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Gold Drops Most In 30 Years

Tyler Durden's picture


Previously, levered hedge funds were forced to sell gold on stock margin calls. How long until today's gold plunge, the largest 2-day drop in the past 30 years, forces funds to start selling stocks to meet margin clerks vocal demands some time around 2pm today?

John Bougearel of Structural Logic chimes in:

Today is the largest one day decline from the previous day's close @ -9.6%. Volume is already north of 530,000 - another record with another 6 hours of electronic trade to go.   There have been three rounds of liquidations. The first round was the Asian liquidation that ended at 9 am. The second round was the European liquidation that ended at 5 am. They are spaced 8 hours apart. At this rate, the US liquidation phase won't be complete until the London closing at 1230 pm CST, at least this is what that behavioral model suggests. You are witnessing an historical selling climax folks.      



and the RSI shows gold to be the most oversold in 31 years...


as Gold pushes down to the 50% retracement of the 2008-2012 swing low-to-high...


and the S&P in Gold terms broke 2009 resistance (and perhaps explains more of the technical surge)...


Charts: Bloomberg

Your rating: None

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Mon, 04/15/2013 - 11:09 | 3450105 rajat_bhatia
rajat_bhatia's picture

LONG NYC funeral parlors. Trader corpses strewn along wall street today

Mon, 04/15/2013 - 11:11 | 3450118 AllThatGlitters
AllThatGlitters's picture


I feel sheepish for making fun of the Bitcoiners the other day, but still, at least gold is shiny. Bitcoins are not.

Check out the live spot price down to the minute or tick here:  


You can still buy bars for $21 over spot price. Take a look at the snakes on that page for just a few bucks more!  Sweet!


Mon, 04/15/2013 - 11:15 | 3450147 camaro68ss
camaro68ss's picture

is there no Circuit breaker for PMs? Silver past 10% DOWN FOR THE DAY.

God forbit JPM falls 10%, the whole market shuts down for a week.

Mon, 04/15/2013 - 11:16 | 3450175 TheTmfreak
TheTmfreak's picture

I was just saying this to a friend. Talk about a rigged system. I thought all trades would be halted by now? PFF.

Websites all over are talking about extremely high sales volumes (people buying). I smell a paper and physical disconnect by a long shot. If everyone is selling, then why are websites getting slammed by purchase orders?

Mon, 04/15/2013 - 11:22 | 3450228 johnQpublic
johnQpublic's picture

apmex, merit etc running slower than dirt

*due to unusually high call volume.....*

cant even be reached by phone....just bought another cel so i can wait on one more line

Mon, 04/15/2013 - 11:25 | 3450247 Pinto Currency
Pinto Currency's picture

These market prices are advertisement for clerks.

After weeks of backwardation in prices on the LBMA and with Shanghai Gold Market alone delivering 420 tonnes over less than 6 weeks, we have the gold price smash on the open of Asian markets.

Enjoy the market price sitcom.

The run for physical delivery will continue.

Mon, 04/15/2013 - 11:26 | 3450259 Landotfree
Landotfree's picture

Don't worry Karl is banning people again, because he saw gold going up and saw a crash but leaves out he was making wagers with people back in 2008 that gold would NOT continue up.


Mon, 04/15/2013 - 11:36 | 3450339 redpill
redpill's picture

Silly paper gold shenanigans. My stash is already at the bottom of the ocean, it can't get any lower!

Mon, 04/15/2013 - 11:48 | 3450386 Landotfree
Landotfree's picture

I was banned after I told him that he banned people in 2008, after he was telling people not purchase gold... that post is gone.  Sinclair was offering a waging, I believe a million dollars with him that fell through, Karl I believe would have won the bet in tterms, but just barely, he missed the whole upside over the last 5 years and if he did short, he would have lost.  In reality his prediction was completely wrong.


As far as gold, you are either trader or a physical holder.... some physical gold and silver could come in use during the liquidation phase... if you can avoid staravation and the tanks.    Of course commodities are going to be slammed at some point, if you are worried about that you are a paper trader.   And eventually one day the ATMs will stop working world wide like Cyprus.


Basically if you point out where he was wrong... he calls you an idiot and bans you.

Mon, 04/15/2013 - 11:50 | 3450401 fourchan
fourchan's picture

gold is a "dooms day for paper" investment, its not a trading vehicle but a fundamental trade more like the finite number of years you have to live.
a fixed value for exchange with the most valuable thing any of us has, the time we have on earth.
a paper system that is debased daily is a poor exchange for that value and is fundamentally evil because of its intent of
robbing you silently of that which you have given your life for. the day to day swings of this evil enslaver, debt note, has
nothing to do with the reason for holding gold or people too brainwashed to recognize what true value actually is.

gold stands on its own, it is free, like americans were.

Mon, 04/15/2013 - 11:51 | 3450412 Rubbish
Rubbish's picture

$999 hut hut hike

Mon, 04/15/2013 - 11:56 | 3450428 James_Cole
Mon, 04/15/2013 - 12:01 | 3450448 Pinto Currency
Pinto Currency's picture


CNBC just announced a tweet contest (not kidding).

They want people to send in a caption for following:

"Gold isn't just losing its luster.  Gold's so bad right now it's ___________ (blank)".


(CNBC forgot the "Hey SUCKERS!" at the beginning of the sentence.)


Mon, 04/15/2013 - 12:06 | 3450511 UK debt marsh
UK debt marsh's picture


Mon, 04/15/2013 - 13:06 | 3450890 Shocker
Shocker's picture

This gold drop is just showing us, things are no well in the economy.



Mon, 04/15/2013 - 13:33 | 3451061 Pinto Currency
Pinto Currency's picture

- Central banks bought 55 tonnes of physical gold in one hour today on the LBMA.

- "The physical gold market is literally on fire right now."



p.s. if the physical market is literally on fire, we'll have to wait for a new one to be built.

Mon, 04/15/2013 - 13:43 | 3451157 FEDbuster
FEDbuster's picture

"Gold isn't just losing its luster.  Gold's so bad right now it's ___________ (blank)".

Gold's so bad right now it's like a Jim Cramer stock pick".

Mon, 04/15/2013 - 14:05 | 3451331 MagicHandPuppet
MagicHandPuppet's picture

China is prolly loving this opportunity.  It's times like this I wish I could stumble across some more fiat so I can back the truck up (again)!

Mon, 04/15/2013 - 14:09 | 3451346 akak
akak's picture


"Gold isn't just losing its luster.  Gold's so bad right now it's ___________ (blank)".

" ... price is one eight-hundreth as disgusting as Becky Quick going down on air on Warren Buffet."

Mon, 04/15/2013 - 14:49 | 3451617 FEDbuster
FEDbuster's picture

She didn't get the nickname "Quickie" for nothing.

Mon, 04/15/2013 - 14:50 | 3451628 redpill
redpill's picture

In the same thread...


'Gold's so bad right now it's going down faster than Becky Quick at the Berkshire Hathaway annual meeting.'

Mon, 04/15/2013 - 12:53 | 3450814 kchrisc
kchrisc's picture

Thanks Pinto Currency.

I know that they are printing dollars faster than toiler paper and that all the historically printed dollars WILL come home to roost once it loses its "reserve currency" status. I am also aware that the price of PMs are manipulated and that PMs are where to be when the SHTF. However, I was experiencing a lack of confidence reading this article until I saw your comment about CNBC's tweet "contest."

If the propaganda media, and in particular CNBC, is involved, especially in such a ridiculous and condescending way, then that just means that the fix is indeed in and it's just a new bankster sponsored buying op.

Thanks Bernank. Thanks Dimon.

On the flip-side, they seem to be laying the ground work for a large PM move up in response to something external like possibly the bombing of Iran. I would say N. Korea, but they blinked on that. I bite my nails before each "bombing moon" (new moon). Next is May 10th.              hujel

Mon, 04/15/2013 - 13:04 | 3450885 Pinto Currency
Pinto Currency's picture

These interventions are disruptive to markets.

Let's watch for signs of delivery and price function disruption on the major exchanges.

Would expect extraordinary market volatility to show its face now.

Mon, 04/15/2013 - 13:21 | 3450987 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

This is pretty funny:

Gold prices continued to plummet Monday on concern that Cyprus will have to sell excess reserves of the precious metal to raise about $522 million to help finance that country's $13 billion international bailout, Dennis Gartman, editor of The Gartman Letter, told CNBC.


Mon, 04/15/2013 - 13:40 | 3451127 Abiotic Oil
Abiotic Oil's picture

Are we witnessing what Doug Hagmann's "DHS Insider" told us was going to happen?


"DH: How soon do you see things taking place?

RB: They already are in motion. If you’re looking for a date I can’t tell you. Remember, the objectives are the same, but plans, well, they adapt. They exploit. Watch how this fiscal cliff thing plays out. This is the run-up to the next big economic event.

I can’t give you a date. I can tell you to watch things this spring. Start with the inauguration and go from there. Watch the metals, when they dip. It will be a good indication that things are about to happen. I got that little tidbit from my friend at [REDACTED]."

Mon, 04/15/2013 - 17:11 | 3452807 PKF
PKF's picture

Holy shit.

Mon, 04/15/2013 - 14:40 | 3451546 Simplifiedfrisbee
Simplifiedfrisbee's picture

Joe on BI "reporting" last night on why we should rejoice at the fall of gold. Gold is going to be for the strong willed. You wither mentally and jump ship to try and fight the sharks or you stay calm and reach the shore. Reaching the shore is where strength will be needed.

Mon, 04/15/2013 - 14:41 | 3451550 MedTechEntrepreneur
MedTechEntrepreneur's picture

Could be that TPTB felt the Bond Bubble was about to stretch-break...decided to drive some PM paper into bond paper.

Mon, 04/15/2013 - 12:51 | 3450824 icanhasbailout
icanhasbailout's picture

Gold's so bad right now it's ____nearly at CNBC audience levels____

Mon, 04/15/2013 - 12:53 | 3450835 jerry_theking_lawler
jerry_theking_lawler's picture

"Gold isn't just losing its luster.  Gold's so bad right now it's ___________ (blank)".



Mon, 04/15/2013 - 13:09 | 3450895 Pinto Currency
Pinto Currency's picture

Golds so bad right now...


that physical gold is being bought at 3+ times annual mine supply from the London, New York and Shanghai gold markets?

Mon, 04/15/2013 - 13:41 | 3451146 SAT 800
SAT 800's picture

Propaganda is real; and it works. "Tell the people a big lie, and repeat it often; soon they will accept it". Adolf HItler. I got whacked for 2375$ on my Dec. Silver Contract; it was a well executed stop loss. I bought it back again this morning; for $23.68. Huge volume even in Dec.'13; and it's not all sellers; either.

Mon, 04/15/2013 - 14:28 | 3451452 Proofreder
Proofreder's picture

in chains ?

Mon, 04/15/2013 - 14:46 | 3451591 Quinvarius
Quinvarius's picture


I am not convinced CNBC cheerleading the death of 5000 year old money in the face of a total banking/debt/currency meltdown is a solid indicator of what actions I should take.  I think I'd rather dump stocks and buy gold.

Mon, 04/15/2013 - 13:25 | 3451024 WhiteNight123129
WhiteNight123129's picture

Bizarre, I lost a lot of money, but I feel relieved, and absolutely not worried, something must be wrong with me.

I just bought a bit of Gold TODAY!!!

I feel like the Equities will rally again soon (for the wrong reasons) and Gold might continue its move down a bit and then no one really pays attention to it.

And then... and then... confidence comes back and we have 1-2 years like 1920-1921 Germany, teh Fed does nothing really... and then the thing gets ugly... really ugly.... but it is 5 years down the road....




Mon, 04/15/2013 - 14:33 | 3451495 Proofreder
Proofreder's picture

So, you think .gov can continue to kick the can down the road another 5 YEARS ?  Months or weeks is more like it.  

Today is historic, to be remembered as the Panic of '13 that began on Tax day, April 15.

How fitting.

Mon, 04/15/2013 - 18:10 | 3451851 MonsterBox
MonsterBox's picture

Dittos!  picked up an oz today and, as you would know it, the POG was $20/oz off by the time i got back to the office.  Big Deal.  I got physical in MY pocket.  If it drops more, I'll hit it again tomorrow.  Again and again until the LCS runs out which, according to him, won't be long.

It's drying up out there.  Get it while it's available.

Mon, 04/15/2013 - 12:17 | 3450593 Panafrican Funk...
Panafrican Funktron Robot's picture

Copper is limit down today (unlike our barb relics, they stop trading copper at 3% down days).  That is extremely unusual.  Copper not far from the all important sub $3 mark.

Mon, 04/15/2013 - 13:14 | 3450946 Alexandre Stavisky
Alexandre Stavisky's picture

70 tons of Gold.  Over 4000 tons of silver.  EVERYDAY in QE thin air money emission. FEAR NAUGHT.

Be right, hold tight.  Came into this world with nothing but a skin&muscle suit, leaving with the same.  In between money's interesting, but eventually irrelevant.

Diseases grown desperate are by desperate means allieved, or not at all.

Mon, 04/15/2013 - 13:34 | 3451080 Bastiat
Bastiat's picture

Actually you'll be leaving without the skin and muscle suit but I'm with ya otherwise.

Mon, 04/15/2013 - 12:30 | 3450703 centerline
centerline's picture

I was reading all of this over at KD's site and figured you just got the ban hammer.  LOL.  I came back over here figuring I would find you shortly thereafter.  Always enjoy your posts.

Yeah, KD is not fight club.  The shame is that not being able to fight it out creates too much bias.  

Mon, 04/15/2013 - 14:10 | 3451365 Moe Howard
Moe Howard's picture

I've been banned for a while from there, I don't miss the forum. However, I do read the blog posts, sometimes he is correct. Sometimes.

Mon, 04/15/2013 - 20:57 | 3454130 MeelionDollerBogus
MeelionDollerBogus's picture

ah, Karl Denninger... once I started posting youtube gold charts I found his channel, saw his bad attitude & blocked him without a second thought. Fucking douche.

Mon, 04/15/2013 - 12:06 | 3450507 resurger
resurger's picture

I told my wife that gold is down $128 for the day, she's like "Shall i go buy?!"

Nuff said.

Mon, 04/15/2013 - 12:53 | 3450836 xtop23
xtop23's picture

Funny you should say that.

I got a txt from my wife saying, "silver is getting crushed!!!" ......"you wanna buy some?"

"already done, dear."

"oh" :)

Mon, 04/15/2013 - 13:07 | 3450911 BoNeSxxx
BoNeSxxx's picture

I just got off the phone with my local coin shop..

5 silver assays in stock and one gold 1/10 oz coin.  That's it.  Nothing else, nothing.  Nada. 

No Phyzz

Mon, 04/15/2013 - 13:23 | 3451014 Urban Redneck
Urban Redneck's picture

When Crapmex runs out of kilo and 10oz bars, then you might have the start of a physical supply shortage when people start jockeying for 1oz coins in front of an economic reality bulldozer, since it is the big players who dominate the market.  That said I haven't seen a GD bar on their site since about the last time gold nose-dived like this.  

Mon, 04/15/2013 - 13:52 | 3451223 BoNeSxxx
BoNeSxxx's picture

Wait, Crapmex still has actual metal?

Mon, 04/15/2013 - 13:59 | 3451292 Urban Redneck
Urban Redneck's picture

They say they do, that's really the only reason I look at their site that supposedly updates availability on real time (except for the really odd times when I can't find what I'm looking for in Switzerland, b/c they will ship it over here or anywhere else I spend a lot of time)


Mon, 04/15/2013 - 14:57 | 3451685 kito
kito's picture

listen, really..enough of this shortage scare in metals...there is plenty to be had unless you are buying millions and millions of dollars worth......THE REAL, ACTUAL, TRUE SHORTAGE IS IN AMMO!!! there is absolutely NONE to be had, and if you can find 1000 rounds, its like 500 bucks......

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