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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

 

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Mon, 04/15/2013 - 14:17 | 3451407 Charles Nelson ...
Charles Nelson Reilly's picture

Could be both, no?

The COMEX is about to go belly up.

Mon, 04/15/2013 - 14:10 | 3451369 kragsquest
kragsquest's picture

How long do you suppose it will take for powerful political and commercial interests to demand action, or take action themselves against those causing panic and worldwide economic disruption?

Mon, 04/15/2013 - 14:10 | 3451370 kragsquest
kragsquest's picture

How long do you suppose it will take for powerful political and commercial interests to demand action, or take action themselves against those causing panic and worldwide economic disruption?

Mon, 04/15/2013 - 14:18 | 3451401 Debugas
Debugas's picture

Societe Generale predicts now gold is likely to drop to $1,265

http://blogs.marketwatch.com/thetell/2013/04/15/amid-gold-slaughter-1300...

 

Mon, 04/15/2013 - 14:36 | 3451526 Bastiat
Bastiat's picture

Today?

Mon, 04/15/2013 - 14:19 | 3451417 Mark123
Mark123's picture

From the PPT war room:

 

Gentlemen, we have a major problem.  Gentlemen...quiet down!!!  Order!!!

 

As I was saying, we have a MAJOR problem.  Facebook is down 3%.  I expect a green close today, both FB and the Dow.

 

On my count, begin clicking on the BUY ALL CRAP icon on your iPads.

Mon, 04/15/2013 - 14:20 | 3451421 papaswamp
papaswamp's picture

BTFP... Buy the fucking plunge. As well as some juicy mines that will suddenly be coming up for sale

Mon, 04/15/2013 - 14:23 | 3451428 orangedrinkandchips
orangedrinkandchips's picture

Wait...those gold stock news letters were wrong?

 

buying at 1647.78 by my broker was wrong?

 

shit.

Mon, 04/15/2013 - 14:23 | 3451430 Badabing
Badabing's picture

Zola,"Goes back to that day of the Swiss franc peg and the intervention in Gold..."

that same day the euro became un peged to gold its all fake numbers now!

don't sell your Phys.

Mon, 04/15/2013 - 14:31 | 3451482 BanjoDoug
BanjoDoug's picture

PLZ REMEMBER ::  These prices today are for "PAPER" gold, & thus the Janksters (Jewish Banksters) can manipulate these paper instruments all day long.    It does not reflect the physical metals real value.    During this PURGING of gold owners (physical or paper),  the janksters will move in any buy like crazy.    It's a wealth transfer operation,  as well as a Jankster raid of sovereign nations gold reserves.

Mon, 04/15/2013 - 14:31 | 3451485 eri
eri's picture

Ben "Hur" Bernanke : "UNLEASH HELL"!!!

Mon, 04/15/2013 - 14:30 | 3451487 observer007
observer007's picture

The Gold Market is leveraged 100 to 1, tons of paper gold is being dumped...the institutions tethered physical gold and silver to their counterfeit derivatives...with these astronomical leverages being manipulated in a relatively short period, the virtual price will drop exponentially. The ongoing criminal investigations of the alleged gold price manipulation will amount to nothing. Of course this is blatant manipulation, but like always, nothing substantially will be done about it.

Read also:

The reasons behind the gold crash

http://homment.com/gold-depression

Mon, 04/15/2013 - 14:33 | 3451512 Sofa King
Sofa King's picture

I don't know how many of you follow Martin Armstrong but this dude seems to be the only one with his head not in his ass...

 

 

Mon, 04/15/2013 - 14:43 | 3451553 Ned Zeppelin
Ned Zeppelin's picture

http://www.businessweek.com/articles/2013-04-15/the-price-of-gold-is-crashing-dot-heres-why#r=rss

Read this for what they WANT you to think.  Hilarious - a precipitous and sudden drop in gold is caused by a simultaneous realization across the globe that equities are great and inflation doesn't exist.  What a crock of steaming horse feces.  Interesting though what the propaganda tells you.  Fear of gold is the issue, not disdain.

 

Mon, 04/15/2013 - 14:45 | 3451562 DIgnified
DIgnified's picture

How do you trick people into giving you their money, in exchange for nothing.  Fear and promise of a better tomorrow.  This seems to fit right into the confidence-scam going.  The unnatural market is fairly obvious.  How do you overcome that?  Tank the alternative.  Easy to choose a door when you think you only have one option.  

Hold.

Mon, 04/15/2013 - 14:45 | 3451580 JPMorgan
JPMorgan's picture

Not surprisingly the corporatocracy main stream media are all over gold and silvers price drop.

Where have these assholes been over the last 10 years or so lol.

 

 

 

 

 

Mon, 04/15/2013 - 14:51 | 3451626 Black Markets
Black Markets's picture

Gold is so passe.

Mon, 04/15/2013 - 14:51 | 3451636 Bingfa
Bingfa's picture

What your about to see is going to be epic

Get your shit together because what you've been hoping for is about to happen...BOOM

 

 

Mon, 04/15/2013 - 14:53 | 3451648 NuYawkFrankie
NuYawkFrankie's picture

GATA must be going gaga...

Mon, 04/15/2013 - 15:07 | 3451661 Lunch is for Wimps
Lunch is for Wimps's picture

This comment from rudolph reindeer on the Telegraph may go some way to reassuring the gold bugs and I must confess, I believe him. Fucking bankster cunts:

As of last week no more orders can be placed at Rand Refinery – the mint of the world wide most popular gold coin the Krugerrand.  (-à Means they can not deliver at that faked price.  =  „Gold is cheap, but sorry we dont sell at this low price“…..)
 
The Dutch bank ABN Amro informed their customers, that effective immediately it is no longer possible to have gold.vault deposits physically delivered. Insraed yiu will only get cash-settlements. (à Sorry no gold available, just fiat money instead).
 
After the events in Cyprus a selling rally of gold-secured ETFs (no physical gold !!)  took place. According to the German sources it was mainly Asian clients selling their gold-secured ETFs to buy (real) physical gold instead. According to Swiss Gold-bar-producers two thirds of the current gold bar production is going to Asia.
 
The actual gold stock at the new York Comex have been significantly reduced.
 
For a few weeks now we observe on the gold market  a higher spot price for gold orders with immediate delivery, than for orders with delivery in the distant future (Backwardation). This very unusual situation indicates that the raw –material ( = gold) is running low.
 
Shares of gold mining companies have dropped above average compared to the gold price.

Mon, 04/15/2013 - 15:09 | 3451786 PontifexMaximus
PontifexMaximus's picture

Ur talking an awful lot of rubbish, you can have any size of Krugerrands phys loco Zürich tomorrow @ spot price, which is oz spot + 3, 4 bucks, depending whether u take 200 or 1000. Check it out! Where do you live?

Mon, 04/15/2013 - 14:58 | 3451681 FatAmerican
FatAmerican's picture

please explain to me how gold is going to make a person rich?

or escape inflation

last time I checked you have to sell you gold, pay a huge amount of tax then what?

 

Mon, 04/15/2013 - 15:05 | 3451748 Lunch is for Wimps
Lunch is for Wimps's picture

My point exactly. 

The silence from gold bugs on such questions implies they hold gold forever, even as their hands grow cold around the bars...

Mon, 04/15/2013 - 20:53 | 3454100 MeelionDollerBogus
MeelionDollerBogus's picture

-1 for you for being ignorant, no -1 for the innocent question preceding it.

Mon, 04/15/2013 - 15:16 | 3451821 devo
devo's picture

Mike Mahloney believes people will be trading gold for houses.

But to answer your question, the only way gold does that is a historical, total collapse. These minor collapses, no (though people who bought in 2000 or 2008 have done well). But, keep in mind that people holding gold over Continentals, Zimbabwee dollars, are very happy, and gained purhcasing power while beating inflation. So I wouldn't bash it just because it's down a few hundred bucks (i.e. debt instruments).

Mon, 04/15/2013 - 20:56 | 3454111 MeelionDollerBogus
MeelionDollerBogus's picture

Last time you checked you were misinformed. Once gold has a higher price it can be bartered for goods without paper cash and with no reporting. Same with silver. Food, rent, any number of things will be traded directly for coin, no fiat dollars in the middle, no tax.

"rich" is relative: those who have no gold may have nothing, zimbabwe trillion dollar Obama-notes - won't buy a loaf of bread in very short time. A man with $5 is rich among a world of angry starving junkies in a back-alley, rich enough to get stabbed for the $5.

Those who have hedged early, taken excess paper from good trades, hold bullion & use the excess fiat to get food, water, fuel & tools and gold and silver will do well and are "rich" compared to prior state of self/finances.

Mon, 04/15/2013 - 15:01 | 3451701 FatAmerican
FatAmerican's picture

the only way to escape inflation is to increase your income, long term fixed rate debt is how you beat inflation, by the way inflation is at 1.4%

dont believe me go buy a pound of organic carrots for 1 fucking dollar!!!

Mon, 04/15/2013 - 15:04 | 3451728 FatAmerican
FatAmerican's picture

realestate/income investors are paying close to zero taxes, meanwhile broke average people commenting on this site are in jobs they hate buying gold

NOT increasing their income, TYPICAL get rich quick lazy fucks!!!

Mon, 04/15/2013 - 20:52 | 3454098 MeelionDollerBogus
MeelionDollerBogus's picture

-1 for you: not only are they often paying taxes they are also paying upkeep and having a hard time getting any rental income at all. Having few jobs means shut down businesses (no retail leases) and no homes to rent (no job = no rent able to be paid).

Mon, 04/15/2013 - 15:05 | 3451749 FatAmerican
FatAmerican's picture

capital gain speculators.... 

will you people ever learn....

 

 

Mon, 04/15/2013 - 15:07 | 3451766 walküre
walküre's picture

from the line ups at the coin dealers reported everywhere I would safely argue that people are ignoring the propaganda and using their own brains to figure out what to do

Mon, 04/15/2013 - 15:17 | 3451840 devo
devo's picture

Do you have links from reputable sources showing people lined up at coin stores?

Mon, 04/15/2013 - 15:54 | 3452139 Frank N. Beans
Frank N. Beans's picture

do you really need a link?

was at Liberty Coin on Saturday and they had people lining up out the door.  I've never seen more than a couple people in the store at one time before this, but Saturday there were at least 15 people in line, and buying up thousands in gold.  One lady bought two monsters of maple silver.  That's 1000 oz.

All I got out of it was a 20 franc gold coin. 

They have already sold 2900 silver eagles from their next shipment of 3000 eagles, to be delivered in about 10 days.

 

Mon, 04/15/2013 - 20:48 | 3454074 MeelionDollerBogus
MeelionDollerBogus's picture

“All I got out of it was a 20 franc gold coin. “

I got one of those… not recently. Paid 260. How much did it cost you today? Mine’s 1882 leopold II, not sure how much that fluctuates pricing based on numismatics (which I pretty much disregard except if someone insists they’ll pay me for that too)

Tue, 04/16/2013 - 01:37 | 3455131 Frank N. Beans
Frank N. Beans's picture

if you read this, this late, I paid $291 for it.  I paid by check and so have to wait 10 days to pick it up, after the check clears.  I think it is from 1877, and has a man with angel wings and a small rooster on one side. 

 

Tue, 04/16/2013 - 21:17 | 3459039 MeelionDollerBogus
MeelionDollerBogus's picture

ah, good to know. I'm unsure of the usefulness of ebay price comparisons but the Leopold II 1882 I have is frequently in the 450 to 470 USD range and I paid 260 for it 2 years ago. I paid roughly melt-value, 0.1876 oz troy content, 22k is the actual % or 90% gold (10% copper). Any valuation up to 470 even before the big price drop to me looks numismatic only - not barterworthy that's for sure. I'd get something for it but not that much in equal-value of purchasing goods directly.

Mon, 04/15/2013 - 15:10 | 3451783 Croesus
Croesus's picture

$2000 Gold, coming soon!

Mon, 04/15/2013 - 20:46 | 3454058 MeelionDollerBogus
MeelionDollerBogus's picture

And more! And… silver will move along with it. A purely paper trade I mention, ignore if you hate them, but take a look at those 2015 january slv calls and puts. Of course I’m looking at calls but either way they are not really priced out to reflect the time on them. 2015. Now just imagine if slv isn’t de-listed, if brokerage accounts aren’t frozen from bail-ins, what a contract for slv strike 26 or even 30 would be worth when in 2014 dec or so silver is already at 100 or 120. Just think about that. May sound silly but then look at what the price is today to get into that contract and ask yourself how silly it looks to dare try.

Mon, 04/15/2013 - 15:18 | 3451848 slimething
slimething's picture

So where's a good place to buy silver? Seriously.

Mon, 04/15/2013 - 20:51 | 3454056 MeelionDollerBogus
MeelionDollerBogus's picture

Silvergoldbull.com has gold bars, gold coins, silver coins & rounds. I am glad I got my last shipment in of silver BARS because as of this moment their inventory of ALL silver bars are OUT. Also their price-matching feature is OFF citing their COMPETITORS have no product for sale so there is nothing to COMPARE TO for price-matching! Now that’s a sorry sight.

Hope you stacked while you could… the artificial price has driven supply right off the shelf

** 3 hours later **

https://silvergoldbull.com/silver-bullion-1/bars : bars are now available

https://silvergoldbull.com/silver-bullion-1/coins : coins are now 'website is unavailable' and were not 3 hours ago, all inventory was visible & page loaded many times fine

https://silvergoldbull.com/gold-bullion/coins-1 : gold coins page loads

https://silvergoldbull.com/gold-bullion/bars-1 : intermittent loading, perhaps there's massive customer attraction overloading servers

https://silvergoldbull.com/silver-bullion-1/coins : finally loaded

I'll take it this means they now have enough inventory but not enough bandwidth to keep the page up 100% as people are entering orders! Probably because everyone keeps saying "all silver is gone!!" and I say "go to goldsilverbull.com" so you might have a shot

I'm so glad I got my last delivery before all fucking inventory disappeared at lower prices

 

 


Mon, 04/15/2013 - 15:21 | 3451891 Lunch is for Wimps
Lunch is for Wimps's picture

FT actually cites Zero Hedge in comments section of this article:

http://www.ft.com/cms/s/0/6055d326-a5ad-11e2-9b77-00144feabdc0.html#axzz...

Here's the comment:

Chris Adams, FT | April 15 2:49pm | Permalink Caution: we have no confirmation of this, but here's an intriguing note from Zerohedge on that rumoured sale through BoA-Merrill's Comex floor team on Friday:

http://www.zerohed...-forced-sale-comex

 

Mon, 04/15/2013 - 18:03 | 3453158 Gief Gold Plox
Gief Gold Plox's picture

A serious question: How does all this gold revaluation affect the already about to go tits up EU banks, who have some metals in their vaults? I'd imagine wheir books will have to reflect this drop in value and will instantly go form bad to worse. Could it be that someone's trying to push the EU financials over the edge by intentionally devaluing gold? Appologies if it's a stupid question, I was just wondering.

Tue, 04/16/2013 - 01:39 | 3455132 jakedark
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