Gold Plummets By Most In 30 Years, Stocks Have Biggest Drop Of 2013

Tyler Durden's picture

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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Lost Wages's picture

DEFRATIONARY CORRAPSE.

Abraxas's picture

Everyone will forget about today's shenanigans in like 2-3 days.

cifo's picture

What shenanigans? :)

THX 1178's picture

Defrationary Corrapse means plinting pless action. Plinting pless action means hypelinfration. Bitzhez.

JohnnyBriefcase's picture

For future reference they substitute R for L not the other way around.

Buckaroo Banzai's picture

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.

 

JohnnyBriefcase's picture

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...

smlbizman's picture

any chance the smash down in oils and metals is in response to the currency agreemnets that continue to be signed?

new game's picture

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.

DIgnified's picture

IDK.  I used to give this asian cat a lift home from work, and he always told me 'make a light at the right.'

Stackers's picture

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

Buckaroo Banzai's picture

All commodities except ammo. See my comment above.

depression's picture

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.

sunaJ's picture

"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.

WTF_247's picture

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.

kaiserhoff's picture

At least we know what Corzine's doing.

gamera9's picture

Not before CNBC can capitalize on it's Crisis in the Markets special report late at night.

smlbizman's picture

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...

MassOpiate's picture

PPT must have been playing hookey.

camaro68ss's picture

boom goes the Dynamite, that was clearly a por use of words 

augustusgloop's picture

making sure it doesn't happen here...priceless. 

butchee's picture

ROR!  Raughing Out Roud!

EclecticParrot's picture

 

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.”

 

centerline's picture

Intermission is definately over.  The next act in this global tragedy is getting rolling now.

Croesus's picture

Yeah, man. There were a few too many "coincidences" today.

The Shootist's picture

Boston shouldn't overshadow golds previous action. Weird moment, unknown waters.

fuu's picture

You can sell a share of the S&P and pick up 1 oz of gold and 8 oz of silver.

tmosley's picture

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?

MichiganMilitiaMan's picture

Correct.  The Gold-Equity Arb!

Yen Cross's picture

     BTFD...   '._.'

arkel's picture

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.

 

 

Barry Freed's picture

Defiitely bullish

lolmao500's picture

Where's the silver chart?

Odin's picture

Bizzaro Markets: Fed announces QEternity, Gold/Silver drop like crazy, deflationary collapse ensues.

 

......Ben Bernanke now forced to wear purple spandex.

Debtless's picture

It's still fucking dropping after hours. Silver too.

Criminal. Just fucking criminal.

 

traderjoe's picture

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.

Smiddywesson's picture

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.

TheCanadianAustrian's picture

I really have a hard time understanding how idiots giving away valuable assets for next to nothing is criminal.

Kiss My Icelandic Ass's picture

Theirs not to reason why,
Theirs but to do and die:
Into the valley of Death
Rode the six hundred !

 

delivered's picture

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.

Bay of Pigs's picture

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

 

fijisailor's picture

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.