hammered. $ 1510

Fri, 04/12/2013 - 11:34 | 3441121 somecallmetimmah

<$500! Merry F--'ing Christmas, boys!

Fri, 04/12/2013 - 11:00 | 3440849 GrinandBearit

Usually when gold is getting whacked hard like this, silver gets whacked even harder... that is not happening so much this time.

Fri, 04/12/2013 - 11:03 | 3440901 saints51

This is fucking awesome. Thank you Ben. Thank you so much. Let me go ahead and take some more supply out the market. Bought some silver around 26.69 and think I will take a little more out the loop. Guess i will take some gold too since it seems like a fire sale. This is why you keep reserved amount of play money for days like this. Warming up the pontoon boat for that spring BBQ on the lake. Its comical because these mother fuckers want you to hate PM's and worship the deity of fortune in fiat.

Fri, 04/12/2013 - 11:08 | 3440935 Joey9139122

25.50 bought, still dropping, and dropping... buy more, more!

Fri, 04/12/2013 - 11:08 | 3440948 Two Theives and...

Yes!

Buy in May and go away...

Buy in June 'cause metals swoon

It's July buy buy buy!

...and so on...

I love when the price gets smashed! Thanks CB a$$holes!

Fri, 04/12/2013 - 11:13 | 3440996 GrinandBearit

Just bought 40 1/10 maples at $1494.

Thank you Uncle Ben... shalom.

Fri, 04/12/2013 - 11:25 | 3441060 somecallmetimmah

And people say there's no God...

Fri, 04/12/2013 - 12:19 | 3441399 Godisanhftbot

Easier to insert rectally?

Fri, 04/12/2013 - 11:29 | 3441057 Floodmaster

Gold bugs don't understand the velocity of money. Vindictive thinking alter your judgment.

Fri, 04/12/2013 - 11:38 | 3441132 screw face

-What's this got to do with the price of rice, in China, and defcon 3?

-The Bugs don't like that kind of talk, wooooh jah!

-bust out the I and I pads, rosta

Fri, 04/12/2013 - 12:18 | 3441397 Godisanhftbot

Timing is everything. Zealots sodomized

The Gold And Silver Morning Takedown Is Back

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