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Gold Drops Most In 30 Years
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
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Wealth is measured by what you accumulate.
Most of us bugs are trying to preserve wealth.
There will be up days. There will be down days.
In the end, gold ALWAYS wins.
4000+ years of history prove this out.
about "always"; like their ability to keep the market irrational is longer than your ability to stay liquid...alas, nearly always unless you are young and rich.
Never underestimate the power structure.
Recently I asked on ZH when you get out of gold (i.e. timing). I got not response just marked down.
Again, gold:
You buy: when the markets are in turmoil (stock market, currencies are being deflated, bonds aren't paying)
You sell: ...?
My beef with gold is that it's said to be a hedge against uncertainty. A hedge. So if that's the case, when do you stop hedging and liquidate it?
Time the sale of gold wrong and either:
1. You sell too soon and it keeps rising
or
2. The currencies/stock/bonds you buy with it keep falling.
Oh and then there's the cut everyone takes off you: for buying, for selling, for storage...
Mugs game.
Gold is an insurance, not an investment.
In modern history. Gold has *principally* been used as a means of protection, not so much an investment.
That said, in general you follow the same roadmap of an investment.
Look at the typical stages of a bubble.
In General:
You BUY when everyone else is panic selling.
You SELL (some) after the OWNERSHIP mania begins. Catch the run up and get out close to the top.
You use those crisp new FRNs to purchase the next undervalued asset class.
Hope this helps.
GET RICH QUICK
THE FUTURE IS HERE AND IT'S GOLD.
BUY GOLD, IT'S VALUE GOES IN ONLY ONE DIRECTION SO BUY...BUY NOW*!!
*the value of your investment can go down as well as up....
This gold and silver slaughter is so big, there is hardly a mention that today is tax day. Ol Massa wants yo cash and yo gold, bitchez. Sell out and pay up.
Gold went on sale!! Buy with both hands, folks, buy all you can before it's too late!!!
Climax?
what's the rationale for the use of that term? on charts, there is no reason whatsoever to find a toehold anywhere near here.
acceleration into the close means more pain ahead. watch for torrential selling into the bounce.
He's referring to Krugman's wet undershorts.
The central bankers want to make a statement. "We're batshit crazy!"
Humor Monday:
Bob Doll says that this is a signal that "the world is healing".
Holy fucking shit. To the electric chair!
"Yeah, well at least I can psychically hold gold and protect with my gun"
Dem bullets lookin pretty expensive right now. What is the price of lead per ounce right now anyway?
The people who sold bullets, made alot of money on you stupid people who rushed in and bought, beacuse you were afraid it would be banned. hahaha. they are playing you haha. Same with gold. Gold bugs only think gold can go up. they thought they would get rich buying gold.
You seem to be quite frustrated. Tell us about your problems.
No im just having fun mate. These stupid ZH doom and gloomers are panicking hahah.
@ Popthestock:
What makes you think we're panicking? I say, let the prices fall. I couldn't be happier! The more prices fall, the more the buyers are lining up. The more the buyers line up, the faster supply disappears.
The market action of the last 2 days is a sign that "us stupid doom and gloomers" must be right about something.
If things were hunky-dorey, there would be no need to smackdown gold prices, or for QE.
Popthecock truly doesn't understand the game of longball
Honestly if gold or silver go down under 800/ 20$ im probably gona buy as much as I can physcally . . . this fiat ship is still going down , its only a matter of time.... dont mind throwing some metal in a box and hiding it in the backyard.... doesn't hurt a thing.
If gold drops, than gasoline, oil, food, etc... should also drop.... which means you can still exchange gold for the same "value" in assets and consumables.
The value of gold remaons fairly constant. If you want to bet on deflation, hold cash- it will buy MORE< not just the same.
But we know it's NOT deflation because the money supply keeps increasing thanks to QEinfinity.
The debate is a curcular function.
The QE "money" is no more than padding for deficient balance sheets, and this props up "assets." I quote "assets" because what one sees as assets today isn't necessarily what are going to be assets tomorrow. So, for most that we know of as being assets today I'm thinking that when they stop propping these up that they will FALL in "value," in which case That WOULD BE "deflation." Deflation has always been the concern for TPTB (they have, are continuing to acquire more of, "assets").
Exactly.
Go check out a 40 year chart of gold vs oil, coal, wheat, copper, whatever. Charts available here:
http://www.indexmundi.com/
Gold Crash - Deflation
1. Gold will continue it's generally downward path as long as this deflationary macro-pattern continues.2. There is DISCONNECTION between the money supply and the money in circulation= NO VELOCITY of money in the Economy.
http://homment.com/gold-crash-deflation
Dang it, you beat me to it. 248 comments and you're the forst one to mention the obvious- DEFLATION>
Deflation and Peak Oil bitchez- put yer cash-money under the mattress, where it belongs.
yeah, but the supply side won't be playing along in your technical observation
the USSR had great fantastic technical central planners too.
it never works that way
this is the sensible narrative.
any of you that know the "trader dan" blog: he was on to this at end of last week. unfortunately I didn't get around to reading it until about an hour ago ... hahhah
attribs to Dan Norcini on all the quoted below... see http://traderdannorcini.blogspot.com/
"The problem that we are seeing in regards to gold is the Velocity of Money. We have the gargantuan sums conjured into existence by the alchemists of the Western Central Banks but that money is not turning over fast enough in the general economy. It is going one way and one way only and that is into equities. It is NOT going through the broader economy nor is it changing hands frequently.
The continued weakness in the copper market, along with the other base metals I might add, and the general theme of weakness across many of the various commodity markets, (look at sugar and coffee as an example and now the grains), falling unleaded gasoline prices along with crude oil, etc. is telling us that there is a general deflationary theme at work. One cannot have a growing robust economy in which the price of resources (commodities) is moving continuously lower. The fact that the CCI, Continuous Commodity Index is not moving higher alongside of the equity markets tells me that there is NO REAL GROWTH in the US economy, or some of the other Western economies I might add.
In short, every single thing we have ever learned from history is no longer applicable. Modern economics, monetary matters, etc. are need to be updated to reflect the new reality of Central Bank dominance. Pity John Law, he lived and died a few centuries too early. He was a man ahead of his time and a true genius, and would have been sainted had he only lived long enough to sit on the board of the FOMC."
"In short, every single thing we have ever learned from history is no longer applicable. Modern economics, monetary matters, etc. are need to be updated to reflect the new reality of Central Bank dominance."
LOLOLOLOL...if anyone ever needed proof that the Central Bankers are toast, this is it...
Foreign holdings of UST paper rolling off will put velocity into international USDs. If this can be controlled, I don't see how.
Dollar index is around 83, time to turn around and go to 72. That will play to PM advantage.
War, natural disaster, bankruptcy, corruption, confiscation, loss of liberty. It's whats on the menu.
Bullets, get yer bullets!
The purest lead, only $1000 an ounce.
Get yer bullets.
The very last chart. It really doesn't matter how you look at it. SnP to 4000, or, gold to $400. Neither one appears all that attractive to PM holders. Unless of course you believe this chart doesn't matter. My gut tells me lots more sellin of PMs ahead, unfortunately. As if my Monday wasn't already shitty enough. So, what's Schiff saying now?
they used to say pigs get slaughtered.. i think Zealots are the new pigs
Pigs get fat, hogs get slaughtered.
Who knows, maybe China let it drop in Bernanke or Lew's ear exactly what their gold holding are, and Lew shit his pants like an infant with gastroenteritis.
China says "we own 10,000 tons of gold" and Bernanke shits his pants.
Crashes gold price and says to China "we own trillions in good American residential, commercial real estate and good American equities and government paper"
Well this was kind of expected but noone here thought they would be able to do it so openly and so quickly, withut giving anyone time...The central bankers are trying to nullify every asset except stock markets and government bonds..
I listened to a presentation by someone from Bank of England a few weeks ago, claiming that employment and stock markets are correlated and if the central banks push up the stock market enough, they will create enough wealth effects to reduce unemployment. (PM me if you want the paper) He said he is trying to convice the MPC that this is the route Bank of England should take...Guys, we need to accept this reality and try to evaluate if coordinated action by the public can overcome central bank determination to smash everything apart from stock markets & bonds..
Saying all this, my family's entire savings are in physical gold bars since 2009, and they have lost around 20% in the last few weeks..I thought of calling them and asking them to sell the bars after the bitcoin thingy, but I never thought they would dare to smack it down so openly and quickly...
Sudden debt has said it above as well, there are two options: Either this is a well-planned central bank-involved operation using Meryll Lynch (while they profit from it as well) or some serious shit is on the way, someone desperately needs cash and liquidating every position he has...To me, looking at the graph for the last two days, it is the first one, since every little increase in the price meets very heavy sale to push it even further below..
I am expecting some nutcase gold bug to shoot everyone at the Meryll Lynch headquarters, and I cannot say I will feel even slightly sorry after that..
It looks more like the Fed and Treasury are trying to shoot all the goldbugs to me. They really want the public to jump on stocks and sell gold like in the 80's. But gold never got anywhere near the correct value for that transfer to happen naturally. Gold would have to quadruple to get to where it dumped to in 1980-81 vs any measure of money supply. They were too early and they tried to pick a winner.
"I listened to a presentation by someone from Bank of England a few weeks ago, claiming that employment and stock markets are correlated and if the central banks push up the stock market enough, they will create enough wealth effects to reduce unemployment."
The doctor is saying " I can't cure the patient so let me touch up the X rays instead"
and after that 2 day drop in gold in 84 gold did what for the next two decades?
Truth is of course it is hard to fight an oponent who has access to unfettered corruption as the NY Fed has. There isn't anything that they cannot do and always get away with it.
Who is going to sue them? Which court would find against them or any of their employees. This is like having the mafia in charge of the bank, except mafia have their own moral and ethical codes, the Fed has none.
25% Premiums on Eagles, and 15% Premium on rounds at APMEX
Silver that is
Commenting on something like what is happening is useless; I'm turning my interests elsewhere...
What's going to happen when paper gold is worth $500 or so a troy oz and physical gold in hand is worth $3000 a troy oz. (just random numbers, but what if the spread gets so wide?
what do you answer to a person offering you to deliver something very valuable for suspeciously low price asking to pay in advance ? You consider him to be a fraudster and ignore
so banks are selling gold to meet margin calls ... this leaves the rest of their gold holding devaluated and force them to sell stocks ... well erm, let's see, this should drive stocks down shouldn't it ? if it does, what the hell are they gona sell next, UShit bonds ?
What have I learned in the last few days? The "legendary" Jim Sinclair ain't so legendary.
This is war! Close out all bank accounts, load up on physical gold and silver, and you will have done your part to bring these bastards to their knees!
Channeling Bluto: Who's with me? LET'S GOOOOOO!
Time to sell your gold bitchez, and get into bonds, real estate, and stocks. the little shiny rock aint gonna make you rich. im sad to say this.
When it comes to trolls, PoopOnStocks, you are the lamest of the lame.
Really quite pathetic.
Listen, I knew HarryWanger, I tangled with HarryWanger, and YOU, sir, are no HarryWanger.
Like a fart in the wind...
given recent reports of various CBs increasing their gold holdings and some CBs trying to repatriate their physical gold to homeland, the Fed may be behind current rout in gold markets. the reserve currency status must be defended ;)
just saying.....
I think we're at the bottom now.
You said that on Friday aswell.
I was wrong. Now i'm right
eeek!
Synchronicity. [released today]
"Her entire species must be eradicated..."
". . . From now on your job is to be a distraction, so that people forget what the real problems are. . ."
coming. 11.22.
US Citizenism trapped in many shiny traps, some think gold not a trap. Haha American citizenism in action to triumph over system. Only way is jungle outpost accessible only by long journey and even then by special forces or else: head on pike outside your compound. Just like Marlon Brando.
The fact is, US citizens who love shiny traps not realize ultimate goal of their own space program: to select asteroids and then pluck them from sky to crash and control all resource markets, including shiny metals.
Not even aware of how NASA now = Now Asteroids State Asset
Lunatic
Ah, another 'american' seeker of the fomentation of citizenism symmetry in monolizing the money trapping means.
That is a good one. Made me laugh.
When blobbing-up the investment means, it takes an 'american' to conflatulate gold with investments. This is not that, after all.
But when the 'american' middle class, which is the king class, seeks to assert its eternal nature by chasing shinny rocks, well, it never ends well for them. Or so they say.
When farming the poor and extorting the weak, always look for an 'american' to be in the middle of it, shiny rocks being merely the excuse for it.
'American' middle king class investorators being hurt by downing shiny rock price? Fat chance of that. Bernanke works for them, so cries of them hurting are only lies.
Looking for profits? Look for what US 'american' citizens are doing, and do the same thing.
That will be the mattering thing.
An indirect attack on the Euro? Remember, the ECB counts its gold reserves at market value.
Can't wait for consildation to load up.
Oil already bouncing back...Oversold....
I've been buying junk silver regularly from my local pawn broker since 1998 at spot....until today.
So for now I will concentrate on my nickel and liquor collection.
CHEERS BITCHEZ!!
APMEX site is slow but still working. I just placed an order.
Bitcoined!!!!! Ahhhhh!
Attach your belts, the Rothschilds are here!!
I believe the real buying opportunity here is silver not gold. They can hammer down gold a lot more still but not really with silver. The market is just not going to allow for the price to be rigged below or pretty much at production cost for a long period of time. Supply will dry up and demand is not going to go away since it is used in many applications besides bullion. One way or the other it will go back up and I believe we are already at or close to the floor price for silver. Recyclers are going to be the recipients of this gift besides the coin buyers as long as charade continues.
Of course. Silver has always been the big sleeper story. A lot of people are going to be really surprised.
The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls
OR
When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
Yesterday....
Marc Faber On Gold, Deflation And Corporate Profits | Seeking Alpha
Apr 14 2013, 14:10
Dr. Marc Faber…most recent interview with Bloomberg. This article discusses his views and author adds own views to conclude on the near-term trend for the precious metal and in equities.
Faber's opinion on gold, deflation and corporate profits -
Well, I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity. I would just like to make one comment. At the moment, a lot of people are knocking gold down. But if we look at the records, we are now down 21% from the September 2011 high. Apple is down 39% from last year's high. At the same time, the S&P is at about not even up 1% from the peak in October 2007. Over the same period of time, even after today's correction gold is up 100%. The S&P is up 2% over the March 2000 high. Gold is up 442%. So I am happy we have a sell-off that will lead to a major low. It could be at $1400, it could be today at $1300, but I think that the bull market in gold is not completed.
All I'm saying is that I think we're going to have a major low in gold in within the next couple of weeks. Gold, as of today, you should actually buy as a trade. I think it can rebound in the next two days by $40...Because we are about in gold as oversold and we were essentially during the crash in 1987. From there we have a strong rebound. All I am saying as a trader I would probably enter the market quickly for a rebound of $20 or $40. From a longer term perspective, I would give it some time. We may go lower. I am not worried. I am happy gold is finally coming down, which will provide a very good entry point.
Yes, I agree. That's why I said if the gold market collapse is saying something about deflation and at the same time we have this sharp rise in bond prices and the signals are correct that we have deflation, I wouldn't buy stocks because in a deflationary environment, corporate profits will disappoint very badly. …
cherry picked data points man, my god. That's a bit worse than just making up numbers.
The reality is that this might be a good time to buy. it might be a terrible time to buy. Nobody knows. Especially some john on cnbc. Listening to experts is a recipe for getting killed. Any, all "experts".
The only god damn thing we know is this: Trends are somewhat predictable. Things going down modestly tend to go down more. This makes knife catching is a shitty strategy. It doesn't backtest.
There is nothing wrong with buying now, or whenever, just don't listen to some dickhead on tv to support your decision. Even if you are fond of the dick. He's not there to help you.
we few, we happy few, we band of silver holders . . .
ProShares UltraShort Gold (GLL) + 15% !!
Realtors: It's always a good time to buy!
Investment Adviser: It's always a good time to incest.
Gold bug: It's always a good time for gold.
Notice a pattern here? ;-)
There's a time and place for everything, just not ALL the time, cause they want your fiat, so they make their commission (fiat!).
Plan, hedge and spend accordingly.
"Two men say they're Jesus one of them must be wrong" - Dire Straits' Industrial Disease
Walk your talk. I'd find it highly problematic if folks in these various arenas DIDN'T promote what they believe in. Clearly, they can't all be right (especially at the same time!). And lucky for us that we actually have a CHOICE in deciding which is "Jesus."
There are lean times and then there are times of plenty. Always take into consideration the traversals of those that stuck through the lean times and are now seeming to be making a "windfall."
About that "Investment Adviser"... needs to watch out else their advice ("It's always a good time to incest") might land them in jail!
On February 19th, 2013, I made the statement that liquidation in the PM markets was coming. It makes total sense why. No matter what your investment ideas are for the future, think with common sense people. Holding on to your gold and silver right now is gonna bring much pain. We will see 17 in silver and maybe even 850 in gold. Why? Because do you really think Cyprus is gonna be the only country to sell its gold? We have many more liquidations to come. PM's will get slaughtered. Its crazy to hang on just because you have held it forever. Sell now and buy back once these liquidations occur. We have many more margin calls to work through...wait till the major US banks start dumping their positions. Morgan Stanley has already started. You think other banks are gonna hang on when gold tests 1300? Hell no. We saw what happened in 2008. This time the dip will be worse and be held down for awhile, especially if this next wave of sell offs holds. Don't be stupid. Dont "back-up the truck". Either sell a little and wait or hold all buying until we reach 17-18 in silver and at least 1100 in gold. You guys are outta your minds buying right here. WAIT!!!!!!
Oh, so you think they'll be mining silver and gold at a loss then? I would think production would be halted if that we're the case.
Yes. Some miners will go under. I wouldnt hold a mining stock right now to save my life. There is a lot that can happen right now. This sell-off was completely necessary. I've said for a long time that commodities HAVE to go down first before they start back upwards. Liquidations are necessary and healthy. Wait. Just wait before buying anything else.
Yes. Some miners will go under. I wouldnt hold a mining stock right now to save my life. There is a lot that can happen right now. This sell-off was completely necessary. I've said for a long time that commodities HAVE to go down first before they start back upwards. Liquidations are necessary and healthy. Wait. Just wait before buying anything else.
"Sell now and buy back once these liquidations occur. "
As others have asked, could most of this be about "contracts?" and not physical? What if it's a trap at trying to pry physical out of all the renegade folks (and steering it toward those that are "most rresponsible for overseeing the world's economy")? What IF you find that you cannot buy physical in the future, then what? I'd think that questions such as these also need to be asked.
The fundamentals never really change. And, in the end, there's really only ONE cycle.
The name of the game isn't about confidence so much as it's with COMFORT- if you don't feel comfortable Then change positions!
My target isn't to accumulate piles of stuff (just like with manure, it's best spread out to help encourage growth), but to acquire meaningful assets that can produce. Our quandaries are that we don't know what can bring returns- the notion of "earning" off of money is, with the deal of growth, going to be a thing of the past.
All is but a Tool. Tools are for getting work done. Figure out what needs to get done...
1378 and Is Paulson now going to jump out of his 100th floor window?
I hope not; he has a long way to go to ground zero ledge...
sp500 -1,33% ... A purification cycle? This gigantic swamp of Malinvestment is still alive ?
JPM, etc. is short metal – and needs the price to get back down – close to $1300 to cover. If gold doesn’t fall back down, there’s no way they can cover – and no way they can make good on their obligations. Poof, its gone. If JPM, etc. go under, there will be none left to buy UST.
People who think they bought physical metal and try to take possession will get letters from the bank saying “sorry folks, we tricked you fair and square – we know you bought gold from us – but here are some Chuck-E-Cheese game tokes instead – of equal if not greater value. Our attorneys consider this matter resolved. Thank you”
What this tells me is not to “buy more gold” but rather start preparing seriously for a total deflationary “sudden stop” collapse.
And any disputes that are arbitrated (STF-up-style) must be adjudicated in NY Courts.
I agree that a return to deflation is the logical conclusion, leaving aside all the conspiracy stuff about the PM market. It's just too easy to always invoke conspiracy or manipulation theories whenever the market does or doesn't do something. Not saying it doesn't happen.
My view of the economy is basically tied to real estate. Outside of Texas and North Dakota, I think real estate in general is priced too high and headed back down. It doesn't matter if interest rates are low when nobody wants to secure a loan on real estate without a huge cushion of equity. There is no worse asset from the standpoint of liquidity, also. So, I expect a combination of way too much property hitting the market this spring and falling demand. Deflation is one heartbeat away, you might say, in the real estate market.
One other point about "manipulation" is that it's only ever temporary in the face of natural forces. You ride the wave because you expect it to hit shore (your aim), not because you like to surf...
The real estate market is, as you predict, going to get another round of crushing. Consider the fact that this was the biggest support for the consumer economy (home repair, furnishings, HELOCs [which turn around and run up the debt registers for home repairs, furnishings, not to mention auto loans etc.]) and that this was 70%+ of the "economy." Ben's dumping $85 billion per month is propping up RE (with the money being leveraged into equities to make it all balance out).
It's not a matter of IF but WHEN it stops. I think that this realization is now starting to set in.
This ain't going to be the sound of a bubble popping, this will be like the sound of a pipeline exploding.
Looking at 1-year charts of gold, silver, and stocks, I'd have to say stocks have a helluva long way to fall to match the non-performance of PM's. So, it's surprising that PM's are falling hard considering that they too are basically another paper asset class these days.
It is absurd to think that gold and silver are falling because equities are so much better an investment, especially against the backdrop of deflationary data lately. If cash is king, then stocks are toast, not just PM's.
You've laid out all the logic that is necessary to assess this. And, haven't "they" been warning about a sell-off in equities (despite the talking-heads here and there saying otherwise [enough to keep people confused])?
I wonder, though, where is the "cash" to go? If it flushes from equities (can't push on a string- consumers are really tapped out) then Where?
The should be ZERO doubt that this is heading toward a continuing contraction (The Big Contraction?). I honestly don't have a clue what will transpire in the short-to-mid-term; I DO, however, know what the long-term holds...
The key is the US Dollar - overlay of gold and USD.
http://bullandbearmash.com/chart/gold-falls-dollar-climbs-vice-versa/
Market indexes will likely follow gold down - but the correlation is between the US Dollar and the indexes, not gold.
USD measured vs what? Other inflated fiat chits?
I've learned that one wastes one's time looking for even a glimmer of common sense, much less wisdom, in any of OrangeNadler's posts.
So the world is broke and we all get to be held captive, abused prisoners in the global currency war being fought by fucked up bankers trying to cling to power. Sweet.
These assholes are going to liquidate the entire middle class, along with self-government on planet Earth, rather than allow liquidation and break up of their fucking banks. These are crimes against humanity the bankers are committing, along with our politicians in Washington and Brussels, DC, these are not just financial or victimless crimes.
Bingo. It's us vs. them. They are now drooling with greed over a (yet-to-manifest) fully enslaved but eager to consume Chinese middle class.
Possibly the greatest experiment in human history, right after the Holocaust and Pol Pot. Slaves....with credit cards! What could go wrong???
BUT....That isn't going to happen. The whole game is a bust.
Chaos, slavery, or democratization/decentralization....hmmm.
and all for bankers...
Only a dead banker is a good banker
I can understand people being discouraged and scared. Everyone knows our system is about to collapse, and the only safe haven seemed to be precious metals.
Personally, I would love if gold and silver were "forgotten" like it was in the 90's and 2000's, and stack like crazy.
Just bought GDXJ and SLV on the CHEAP!!!!!! I'll play their fucking game. Goldman just said Gold was a hot potato so that means it's time. I think we have reached the floor. The margin calls are placed and my SPrint shares have hooked it up whilst I got rid of my oil last night for market open. Broke even, but i will make it all back(hopefully) with the paper metals. i will be meeting ol' Zoland for the phyz purchase should there be any left. ALL MADE POSSIBLE BY READING ZEROHEDGE. I appreciate all of the info gleaned.
PSLV - with little or no premium.
uhhhh... falling knife.... good luck...
But, I should point out that there is no long term support in this price range. If it breaks through the 1330 area....1200 is the next support. And really, 1100 is the real landing zone for gold. Because there is absolutely nothing stopping it from going to 1100. No one is treating it as a safe haven and levered longs that got in back in 2010/2011 are nearing the red if not already red, so they will be forced to liquidate to preserve capital. And do you think longs will be rushing in to buy the dip right here? Nope. Because there is no economic driving force to back it up. We are already seeing a deflationary environment over seas and forced selling of gold in european countries, the risk is holding gold. So this is just the beginning. I would consider buying in at the 1100/1200 level, but def not here. Much more downside to come.
uhhhh... falling knife.... good luck...
But, I should point out that there is no long term support in this price range. If it breaks through the 1330 area....1200 is the next support. And really, 1100 is the real landing zone for gold. Because there is absolutely nothing stopping it from going to 1100. No one is treating it as a safe haven and levered longs that got in back in 2010/2011 are nearing the red if not already red, so they will be forced to liquidate to preserve capital. And do you think longs will be rushing in to buy the dip right here? Nope. Because there is no economic driving force to back it up. We are already seeing a deflationary environment over seas and forced selling of gold in european countries, the risk is holding gold. So this is just the beginning. I would consider buying in at the 1100/1200 level, but def not here. Much more downside to come.
I do not think so.....there has been waaayyyy too much slam down for people and mainly algos not to swoop in.
BUT... you have to ask yourself why the liquidation is occurring and, when it's likely to stop.
Diversification. Some things will ("may") carry you when others do not. Ultimately the System (and TPTB) cannot control direct barter, in which case it will, in the end, come down to barter- look around and ask whom and what you'd be bartering with/for (be realistic).
I agree brother. This is why me an Zoland are gonna discuss junk silver here soon. Just keep bouncing around the bottom dear silver.
Time for some real talk: this fucking sucks.
nah.......this is great. It's a fire sale dude! human nature works both ways. They just shook out some weakness. Fundamentals have not changed. Just hang tough. If you are an in and out kinda guy then yeah, you're fucked. In for the long haul? You have an excellent opportunity.
Not if you're all in. Then you just sit and practice your sphincter kugels.
"ALL IN" on ANYTHING is really really dumb. Hedge your hedged hedges.......because on a long enough time line.......
Never go 'all in'...a little bit every couple of months...
"Never go 'all in'"
Unless she's really good-looking!
Everything will suck even more, soon enough.
Ole "Mad Max" Keiser called this April disaster late last year.
He also said to buy bitcoins.
who benefits from that? who's buying "cheap"
Me.
shhhhh!!!.....Ahoy matey.Hoist the anchor & Tie me to the mizzenmast,these are the fellows u need to see about ""buying"...but shhh & and keep that Scallawag tounge from jabberwocky to landlubbers or it be the plank for ye....
http://www.flickr.com/photos/expd/8652284402/in/set-72157629379499652
Anyone remember a few years ago when India stepped in and bought significant amount from IMF at around 1250. Wouldn't that sort of act as a natural floor?
Floors? Where we're going, we don't need...floors.
1350 is floor......beyond that the Satanists get hurt too.........
ya, but that was physical...not paper..
I'm thinking that the flames will start to appear sooner in that case (it'll take a while before the physical starts flaming).
Oh, and be sure to not lose sight of the pointing thing on the tail, many forget this out of concern for the pitch fork... (sometimes the details are IN the devil)
Those that manipulate, know how to shake the market and make a killing.
Now's the time to buy
somebody big must going bankrupt or something big is going to happen geopolitically, and some people got the news early
Market talk that a major firm has had a margin call on Gold and Silver
Its fine. The thing still has extrinsic/intrinsic value- the cool thing is I am not getting flushed like I did in 2008 trying to pick a bottom with overleveraged money. Holy fuck- I was so right but so off on the timing.
Physical 1:1
I really hope Silver hits $8.50 again 'cause ima gotta back the fucking truck up this time, bitchez. Gold plate my civic, yo! (sarc)
But really I dont expect Au to hit below $1200. If it does, buy stocks this market has gone full retard. Get me a 6 plex where they pay me to take it.
Paul Craig Roberts' explanation is the most credible so far : http://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-craig-roberts/
Agree. It's considered necessary public opinion manipulating; thanks for the url. I bookmarked it; going to read his book, too.
Thank you! I don't think anyone else does a better job at figuring out all this stuff than PCR.
Stop all the clocks, cut off the telephone,
Close down the coin store, send everyone home.
Shut down your browser, and turn off the iMac
Ignore every one who says "But I will still stack!"
Let wise commentators from CNBC
Say "Gold is dead now!" and then chortle with glee.
Toss one red rose on that place on the water
Where you lost your whole stash when your fish-boat tipped over.
Gold was my North, my South, East and West,
And yet even so -- I liked silver the best.
I lived on ZH and I laughed at the trolls,
I cursed Morgue, Fed, and Squid -- but now all that's just old.
The sun will not rise (you know, it's that gold-color)
The moon in the skies will no longer look silver.
Give in to the statists, forget about free thought,
And on your own tombstone write "I died by fiat."
Maybe someone told GE, MSFT, and/or JPM that they have to pay taxes this year.
Gold is not treated as a safehaven... Goes back to that day of the Swiss franc peg and the intervention in Gold...
Ever since that day i've been thinking of the market action then. IF it was not manipulated it was a huge reversal on massive positive news and signalled an end to the bull trend (possibly what transpired). However if it was a manipulation...
Call their bluff,
every paper owner just take physical delivery....or if your having gold stored somewhere, take delivery
So nobody remembers the post on here last week mocking Goldman's call to sell gold. I can't find it in the archives on here but just this: http://goldnews.bullionvault.com/goldman-gold-041020131. Perhaps gold will come back strong, and that wouldn't be surprising, but for the last few days, I'm glad to not have faded Goldman's call.
They also made a call long oil...
I didn't see that, but be that as it may. The point is that the mantra on this website is that Goldman is always wrong in its recommendations and trades against them. Well, they surely did something different this time!
You don't understand the temporal aspect of it. The squid wants you to sell your gold today because they want to manufacture a buying opportunity for themselves. It has so much more to do with the volume that they can amass while they have stirred up panic. It looks good to the unenlightened because they believe Goldman was warning them. For every seller there is a buyer, and today the buyer's names are Village Smithy and Goldman Sachs.
if markets were only that easy. so what are your targets, or are you just a buy and hold kind of smithy?
I get "the temporal apect of it." Basically anybody can use any information to make any argument that he or she wants, but a pesky thing called evidence presents itself to counter people's favorite unfounded beliefs. So when would you concede that Goldman is right? They're right right now.
To paraphrase the senate testimony went something like this, Sen Levine: So as you were packaging and selling this crap to your clients you were closing your own positions as fast as possible, is that correct? Blankfein: Yes, that is correct.
I guess if you click the green up arrow for yourself on your non sequitir post, then that counts as some victory for yourself.
double post
Good ole Ann
December 15, 2011, seven weeks after MF Global on her web site....
“The futures markets have lost their viability and trustworthiness because of the MF collapse and theft. At some point in the not-too-distant future, people everywhere are going to realize that the delivery mechanism is not reliable. Heck, just holding cash and/or positions in a futures account is no longer reliable. The market itself is not reliable, traders will no longer attempt to arbitrage these basis spreads because the risk to the trader that the rug will be pulled out from underneath them is simply too great.
And in the metals markets, the delivery process itself is . . . um . . . shall we say, easily corrupted? When you “take delivery” of physical metals, it doesn’t get sent to your house. All you get is a certificate saying that X number of ounces are being held in a certified vault somewhere with your name on them. After the MF collapse, that sounds like a joke, right? A CERTIFICATE with my NAME ON IT? Yeah. That really is how it works.
When the arbitrageurs finally lose all confidence in the markets, the cash market will decouple from the futures because no one will be willing to take the risk of having their money, positions and/or physical metals stolen/confiscated. If no arbitrageurs are willing to trade these spreads – no matter how wide they may become – and thus there is no force causing the cash and futures to converge, we will see the basis spreads become extremely wide. As people flee the futures markets, the futures prices will drop, while the cash markets hold steady or even diverge and actually rise as all of the former paper players realize that physicals are the only remaining game to be played.
Watch for this. Watch for the gold and silver futures to sell off as people walk away from paper while the online cash dealers, seeing that market demand for their physical inventory is robust, begin to ignore the futures prices and hold their prices steady or even raise them. When you see this basis decoupling and absence of arbitrage, lo, the end is nigh. A parabolic spike is coming”.
And they we're trying to paint her as nuts......
I think she's badass
She is nuts, and badass. You CAN be both.
Cause she's a Christian? and puts it right in your face?
All the farmers around me thinks she's the second coming...
She's welcome at my campfire anytime...
Agreed. And no, not because she is a christian, because she's too loud.....
The drop in the price of gold tells me several things:
#2....the insiders who had gold stored at Comex took possession
everyone else is getting Cyprused...