This page has been archived and commenting is disabled.

Gold, Silver In Asian Liquidation Mode As China Growth Slows More

Tyler Durden's picture


UPDATE: Spot Gold $1426 (from $1564 highs Friday)

As Asia opens to the bloodbath that occurred in precious metals on Friday in the US, it would appear that more than a few traders got the 'tap on the shoulder'. Shanghai futures are limit-down and spot gold and silver prices are plunging once again as we suspect forced margin-calls and the raising of cash (to cover extreme variation margin - or capital reserves) needed in JGB positions, as we explained here. Liquidation is certainly the theme of the evening - investors are selling JGBs (6th day in a row of multiple-sigma moves in long-dated Japanese bonds 30Y +56bps off its post-BoJ lows at 1.60%!), selling Japanese stocks (Nikkei -128 pts, second biggest down day post-BoJ), selling US Treasuries (futures down), selling gold and silver (gold spot down over $100 from Friday's highs), and despite selling JPY early (retracing 30% of the weakness post-BoJ), JPY is practically unchanged (jerking lower only on the US futures open and Asian equity open) - it seems Mrs.Watanabe is struggling and unwinding some her excessively short JPY and long NKY positions.


Gold down over $100 from Friday's highs...


Which takes spot gold back to the 38.2% Fib retracement of the most recent low to high swing...


Tokyo COMEX Gold -9.2% (limit down) - looks like a giant post-BoJ roundtrip...


Silver ugly too...


Another day, another 4-sigma move in JGBs...

and post the China data...

  • GDP Miss
  • Retail Sales Miss
  • Industrial Production Miss
  • Fixed Asset Investment Miss

which stands in the face of the 'survey-driven' PMI data...

... everything is red - JGBs down, Japanese stocks down, US Stocks down, US Treasuries down, Gold and Silver down, Copper down, Oil down, Rubber futures limit down



Charts: Bloomberg


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 04/14/2013 - 22:03 | 3448128 TahoeBilly2012
TahoeBilly2012's picture

Holy crap!

Sun, 04/14/2013 - 22:05 | 3448143 wee-weed up
wee-weed up's picture

Very ugly! WTF!

Sun, 04/14/2013 - 22:08 | 3448158 Spider
Spider's picture

Yawn - long liquidations are completing the bottom.  This smacks of the $690 bottom in gold in 2008.  Silver price in mid $24's is right around cost of production - time to buy as much aspossible for me


Silver production costs (72 million oucnes of production included)

Sun, 04/14/2013 - 22:12 | 3448184 Thomas
Thomas's picture

Still groping to understand the JGB-gold connection.

Sun, 04/14/2013 - 22:16 | 3448209 Pinto Currency
Pinto Currency's picture


There is a crisis underway - appears to have started with Cyprus and assets being pulled out of the banks / financial system.

Physical old purchasing is on fire; price action is masking market demand.

Sun, 04/14/2013 - 22:17 | 3448222 Spider
Spider's picture


Sun, 04/14/2013 - 22:19 | 3448231 Pinto Currency
Pinto Currency's picture

Correction: Physical GOLD purchasing is on fire; price action is masking market demand.

Sun, 04/14/2013 - 22:23 | 3448266 Zero_Sum
Zero_Sum's picture

All the online Physical sites are pulling the plug on their sales. Tried buying on two so far and been rejected by both.

Sun, 04/14/2013 - 22:28 | 3448282 palmereldritch
palmereldritch's picture

Paper gold is tanking.  Physical has no market. Where to next?

Sun, 04/14/2013 - 22:37 | 3448337 Mr. Magoo
Mr. Magoo's picture

Keep buying the paper (also known as the Papiermark in the Wiemar republic) so everyone everyone else can buy the physical at a lower price, the one holding all the paper loses that's how the game works eventually

Sun, 04/14/2013 - 22:44 | 3448353 Pinto Currency
Pinto Currency's picture


Reverse fractional reserve banking in action.

Brought to you by the same people who brought you Lehman Bros.

Hell, it's brought to you by the same people who brought you fractional reserve banking.

Sun, 04/14/2013 - 22:55 | 3448408 AllThatGlitters
AllThatGlitters's picture

Ouch, look at gold and silver diving tonight!

Looks like they are now trying to bounce.

Live Gold:

Live Silver:

Sun, 04/14/2013 - 22:58 | 3448422 Pinto Currency
Pinto Currency's picture


The issue is not the price.

Investors and funds now suddenly realize they don't have possession.

Physical runs look to be on and paper market being smashed in order to provide time to acquire.

Sun, 04/14/2013 - 23:07 | 3448454 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

This is a deflationary collapse. No one give a shit about your damn pieces of metal. These traders don't want to have accidental steps from high office buildings or heavy shoes in the South China Sea. Implosion bitches!!

Sun, 04/14/2013 - 23:10 | 3448458 markmotive
markmotive's picture

According to Marc Faber, gold could hit $1300.

Sun, 04/14/2013 - 23:10 | 3448469 Pinto Currency
Pinto Currency's picture

Vamp - Your $100 trillion bond market will surely deflate to near zilch. Launch for gold/silver and all strategically valuable assets.

Sun, 04/14/2013 - 23:13 | 3448473 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Pinto, yes the bond market will evaporate. Buy gold/silver after the current massacre is done. Until then, you are just going to get screwed as Bernanke has been putting to you over the last few years.

Sun, 04/14/2013 - 23:26 | 3448495 Pinto Currency
Pinto Currency's picture


Markets are realizing that the available gold and silver are much less than 1% of the bond market (ignoring derivatives, cash etc.) and that a good portion of their financial assets are going to be seized.

Now when they and other market participants try to get metal they find it has been been fractional reserve levered dozens of times.

The metal is not there now and it won't be there later.

Sun, 04/14/2013 - 23:37 | 3448537 Stuck on Zero
Stuck on Zero's picture

It will be interesting to see the analysis of what is happening in several weeks time.  Somehow me thinks it will all lead back to JPM and the Squid.


Sun, 04/14/2013 - 23:39 | 3448544 Pinto Currency
Pinto Currency's picture

Just like Lehman.


Mon, 04/15/2013 - 00:33 | 3448666 Jack Napier
Jack Napier's picture

No one knows the day and when markets will reach equilibrium, but once that occurs it will be too late to get a ticket on the cheap gold and silver train.

Mon, 04/15/2013 - 00:57 | 3448705 James_Cole
James_Cole's picture

No one knows the day and when markets will reach equilibrium, but once that occurs it will be too late to get a ticket on the cheap gold and silver train.

So just buy it all the way down right? People on here were saying $40 was cheap for silver, then $30, now $25? 

Mon, 04/15/2013 - 01:34 | 3448733 Pinto Currency
Pinto Currency's picture

The issue is not the price.

It is possession for the funds and investors who do not have it.

Mon, 04/15/2013 - 01:46 | 3448747 James_Cole
James_Cole's picture

The issue is not the price.

It is possession for the funds and investors who do not have it.

Right, well I'm sure there's a few bullion dealers out there very relieved to hear there's buyers out there willing to pick-up at any price. 15$ over spot? Stack em' up!

Mon, 04/15/2013 - 04:35 | 3448860 Gief Gold Plox
Gief Gold Plox's picture

Coin shops opened in EU about an hour ago and are now basically out of stock. 1kg bars were the first ones to go. The place I shop at is currently able to sell (with 3 - 7 days delivery time) only bars  at 1g, 5g, 10g, 1oz., 50g and 100g, 250g and 1000g bars. All gold coins and all other metals are "currently undeliverable"

I was only able to snatch one bar before everything was out of stock. My advice to you is get it while you can. All physical stock it appears will be gone in a few minutes.

Good luck.

Mon, 04/15/2013 - 05:47 | 3448898 Gief Gold Plox
Gief Gold Plox's picture

Just broke 1400$, 1070EUR / oz. But it doesn't matter much any more. Noone's delivering at that price.

Mon, 04/15/2013 - 06:41 | 3448989 Acet
Acet's picture

All I know is that I've checked some of my suppliers here in Europe and the price they're willing to pay for coins is actually higher that the paper-market value of the Gold in those coins (and this is for coins such as 2013 Britannias and Sovereigns)

Also, the lowest premium I've seen for buying gold coins is 5% and this is at the cheapest supplier I know who usually have a preminum of about 1%.

The premium at most suppliers is now 10%

Methinks that the physical market is decoupling from the paper one.


Mon, 04/15/2013 - 05:51 | 3448903 smlbizman
smlbizman's picture

i thought this help explain what is going on...

Mon, 04/15/2013 - 06:31 | 3448973 GetZeeGold
GetZeeGold's picture




Those who live by paper, will die by paper.


Mon, 04/15/2013 - 01:31 | 3448730 KickIce
KickIce's picture

No doubt the banks are behind it, historically, how often do you see gold prices drop during a banking crisis?  This is especially true for the Asian cultures that still value gold.  Like Tyler said, must be a whole of margin squeeze coming down the pike.

Then again, the faith of today's society in paper and 1s/0s truly bogles the mind.


Mon, 04/15/2013 - 00:47 | 3448688 hmmtellmemore
hmmtellmemore's picture

Vamp, the voice of reason against brianwashed, paranoid stackers.  Can it be that printing money but giving it to the banks (who don't actually lend it out but use it to destroy their debt) causes deflation?  Yes.  

Will the price of precious metals rise in a year or two when it is public knowledge that it is a "terrible" investment?  Yes. 

Mon, 04/15/2013 - 06:34 | 3448979 GetZeeGold
GetZeeGold's picture




Come see when they steal your 401K.

Mon, 04/15/2013 - 06:50 | 3449014 draug
draug's picture

Or just realize that holding blocks of some random metal isn't going to "save" you from a deflationary spiral. In fact the idea is kinda silly when you think about it - you're holding on to gold just because you HOPE everybody else will value it to the moon. That's a speculative bubble per definition.

Mon, 04/15/2013 - 06:51 | 3449018 Kina
Kina's picture

That is exactly the same for any currency. But for money, supply is limited.

Sun, 04/14/2013 - 23:22 | 3448490 augustusgloop
augustusgloop's picture

1350 is a 33%-38%  pull back (2002 low- 2011 high). 




Sun, 04/14/2013 - 23:11 | 3448464 Pinto Currency
Pinto Currency's picture


Mon, 04/15/2013 - 00:12 | 3448623 Mr. Magoo
Mr. Magoo's picture

And so, It begins

Mon, 04/15/2013 - 02:19 | 3448777 AetosAeros
AetosAeros's picture

Just read this article about the Fed being responsible for the crushing in Au and Ag. Because I don't have the formal knowledge of most of the ZH's who have a grasp on who's who, I can't validate the credentials of the news service (KWN) or the intervieweee (Dr. Craig Roberts), but just from my time here, and the well laid out plan he's presented, the article does have a damning ring of truth to what is happening, and why: crush gold/silver in order to show the dollar as the 'real' safe haven for investors due to market instability and the current global trends of other currencies to look to direct swap versus dollar conversion.

I await the fight club bloody nose should this be off track. BTW, I gladly take the Bitcoin blackeye that so many of you have served up daily, but I still keep my original position: Bitcoin is NOT money; it is an alternative currency in place of the current fiat currency that the FED is protecting at all costs; even to the detrimante of Au/Ag. My purpose with Bitcoin always was and always will be for the conversion to REAL money- Gold/Silver, and to that ends, much like the FRN was used previously and currently, I have put my currency into money and slept better at night. The costs? A computer running all day and night crunching hashes and collecting BTC, then selling when I felt the market was the most lucrative to do so; directly into Ag as I'm just a poor working serf with a leaky boat.

You don't have to like BTC, but if you're hoping the FRN's are enough to buy your gold and silver, you're sadly mistaken, and keeping FRN's, like BTC, longer than need be is at your own gut reaction, but don't knock the guy's like me who are taking the same heading as you, but on a differenet path.

Mon, 04/15/2013 - 06:53 | 3449026 draug
draug's picture

Just a question: How can bitcoin be a currency but not money? How do you define money?

Mon, 04/15/2013 - 10:30 | 3449907 AetosAeros
AetosAeros's picture

For Me It's pretty clear cut:

Money: Recognized across borders as a non-perishable, rationale, easy to recognize and transfer in large or small quantities, medium of exchange that by it's 'intrinsic' value gains both value and store of value over time, and most importantly 'IS' value to both parties involved in it's use. 

Currency: Everything else that is traded in the stead of a store of value, or that which is accepted as a proxy to a store of value. Fiat is not money, it's a proxy, and a poor one at that. Much like getting Krugman as guest speaker for graduation when you were told it was gonna be George Carlin.

Bitcoin is and was offered as nothing more than a possible alternative to the current fiat currencies that abound around the world, and to help suck some of the power out of the FED in a way that standing on streets with signs and wearing stupid T-shirts bought with FRN's didn't. It was never meant to be a contender to Gold or Silver, it was meant to get people to see it had a value in removing the centralization and dependency that we all have come to know about banks and their ilk. If a non-centralized fiat currency like Bitcoin gained value, it was inherent as an aid in disconnecting the rigidity people feel about what is money and what is currency. If you could pay your rent, car payment, insurance, etc. with BTC, and this helped you price things in BTC, not dollars, over the time of it's use, then the dollar lost it's 'hold' on you (or rather the fixation that sheeple have for it), and then you truly let the Emporer know he has no clothes.

And Gold and Silver reclaim the historical cornerstone of what wealth, a store of value, and money truly is universal again.

BTC got taken down by someone who was threatened by it's existence, not because they were trying to capitalize on it. Broken Window fallacy is applied to understand why.

Gold/Silver have gone through this same attack, while a worthless paper is held up in their stead. But they will always survive. On a long enough time.....

Mon, 04/15/2013 - 02:32 | 3448786 Burt Gummer
Burt Gummer's picture

Just contacted my local coin shop dealer on his cell phone, said don't even bother coming in tomorrow they are completely sold out of both gold and silver now.

Mon, 04/15/2013 - 06:35 | 3448980 GetZeeGold
GetZeeGold's picture



.....and it's gone.

Sun, 04/14/2013 - 23:15 | 3448474 Lewshine
Lewshine's picture

Only thing that's gonna bounce is equities, AND bonds in both Amerika and Japan will find equilibrium by sunrise - As IS usual!

Mon, 04/15/2013 - 05:59 | 3448912 Go Tribe
Go Tribe's picture

Why would equities bounce when the entire commodity complex is crushed? Soaring equities in the face of certain deflation? That's a nightmarish proposition.

Mon, 04/15/2013 - 06:37 | 3448985 GetZeeGold
GetZeeGold's picture




Worship the your own peril.

Mon, 04/15/2013 - 08:19 | 3449311 youngman
youngman's picture

Because the banks are "reporting" big earnings..."beating the street"....blah blah blah...and that is what TPTB want ..a higher stock market...

Sun, 04/14/2013 - 23:21 | 3448492 Pure Evil
Pure Evil's picture

Excellent sites, thanks for the links.

Mon, 04/15/2013 - 04:18 | 3448847 TraderTimm
TraderTimm's picture

Oh look, the Tyler(s) making a much-ado-about-nothing on a decline.

Gold will be doing fine on a daily basis, don't get sucked into the typical ZH "Oh shits we're down... oh wait, we're ramping up on < insert whatever >"

Fucking hell, seen it for nearly three years - what else is new.


Sun, 04/14/2013 - 23:57 | 3448592 CompassionateFascist
CompassionateFascist's picture

"where to next"...lead.

Mon, 04/15/2013 - 06:40 | 3448990 GetZeeGold
GetZeeGold's picture



Full tilt global marxism.....they just needed the Iron Lady to die....and it's on like Donkey Kong.

Sun, 04/14/2013 - 22:48 | 3448377 Richard Head
Richard Head's picture

Fucking APMEX just upped their premiums while I was waiting to input an order.

Sun, 04/14/2013 - 22:49 | 3448388 fonzannoon
fonzannoon's picture

Haha I saw that.  I was looking there too.

Sun, 04/14/2013 - 23:22 | 3448499 iDealMeat
iDealMeat's picture

They're obviously ZH'ers.. 

Mon, 04/15/2013 - 05:56 | 3448911 Vlad Tepid
Vlad Tepid's picture

The premiums on Maple Leafs are unchanged...just sayin'.

Mon, 04/15/2013 - 06:40 | 3448992 GetZeeGold
GetZeeGold's picture



Lock it in Vald!

Mon, 04/15/2013 - 06:41 | 3448993 GetZeeGold
GetZeeGold's picture



Lock it in Vald! There, I said it again.

Sun, 04/14/2013 - 22:54 | 3448406 WmMcK
WmMcK's picture

I'm with you, but let's be glad for what we already have and can get at/near these prices.

Mon, 04/15/2013 - 00:46 | 3448687 Anusocracy
Anusocracy's picture

If the price keeps dropping I'll be able to quit searching lake bottoms for PMs.

Mon, 04/15/2013 - 06:17 | 3448940 Winston Churchill
Winston Churchill's picture

Its going lower..The dealears will not sell old stock at these prices.

On the oher hand the miners will not supply new stock either at them.

Supply lines ares going to break on the whole commodity complex as they did after KreditAnsalt.

The start of the end looks like its here,Cyprus wasa black swan..

Sun, 04/14/2013 - 23:20 | 3448489 Pure Evil
Pure Evil's picture

Everyone's upped premiums, especially on silver.

Mon, 04/15/2013 - 00:00 | 3448600 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

They need to up their premiums to maintain their profit margins.  I'm assuming AMPEX purchased their current inventory for sale relatively recently which would imply a higher price than today's spot price.  Either raise the premium or sell at a loss.

Mon, 04/15/2013 - 12:54 | 3450838 dynomutt
dynomutt's picture

That's how an LCS works, but that's not how a big shop like APMEX likely works.


I've seen a different big shop's means of handling price fluctuation, it's via holding a short position relative to their stock on-hand.  When someone buys a chunk of Ag, say, 500 ozt, the shop releases 500 ozt of their short position at a particular spot price.  That is the spot price that the buyer agrees to pay and any premia on top.  It's also to some degree why they take the strike price so damned seriously.


At an LCS, they may take input without a short position and they'll just put any of that under the cabinet until the price recovers and possibly sell to someone they trust at a high premium so as to not lose money on the deal.  Or they'll just take a holiday.

Mon, 04/15/2013 - 15:42 | 3452052 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Thanks for the color regarding the hedging of inventory cost via short positions.  It would be interesting to know how cost effectively a large entity like APMEX can hedge its inventory.  I've never seen the P&L for a bullion dealer, large or small, but it would seem that the business has pretty skinny margins (no different from most other distribution businesses I guess).  Say AMPEX is working off an average gross margin of 5% for Au and 10% for Ag (effectively the premia over spot).  Rent, salaries, insurance, hedging, etc. would seem to be the major operating expenses.  Even with the hedges, a declining spot price would still seem to put pressure on the dealers profitability.  Today's ZH article highlighting the high levels of implied volatility near-term for Au also makes me wonder if the cost of hedging dealer inventory has gotten that much more expensive.

Mon, 04/15/2013 - 01:42 | 3448745 A is A
A is A's picture

Apmex? Their premiums are insane as it is.

Mon, 04/15/2013 - 01:59 | 3448759 THX 1178
THX 1178's picture

Depends on what you buy there. I've gotten good deals in the past on junk and 90% US. Their APMEX silver rounds are (were?) about as cheap as you can get .999 silver with a recognizeable mint. Better than Kitco and Gainesville...

Mon, 04/15/2013 - 02:04 | 3448766 Fedaykinx
Fedaykinx's picture

they don't often have the best price, and their shipping is generally more expensive than the other vendors i've been using.

Sun, 04/14/2013 - 23:55 | 3448583 aphlaque_duck
aphlaque_duck's picture

I just bought NTR silver from Tulving at this price.

But they are out of stock on eagles and maples, and their premium on junk is ***** +$3.79 / OUNCE *****. (Normally it's 39 cents).


Mon, 04/15/2013 - 05:13 | 3448882 new game
new game's picture

call bullshit on coment-bullion direct, 5 percent over spot; 1485 eagles...

go cry fire somewhere else.

just an epec buying opp.

thanks abe...

Mon, 04/15/2013 - 06:09 | 3448927 Go Tribe
Go Tribe's picture

Provident selling rounds at 99 cents over spot. Not bad.

Sun, 04/14/2013 - 22:23 | 3448264 redpill
redpill's picture

Ludicrous silver price.

Sun, 04/14/2013 - 22:41 | 3448350 fockewulf190
fockewulf190's picture

I´ve got some fiat powder ready to pounce on some cheap phyzz...just waiting for a bit more bloodletting before I pull the trigger ala 2008.

Sun, 04/14/2013 - 22:48 | 3448380 Ms. Erable
Ms. Erable's picture

Yep. Sub-24 tells me to buy at ludicrous speed.

Sun, 04/14/2013 - 22:53 | 3448400 Meat Hammer
Meat Hammer's picture

When will now be then?


Sun, 04/14/2013 - 23:01 | 3448434 fonzannoon
fonzannoon's picture

Everyone say "I love you Trevor" into the black box.

Sun, 04/14/2013 - 23:50 | 3448573 xtop23
xtop23's picture

$23.75 is my target and I'm going to unload the powder I have left. Hope there's some actually left to buy.

Sun, 04/14/2013 - 23:56 | 3448589 aphlaque_duck
aphlaque_duck's picture

Don't bother watching the Comex price for your entry point. Dealers are now either refusing sales or upping premiums, so you won't get it. Junk is +$3.79 at Tulving now. Get any fizz while you can.

Sun, 04/14/2013 - 22:54 | 3448401 Manthong
Manthong's picture

Not too long ago, silver swang up and down several bucks in a day.

Hundred dollar gold swings will be routine soon.

Those swings won’t seem so dramatic when FRN valuations are dramatically higher.

Fasten your seatbelt.. climbing above weather can be pretty bumpy.

Sun, 04/14/2013 - 22:28 | 3448225 Supernova Born
Supernova Born's picture

They are destroying the price pre worldwide confiscation and ban on private ownership.

Central banks must destroy/ban fiat alternatives in order to effectively confiscate wealth and maintain the power of their printing press.

This isn't just a collapse for gold, or for the world economy, it is the beginning of the collapse of all forms of individual freedom to the power of government.

Sun, 04/14/2013 - 22:31 | 3448294 Lore
Lore's picture

Meh.  I talked about this with an elderly Russian over the weekend.  She talked about playing with wads of worthless Tsarist banknotes as a child, and how gold kept her and her parents alive.

Governments fall.  Banks fall.  Mafias fall.  People who prepare survive.

Mon, 04/15/2013 - 00:39 | 3448341 Supernova Born
Supernova Born's picture

Lore: "Governments fall. Banks fall. Mafias fall. People who prepare survive."

They fall on top of people. And people who prepare may someone in forgotten Siberia wearing bark shoes.

One world corporatist control.

Mon, 04/15/2013 - 13:19 | 3450975 Lore
Lore's picture

No, no, no... Everybody will be "densified" into shitty little shoebox condos and paying "carbon taxes" to Big Green Brother. It will all be very "green" and "sustainable."


Sun, 04/14/2013 - 22:40 | 3448348 Pinto Currency
Pinto Currency's picture

S.B. I'd throw in the word "attempt" in your last paragraph.

Eye's are increasingly wide open and sentient.

Boo! or BOW-WOW! doesn't scare much anymore.

Sun, 04/14/2013 - 22:58 | 3448425 scrappy
scrappy's picture



Scrappy Dog and Scoobie Doo in the jungle.




Sun, 04/14/2013 - 23:54 | 3448586 Pinto Currency
Pinto Currency's picture


Sun, 04/14/2013 - 23:34 | 3448524 Overfed
Overfed's picture

Well, in that case, I'm buyin' moar!!! Silver, bitchez!

Sun, 04/14/2013 - 23:45 | 3448561 TheFourthStooge-ing
TheFourthStooge-ing's picture


They are destroying the price pre worldwide confiscation and ban on private ownership.

People give them© and their capabilities waaaaay too much credence. What is clear to me is that they© are freaking out because the status quo is unraveling, their power is slipping from their grasp, and their tried-and-true methods of control are having unpredictble results. In terms of non-linear dynamic systems, we are approaching a bifurcation point.

Bans will be ignored and confiscations will prove impossible.

Central banks must destroy/ban fiat alternatives in order to effectively confiscate wealth and maintain the power of their printing press.

Their best efforts can only delay the inevitable.

This isn't just a collapse for gold, or for the world economy, it is the beginning of the collapse of all forms of individual freedom to the power of government.

I disagree. It will be a period of adjustment, difficult and strange for some, to a system with greater individual freedom and responsibility. The only governemts which will matter will be local. The era of big, centralized, soviet-style governments is nearing its end; its last remaining dinosaur is stepping into the tar pit.

Sun, 04/14/2013 - 23:48 | 3448568 Pure Evil
Pure Evil's picture

Quick, somebody get behind it and push it in.

Sun, 04/14/2013 - 23:58 | 3448591 akak
akak's picture

Anyone got a bulldozer handy?

Mon, 04/15/2013 - 03:37 | 3448822 StychoKiller
StychoKiller's picture

Found one in Cyprus (rent it by the hour!) :>D

Mon, 04/15/2013 - 04:59 | 3448874 Poor Grogman
Poor Grogman's picture

Just shoot it...

Mon, 04/15/2013 - 00:00 | 3448597 Pinto Currency
Pinto Currency's picture


Something tells me that in the future we will see Barry, Ben, Al, Bob, Larry, and Barney F. walking around trying to look hip wearing tar and feathers.

Mon, 04/15/2013 - 00:12 | 3448601 Supernova Born
Supernova Born's picture

Gold's price will be contained or it will be banned. The Bernank is scared a ban will cause the dollar to lose reserve status. He is correct and that is the only thing slowing the move to a ban.

Nothing can stop what's coming, though what will be tried will astonish in a black swan, course of history altering way.

Mon, 04/15/2013 - 04:17 | 3448846 Hobbleknee
Hobbleknee's picture

Good point.  A ban would wake up a lot of sheeple who still think the dollar is backed by gold.

Mon, 04/15/2013 - 06:38 | 3448988 Mad Mohel
Mad Mohel's picture

A ban would be the ultimate push to get everyone into gold. Look at what happened to firearms when they even just started talking about bans. Nothing pushes a distrustful public into something more than the b-- word. Let them do it, I dare them.

Mon, 04/15/2013 - 03:49 | 3448829 Long_Xau
Long_Xau's picture

Pushing the dinosaur into the tar pit would be risky, because one might accidentally get dragged into it and suffer the same fate as the dinosaur, or even worse, get eaten by the dinosaur, and thus giving it more time before it finally dies of starvation. So I'm not sure whether I would support such an attempt, although I would have some respect for anyone taking such a risk.

However, a better idea would be to sacrifice a robot or something. Gotta think about that one.

Mon, 04/15/2013 - 00:03 | 3448602 Ima anal sphincter
Ima anal sphincter's picture


Mon, 04/15/2013 - 00:16 | 3448620 Supernova Born
Supernova Born's picture

Fourth Stooge: "It will be a period of adjustment, difficult and strange for some, to a system with greater individual freedom and responsibility."

Greater individual freedom? No, Mr. Stooge.

The FSA, Obama and the multi-millions of undocument democrats waiting in the wings will not go for that.

Mon, 04/15/2013 - 00:33 | 3448665 TheFourthStooge-ing
TheFourthStooge-ing's picture


The FSA, Obama and the multi-millions of undocument democrats waiting in the wings will not go for that.

Let them cling to their old ways as they go down with the ship. Their cries do not arouse pity in me, my friend.

Mon, 04/15/2013 - 00:47 | 3448684 Supernova Born
Supernova Born's picture

Their "cries for pity" will be directed to and heard by Big Sis and her 1.6 billion (and counting) hollowpoints transported by her thousands of armored vehicles.

Your cries? They will elicit a .40 ATK HST-2 to the melon.

Mon, 04/15/2013 - 01:36 | 3448740 akak
akak's picture

With millions of sheep (like you?) convinced of their false omnipotence, and willing to bow to them, perhaps.

Mon, 04/15/2013 - 03:30 | 3448809 Supernova Born
Supernova Born's picture

I admit that is a cool pirate flag.

That means you are a renegade who bows to no man!

Keep talking tough and flying the skull and crossbones while central banks stomp all over economic reality.

Mon, 04/15/2013 - 03:33 | 3448821 akak
akak's picture

(Edited to delete my response to your deleted response.)

Mon, 04/15/2013 - 03:37 | 3448825 Supernova Born
Supernova Born's picture

I want to see if this stops your edit.

Mon, 04/15/2013 - 03:39 | 3448826 Supernova Born
Supernova Born's picture


Mon, 04/15/2013 - 06:02 | 3448919 Go Tribe
Go Tribe's picture

Freedom in the tunnels. If you want to live in the tunnels.

Mon, 04/15/2013 - 00:20 | 3448639 Anusocracy
Anusocracy's picture

The double pendulum is about to go chaotic.

We may have just reached the Fed Stupidity Singularity.


Mon, 04/15/2013 - 00:27 | 3448649 San Diego Gold Bug
San Diego Gold Bug's picture

Winthorp....get back in there and Sell, Sell, Sell................

Sun, 04/14/2013 - 22:13 | 3448193 casey13
casey13's picture

Testing the 200 day average 1433. See if it holds.

Sun, 04/14/2013 - 22:13 | 3448202 scatterbrains
scatterbrains's picture

200 day never holds.. one thing you can be certain of is approaches to the 200 day moving average always get pierced if only briefly.


Sun, 04/14/2013 - 22:15 | 3448206 toys for tits
toys for tits's picture

China is loving this.

Sun, 04/14/2013 - 22:20 | 3448236 disabledvet
disabledvet's picture

Not really. If that yen goes to 220 "that's a lot of competitiveness."

Sun, 04/14/2013 - 22:26 | 3448277 toys for tits
toys for tits's picture

This is a buying opportunity for China, which is why they're loving this.

Sun, 04/14/2013 - 22:30 | 3448288 Supernova Born
Supernova Born's picture

This makes slaves easier to control, that is why they are loving this.

Sun, 04/14/2013 - 22:32 | 3448309 toys for tits
toys for tits's picture

China encourages its citizens to buy gold.  Is there another country that does that?

Sun, 04/14/2013 - 22:44 | 3448360 Supernova Born
Supernova Born's picture

They encourage convict organ donors to eat healthy "pre-op" too.

Mon, 04/15/2013 - 00:24 | 3448641 Anusocracy
Anusocracy's picture

Most people wouldn't be affected by donating a kidney or their brain.

Sun, 04/14/2013 - 22:52 | 3448390 Zero-risk bias
Zero-risk bias's picture

It does, but that doesn't really apply to 70-90% 0f the population, (as they don't even have cash to buy more than food, clothes, and pay bills with). Imagine if you subtracted 70-90% of the population, that would be one per-capita rich nation.

From what I see, it's also much more about getting people to invest their savings in managed wealth instruments. Not so many people are made aware of the difference between trusting a bank with your gold and personal ownership, (naturally).

Sun, 04/14/2013 - 22:55 | 3448411 toys for tits
toys for tits's picture

Since the Chinese have no social safety net, their savings rate is ~26%, which is about the same as India.  This goes for the poor as well.

Mon, 04/15/2013 - 01:36 | 3448735 Matt
Matt's picture

More like half are "rich" (middle class by our standards) and half are poor migrant workers from rural villages, come east to work in factories.

The "rich" half have mortgages on multiple condos, some in ghost cities, but also have physical gold. At least as far as I can tell.

Sun, 04/14/2013 - 22:56 | 3448410 Meat Hammer
Meat Hammer's picture

Dear chinese citizens,

Please buy gold so we can jack your asses for it in a few months.


Thank you,

Your beloved Government

Mon, 04/15/2013 - 01:36 | 3448739 Matt
Matt's picture

I don't think the Chinese government is looking to cause unrest. If gold ownership is as widespread as we're hearing, gold confiscation would be pretty destabilizing.

Sun, 04/14/2013 - 23:24 | 3448502 lasvegaspersona
lasvegaspersona's picture

In the EZ there is no VAT on gold...17% on silver in some countries. The ECB holds 70^ of it's reserves as gold...10,000+ tons throughout the EZ. The EZ is ready, the USA is about to get creamed. Buy gold...last week...

Mon, 04/15/2013 - 01:38 | 3448743 Matt
Matt's picture

Officially, USA has 16,000 tons of gold plus at least half of the EZ gold. How much of ECB gold is sitting in New York?

Mon, 04/15/2013 - 02:37 | 3448790 disabledvet
disabledvet's picture

All of it

Mon, 04/15/2013 - 05:22 | 3448885 Urban Redneck
Urban Redneck's picture

And where does the Eurozone keep all its gold?

Most of it is kept in banks that doesn't even use the Euro.

Which means a good chunk of that 10k tons is actually backing the USD and GBP, and not the EUR.

But then finance is all about CONfidence.

Mon, 04/15/2013 - 00:24 | 3448647 Anusocracy
Anusocracy's picture

Japan is a resource poor country.

Sun, 04/14/2013 - 22:44 | 3448363 DormRoom
DormRoom's picture

Copper prices are set to collapse.  LME copper inventories are at 7 year highs!  The Chinese muppets won't like it when copper gets crushed.


Mon, 04/15/2013 - 03:12 | 3448812 willien1derland
willien1derland's picture

This WSJ article has an interesting insight -

Two Firms Amass Much of World's Copper Supply - Glencore & Trafigura...

Mon, 04/15/2013 - 06:25 | 3448965 Long_Xau
Long_Xau's picture

You must be watching at a weekly chart and the 200 WEEK moving average. Thats nearly 4 years! I can see gold futures entering the 13 hundreds as I'm writing this, so well below the 4 year moving average. So you shouldn't hold your breath because: 1. the basic technical indicators nowadays are preferred targets for manipulation, i.e. a way to shape perceptions, because everybody looks at the indicators; and 2. those are just futures, not physical free market prices!

Sun, 04/14/2013 - 22:17 | 3448204 Manthong
Manthong's picture

If I was a rich guy in Hong Kong, I would be having a field day right now.

Mon, 04/15/2013 - 00:00 | 3448598 CharlieSDT
CharlieSDT's picture

Went down to Kitko a hour ago and they said not many customers had come in this morning, but the ones that did, it was large orders.

Mon, 04/15/2013 - 00:02 | 3448603 akak
akak's picture

I hope you at least thanked them for finally shitcanning that malevolent pro-bankster, gold-hating shill Nadler.

Sun, 04/14/2013 - 22:23 | 3448213 FinalCollapse
FinalCollapse's picture

China is growing at 3% based on the relatively unmanipulated data. The official GDP/PMI numbers are for muppet consumption only.

Watch Canadian oil sands - things can get very ugly, very quickly over there. Gold/silver take down does not help them either.

They still have the POT. 

Mon, 04/15/2013 - 01:34 | 3448662 steve from virginia
steve from virginia's picture




There is a lot more going on than price declines in gold and silver.


Depreciation and haircuts have provided incentives to Asians -- particularly China -- to reduce exposure to euros and yen. To do so they must unwind very large positions that are not liquid due to their size.


Euro and yen positions are cross- collateralized with gold, other commodity derivatives and national bonds all held against each other ... by banks, insurance companies as well as central banks. All of this is highly leveraged and tightly coupled to derivatives: credit default and interest rate swaps, forex swaps and other hedges.


Gold/silver dive is the first move in a big, deflationary crash in Japan. So much for 'money printing' and hyperinflation: it was all a big lie! Gold is likely to fall to $1,300- 1,350 ... the same percentage drop as in 2008-09. At the same time, there is likely to be very little physical available until the inflationist 'investors' capitulate then there will be a flood. That is when you will know there is a turning point, when there is more physical made available.


Meanwhile, in important commodity, the price of crude oil will decline as purchasing power represented by Japan and China is removed from the marketplace. This will 'shut in' most of the post-2004 'production' that requires +$100 prices ... perhaps 10 million barrels per day! There will be physical shortages leading to more credit unraveling leading to more shutting in leading to deeper shortages, etc.


Keep in mind ... these shortages will be permanent ... with more to come.



Mon, 04/15/2013 - 06:27 | 3448968 css1971
css1971's picture

Meh. No end of the world.

Japan's been in a big deflationary crash for 20 years. Reckon this is pure margin calling for JGB longs. It's going to be pandemonium untill they hit the ~2% yield floor desired by the BOJ.

Give it a week and BTFD!

Sun, 04/14/2013 - 22:26 | 3448279 caimen garou
caimen garou's picture

boat cleaned out ready for loading!

Sun, 04/14/2013 - 23:04 | 3448447 IamtheREALmario
IamtheREALmario's picture
Pretty sure that I or any first year B-School student could come up with a methodology that would prove the cost of silver production is 6/oz the same way the Seeking Alpha contributor silver pumping firm says it is over $20/oz. Numbers are very fluid for the mining and refining industry... and financializing that industry and putting it under the control of traders and bankers makes it even worse.
Mon, 04/15/2013 - 01:48 | 3448741 steve from virginia
steve from virginia's picture



Mining is expensive b/c it is a petroleum dependency. High costs = small profits unless silver prices can be boosted, somehow. Likewise ... low petro prices = diminished petro production and shortages = less silver mined.


Clearly, the silver market cannot tolerate high prices.

Mon, 04/15/2013 - 08:23 | 3449330 WatchingIgnorance
WatchingIgnorance's picture

As the cancer metasticizes, it spreads to the entire host. We were able to beat it into submission with massive chemo in 2008-09, but it is starting to spread again. I am amazed that they have kept it togethor this long (just tells you how dumb and unconnected the sheeple really are because so much of the entire system is built on nothing but faith).

Sun, 04/14/2013 - 23:40 | 3448549 johngaltfla
johngaltfla's picture

Love the paper push down. Sucks to be a non-participant for those not watching the Fed and stock charts. Equities followed gold and silver in 2008 also as a reminder....


The Average Person will soon Not Be Able to Afford Gold and Silver

Sun, 04/14/2013 - 23:48 | 3448565 AGuy
AGuy's picture

"Very ugly! WTF!"

Are you kidding? Its Absolutely Beautiful! This may be the greatest buying opportunity in years. I just hope the dip is reflected in the  Physical, not just paper!


Mon, 04/15/2013 - 04:40 | 3448862 jvetter713
jvetter713's picture

It's not.

Sun, 04/14/2013 - 22:07 | 3448145 kliguy38
kliguy38's picture

Golly Gee....i just shit myself....bring me some paper gold to wipe my ass with....

Sun, 04/14/2013 - 22:13 | 3448162 Supernova Born
Supernova Born's picture

Pay no mind to that man who was formerly behind the curtain.

Sun, 04/14/2013 - 22:34 | 3448267 wee-weed up
wee-weed up's picture

"Golly Gee....i just shit myself....bring me some paper gold to wipe my ass with...."

Here... here's a FRN from Bernanke. He says, "Don't spend it all on the same anus - spread it around, you fukin' serf."

Update... Krugman is offering free "wipe assistance & instructions."

Sun, 04/14/2013 - 22:35 | 3448320 AL_SWEARENGEN

And that's just the thing Kliguy, the fraud of these paper price take downs is nothing new.  Autumn 2008, May 2011, these cocksuckers are over playing their hand now.   The rest of the world will not believe this.  Not with SURGING physical demand amongst a 5 year ongoing investigation into Silver manipulation by the head commodity regulatory agency the CFTC.  COME ON>To obvious.

     Last exit opportunity for the shorts to cover is an easy guess I think.  BRICS and friends are changing the monetary rules, adding competition unsolicited.  The bullion banks will flip and go long!  Eastern buying is Chinese checkering the west - dumping 500 tons of paper Gold while it's devoured in the east.  Way to obvious.  The London Gold Pool ended abruptly.  Physical demand overwhelmed and Gold was 'revalued'.  The present situation is not so dissimilar.

Sun, 04/14/2013 - 23:33 | 3448522 monkeyshine
monkeyshine's picture

You said it all with "5 year ongoing investigation".  It only took a few hours to investigate, and 5 years and counting to figure out what to do about it.

Mon, 04/15/2013 - 00:07 | 3448612 Pinto Currency
Pinto Currency's picture


Gensler says he's almost done the report again after his mastif ate it for the 30th time.

Sun, 04/14/2013 - 22:22 | 3448250 zorba THE GREEK
zorba THE GREEK's picture

It is all over the place...Heavy selling and buying

I'm glad I have physical. Let them play their games,

soon it will be my turn.

Sun, 04/14/2013 - 23:50 | 3448572 akak
akak's picture

So are the streets officially running with (golden) blood yet?

Do NOT follow this link or you will be banned from the site!