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Gold Crush Started With 400 Ton Friday Forced Sale On COMEX
On The Forced Sale...
Via Ross Norman of Sharps Pixley,
The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.
Two hours later the initial selling, rumoured to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.
The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".
Futures trading is performed on a margined basis - that is to say you have to stump up about 5% of the actual cost of the gold itself making futures trades a highly geared 'opportunity' of about 20:1 - easy profit and also loss ! Futures trading is not a product for widows and orphans. The CME's 10% reduction in the required gold margins in November 2012 from $9133/contract to just $7425/contract made the market more accessible to those wishing both to go long or as it transpired, to go short. Soon after we saw the first serious assault to the downside in Dec 2012, followed by further bouts in January 2013 - modest in size compared to the recent shorting but effective - it laid the ground for what was to follow. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As baddies go - they fit the bill nicely.
The value of the 400 tonnes of gold sold is approximately $20 billion but because it is margined, this short bet would require them to stump up just $1b. The rationale for the trade was clear - excessively bullish forecasts by many banks in Q4 seemed unsupported by follow through buying. The modest short selling in Jan 2013 had prompted little response from the longs - raising questions about their real commitment. By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie ; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still.
This now leaves the gold market in an interesting conundrum - the shorter is now nursing a large gold position and, like the longs also exposed - that is to say the market is polarised between longs and shorts and they cannot both be right. Either the gold bulls - like in a game of tug-of-war - pull back and prompt the shorters to panic and buy back - or they do nothing, in which case the endless stories about the "end of gold" will see a steady further erosion in prices. At the end of the day it is a question of who has got the biggest guns - the shorts have made their play - let's see if there is any response from the longs to defend their position.
On Inventories...
Via Mark O'Byrne of Goldcore,
Gold futures with a value of over 400 tonnes were sold in hours and this is equal to 15% of annual gold mine production. The scale of the selling was massive and again underlines how one or two large banks or hedge funds can completely distort the market by aggressive, concentrated leveraged short positions.
It may again be the case that bullion banks with large concentrated short positions are manipulating the price lower as has long been alleged by the Gold Anti Trust Action Committee (GATA). The motive would be both to profit and also to allow them to close out their significant short positions at more advantageous prices and possibly even go long in anticipation of higher prices in the coming weeks.
Those with concentrated short positions may also have been concerned about the significant decline in COMEX gold inventories.
The plunge in New York Comex’s gold inventories since February is a reflection of increased demand for the physical metal and concerns about counter party risk with some hedge funds and institutions choosing to own gold in less risky allocated accounts.
Comex gold bullion inventories have slumped 17% already in 2013, falling to just 286.6 metric tons of actual metal on April 11, the lowest since September 2009.
This means that futures speculators on Friday sold a significant amount of more paper gold, in an hour or two, then the entire COMEX physical gold bullion inventories.
Interestingly, the drop in Comex inventories would be the biggest for a whole year since 2001, when bullion began its secular bull market.
Absolutely nothing has changed regarding the fundamentals of the gold market and bullion owners are advised to again focus on the long term and the vital diversification benefits of owning gold over the long term.
Although some Federal Reserve policy makers said that they probably will end their $85 billion monthly U.S. bond purchases sometime in 2013. The key word is ‘probably’ and it remains unlikely that the Federal Reserve will stop their debt monetisation programmes any time in 2013 or even in 2014.
Even if the Fed did end them, ultra loose monetary policies and negative real interest rates are set to continue as are competitive currency devaluations and currency wars - two other fundamental pillars supporting the precious metal markets.
Buyers are now presented with another very attractive buying opportunity. We always caution against trying to “catch a falling knife” and buyers should hold off until we get a few days of higher closes or a weekly higher close. Alternatively, they should consider dollar, pound or euro cost averaging into a position at these levels.
Sellers should consider holding off as if contemplating selling they may have missed their opportunity and if they have to sell they may be best placed holding off until prices bounce or recover. Sellers are now disadvantaged both in terms of price but also in terms of premiums that have spread on some physical bars such as one kilo bars.
In the course of gold’s bull market, vicious sell offs like this have often presaged material weakness in stock markets and this may occur again.
Gold’s ‘plunge’ is now headline news which is bullish from a contrarian perspective. Less informed money is again selling gold or proclaiming the end of gold’s bull market.
The smart money such as certain hedge fund managers, high net worth individuals, pension funds, family offices, institutions and creditor nation central banks and will see this vicious sell off as an absolute gift and will accumulate again on this dip.
A long term allocation to physical gold bullion to hedge systemic and monetary risk remains vital.
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SHOUTOUT TO BLYTHE, JAMIE, AND ALL OF THE BOYS AT JP MORGAN... THANKS EVERYONE FOR THE REALLY FAKE ASS PAPER PRICES! THANKS FOR LETTING ME AND SO MANY OTHER PEOPLE INCULDING CENTRAL BANKS LIKE CHINA BUY ON DA DEEP CHEEP... EVERYONE KNOWS WHEN YOUR QUADRILLION DOLLAR SHORTS EXPLODE, WE'RE ALL GONNA BE RICH AND YOU'LL BE BANK-RUPT!
I ALSO EXTEND MY GLAD TIDINGS TO THE GLOBEX, CME, COMEX, FEDERAL RESERVE, HSBC, BEN BERNANKE, THE SHANGHAI GOLD EXCHANGE, AND OTHER COUNTLESS BANKSTER MUPPETS WHO MAKE ALL OF THIS POSSIBLE. WE'LL TALK AGAIN IN A FEW YEARS!
why 'distorted'? more sellers than buyers, period. Everyone who is bullish is already long (other than maybe China). To commodity firms, this is their bread and butter situation. Its not about the commodity, its about the human psychology behind it. Its only a 'distortion' when it goes against you
More sellers than buyers? Really? Think about what you just wrote.
You're forgetting that in the wonderful world of derivatives, logic doesn't apply any more.
No worries, Bart Chilton I'm sure is all over this. #Wild West. Shorts are exposed here big time.
Bart hates Obama, therefore Bart hates America.
ZH, thanks for being the lighthouse.
...just wish they were a crystal ball too...
Already bought this morning. I sense this is getting out of control..
Junior head Victoria Sovereigns for 237 quid. Ta.
If you're buying, wait for America to open. That's where the selling pressure is coming from at the moment.
Joe Weaselthal is making fun of us on his web site.
Who is Joe Weaslepoop ,and why should I care what that turd has to say?
Post a link - let's bomb him...
'EVERYONE should be thrilled by the gold crash' - http://www.businessinsider.com/everyone-should-be-thrilled-by-the-collap...
Ben's got to get the price down to where he can deliver the goods to Germany!
I think you nailed it, Germany and also the state of Texas, and who knows who else. A bit sloppy though, bring down the whole market for cheap gold.
He may have the price, but I doubt if he's got the supply.
That is the point of this whole shit show. Trickle up predator economics, prey on the weak and small hands forcing them into selling at some point the resources aka physical gold will wind up in their possession. Rinse and repeat target the next larger hands when your hand grew faster than theirs in size. Rinse and repeat, rinse and repeat until no one is left to prey on. Then the real fun starts and the guns come out.
This is how they kept the germans out of gold in Weimar. Arguably the smartest people on the planet (along with asians), but still most got caught in the spring loaded trap and lost all their life's labours to devaluation and seizure.
Don't be a mannfried, siegfried, und dagmar. This too shall pass. We are within short decade of reconstituted money system and it must use gold to reintroduce the sorely abused confidence of economic man.
Guess I'm not the only one who liquidated his pants today...
Has anybody here had any luck buying physical gold or silver at these levels?
As I already mentioned yesterday, a goldsmith I know had to borrow some gold from a local dentist, to be able to carry on with his work. And we are talking a few grams here ....
I've been keeping an eye on APMEX. I usually buy 1 or 5 oz secondary market silver bars. They've been out of stock since Thursday. I somehow suspect that thy won't have any in stock until the price moves back above 26 at a minimum.
At this point it should be clear as day to anyone that the paper prices are of barely any relation to the real supply and demand for physical.
Long live the farce. All hail the farce.
The expansion and contraction of my dealer's premium over spot provides authentic price discovery...the actual cost to put shiney in my hand. The digital entries by fraudulant exchanges under the direction of banksters is fiat. Powerful fiat at the moment...but fiat nonetheless. Paper gold is all part of the fraud in the age of TBTF banksters.
So, somebody actually dumped 400 tonnes of gold out into the markets on Friday? This a fact?
"Well, it's rumoured----"
It's a rumor? Gold's down in the $1300's on a rumor?
"Uh, it's rumoured that someone--"
Someone? Who, exactly?
"It's rumored that a large fund---"
A fund? You believe that a fund had 400 tonnes of gold? In the entire world, only eleven countries have 400 tonnes of gold reserves or more. Who took delivery of all this gold?
Uh, it was gold futures, not physical that was sold.
Oh. Vapor gold. You do know that Jeffrey Christian admitted that the ratio of paper gold sales to delivered gold is at least 100 to 1? That means we're maybe talking about four tonnes? If 400 tonnes really changed hands, it went from one central bank (in the west) to another central bank (in the east). That means that nothing actually changed, except a bunch of sheep saw Bernanke in a wolf suit and panicked.
Wake me up when the world's central banks all race to decrease money supply and win the World's Strongest Currency award.
"..had to borrow some gold from a local dentist.."
Thats scary! (mouth wide shut)
Silver no. It's nowhere to be had. I'm in EU though and hopefully you'll have more luck.
Gold yes. Was able to get only 1 bar of 100g at spot + 4% before the shop went out of stock. Delivery within next 7 days. It took just a coupl eof minutes and they were sold out. All of it.
They accept only gold orders untill further notice, no other PMs are deliverable at the moment. Even with gold only bars and 1oz. coins nothing else.
Crazy
So when the price drops and none is available, what does that tell you? Don't worry, be happy!
Availability and willingness to sell are two different things. If I'd bought at $1,500 why would I sell at $1,300?
Sit tight. It's available but not at your price. Offer more and you'll see some offered. Don't believe all you read on the intertubes.
Tells me that this drop was orchestrated to give the likes of JPM and Blythe the means to cover their paper short positions.
UK and Switzer delivery seems OK at the lower prices
Not for US delivery for some reason.
Until you hit the buy button you really don't know.
Big fight at the $1400 corral at this time, hoping for 1350 before buying.
Silver is getting slaughtered.
at the rate it's going, you might see that 1350 in a matter of hours if not minutes.
on it's way to a new LOD below 1385 right now.
At this rate, silver may have a 22 handle before the LCS opens...
Stay away from tulving, they are crooks and liers.
Texmetals and Provident still have generic rounds in stock and they good companies.
And that accusation is based on what?
I second the recommendation for Provident Metals. Westminster Mint is a very close second. Bullion Direct is a distant third. And also APMEX...for those who like paying way more than the other places charge.
Looking at Provident Metals website now. Looks good. Thanks for the heads up. Appreciate it.
Gainesville Coin is selling 1 oz AGE's at about $80 over spot right now. Honestly, below $1500 is absurdly cheap imo. This is a "back up the truck" day.
400 tons of gold being sold to cover margin calls on Bitcoin? ...by a bank?
Prayer DOES work.
the market would easily absorb actual physical delivery of 400 tonnes, 400 virtual tonnes - who cares
Just thankful for the early xmas presents
Go ahead, break the notional physical market.
It only makes them irrelevant.
Let's get some charts of actual prices for physical delivery up forthwith. Fuck the COMEX anyway. It's like Shadow Stats for inflation.
I agree 100% as long as the physical data is marked to the paper the power will have their control. Separate these two " Paper and physical data and only then we will have a true price
looks like a break below 1400 coming soon.
and there it is.
now watching for silver to break below 23. (which is really meaningless since I can't seem to find any for sale at that price)
and thre it is
lovely! the big big thank you!
Good question, whether the price plunge correlated with increased availability of retail purchase quantities of physical. You know, coins and 1 oz PAMP bars and the like
Umma fixen to get me soma dat.
Rumour has it it was Greece that sold
"I believe that PHYS and Fewtures cannot co-exist peacefully..."
To paraphase a certain Yale jock...
.
Appears to me that the manipulators are losing control of the markets not only as it relates to gold, but also treasuries and things that are supposedly pegged to them. In addition VIX was up 8% early but UVXY was up only 1/2 of a percent and continues the trend of further correlation between the two. And on and on.
So why would anyone with a massive amount of gold to sell just dump it all in one big chunk and get the worst price possible? Only someone who wants the price lower methinks!
They're dumping paper to drive the price down and buy physical because there's a helluva currency collapse coming.
The paper market is nothing but air. Looks to me to be massively shorted today to allow big players to cover. I doubt many physical holders are selling, judging from the lack of physical metal available at current prices. Stack it if you can find it.
The mother of all short covering coming?
i am sorely tempted to buy gold again. tswhtf soon and this beatdown is the prelude.
It is never supposed to go down!
While I was digging in my backyard I also found like 400 tons of gold...
anybody? Or should I also just dump it on the comex?
No, you found 400 tons of PAPER...
They are all selling their paper, they know what is coming. Going Physical.
This is a Buy for physical, if there is any left.
Good luck Ladies and Gentlemen, Cheers
What kind of metal detector did you use?
Sounds like a major boating accident about to happen.
My butt hurts.
GOLD BUGS REJOICE!
This is exactly what gold bugs would hope for, a complete nuclear meltdown of the hated "paper market", right? they hated and bashed it incessantly [making lots of money selling their videos and audios and interviews and newsletters raving about the "them"] so the CBanksters have finally given them what they all dreamed for.
PLUS, the news is even better: all selling pressure on the only game left: physical, will soon [next year, maybe the following] be exhausted and "pure market forces" will finally prevail. Gold Bugs: your Golden Messianic Age is now dawning. Buy and hold!!! Buy more.... wade in there with both hands and buy, buy, buy.
this is the 'trigger' any knoweledgable ZHer has been waiting for....it has been well known that all Gold investments would collapse in price (due to liquidation to cover other positions).....next will be the market in general......then massive inflation (aka money printing) to make up the holes in the balance sheets.....then currency collapse.
Hopefully, this is just the beginning....and not the end. Opportunity to load up one last time, if you can get the phys for these prices...??
"proclaiming the end of gold’s bull market"
We are now down over $500 from the peak, -26%.
At what point do we admit the bull may be over?
it will start quite soon, judging by this desperate tentacle moves
When CB's stop destroying their currencies.
Which is to say, when governments stop spending far beyond their means.
'tis done.
moral of the story: do what the vampire squid says and you'll make money. be in their crosshairs and find out how brave you are.
Make a note folks. When they lower margins, it gives the short trading specs that much more to pull this off. ... Raising margins discourages the leveraged shorting, not the liquidating In the Money Longs some you conspriracy asshats think.
Epic! Flush out continues...since the fiat bs moneyprinters are running out of ink..yes..real metal being sent East...while rome burns, benanke fiddles and prints..
The Squid says sell. So I'm buying
The squid says "sell" and the as is usual in these cases throws out the "chum"... in this case 13 billion ounces.
And this is exactly why financialization of commodities and markets is just plain wrong. No one needs this crap. Is that the "desired" response?
Oh, don't worry. He's thinking that once he has the guns, he'll take real good care of the financial markets and your retirement accounts both.
Today is a "'da fuck is going on" kinda day.
http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=1&chfdeh=0&chdet=1366056000000&chddm=1172.9999999999997&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY;NYSEARCA:SLV;NYSEARCA:GLD&cmptdms=0;0;0&q=NYSEARCA:USO&&fct=big&ei=QAZsUfjsIq6r0AHWggE
Indeed very interesting.
Didn't this happen in 2008? Isn't a massive gold sell off a risk off event?
Just askin'...
What was the time frame between the gold sell off and equity drop in '08? Just curious...
Yes. about two weeks before the main event in '08.
If this was a soverign country doing the selling, well, not that big of a deal. If this was a bank, a shit storm of epic proportions is coming.
Exactly.
All of us who've held gold a few years and know its history know it's always a bumpy ride up, and never a smooth ride up. Gold has always been highly volitile when priced in fiat and that will never change. In a long term perspective this temporary correction will be viewed as a very minor speep bump in what has proven to be the only truly safe investment in existence.
Criminal activity of the criminal gang.
So was there a 400 ton of Silver as well?
I think a mine got blown up by a Hedge Fund the other day...
don't you mean 6400T of silver? 16:1 ratio?
The gold guys insisting that the price of gold is manipulated never seemed like a very good sales pitch.
I want a store of wealth that can't be manipulated with paper contracts, till then or if that is impossible, the manipulators belong in concentration camps.
Sh#t, I just bought last week, I want a do over at the new sale prices! LOL!
I don't see where anything fundamentally has changed. The dollar is still being printed to infinity.....
The fundamental change is that European nations with boatloads of debt will probably be forced to sell their gold reserves, starting with Cyprus. Stay tuned for sales by Spain, Portugal, Italy and France.
There is a difference between being forced to sell and having sold.
But not much of a difference between realizing that selling will have to happen and having sold. The market is forward looking.
"futures sell order worth $6 billion, equal to 4 million ounces or 124.4 tonnes of gold, by a large investment bank"
Someone's ass is on fire. Who is it ?
While I am the obvious suspect...
Let me suggest it is simply the late arrival buyers who were hoping to ride the wave- simply selling off and moving into equities. They are the ones who fail to see the economy is fake and believe they can make moar by putting it at far greater risk in the market they fail to see is propped up by endless QE.
I fully expected an opportunity to buy more gold and silver when the market crapped out...but, I don't think this is it. There will be a better time to buy- just wait. Whenever I see nonsense about threats that don't exist (N. Korea & the fake Japan/China rift) I figure it is just diversionary. IMHO wait for the time when these diversions are at a peak.... and be ready to buy more pm.
It is about the long term, about survival and wealth preservation- not how much paper somone will trade for your gold.
I am sorta fucked with this selling.
Why? Are your PMs shrinking? I ounce coins shrunk down to .9999 ounces? What difference does it make to your physical holdings even if gold drops to $30 per ounce?
Some us need to sell to pay the rent.
You can't hide from him, he has everything ponzi'ed up.
So how many more years will we all be sitting here having these same fucked up exchanges? I would have thought this would have quit happening, or at the very least tapered off, 2 years ago.
Does this rabbit hole ever end? Or is this akin the hole that goes to infinity and beyond?
No, but there is light at the end of the tunnel.
The hole is only an illusion to make you think that you're going deeper and discovering it's mysteries.
It, like everything else in our world, is only an illusion designed to make you think you know what's up.
Pro tip:
You don't.
It's not so much a rabbit hole as an onion. You peel away layer after layer and sometimes you cry. Know the truth, and the truth shall set you free. Notice I didn't say it will make you happy. But you can be free.
This morning, Becky Quick said we are seeing a tectonic shift as investors move out of gold into equities as the US recovery gains momentum. Such a cute lil' thing isn't she?
stateside
She would look cuter with my member stuck in her piehole, at least she would have reason to open it.
Poor Becky is the concubine of an old, cherry coke drinking billionaire - what else is she going to say?
Thank you John Thain and Ken Lewis.
Everything down but Ben's pet bubble. Must turn green by days end.
And this is not manipulation? Try that on the S&P and they will kick your door down the same day.
Fuck you Bernanke. You could make my gold and silver worth $0 fiat and I would still love it just as much as I do today.
At some point, talk like this is just whistling as you walk past the graveyard.
Anyone have aspare piece of Pb for this ass?
ECB's Draghi says ECB does not want to help banks that are failing
I give it a week,, possibly two before PM's rebound strongly. To many buyers these days. BRIC's will buy, paper holders will cry. All this take down does is expose further the claims that gata has made. Namely don't believe the paper proxie, buy the metal and hold fast.
"Namely don't believe the paper proxie cocksuckers, buy the metal and hold fast."
Stay in character, Al!
Do you really believe they can keep the price down that long? At these prices the whole world will buy gold with both hands.
Not even that long. 24 to 48 hrs.
Shortages are already widespread just one working day later.
This is a big move...and for something bigger I think...its plastered all over the news like its supposed to be there....someone had this event planned and for a reason...we will know soon i think...but something is in the works and its big...to try to destroy the one "real" money out there is a panic move to me...
"Absolutely nothing has changed regarding the fundamentals of the gold market and bullion owners are advised to again focus on the long term and the vital diversification benefits of owning gold over the long term."
long term is what? 20 years? 50? isnt that the same advice all equity talking heads gave everyone in 2007?
stop listening to these clowns.. they dont know any better then you or me.
interesting question is: was bitcoin crush a test??
Uhm, no, the Bitcoin question isn't interesting to anyone, even me and I own some.
That with Bitcoin was a needed correction that was widely expected.
Ahh the NY Fed. Thy name is corruption.
I am going to wait till it bottoms at $300 to buy.
Surely there will be physical to buy then right?
No, because I will have already bought all that is left at $350...
nope, it'll be gone long before it gets that low
How do I get a bail out here?
If you love what's happening today, you're an investor.
If you hate it, you're a speculator.
I don't love what's happening today, and I don't hate it. In fact, much the opposite.
And if you've made multiple PM purchases within the last 12 hours...you are a hoarder of physical metals, you lucky bastard.
Just keep a supply of fresh underpants handy.
And AAPL plunging toward 400 from its high of 700.....it's a fairly broad spectrum infection.
BNN just started working on my TV so I watched it on the weekend and some hedge fund guy recommended APPL because it has so much profit. He bought at $64.
Gold just broke $1400. Dow not down 3000 like I thought.
Reason For Gold Pummelling
Markets lead, fundamentals follow. I suspect the stop losses were triggered and the dog pile begins. But one event that no one is talking about is the 'default' by ABN AMRO regarding no physical for delivery. Instead, you get a piece of paper saying you own some gold. Nice. Remember the Silver fiasco with the Hunt Brothers in the 80's. No new longs, only liquidation on the COMEX. Time will tell, but I suspect a rule change in favor of the paper shorts has been introduced or may even be in effect. Sort of like Tiger Woods and rule 33.
i know nobody wants to hear it, but this has deflation written all over it........its not just gold.............oil has been getting hammered.........base metals.........ben better crank up the presses!!!
you are right but you know - Bernanke can come out next day and say "we gonna fight deflation with new QE" and voila everything is melting up again.
as long as people are in fiat debt the Fed has the power to manipulate every market both ways
OK but if that pallet of 100s lands on my head I'm suing.
"i know nobody wants to hear it, but this has deflation written all over it"
~~~
So 400 tons get sold, within a half hour, on Friday [in New York], with 20:1 leverage applied & all of a sudden, in a macro-economic sense, we're in a DEFLATIONARY paradigm?
Suppose we are [just for shits & giggles]...
I guess that means that Bernanke's whole 'RAISON 'D'ETRE' [how the Fed fucked it up during the Great Depression], & that HE has the solution... That he can stimulate inflation, then put the genie back in the bottle in 15 minutes, is incorrect...
Tell us what you REALLY think kito...
You're sitting on cash & are talking your book... Good news for you... If it's deflation, you'll be able to buy 1 & get 14 free at Banana Republic next week...
FRANCIS....talking my book on cash??? i have no books to sell, no tours, no tv gigs.......im a small fry in the world........my 15 minutes of fame came in high school when i was interviewed for the school newspaper.....i recall a post by you, not too long ago, where you actually praised me, despite my jewishness, for speaking what seemed to be (one can never be sure since we do not know each other) the heartfelt truth.......and now im supposed to tell you what i really think???.................... come on francis.....ive been on here long enough and often enough with the same tiring theme that i believe printing will only lead to a delfationary collapse...that all assets, which have the worlds excess digital dollars pumped into them by bens favored sons....who are first in line for the bennybucks....who are causing a rise in every single asset out there............including gold and silver............and that there will be no hyperinflation.....as there is no velocity of money, no circulation of the bennybucks into society......only into invested assets.........and that a loss of confidence in the dollar by the masses will never be an issue because most people wont have any money...because its all gone to TPTB and the masses will be clamoring for it...................
"talking one's book" is a figure of speech...
~~~
For Chrissakes, there was a never ending exchange between you & fonzanoon over the weekend about how you were holding onto cash & how maybe, just maybe, you'd buy [I'm exaggerating here] somebody's Mercury dime for the lulz...
So you're right I suppose...
Deflationary collapse... Quick... name me the 5 most famous 'DEFLATIONARY COLLAPSES' of fiat paper in history... The whole goddamned motherfucking PURPOSE of a gang of criminals that invents a "fractional reserve banking system", then, not back it with anything, is to light it up in a bonfire someday [& just before they do ~ steal every bit of physical EVERYTHING off the market, then, re-emerge with a BACKED system]...
Deflationary collapse... Hmmm... I guess that means that BernanQE's whole Princeton thesis reason for living will get turned upside down & he'll just shrug it off
I'm going to have to advise granny to ignore that 'con-current' 10% drop in catfood prices over the weekend... I'm going to NOT fill up the car, because gas ought to be with a "1" handle pretty soon... If granny can hold on, her catfood will soon be free... Social Security recipients will soon be the new ruling elite...
I gotta go now... I'm gonna take a look at some Ford F-350's, since they'll be giving them away, & I'll be able to fill up my gas tank with my nickle collection...
perhaps, but im quite comfortable holding physical fiat debt for the foreseeable future...........
If you have been here a while, there's a reason a lot of posters past are long gone. Their "collapse" theories and calls were embarrassingly bad.
Some made this call a long time ago, which some also added is after a massive beat-down, perhaps back into the hundreds territory, the move back up YEARS from now will be impressive. Confirmation bias has consequences, and underestimating CB intervention, along with a completely corrupt government and banking system, in an era where fundamentals don't matter, until they do.
We have a ways to go. No one should underestimate the powers of Banana Republics.
yes we have a long way to go...but not past this decade....and if im wrong so be it.........at the end of the day most of us here on zh know the system will reset one way or another.....and being aware of that puts us ahead of most.............................im not saying what we are seeing today is what most of anticipate will be the final chapter.....im only saying that these drops in commodities confirm my belief that the deflationary headwinds are getting stronger......and stronger............
In which case, the stock indexes follow commodities off the cliff.
Deflation where though?
USD? JPY? GBP? CNY?
There's only 1 place for deflation at the moment and that's EUR. This would make the EUR appreciate vs the above and then the currency war is on like Donkey Kong.
Gold traders and gold commodity people at investment banks: make yourself ready for the pink thing. Gold price is under control. Your service will no longer be needed.
Non event, ride it down on a paper short then grab some more when it loses its negative momentum.
APMEX: The Gold market was heavily bearish on Friday, April 12, indicated by the 400 tons of Gold that sold on the New York COMEX alone. Today, the Gold price dropped more than $100 an ounce at one point during European trading. The bear market conditions seem to be fully in place due to recent cuts to price forecasts and outflows from exchange traded products. Stan Shamu, market strategist at IG Markets in Melbourne, said that Gold’s tumble has largely been blamed on potential central-bank sales to shore up fiscal shortfalls. He goes on to say this had triggered a “breakdown of the Gold/quantative easing relationship” we have been used to.
Jonathan Barratt, founder of Barratt's Bulletin, said, “As you get closer to the cash cost production for Gold, which is around $1,200 an ounce, people get nervous.” He continues on to say that there is a lot of overreaction and believes that this offers a good entry point for investors. “For the amount of money that's going into the system, you have to take a longer-term view that stimulus will support Gold prices,” he said.
"This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level."
Not a case of disappointed longs leaving? If you are long and your "maximum acceptable loss" is hit and you are stopped out, you are both disappointed and leaving.
They ran out of the "market" like little girls with their hair on fire.
"At the end of the day it is a question of who has got the biggest guns - the shorts have made their play - let's see if there is any response from the longs to defend their position."
Let's see, the shorts have the FED and the major PDs on their side and the longs have, China? India? Libya? Cyprus? Mali? Nope.
Well, the problem for leveraged longs who choose to play in the Comex's rigged casino is that their 'allies' (China, India, Russia, probably the owners of the big banks) choose to do their buying unleveraged on the physical market, rather than just bet on the price. So yeah, what kind of idiot buys gold contracts (and I believe there are plenty of limits on what Comex is even required to deliver, so don't kid yourself - Comex contracts aren't future purchases, they're bets on the price) when the other side of the trade has unlimited leverage and no risk.
I'm curious if I'll be able to get any actual metal at these prices. The local dealer is supposed to be restocking this week. I could buy in advance, but that seems a little like playing the junior retail version of 'Comex Long Bagholder' - all price risk and no actual metal.
"I'm curious if I'll be able to get any actual metal at these prices. The local dealer ...."
Let's say I'm the local dealer. I filled my inventory last week @ $1650/oz. It's there in my vault. You come in and want gold @ today's "market value" of $1550/oz. Well as it turns out, I don't have any gold. And I understand that all the other local guys are sold out as well. But let me get on the phone and get you delivery in a couple of weeks. When I find $1550/oz gold, you get delivery. The $1650/oz gold sits in my vault until you are ready to pay $1650+.
I bought 100 oz of silver in the morning here in Asia. Should have waited a couple of hours though to get a lower price but I don't plan to sell in the next 10 years anyway.
I can't understand why people are fleeing into worthless fiat currencies instead of PM.
I believe your patience will be well rewarded, and congratulate you for it.
Live in Hong Kong and the inflation here is killing people. This is what happened the last 2 years.
Eggs: + 29%
Energy: + 11 %
An egg tart at my local bacery: + 28 %
Red Bull: + 17 %
Cinema ticket: + 13 %
Subway ticket: + 7 %
And if you guys think people in Hong Kong get any higher wages, think again. The local dock workers are fighting for 10 % increased wages. Sounds a lot right? They have lower wages now than in 1997!!! 16 years of inflation and they have the same wages. It's absolutely absurd.
Yesterday there was a report on TV that inflation is the main course why people are depressed here, especially regarding food prices, which are so high that it boggles my mind that any people can afford to eat at all.
thanks for that live on the ground report