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Gold Plummets By Most In 30 Years, Stocks Have Biggest Drop Of 2013
A bad day all around. Liquidation continued from Asia and commodities were Baumgartner'd - especially gold and silver, suffering their biggest single-day drop in 30 years. Weak NAHB data stalled any BTFD in stocks and despite a couple of tries at EUR ramps, stocks had their biggest drop in 5 months. The horrible acts in Boston seemed a catalyst for late-day weakness in stocks but there was no bid and heavy volume as homebuilders were hit their hardest in 10 months and US equity indices plunged into the close. Dow Transports had its worst day in 17 months. Away from stocks, FX markets were just as volatile with JPY's 2-day rally the biggest in 35 months (and AUD the biggest down day in 5 months). Swiss 2Y rates dropped to their lowest of the year and US Treasuries were relatively calm (though bid) until Boston hit and then dropped 3-4bps on the day. VIX also surged higher by 5.2 vols to 17.25% (its highest since the Italian elections).
S&P futures ended at the lows...
and VIX surged...
which took everything but the magic Dow below Cyprus levels...
As FX Carry was dumped in a hurry... AUDJPY especially...
And commodities were slammed...
But some other markets had seriously bad days...
and Gold broke all kinds of records...
after-hours gold dropped more and S&P futures also followed...
Charts: Bloomberg
Bonus Chart: Despite the day's chaos - risk-assets led stocks lower all day and the algos would not beat the real selling pressure for once...
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DEFRATIONARY CORRAPSE.
Everyone will forget about today's shenanigans in like 2-3 days.
What shenanigans? :)
Defrationary Corrapse means plinting pless action. Plinting pless action means hypelinfration. Bitzhez.
For future reference they substitute R for L not the other way around.
In sort-of related news, crap com-block 45ACP ammo priced at 31 cents/round, 1000 rounds maximum order, at the Natchez Shooting Sports website, crashed their servers within minutes of being made available, and then sold out within 15 minutes of the website going back online.
Now I don't feel so bad for paying $120 for 100rds of Federal HST 147 +p a couple weeks ago. First time I had seen good quality JHPs in,like, months.
The way I see it I'm still trading worthless paper for something incredibly valuable.
Havn't seen any since...
any chance the smash down in oils and metals is in response to the currency agreemnets that continue to be signed?
the dollar confidence theory of relevance rings clear.
it was felt around the world. sov. nations have been adding and just got hosed.
we are talking billions of lost value very recently from major tonage purchasing(china).
ben wake up, you are not in control of everyfucking thing around this world.
you(ben) are getting some vip's pissed at you...
not to metion another 100m in this part of the world.
IDK. I used to give this asian cat a lift home from work, and he always told me 'make a light at the right.'
All comodities are getting hammered. Corn, Oil, Iron, aluminum .... big sell off - I'd hate to see what kitchen sinks would be at if they were traded on the comex
All commodities except ammo. See my comment above.
Deep rumor is this weekend an anonymous somebody hacked the access list and posing as one of the housekeeping staff at the Fed physically swapped the red sell and green buy key's on Bernank's computer keyboard. Everytime Ben hit the green buy key today another 1000 cars hit the bid, and as the mini crash close indicates, the poor bastard still hasn't figured it out.
"an anonymous somebody hacked the access list and posing as one of the housekeeping staff..."
His name was Robert Paulson.*
* Everything is under control, sir.
AWESOME post!
It will start overnight with SP500 opening 5-7 higher. End of day is 12 higher on Tues. Wednesday another push higher for 17-20 and we have kept the pattern going.
At least we know what Corzine's doing.
Not before CNBC can capitalize on it's Crisis in the Markets special report late at night.
i would think the most accurate spot price for metals is what the u.s. mint sells it for...an uncircualted ase...59.00
i would love to tell you gold, but they dont have any....
and please dont think their 3 dollars of fancy packaging is what runs the price up over double spot...
PPT must have been playing hookey.
boom goes the Dynamite, that was clearly a por use of words
making sure it doesn't happen here...priceless.
ROR! Raughing Out Roud!
I'm fucked!
Bunker time yet?
Suzy Algo: “W-what the hell happened ? Did you fall asleep ?!”
Jhonny Algo (voice cracking): “No – I was ramping hard all day, just as the coders wrote me, but the sellers chewed through me like a threshing machine. It was horrific.”
Suzy (in a hushed tone): “Is it possible that . . . ? ”
Jhonny (utterly dejected): "Gotta be. We’re seeing the first cracks in Bernanke’s cotton candy air pillow mountain."
Suzy: "Didn’t think a face like that was possible without a lemon wedge. So what’s the deal with gold?”
Jhonny: “Dunno. Jimmy Buffett said not to fondle it, and he’s influential.”
Suzy: “Wrong Buffett, though Margaritas and gold don’t mix (just ask Spanish galleon skippers). So, what now?"
Jhonny: “Well, the good news is that it was all done with quote acrobatics and no volume, so we don’t actually own much of this crap.”
Suzy (puzzled): “But, what’ll happen to us? I’ve often wondered -- can markets actually go down?”
Jhonny: “Easy as huckleberry pie. They’ll just run us backwards after replacing each ‘BUY’ in our source code with ‘SELL’ -- no rewrite needed.”
Suzy (breathless): “D-do you really think that can work with my program?”
Jhonny (smirking): “Sure. You know what they say -- turn ‘em upside down, and all algos look alike.”
Suzy: “Uh, the boys from Milwood Middle School just called, and they want their joke back.”
Jhonny: “Touche.”
Intermission is definately over. The next act in this global tragedy is getting rolling now.
Yeah, man. There were a few too many "coincidences" today.
Boston shouldn't overshadow golds previous action. Weird moment, unknown waters.
You can sell a share of the S&P and pick up 1 oz of gold and 8 oz of silver.
Such a bahgain.
These price moves are totally normal and indicate nothing about the state of the markets. Gold is down because we fixed everything.
Also, don't pay any attention to the man humping the printer behind that curtain there. What could that possibly have to do with anything?
Correct. The Gold-Equity Arb!
BTFD... '._.'
The price of gold should be correlated to the amount of currency in circulation.
In the US, the Federal Reserve was required by law to have 40% gold backing of its Federal Reserve demand notes, and thus, could not expand the money supply beyond what was allowed by the gold reserves held in their vaults. (^ American Economic Association (2000–2011). "The Elasticity of the Federal Reserve Note". JSTOR - The American Economic Review. ITHAKA. Retrieved 10 July 2012.)
The chart in the link below displays the discrepancy (in % terms) between the today's spot price of gold ($1366) vs. the 40% gold backing price.
Click here to see the chart
Gold is as cheap in monetary base terms as it was in 2000. We are reaching historic lows.
Defiitely bullish
Where's the silver chart?
Bizzaro Markets: Fed announces QEternity, Gold/Silver drop like crazy, deflationary collapse ensues.
......Ben Bernanke now forced to wear purple spandex.
It's still fucking dropping after hours. Silver too.
Criminal. Just fucking criminal.
It's a gift from the PTB. Buy physical and stack. I was never a fan of the buy silver crash JPM coin. But everyone here should be buying some physical today. Remove the physical from the system.
Today? Why get greedy and take a chance that this beat down is over? Sit back and enjoy the spectacle, it could get a whole lot more interesting over the next few days.
I really have a hard time understanding how idiots giving away valuable assets for next to nothing is criminal.
VALUME!
HOLD YOUR GROUND!
Theirs not to reason why,
Theirs but to do and die:
Into the valley of Death
Rode the six hundred !
HOLD...HOOOLLLDDD....HOOOLLLD....NNOOOOOOOWWWW
No Bitcoin?
Looking for a top dealer with the lowest current premiums. Anyone familiar with Gainsville.com as they appear to have reasonable premiums? Bought from Apmex but their premiums are very high.
Unintended consquences. Let's hammer PMs to drive the weak out and create selling panic. Maybe in paper but as for physical, looks like retail demand is sky high as a number of products on Apmex are out of stock. Maybe the masses believed TPTB bullshit in 2008 (driving gold from $1,000 to a little over $700 in no time flat) but not this time as more people are getting wise to this game (via buying physical).
So what is the event that is driving the exodus as certaintly it isn't an "improved" economy. Not when Japan's currency and debt markets are under severe pressure. Not when southern Europe is in a depression. Not when China is slowing (but who really believes the numbers from China anyhow). And not with the US debt up by $4 trillion in the past four years and the Fed balance sheet up by $2+ trillion. Does anyone really believe that the world's economic and financial system is "better" today than it was in 2008? Just can't find any reason in the macro economic data to exit PMs yet as the mess is now worse than ever.
My friend bought these silver bars from Tulving today @ .99 over spot. 50 bar minimum. His inventory is running out quickly.
http://www.tulving.com/bullion/ntr_10_oz_999_bu_silver_bars.htm
Gainsville had a long delivery time for me last time before this current smack down. I suspect they sell a lot for things they don't actually have in stock.
provident metals
Thanks for the referral. Site is currently very slow with a message that phone orders are not being taken and the site is slow do to high demand. Will keep trying and hopefully crack in later this evening. Just about every site that sells in PM in volume is experiencing the same problems. Trying to keep my premiums in the 3% range but that may be wishful thinking.
looks like retail demand is sky high YES!!!!!!!!!!!!!!!
Phys seperating form paper shit, ETF'S down the sink..Watch
If you have anything on margin ..time to unwind it. The Market is starting to realize "QE" did not work!
"Comment? C'était pas du Nesquick?"
C'était du fumier !
Damn look at VIX calls up over 1000%. Panic has now hit the markets. http://www.tradingvix.com/2013/04/market-wrap-4152013-boston-bomb-blast....
The usd/jpy just pinged off the 50% Fibi from the BoJ move. (92.72-99.42) Things be getting ugly.
http://www.finviz.com/futures_charts.ashx?t=6J&p=h1
Truly "holy shit" action given the warp speed yen print.
http://www.finviz.com/futures_charts.ashx?t=ER2&p=m5
Russell at key "look out below" line. I'm seeing 600 in the near future.
u gotta love how cnbc at days end was saying how the selloff was due to people needing an excuse to sell, and then at end of day blaming it on boston.
this market was pretty red the entire day before boston, and the market always comes back when its red. not today wall st bankers u assholes
cnbc logic-
red market comes back green at days end- this market is so resiliant, i am a buyer, everything is great
red market stays red or green market goes red- people just needed an excuse to sell and that is all it is,
today was a perfect zerohedge day, not a single green across the board, commodities crushed, stocks hammered, and hopefully gold will rebound soon, while oil continues to fall and the markets die.
i can not be totally convinced yet for the reason being that we have seen this too often, big sell off, and then losses wiped away in day or 2.
in order for me to be convinced, i need 3 consecutive days of selling at least. i am not expecting this daily ( although itd be great) but i need modest selling tomm and wed, if we go green tomm, wipes away all bearish momentum,
reasons the market were down today, obviously china has slowed as we have all been told on here for months, the data and confidence in the u.s keeps getting worse and worse, and europe is still royaly fucked, but dont worry, cnbc just said we needed an excuse, everything is perfectly fine,.
fuck u ben, obama, fed, wall st, hope this is just the start of many days like this for u.
CNBC needs to be wiped off the face of the earth... a continual stream of dirt, filth and garbage.
Very, very important news. 11:34am Hawaiian time. The Silver Contracts on the Comex are divided in the months. the back half is green and the front half Red. Serious buyers are buying long to hold for months; the bottom is in. The attempt at crashing the market has failed.
Your kidding right? You don't think wht has already happened is a successful crash of the market?
Today Silver was not monkeyhammered... it was monkeyfucked. There, I said it.
This is resounding proof that QE has failed and we are entering a deflationary zone...Just don't write off PMs yet however, there are unintended consequences that will come from this... I've got a 20 year timeline for my PMs... and am hoping that we go sub $20 for more.
Agreed on the sub $20 target but I'm going to dollar cost average in on the way down now. As for the deflationary zone, the initial phase is always a rush to currency, drop in asset values (just about everything) which of course is only a small part of the equation. Once the government realizes that deflation will hammer the banks as collateral values drop and the fact that a deflationary collapse would destroy the tax base (no gains to tax, wage decreases, etc.), the revenue base for the goverment would plumment requiring even more borrowing and an accelerated path to debt default. Deflation will punish borrowers (think the world's largest, the US) and reward savers but not in a fiat currency that will eventually fail. Once banks begin to fail, then soverign defaults, and currency defaults (creating panic liquidation in the currency and hyper-inflation). Check case studies for Argentina over the last 10+ years as deflationary periods are almost always followed (and relatively quickly) by currency collapses.
You are bang on.
$20?? Is that silver......or gold??
"$"? Is that current "USD" dollars... or "new dollars"?
When the monetary system changes, all these figures become meaningless.
Why those dumbasses would rather have little soon to be worthless pieces of paper over physical gold is *completely* beyond me.
like marc faber said
buy on the dips. gold is oversold and cheap in the moment :o
YET THE DOLLAR WAS UP!!!! YA DON'T SAY!
Everything that happened today was to try and save the dollar's face... That May 18th deadline is fast approacing and they're preparing for the onslaught that's coming with it.
Would you be referring to the May 18th deadline for re-imposing the debt ceiling, at whatever level of debt the USA then owes?
Because right now there is no debt ceiling?
So, now would be a fine time to introduce QE+25, the end of all QE's, buying multi-trillions of debt, refinancing the US gov for 30 years, and kicking off a grand wave of inflation?
Interesting. But it would require the dow to dive down to 6700 or so first, in my humble opinion.
I bought more silver today. Key support @ 21.32, 3-16-2008 high.
[IMG]http://imageshack.us/a/img404/3675/xagweekly.png[/IMG]
I'd be careful of watching key supports in silver and not key supports in the whole market, because everything is crashing and everything doesn't care about key supports in silver. In other words, if you don't see key support levels hold in the big indexes, silver isn't going to stop falling.
Smiddywesson Always appreciate constructive criticism. Thanks for your input.
Starting to see cracks in the S&P, not on a sell but like they say no one rings a bell at the top.
Something wicked this way comes.
Gold down
Silver down
Commodities down
Oil down
China down
Russell down
US dollar up
That just leaves the Dow , Nasdaq, S&P up.
How long can this levitation last.
Eye Double You Em is broken. Focus on Esse Pea Why at your peril.
I would like to see incisive commentary as this site is known for instead of brownblazing....
What will be the consequences?
How are those with huge vested interests dealing with this? The Asian world and their governments? The Middle East?
This is an extremely destablizing event economically; I would not be surprised if there are repercussions against the entities responsible.
Pretty simple really. Buy phys, short paper (I like long dated GLD puts), get your shit in order as far as personal survival resiliance, help your neighbors and friends do the same, and spend plenty of time enjoying your family. We're coming to the end of an era, work on getting through to the next (hopefully better) one.
Gold is 30% off the high- but this has happened before although gold was locked-miners were not and had a 30% drop before they turned around and went through the roof--not that this means anything right now-
*********************
“In the crash of 1929, gold mining shares suffered with the
industrial shares but to a lesser degree. The explosive run came in 1933 when the shares of Homestake Mining went up tenfold. The shares of Alaska Juneau Mines went from $1.00 to $25.00. Dome Mines fell from $5.00 to $3.00 in late 1929. In 1931 it went as high as $7.00 and finally reached the ultimate high of $347/8 in 1938.”
http://www.fame.org/pdf/Gold%20Wars%200-9710380-0-7%20%20-%2001.21.02.pdf
In those days investors bought gold stocks because it was against the law to buy gold. And the government had pegged gold 40% above its true value, guaranteeing large profits for gold miners.
The Fed is and has been herding the Sheeple into equities.
Stay out.
Definitely.
The emergency fire exits are chained by the algos.
S+P will be 666 and it will be a no bid 'market' before it gets there..
Going to be an interesting evening. I am going buy some popcorn and a 12 pack of New Castle in the way home. When the spot market re-opens at 6pm EDT, I would expect it to sell-off at first, then I would not be surprised with a strong bounce overnight after 8pm following the opening if the Nikkei. Japan and the Hang Seng in Korea should open sharply lower, then I believe you will see a renewed bid under gold and I don't see us re-testing the lows for today the balance of this week. I hope you took advantage of the sale today and stacked a few more.
She ain't pretty no more!
VIX April 15 calls went nuts today. Massive volume and up 1790%
damn...I missed that one:-(
Flash. 11"34 Hawaiian time; Silver Comex contracts are Red and Green at the same time; the back months are strongly up while the front months are still down; the attempt has failed. The serious people are buying and holding. I'm up $5,000 on the day; having bought Dec.'13 early this morning. Repeat; the attempt at market crashing has failed; the results are now available for all to see. They have simply attracted buyers.
I was just looking on Texmetals website.
1 oz silver bars: Sold out
10 oz silver bars: Sold out
100 oz silver bars: Sold out
Other sites are crashing and some have notices stating "due to extremely heavy traffic...bla bla bla..."
The disconnect between paper and physical prices and demand is becoming almost comical.
Well, today has been a really bad day:
1. Its a Monday.
2. It is tax filing deadline.
3. Gold and silver were monkey-hammered.
4. Bombing in Boston.
Johnny Bravo will return to posting shortly
It finally dawns on me. Why now with the PM hit. It is payback to the Aussies for by-passing the US dollar in their Chinese trade. Since France just signed on, I suspect the TBTF US banks will not hit the French Banks next as a possible payback.
Excerpt from article:
If you remain long gold, here’s the ugly truth:
You must accept the fact that gold has entered a bear market. If you expect prices to snap back to $1,800, you’re going to be waiting a long, long time. Also, you’ll hear a lot about how gold is “oversold” after this huge drop. But it’s too early for this type of analysis. Unfortunately, merely being “oversold” will not lead to a massive rally that magically pulls gold out of its slide. In fact, most bear markets begin with scale-tipping oversold readings. Stocks were massively oversold in summer 2008. That was not exactly the best time to be a buyer…
Here’s what you should expect going forward:
In the short-term, gold could tread water between $1,350 – $1,450. My longer-term price target is between $1,000 – $1,100. This is where the metal consolidated immediately before and after the 2008 financial crisis before its 3-year push toward $2,000. Book it…
Greg Guenthner
Complete article and charts here: http://dailyreckoning.com/the-end-of-the-gold-bull/for The Daily Reckoning
// I Recon this article is complete BULLSHIT!
I'll tell you what, you bet with your $$ and I will with mine ( into PM's) and we will see who wins. Fucking Braindead Reckoning, you can't fix stupid after all ...
Gold has begun the accurate discounting/predicting of the impending deflationary collapse, and will eventually buy, at whatever price to which it drops, more quantities of everything than will a unit of the new pfunny-money buy, the new red, black and blue GoBamaEm "Dollar" of the U.S.A. The Unbalanced States of America.
You hand over $400 in greenbacks to the armed DHS agents, who give back say 40 of the new BenBamaBucks, you go to buy gas, and find it's selling at 80 cents/gallon vs. the previous $4: now, what used to cost you 1% of your cash sets you back 2%. A fair and balanced nationwide austerity program to which we must all change and adopt, no?
But those who ealier stacked some alternatives will get a discount price: attributing the resulting black market however to the government will not be advised.
The latest main stream media lie from CNN Money : http://money.cnn.com/2013/04/15/investing/stocks-markets/index.html
"Dow falls more than 200 points after Boston explosions"
The DOW tanked long before the explosions.
What a f**king disgrace these people are. I might as well get my news from the North Korea Times.
Apologies: the original post incorrectly mentioned Yahoo.com .
Yeah, exactly. The ESM13 dumped 65K contracts from 11AM 4/11 to the NYSE open on 4/12. Selling pressure was on from there... till today. Fooosh! Risk off!!! It was more fun (errr profitable) than riding a snow toboggan down Mt. Everest.
And here's another viewpoint...
This may be the best buying period there ever will be in this 13 year gold bull market, that will continue.
http://dailyreckoning.com/guru-waits-for-gold-to-drop-even-more/
Que Jim Morrisson........my beautiful friends!
Here is something odd, the Google Trends chart of the term "gold" for the past seven days and 30 days plunges. For people unfamiliar with this it means that when the term "gold" is searched for in google there is a corresponding chart indicating how often the term is searched.
The 30 day chart is linked here:
https://www.google.com/trends/explore#q=gold&date=today%201-m&cmpt=q
2 year chart:
https://www.google.com/trends/explore#q=gold&date=4%2F2011%2025m&cmpt=q
This is of course unusual because going back to any date (from 2004 onward) there has never been such a plummet in the search term for gold and during such a precipitous drop one might suspect people are doing searches for the term.
It's almost as if Skynet has decided that gold will not be allowed to be searched or it has been stricken from the collective conciousness of the internet.
*edit - there are trends for "price of gold" and "gold ounce" which I did not include, and they do spike, but it is still most unusual just looking at the normal history of the term gold dating back 9 years.
A primary bear market for gold and silver was signaled by the Dow Theory rules as soon as December 20, 2012. Gold and silver were very weak for months as they were unable to even stage a modest rally. So, while not pleasing, gold is behaving in accordance with a primary bear market. Such primary bear market has been re-confirmed on many occasions.
Looking forward gold is in a critical juncture as explained here:
http://www.dowtheoryinvestment.com/2013/04/dow-theory-special-issue-rand...
So, err. ummm. Where did all the money go today?
Great analysis as usual, Tyler(s).
To add to the CME GLOBEX ESM13 analysis, there was long accumulation in the contract from 10AM (EST) 4/5 (cumulative delta volume low for the contract). Peak accumulation was at 4/11 11:15AM. There was full dumping of these contracts today, adding fuel to the fire so to speak. After hours trading has shown an 8pt bounce, probably the beginning of the new "rotation". It will probably move up to at least VWAP for you afterhours mavens.
Moar fiat money!