This page has been archived and commenting is disabled.
What Happened The Last Time We Saw Gold Drop Like This?
The rapidity of gold's drop is impressive, concerning, and disorderly. We have seen two other such instances of disorderly 'hurried' selling in the last five years. In July 2008, gold quickly dropped 21% - seemingly pre-empting the Lehman debacle and the collapse of the western banking system. In September 2011, gold fell 20% in a short period - as Europe's risks exploded and stocks slumped prompting a globally co-ordinated central bank intervention the likes of which we have not seen before. Given the almost-record-breaking drop in gold in the last few days, we wonder what is coming?
This is what it looked like in Q3 2008...
and in 2011...
and now...
and it seems safety is bid dramatically elsewhere as 2Y Swiss rates plunge 4bps to -7bps - their lowest in 4 months...
Charts: Bloomberg
»
- 114365 reads
- Printer-friendly version
- Send to friend
- advertisements -
I have a house, cars, clothing, food and a means to sustain myself. I stack because if not myself, then my kids, or their kids, or someone further down the line will be able stick up a big middle finger at the system and say, "that dead guy knew what the fuck he was talking about, let's have a round on him."
Man! I couldn't have said it better! Great minds think alike.
And all this right after a HUGE landslide closes the biggest silver mine in the USA.
Bad is good and good is bad, remember? Now hush and eat your peas.
In one of my neurotic late night can't sleep episodes this morning I was on the site I buy bullion from and saw a quote for a tube of silver maples for 696 canadian. Good Lord. You have to sign a disclaimer on the site now acknowledging that you agree to shipping within 3 WEEKS! I settled on a couple tubes of buffalos.
Every dealer reporting seemingly lineups to buy. The mongoloid sociopaths underpinning the western powerbase are hell bent on destruction and I suspect they won't be disappointed. We're seriously fucked, and I can't imagine how much more fucked up the average low end who believes the press is gonna be than I am.
based on a netdania chart it shows 20 million contracts of silver dumped.. if true, then this would be like when a wife tells her husband she knows he is cheating on her, and he starts fucking his mistress in the kitchen in front of her since they both know what is going on. Cheating laid bare, with no pretense of fairness.
About that mistress in front of wife thing…
One of the other problems is that it is not such a big deal in the Obama/Democrat fundamentally transformed USA any more.
The moral hazard stretches way beyond economics, but then again what is moral when the elite in economics, politics and soon medicine, consider the citizenry to be cattle?
***he starts fucking his mistress in the kitchen in front of her***
It was a long time ago that I did that and I would appreciate it if you wouldn't bring that up again.
The trade is global recession. Watch for cyclicals. Time go short in equities.
commodities in the tank, prob shows no future demand. summer 2007 commodities high, crash; 90 days later lehman.
i really really hope its a french bank. somewhere on zh i saw MS was short Italy and long France. theyre the runt anyway.
Hmm. Kyle Bass killed a bank?
Stock drop seems preordained to me. The big question is whether the Fed will intervene if it happens. If not, we've got a serious f'ing problem, because deflation finally unchained is gonna be bloody.
Si.
It never is the same or doesn't repeat, but sure rhymes or whatever those sayings are. This time is different... because Lehman already went bankrupt and can't do it again
Next! (As in who gets to be the destabilizing influence this time around? Which bank, insurance company, etc.)
Yes, last time around there was a major sell off of the PM, commodities, etc prior to the panic whatever ya wanna call it/thems of 2008.
So why not again?
Nothing's been fixed.
In fact all the "problems" are only larger and more concentrated than before.
The only thing not registering at this very moment...
The only thing is that bonds in the US, Germany, Oz, Schweitz, should be rallying big time Charley reflecting a flight to quality/safety
And it ain't happening...
Yet(?)
I hope I hope I hope it happens, for that would be the single greatest indica of the strains on the system, etc., helping bottom the PMs and setting up an 2009, etc. rally
Do Not Forget!
This whole thing started this time around with One Stupid Ass Decision
To Impair the Insured Depositors in Cypriot banks
Causing Big Disintermediation.
The mattress is more attractive than the banks
Why take risk at 0% interest rates?
Fucking dumb ass decision to even float the idea, but that's what we get with politicians in charge, no?
The banks are gonna probably have a lot of trouble maintaining the nominal liability (deposit) side of their balance sheets in this environment, the credibility of safety of deposits was Screwed Royally... and no going back.
Gonna be a credit extension fest by the Fed, BoE, ECB, BoJ, etc. like nobody has ever seen!
(Krugman'll have a woody for 4 weeks!)
re: "Next! (As in who gets to be the destabilizing influence this time around? Which bank, insurance company, etc.)"
If I were in the casino I'd put my money on BofA/Merrill
...oh shit! That's where my 401k is 'managed' @ Merrill(yeah I already know about that 401k trap)
Oh well, easy come easy go...it's all just on paper or electrons in the aether.
Consider: Why was it Lehman the first time around?
They were on GS's shitlist.
Who is on GS's shitlist this time?
That's who is next.
The reason I said Merrill is that something strange has been going on there for about the last 6 months. I have both mine and my wifes 401ks out of all stock funds and in the 'safe' options which are bascially MM funds. My wifes 401k is managed by T. Rowe Price mine by Merrill. Even though I have almost 10 times the amount in my 401k acct than my wife does, my monthly dividend has not been over $10.00/month over the last 6 months, and it's been under $5 the last 4 months. My wifes acct on the other hand has been averaging 40$/month dividend. WTF!?
My Merrill managed 401k 'safe' option(MM) is connected with the BlackRock Institutional Trust Co.. My wifes is in what's called the TRP Stable Value Fund.
edit: It just gives me the idea that a squeeze is being put on Merrill...and BofA somehow or another.
From Bens secret lab will come the biggest Tyranosaus Printer of all time, to keep this scam going.
This just doesn't stink of desperation; but more like panic!
Cycles...Cycles.
S+P and Dow are headed for a drop-off...but they are being manipulated to a level I dont think any of us can really fathom, in the mean time, gold and silver get hammered, right on cue, before that dropp-off in equities - this is by design. Flush the small money OUT of one thing, so "they" (whoever the fuk they are anymore) can come in an buy G & S on the cheap, allowing "them" to wheather the next stock crisis.
the thing is, in a normal state, "they" would loose money over time, as each crash would wipe out some of their capital...but in Q-Fukn-E-Into-InFinity they dont...
1980 was not the same as now...look at what 1 oz of gold would buy in 1970 vs today and you can see how far off the price of gold is...now think ahead 5 more years, and $10-$20T more in QE's and deficits, and think of how much shit like milk, gas, 2x4's and tampons will cost, then look at how much of that crap 1 oz of gold should buy, and you will have the future price of gold.
silver will always do its own dipshitted thing, but its still going up over the long haul.
BTFD!
They are crushing gold to get people into stocks. This time is different!
Been telling you gold was a bubble for years .
Good thing you're in physical , and weren't tempted to sell at 1900
I see panic buying and shortage everywhere I look.
Paper gold was a bubble. Physical gold is either going to be properly priced or disappear from the market.
I'm in for $18 an oz. It's called dollar cost averaging douche, and that's right, I'm buying right now. When all the assholes on Bumberg are telling you gold is broken then you know it's time to buy. MSM lemings listening to and being the mouthpiece of central banks. Who are you going to trust?
I expected gold to get crushed by *rising* stocks. This looks like people moving for the exit.
There was another instance of a similar drop in gold prices - 1869, i think. It followed by a recession and decade of high deflation. Now, while some argue deflation is evil, during that period the prices of most of the goods fell by much higher rate than an average salary and consumers benefited tremendously. The other interesting factor, most of the investors demanded high dividend yelds from their stock investments and preffered shares where in grove.
Banks have an exceptional amount of reserves now at the fed... big difference.
ZH: Masters of Pre-Traumatic Stress Disorder
I LOL'ed out loud, thanks man. There are a surprising number of "gold smackdown means exonomic collapse is imminent" posts today. I guess they might be right, but no sense worrying about it.
Good think my stack's on on margin.
Or made from paper.
My guess is more confiscation of deposits as more European banks are being bailed in and a nice good Wealth tax for good measure.
"we wonder what is coming?"
Global economic recovery, silly. Don't you watch TV?
There is certainly a purpose for this most obvious corruption of the market.
They think it worthwhile to not care about revealing the level of their corruption because something else much bigger is going to make pale.
The Fed knows it cannot fail, it has printed trillions for NO good result, just higher unemployment, food stamps and recession. He has been a total failure.
The shit has got so bad now that they have had to hit PMs....because they have to print extra trillions to bailout Europe...themselves..?
OR is this really simply to save some banks from their freaking shorts...
Maybe it's "slam PMs, Ben, and our fiats will look better."
All h#*ll is breaking loose. Time to..
Release The Kraken..
'The Goose That Killed The Golden Ass'
This is completely off tropic, but it is good news with economic implications on an otherwise suck day.
http://refreshingnews99.blogspot.in/2013/04/solar-panels-could-destroy-u...
This is decentralized power. This is the destruction of an inefficient government monopoly. This is the end of the energy scam.
I strongly doubt it will ever happen because solar energy is not economically feasible without massive subsidies. The following figures are the US Federal Government Energy subsidies for 2010 for domestic energy production per barrel of oil equivalent:
Coal $0.36
Oil & Gas $0.45
Hydro $0.49
Nuclear $1.72
Geothermal $7.63
Bio-mass/fuel $10.39
Wind $31.39
Solar $52.30
Take away those subsidies and what do think is going to happen to solar/photovoltaics?
The expiration of Federal bio-fuels subsidies, and the inconvenient fact that bio-fuels, due to laws of thermodynamics, will never be feasible, resulted in massive bankruptcies.
"gregga", appending "777" to your name tips your hand. Your boss in the boiler room must have an ID of 75. Same as yours.
I am discussing unsubsidized decentralized solar. For now solar merely serves as a check on the "energy gravy train" and all the oligarchs and bureaucrats that ride it. Soon solar will simply replace it and those parasites will need to find another choo choo to ride.
nice article, thanks.
We had enough RED for the last 3 and Half hours. Not used of this RED for such a Long Time.
Hey, the guy who was sitting on the Supercomputers went for Coffee and lunch.
As soon as, he comes back...........MARKET WILL ERASE ALL THE LOSS AND END UP WITH 10+++
OR 20 POINTS lower JUST TO SHOW THAT MARKETS DO RESPECT NEGATIVITY.
Supercomputers, start doing your job and take all the fear from the market in split of seconds.
MOAMCC... Mother Of ALL Margin Calls Coming.
Houston's Largest coin dealer has no silver to sell. Sold out. Gold, sold out.
$5.25 over spot on silver!
May I direct you to Ebay...plenty on sale there. Prices should be getting better, too. At last glance, about 10% less than Friday. Have at is, Hoss!
Ebay, not sure I would buy from someone that I don't have a rapport with. Of all places Ebay !!! I haven't had very good luck on there this last year, getting to be too many scammers..
Be careful out there, the cheats are coming out of the woodwork.
Cheers !!!
APMEX and Aydin both sell on eBay and are quite reliable. As for prices... well, you're on your own.
You don't see great feedback like Aydin's very often on eBay.
Aydin has pulled the eBay offerings due to the volatility but you can find plenty on the website.
http://www.aydincoins.com/buy-gold
aydinjewelry_preciousmetals
apmex
With the recent devaluation of the Japanese Yen, the Japanese automakers may be able to lower the prices on those Japanese models with a high Japanese content to a level below that of American automakers. To prevent another collapse of the American automakers, Ben will have to step up the pace of QE to match that of the Bank of Japan. Maybe he wants to get the price of gold down before he kicks up the speed on his presses.
Jap cars will all be stopped by TSA VIPR teams for high radioactivity!
"Got a nuke in yer boot, boy?"
These dealer premium prices on PMs are RETARDED. I'm not getting screwed over by one entity, just to get screwed over by another. What a shit world.
This was your chance to sell your silver at a "ridiculous" premium... Did you do it me if not why not?
Blood in the streets bitchez!
I still think it will take until 2015 for a crash event to begin.
This is why they CTRL-P - to "contain" the consquences of a market based on fraud (until the dam breaks - and that dam will be sovereign bonds).
A revolution a come.
WTF Kitco due to demand is only selling CM's outside the USSA.
Willy
I am sure you mean PM's so I greened you.
Canadian maples
Gold selling seems completely illogical (not a gold bug) over such a short period of time.
Feels as if privileged few running for the door before the rest of us even get a chance to smell the smoke.
George ... The Greek ... From Canada
umm, can anyone tell me what's next based on this 20-year chart pattern of the S&P? I just can't figure it out.
http://finance.yahoo.com/q/bc?s=SPY+Basic+Chart&t=my
Forget the pattterns. The Fed decides when it should go up and when it should go down.
Buy gold and sleep well at night.
I'm a big fan of pms as insurance against the inevitable disaster that's coming when this big debt ponzi finally caves. But one thing EVERYBODY should take note of here, is DON'T THINK ERIC SPROTT'S ON YOUR SIDE if you're a metals person. Pretty fucking lucky coincidence for him that he had to unload $millions of his own fund 'to meet a charitable obligation and to switch into the miners' mere days before this meltdown.
I think the same thing more or less goes for Jim Sinclair, although in his case I don't know if it's intentional, or just desperation. But in either case his 'this pullback will be long behind us by my birthday' (March 27) call, as well as the 'We won't see $1600 again' more recently have proven to be, at best, really bad forecasts.
At this stage of the game things are getting really fucking nasty, and probably going to get a lot nastier, and the 'bad guys' aren't just the traders at the bullion banks and the Comex.
Martin Armstrong is lookin damn prescient right about now.
And how do you deduce from that that Jim Sinclair is "not on our side"? Because by saying "this line will hold" he prevented us from fleeing (i.e. selling) onto higher fiat ground??
i hope this is the beggining of the stock market crash. i hope all the wall st thieves lose their shirts from this, and all the big banks as well.
they all fucking deserve it
Same here.
Let's see some serious nosediving!
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
Similar to RE prices being buoyed by easy low interest mortgages, what would happen to RE prices if you had to pay cash? Who could afford a 100k home?
ask yourself why they were able to leverage 100 to 1 ? It is because only 1 in 100 buyers is actually asking for physical!!!
Neither link working.
Neither link working.
Could it be a way of getting rid of Asian longs prior to them backing the Yuan with Gold, thereby loosing the war but giving them a bloody nose just before the last shot is fired? UK and French direct currency swap lines being set up with China must have p'eed off U.S.A. In effect, U.S.A. is loosing its allies.
Friday takedown was mostly in U.S. time, today's takedown was mostly Asia time.
Gold price crash then S&P crash then bond market crash = consensus for truly gargantuan QE effort to save bond market and start the hyperinflationary end game. Buy physical gold (if you can).
Gartman's never seen anything like it. Then again, it's hard to see if your eyes are rarely open ...
Was Gartman long or short last week?
I try to avoid hearing about him but after his (good) call that the great bull was dead, he recently reversed and said he was long. Maybe he was short the next day though. Seems to happen a lot.
Only one word needed to refute the Permabulls FED argument:
Z I M B O B W E E E E E E E E E E !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Preferably correctly spelled!
Can not PM hoarders eat gold?
Is is possible that the drop in the price of gold is a very well-manipulated opportunity for the transfer of physical into Asia? My guess is that you could predict a volume spike in gold delivery orders by the timing of stop-loss triggering in the paper markets. If it's true that the Chinese government has been dedicated to hacking over the last decade or so, couldn't this be an economic espionage thing. Or is that just too paranoid?
Anything is possible when Governments have no interest in maintaining free and transparent markets. But it makes wealth preservation a real bitch.
Anyone think this has something to do with China circumventing the US Dollar? Which threatens the Dollar as a Reserve Currency.
Unfortunately the FED has abused their Reserve Currency position by printing too many Dollars without regard to those who hold US Debt.
No. A weaker dollar raises gold price. There are other forces pushing gold down.
Yes, but the gold manipulators act in desperation. They're probably anticipating a big event and want to crush gold sentiment prior to that, to prevent people from fleeing into it.
Hmmm, let's see....
Gold crashes, but, is it Paper Gold?
Fizz is getting harder to find, handling fees are up. Divergence.
Central banks sure are not slacking off their acquisition.
Many posters are finding it difficult to get fizz, me too.
I am going to look at this as a fire sale and try to get more; one thing is for 100% sure: paper money is losing its value and equities are a scam. I will hold my miners, though.
BRIICS may be getting ready to reset?
Just some jumbled thoughts after a long day in a foreign land, but I am going to go long and look for moar!
Keep stackin!
ZH is correct to postulate that this move is preceding an econo/finanical event as yet unknown. Coincidence that as Gold cliff dives Equities having worst day in months?
Marty can you please send us a message from whereever you are as to WTF is coming down.
www.youtube.com/watch?v=2MyToTwag34#t=6m38s
My feeling is Road runner finally looked down over the canyon. Margins are like gravity when you go over the edge. PM availability is scarce, paper gold reflects risk fear.
I don't need no arms around me
And I dont need no drugs to calm me.
I have seen the writing on the wall.
Don't think I need anything at all.
No! Don't think I'll need anything at all.
All in all it was all just bricks in the wall.
All in all you were all just bricks in the wall.
they don't have to confiscate gold. All they have to do is say they're going to tax it at 50%.
Are you stupid or something?
How are they going to tax the gold I lost in a boating accident?
Jim Grant on Bloomberg laying down a major smackdown on central planners.
CNBS things are going well so gold dropping, yet we hit another record for ObamaStamps.
I think I'll have to sell my gold and put it someplace safer - like in a Cyprus Bank Account!
A lot of folks around here said they were going to buy more gold ... how's that plan going? Kyle? Hello? Where are all the know-it-all's now?
http://www.zerohedge.com/news/2013-04-09/kyle-bass-perplexed-golds-low-p...
It's going great, thank you very much.
We'll see whose holdings will become worthless when TSHTF ...
Where are the stops? If this happend to a stock, all hell breaks loose and that stock gets halted for trading.
Where are the stops? If this happend to a stock, all hell breaks loose and that stock gets halted for trading.
And the run up in gold and silver caused Bear to shit itself in March 2008
what happens next? maybe the u.s. attacks iran ... or better ask goldman-sucks, they know for sure. otherwise they wouldn't make a call on gold shorts last week, would they?
:-)
This is very disorderly, been waiting for nice pull back to buy more gold, but this is not what wanted, this is sign of bad things... probably another global recession of one form or another, oh well going to get a stack on the cheap... been waiting for a few years to pick up some gold on sale. target.... 1000-1100... buy buy buy... (though will watch it test its support in that range then buy)
It seems that those of the recursive scam cult are becoming desperate,
and have lost control; Rome is burning: Gold hard is survival.
Asians represent ~75% of the World and they all believe culturally in Gold,
where most Europeans (especially economists) have no idea at all.
The snake sheds it's skin:
The Lays of Ancient Rome
XXVII
Then out spake brave Horatius,
The Captain of the Gate:
``To every man upon this earth
Death cometh soon or late.
And how can man die better
Than facing fearful odds,
For the ashes of his fathers,
And the temples of his gods…
Ho hum
Yes, we saw the Tom Cruise movie...
Gold is the new $AAPL ... fundamentals have nothing to do with it ... high priced asset with billions in unrealized gains .... funds tested its resolve, saw lack of it and pounding it.
Sell the rallies for the next few months is all you can do ... and I like gold.
George ... The Greek ... From Canada
The trend related with the prom gowns 2013 haven’t changed a lot, the mermaid marriage clothes, interlace wedding dresses along with the one-shoulder diamond dresses and so forth still end up being the shining location related with the wedding gowns 2013. if you want to track down the prefect wedding gowns, cheap cocktail dresses you really need to know the wedding dresses very first, like color related with cheap homecoming dresses, the design and style also as the material is really significant if you
Those of us who bought in at these low prices will be smiling in a matter of months. In my case, I pulled the trigger at $1430 (25oz) and $1330 (75oz). And I have not much left to buy with, absent selling something of value. I'm not worried if we see $1250, though I doubt we will. I won't be trading my gold for other goods for at least a few years. Don't worry, be happy! I am very happy I had this bargain opportunity.
And I think my small investments today in longish-term options on companies like IAG and EGO will be winners too (wish CGR and JAG had options). But doesn't matter, those trades were small money.
PS: Look what it costs to mine gold these days. No way I have any fear buying at these levels. This is bargain time, folks. In a few months, physical won't be available at any price if current prices hold. Of course, infinite supply of paper gold, silver, platinum will always be available, but only fools will buy that from this day forward.
+1323
100oz. Wow.
This year I made 4 very small (compared to you) purchases between 1550 and 1600 and 4 between 1330 and 1350. Also added more miner shares.
I wouldn't be surprised if there's one more crash down to 1250, but I don't want to bet against gold and should it drop, I'll double up and hopefully also buy more silver (right now I'm tapped out).
Keep stacking!
I've been mentioning for several weeks the gold crowd could be frontrunning a crash.