This page has been archived and commenting is disabled.

Guest Post: This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks

Tyler Durden's picture





 

Submitted by Chris Martenson of Peak Prosperity,

I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

The central plank of Bernanke's magic recovery plan has been to get everybody back borrowing, spending, and "investing" in stocks, bonds, and other financial assets.  But not equally so - he has been instrumental in distorting the landscape towards risk assets and away from safe harbors.

That's why a 2- year loan to the US government will only net you 0.22%, a rate that is far below even the official rate of inflation.  In other words, loan the US government $10,000,000 and you will receive just $22,000 per year for your efforts and lose wealth in the process because inflation reduced the value of your $10,000,000 by $130,000 per year.  After the two years is up, you are up $44k but out $260k for net loss of $216,000.

That wealth, or purchasing power, did not just vanish: it was taken by the process of inflation and transferred to someone else.  But to whom did it go?  There's no easy answer for that, but the basic answer is that it went to those closest to the printing press.  It went to the government itself which spent your $10,000,000 loan the instant you made it, and it went to the financiers that play the leveraged game of money who happen to be closest to the Fed's printing press.

This explains, almost completely, why the gap between the rich and everyone else is widening so rapidly, and why financiers now populate the top of every Forbes 400 list.  There is no mystery, just a process of wealth transfer of magnificent and historic proportions; one that has been repeated dozens of times throughout history.

This Gold Slam Was By and For the Bullion Banks

A while back I noted to Adam that the gold slams that were first detected back in January were among the weakest I'd ever seen.  Back then I was seeing the usual pattern of late night, thin-market futures dumping which I had seen before in 2008 and 2011, two other periods when precious metals were slammed hard. 

The process is simple enough to understand; if you want to move the price down for any asset, your best results will happen in a thin market when there's not a lot of participation so whatever volume you supply has a chance of wiping out whatever bids are sitting on the books.  It is in those dark hours that the market makers just dump, preferably as fast as possible.

This is exactly what I saw repeatedly leading up to Friday's epic dump-fest.  The mainstream media (MSM), for its part, fully supports these practices by failing to even note them, and the CFTC has never once commented on the practice, and we all know that central banks support a well contained precious metals (PM) price because they are actively trying to build confidence in their fiat money, and rising PM prices serve to reduce confidence.

Here's a perfect example of the MSM in action, courtesy of the Financial Times:

Gold tumbles to two-year low

“There is no other way to put gold’s recent sell-off: nasty,” said Joni Teves, precious metals strategist at UBS in London, adding that gold would have to work to “rebuild trust” among investors.

 

Tom Kendall, precious metals analyst at Credit Suisse said “Once again gold investors are being reminded that the metal is not a very effective hedge against broad-based risk-off moves in the commodity markets.”

 

There are two things to note in these snippets.  The first is that the main ideas being promoted about gold are that it is no longer to be trusted, and that somehow the recent move is a result of "risk off" decisions meaning, conversely, that there is increased trust in the larger financial markets that 'investors' are rotating towards.  Note that these ideas are exactly the sort of messages that central bankers quite desperately want to have conveyed.

The second observation is even more interesting; namely that the only people quoted work directly for the largest bullion banks in the world.  These are the very same outfits that stood to gain enormously if precious metals dropped in price.  Of course they are thrilled with the recent sell off.  They made billions.

In February Credit Suisse 'predicted' the gold market had peaked, SocGen said the end of the gold era was upon us, and recently Goldman Sachs told everyone to short the metal.

While that's somewhat interesting, you should first know that the largest bullion banks had amassed huge short positions in precious metals by January.

The CFTC rather coyly refers to the bullion banks as simply 'large traders' but everyone knows that these are the bullion banks.  What we are seeing in that chart is that out of a range of commodities the precious metals were the most heavily shorted, by far. 

So the timeline here is easy to follow - the bullion banks:

  1. Amass a huge short position early in the game
  2. Begin telling everyone to go short (wink, wink) to get things moving along in the right direction by sowing doubt in the minds of the longs
  3. Begin testing the late night markets for depth by initiating mini raids (that also serve to let experienced traders know that there's an elephant or two in the room)
  4. Wait for the right moment and then open the floodgates to dump such an overwhelming amount of paper gold and silver into the market that lower prices are the only possible result.
  5. Close their positions for massive gains and then act as if they had made a really precient market call
  6. Await their big bonus checks and wash, rinse, repeat at a later date

While I am almost 100% certain that any decent investigation by the CFTC would reveal that market manipulating 'dumping' was happening, I am equally certain that no such investigation will occur.  That's because the point of such a maneuver by the bullion banks is designed to transfer as much wealth from 'out there' and towards the center and the CFTC is there to protect the center's 'right' to do exactly that.

This all began on Friday April 12th, and one of the better summaries is provided by Ross Norman of Sharps Pixley, a London Bullion brokerage:

The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract (see below) in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand. 

Two hours later the initial selling, rumored to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.

The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".

(Source - originally found at ZH)

The areas circled represent the largest 'dumps' of paper gold contracts that I have ever seen.  To reiterate Ross's comments, there is no possible way to explain those except as a concerted effort to drive down the price.

To put this in context, if instead of gold this were corn we were talking about, 128,000,000 tonnes of corn would have been sold during a similar 3 hour window, as that amount represents 15% of the world's yearly harvest.  And what would have happened to the price?  It would have been driven sharply lower, of course.  That's the point, such dumping is designed to accomplish lower prices, period, and that's the very definition of market manipulation.

For a closer-up look at this process, let's turn to Sunday night and with a resolution of about 1 second (the chart above is with 5 minute 'windows' or candles as they are called).  Here I want you to see that  whomever is trading in the thin overnight market and is responsible for setting the prices is not humans.  Humans trade small numbers of contracts and in consistently random amounts.

Here's an example:

Note that the contracts number in the single digits to tens, are randomly distributed, and that the scale on the right tops out at 80, although no single second of trades breaks 20.

Now here are a few patterns that routinely erupted throughout the drops during Sunday night (yes, I was up very late watching it all):

These are just a few of the dozens of examples I captured over a single hour of trading before I lost interest in capturing any more.

As I was watching this and discussing it with Adam in real time, I knew that I was watching the sort of HFT/computer trading robots that we've discussed here so much in the past.  They are perfectly designed to chew through bid structures and that's what you see above.  They are 'digesting' all the orders that were still on the books for gold, to remove them so that lower and lower stops could be run.

Anybody that had orders up against these machines, perhaps with stops in place, or perhaps even asleep because this all happened in the hours around midnight EST, lost and lost big.

There is really no chance to stand again players this large with a determination to drive prices lower.  At the very least, I take the above evidence of computer assisted declines of this magnitude to be a sign that our "markets" are completely broken and quite vulnerable to a crash.  That the authorities did not step in to halt these markets during such a volatile decline, when they have repeatedly stepped into other markets and individual equity shares on lesser declines, tells me much about the level of official support for such a decline.

It also tells me that things are speeding up and the next decline in the equity or bond markets may happen a lot faster than anybody is expecting.

Unintended Consequences

If the intended consequences of this move were to enrich the bullion banks and to chase investors away from gold and other commodities and into stocks, what are the unintended consequences going to be?

While I cannot dispute that the bullion banks made out like bandits, I also wonder if perhaps instead of signaling that the dollar is safer than gold, that the banks did not unintentionally send the larger signal that deflation is gaining the upper hand?

With deflation, everything falls apart.  It is the most feared thing to the powers that be and for good reason.  Without inflation, and at least nominal GDP growth, if not real growth, then all of the various rescues and steadily growing piles of public debt will slump towards outright failure, and possibly collapse.  The unintended consequence of dropping gold so powerfully is to signal that deflation is winning the day.

If this view is correct, then the current sell off in gold, as well as in other commodities (detailed in part II), will simply be the trigger for a loss of both confidence and liquidity in the system and that will not bode well for the larger economy or equities. 

In Part II: Protecting Your Wealth From Deflation we explore the growing signs that the money printing efforts of the central planners are seeing diminishing returns and are failing in their intended effect to kick-start global economic growth higher. Deflationary forces appear poised to take the upper hand here, sending asset prices lower -- potentially much lower -- across the board. 

If deflation indeed manages to break out from under the central banks efforts to contain it, even if only for a short period, how bad will the ensuing wave of price instability be? How can one position for it? How extreme will the measures the central banks take in response be? And what impact will that have on asset prices, the dollar and precious metals?

We are entering a new chapter in the unfolding of our economic emergency, one in which the risks to capital are greater than ever. And the rules are increasingly being re-written to the disadvantage of us individuals.

The one unfair advantage we have is that history is very clear on how these periods of economic malfeasance end. Let's exploit that as best we're able.

Click here to read Part II of this report (free executive summary; enrollment required for full access).

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 04/16/2013 - 11:41 | Link to Comment samcontrol
samcontrol's picture

I'm fucked!

Tue, 04/16/2013 - 11:48 | Link to Comment Manthong
Manthong's picture

“But to whom did it go?”

As noted earlier this morning, here’s one place it goes to first:

http://www.zerohedge.com/news/2013-04-16/goldman-offsets-decline-ficc-equity-trading-prop-revenue-2-year-high-average-comp-ri

Tue, 04/16/2013 - 11:54 | Link to Comment Spider
Spider's picture

Problem with this strategy is if physical demand meets the price drop you've just enriched all buyers of physical bullion too - in the long-run.

Tue, 04/16/2013 - 11:58 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Yes, so those who are paying attention will go out and get themselves some physical bullion to make sure some of the massive wealth transfer goes to them.

Look at Gold popping today: http://www.pmbull.com/gold-price/

There is plenty of Phyz available. The shortages appear to be more in the silver market  Page above has Gold Bars for only $21 over spot - with free shipping.

Tue, 04/16/2013 - 11:59 | Link to Comment Richard Chesler
Richard Chesler's picture

"investing in stocks"

Fuck you Bernanke. Shove your rigged casino up your ass.

Tue, 04/16/2013 - 12:15 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Is it still a gold slam if it didnt affect me at all except to increase my delivery of phiz?

Tue, 04/16/2013 - 12:30 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Exactly. Plenty of people are buying the discounted prices and ignoring the paper games being played by the Hedgies, Banks and Sovereigns. 

Dealer inventories demonstrate that the "slam" is not shaking loose buyers of Physical.  It is having the opposite affect.

There will be some big winners and big losers in the big money paper battle to be sure, but I'm with you on your attitude, and many, many others are as well.

Tue, 04/16/2013 - 12:40 | Link to Comment AnonymousCitizen
AnonymousCitizen's picture

Nobody transfered my wealth. I just checked. All my gold is still there.

Whew! You guys scared me there for a minute.

Tue, 04/16/2013 - 13:11 | Link to Comment RockRiver
RockRiver's picture

You obviously don't mark to market......

Tue, 04/16/2013 - 14:03 | Link to Comment AldousHuxley
AldousHuxley's picture

they might not confiscate gold bars today, but they sure can manipulate numbers in computers

Tue, 04/16/2013 - 15:08 | Link to Comment negative rates
negative rates's picture

It's just numbers on a piece of paper to them, just keep the dry powder flowin, despite the perceived power loss.

Tue, 04/16/2013 - 15:07 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Looks like another opportunity to "Transfer Some Wealth" could be coming up?

The bounce has been relatively tepid so far this morning. It now looks like it wants to roll over as we hit lows of the day. 

Gold Ticking Lower on Live Chart:

http://www.pmbull.com/gold-price/

Lows get tested, so perhaps an opportunity for those that were too frozen to do anything about it yesterday.

Tue, 04/16/2013 - 14:46 | Link to Comment SafelyGraze
SafelyGraze's picture

don't fight the morg

Tue, 04/16/2013 - 15:37 | Link to Comment Mr. Magniloquent
Mr. Magniloquent's picture

Why would he? None of the banks or Fed. do, and they're the "wealthiest" entities on the planet. Right?

Tue, 04/16/2013 - 17:21 | Link to Comment auric1234
auric1234's picture

What market?

 

Tue, 04/16/2013 - 13:17 | Link to Comment natronic
natronic's picture

Yea exactly don't buy paper buy phyz and don't store it somewhere that you don't directly control.  Oh and don't buy shitcoins either.  Had to throw that in there 

Tue, 04/16/2013 - 13:24 | Link to Comment SafelyGraze
SafelyGraze's picture

hey everybody.

just wanted to say that it's been a crazy couple of weeks.

ok, me and jack gotta get back to bidniss.

your frient,

the ESF http://en.wikipedia.org/wiki/Exchange_Stabilization_Fund

 

Tue, 04/16/2013 - 13:28 | Link to Comment Joe Sixpack
Joe Sixpack's picture

See yesterday's inventory of 100 ozt. bars on APMEX graphically. People sure took advantage of the sale!

 

http://gold-silver.us/forum/showthread.php?27317-GSUS-APMEX-Precious-Met...

Tue, 04/16/2013 - 13:33 | Link to Comment SafelyGraze
SafelyGraze's picture

the image 100oztSilverApmex_15APR2013.jpg requires login to view

does it appear elsewhere?

Tue, 04/16/2013 - 13:45 | Link to Comment Joe Sixpack
Joe Sixpack's picture

Sorry. Try again. When you see the thumbnail (small picture), click on it.

Tue, 04/16/2013 - 13:39 | Link to Comment smlbizman
smlbizman's picture

so my question is...if they are playing with paper on both sides...how was any gold transfered?....is it not rehypothocated a 100 times...so how was phsyical transfered?

Tue, 04/16/2013 - 14:24 | Link to Comment boogerbently
boogerbently's picture

Did the "big 4" unwind their gold short?

If not, it's not over.

Tue, 04/16/2013 - 13:47 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Same here, I even added to it!

Tue, 04/16/2013 - 13:27 | Link to Comment KnightTakesKing
KnightTakesKing's picture

I increased my Au stack at todays prices. Sold nothing and still keeping some powder dry if they manipulate the market again.

Tue, 04/16/2013 - 12:20 | Link to Comment outamyeffinway
outamyeffinway's picture

Put a telephone pole sideways in your butt.

 

Put a tiny little man in your butt.

 

Put all of Japan in your butt.

Tue, 04/16/2013 - 13:17 | Link to Comment Idiocracy
Idiocracy's picture

what was that famous Jefferson quote about bankers running wild and turning regular folk into debt slaves?

Tue, 04/16/2013 - 14:55 | Link to Comment TPTB_r_TBTF
TPTB_r_TBTF's picture

very famous and false quote.

Tue, 04/16/2013 - 12:04 | Link to Comment Acet
Acet's picture

That's not what me and other people here are seeing.

What I'm seeing is that the coin shops I usually used upped their buy premiums to around 10% (the best I know that usually had premiums below 1% is now at 5%). Other coin shops say they're unable to fullfill orders in a timelly fashion anymore

At the same time, some of my aquaintances are asking me how should they go about buying Gold.

 

I suspect that on of those unintended consequence of the current slamdown of paper Gold is the decoupling from physical Gold. If that happens, then the tools for central bank suppression of gold prices will not work anymore ...

Tue, 04/16/2013 - 12:34 | Link to Comment Rich V
Rich V's picture

Acet,

The local coin shop did not hedge their position when they buy PMs. They are fully exposed to the price fluctuations and must adjust their sell stratagy when the price drops below inventory cost.

The big dealers hedge all of their sales/purchases with shorts/puts so they don't care about the spot price, their $$ comes from the premium they sell at.

 

As usual the big guy has the advantage.

Tue, 04/16/2013 - 12:36 | Link to Comment tsx500
tsx500's picture

just throwin this out there for whoever cares..yesterday(Mon) at my local coin shop (suburban Shitcago) he was charging  a 5% premium for AGE's (and only paying spot) and for junk silver he was charging an effective 15% premium to spot.     dunno about today though.  

Tue, 04/16/2013 - 14:56 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

On Gainesville:

ASE's are selling for $29.50

AGE's are selling for $1440

They normally adjust for the prior evening's close, which was:

$22.70 for silver

$1352 for gold

So, silver eagles are about 30% over spot, and gold eagles are about 6.5% over spot.  And they normally have pretty good prices vs. APMEX.

Tue, 04/16/2013 - 12:17 | Link to Comment outamyeffinway
outamyeffinway's picture

"The one unfair advantage we have is that history is very clear on how these periods of economic malfeasance end. Let's exploit that as best we're able."

 

Off with thier heads!!!

Tue, 04/16/2013 - 12:47 | Link to Comment akarc
akarc's picture

http://www.goldprice.org/charts/gold_3d_b_o_USD.png?0.0680975157301873

Thats not a pop. Thats a poop. This ain't over.

If your gonna look at charts

Ck out Gold, S+P 500, oil, damn near eveything from 1974 till today.

On a long enough timeline gravity always wins!

 

Tue, 04/16/2013 - 13:25 | Link to Comment fonzannoon
fonzannoon's picture

It just cost me $29 to buy some rounds of ASE.

Tue, 04/16/2013 - 14:14 | Link to Comment Longtermnotreally
Longtermnotreally's picture

Enough is enough; let's crash the bullion banks; 4 coins of silver for every American and European; signifiying that we are at a cross-roads, let's get physical and beat them at their own game

Tue, 04/16/2013 - 12:53 | Link to Comment anonnn
anonnn's picture

CONFISCATION by covert means.

Tue, 04/16/2013 - 13:53 | Link to Comment Silver Bug
Silver Bug's picture

It truly is the elite attempting to pick pocket as much as they can before the price rockets higher. The LBMA was on the verge of collapse, they had to crash the price. Physical is running out and will eventually win the day although.

 

http://silverliberationarmy.blogspot.ca/

Tue, 04/16/2013 - 11:59 | Link to Comment PaperWillBurn
PaperWillBurn's picture

Only until physical dries up.

Tue, 04/16/2013 - 12:09 | Link to Comment Abiotic Oil
Abiotic Oil's picture


Doug Hagmann: How soon do you see things taking place?

Rosebud (aka DHS Insider): They already are in motion. If you’re looking for a date I can’t tell you. Remember, the objectives are the same, but plans, well, they adapt. They exploit. Watch how this fiscal cliff thing plays out. This is the run-up to the next big economic event.

I can’t give you a date. I can tell you to watch things this spring. Start with the inauguration and go from there.

Watch the metals, when they dip. It will be a good indication that things are about to happen.


Tue, 04/16/2013 - 12:18 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Precisely the first thing tha came to my mind. PM dip, gun confiscations in NY and the marathon thing. Bad shits brewing and the kettle whistle is coming.

Tue, 04/16/2013 - 12:43 | Link to Comment kliguy38
kliguy38's picture

you deserve to be fucked if you weren't buying physical......paper is their power

Tue, 04/16/2013 - 14:04 | Link to Comment samcontrol
samcontrol's picture

 

I don,t deserve shit darthfuck, i always get the crap from you.

I have said this here before...... i CANNOT GET PHYSICAL , unless you want to tell me how i can a few hundred ks  in gold in Argentina. While you are at it , please explain how to get income from gold.

I went for the less paper possible with PSLV,PHYS and miners and got fucked...

So at the close i took my paper 35%cash  i still had as dry powder and went ALL IN  PAPER WITH USLV.

 

UNITED SILVER LOSING .....fill in the blank..

I'M fucked !

 

 

 

Tue, 04/16/2013 - 17:28 | Link to Comment auric1234
auric1234's picture

You're gonna regret when you find all your paper "income" is worthless and gold is no longer available for sale.

 

Tue, 04/16/2013 - 12:50 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

Listen to this guy about half way through! The TRUTH on GOLD:

http://www.cbc.ca/player/Radio/The+Current/ID/2379814550/

Tue, 04/16/2013 - 13:25 | Link to Comment Poetic injustice
Poetic injustice's picture

A little bit of daily humor: Financial crisis caused by too many bankers taking cocaine. Link to story below.

http://www.telegraph.co.uk/finance/financialcrisis/9993266/Financial-cri...

Tue, 04/16/2013 - 14:13 | Link to Comment MassDecep
MassDecep's picture

The BEST explanation out there!!! By Far!

http://youtu.be/3CfzGqXeFys

Tue, 04/16/2013 - 11:41 | Link to Comment Telemakhos
Telemakhos's picture

Wait, what isn't a massive wealth transfer from our pockets to the banks?

Tue, 04/16/2013 - 11:49 | Link to Comment Alea Iactaest
Alea Iactaest's picture

Best article I have seen yet:

http://www.alhambrapartners.com/2013/04/15/we-have-seen-gold-prices-act-...

"[L]arge declines in gold prices match date for date the extreme developments in the banking system across several currencies. And in each case the gold selloff has previewed a larger decline in systemic liquidity that eventually catches other asset classes."

Tue, 04/16/2013 - 12:51 | Link to Comment akarc
akarc's picture

Correct and oil has been sending that signal.

Tue, 04/16/2013 - 14:04 | Link to Comment seek
seek's picture

I agree, you should submit this to the Tylers, it's worthy as a story here.

Tue, 04/16/2013 - 12:00 | Link to Comment monoloco
monoloco's picture

I suspect very little actual gold was sold, only paper representing non-existant pretend gold.

Tue, 04/16/2013 - 12:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

When you can't be with the one you love (physical Gold) love the one you're with (paper Gold).

/sarc

Tue, 04/16/2013 - 13:27 | Link to Comment sgt_doom
sgt_doom's picture

While I agree with everything in this blog post, I suspect this is another component of the ongoing currency wars, with China (and others) buying up so much gold, increasing the actual physical demand, they are speculating it downwards to dampen their financial power and strengths.  (Be surprised if it isn't leaked a few months from now that JPMorgan Chase, Goldman Sachs, Morgan Stanley, possibly with Credit Suissie and Deutsche Bank, weren't the responsible players.)

Tue, 04/16/2013 - 13:43 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

BTFD applies to them also, only more:  While YOU cannot afford to pay a premium to goldmines and mints (to continue production and direct shipments), they can.  This means that they get bullion, you do not.

Tue, 04/16/2013 - 11:43 | Link to Comment Shizzmoney
Shizzmoney's picture

RE:

I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else.

I'm more dissapointed in the politicans or MSM who don't even care to discuss it.

Tue, 04/16/2013 - 13:28 | Link to Comment fonzannoon
fonzannoon's picture

CNBC is too busy spending 50 minutes of every hour trashing gold and everyone that was stupid enough to own it.

Tue, 04/16/2013 - 11:42 | Link to Comment Everybodys All ...
Everybodys All American's picture

followed quickly with a hey look over here.

Tue, 04/16/2013 - 12:12 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

If by your comment you mean yesterday's 'Boston Massacre' then I agree.

BTW I have not looked very hard....but has anyone seen any images of damage or injuries that resulted from the second explosion yesterday? I find it odd that there were two explosions, yet the only images I saw on mass media were from the (first) finish line explosion.

<Something stinks in Boston and it ain't just the seafood.>

Tue, 04/16/2013 - 12:53 | Link to Comment akarc
akarc's picture

"I find it odd that there were two explosions,"

Yets so many of the live interviews had people saying they heard three?

It is all very odd.

Tue, 04/16/2013 - 13:02 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

From years of experience looking closely at these 'events', while it is normal for there to be great confusion immediately after the fact and the results of this confusion must be carefully considered, during the first hour many people will say and see certain things that are quickly corrected or ignored by the so called 'authorities' as the "official story" is drummed relentlessly by the mainstream media.

This is the 'tell' for me that things are not as they seem.

Tue, 04/16/2013 - 14:10 | Link to Comment PaperWillBurn
PaperWillBurn's picture

I've personally been near explosions MANY times. I never forget how many go off. Unless there's multiple within milli-seconds of each other..you're not going to forget

Tue, 04/16/2013 - 13:41 | Link to Comment silverserfer
silverserfer's picture

they blew up a local coin shop and are trying to cover it up

Tue, 04/16/2013 - 13:04 | Link to Comment dogbreath
dogbreath's picture

I posted some pictures that were supposed to be from the second blast on the Hindenburg Omen thread.  I grabbed them from a comment on another website so don't know the origin.  The pictures are gruesome.  I don't know much about explosive but there were lots of mangled legs.

Tue, 04/16/2013 - 13:12 | Link to Comment akarc
akarc's picture

true. Many onsite amputations. Yet only 3 dead. Almost as if the trajectory of the blast was aimed to target runners who very much value their legs. Someone sending a message? will we ever know?

Tue, 04/16/2013 - 13:23 | Link to Comment MachoMan
MachoMan's picture

"know" is a curious word...  however, rest assured that we will be presented with someone who is believed to have done it...  and, coincidentally, this person's beliefs and affiliations (however loose they may be) will certainly serve a political purpose.

Tue, 04/16/2013 - 13:23 | Link to Comment widget
widget's picture

Max Keiser is right. We should not focus on terrorism which kills 3 when the big banks are massacring the world population by financial means.

Tue, 04/16/2013 - 13:19 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

If this is what you're talking about they all appear to be from the first (finish line) blast, not the second explosion a block away.

I agree they are horrific....but I am not seeing the second explosion images or even interviews of people near that explosion other than some images of the actual explosion cloud taken by cell phones or personal cameras as the second explosion went off.

Just very strange.

Tue, 04/16/2013 - 13:43 | Link to Comment dogbreath
dogbreath's picture

A collection of the worst photos from the second blast. It's bad, guys.

WARNING: GRAPHIC

http://imgur.com/a/riTdO

 

Cog,

I can't post on the site to ask where he got those photo's. 

Regards

Tue, 04/16/2013 - 14:40 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I appreciate your efforts, but based upon the physical layout of the area, the background, the block pattern in the sidewalk and the decorative fenced in area shown in many of these images (among many other things) many if not all of these images were clearly taken in the location of the first blast.

Several of those images can be found on CNN.com and some are labled as being taken from the first blast location. I know CNN can mislable images, but when you start cross references backgrounds etc you see where things are located based upon many images of the actual finish line before the blasts.

Tue, 04/16/2013 - 15:57 | Link to Comment dogbreath
dogbreath's picture

Everyone has a camera these days so somthing should come out unless the cops siezed everything.   The site where I poached that link has nothing fresh.  Hmnnn.

Tue, 04/16/2013 - 13:29 | Link to Comment sgt_doom
sgt_doom's picture

Interesting to note that the only person in congress raising a stink, and asking the obvious and damning questions, is the senator from Massachusetts, Sen./Prof. Elizabeth Warren (grilling the consultants to find out that the banksters were "responsible" for disbursing the payments to those they bilked out of the homes and mortgages during the fraudclosures --- last week --- the week before asking just how many billions or trillions worth of drug money laundering does a bankster have to do before being shut down, etc.).

Tue, 04/16/2013 - 14:43 | Link to Comment akarc
akarc's picture

"Massachusetts, Sen./Prof. Elizabeth Warren"

Has balls. Am concerned for her safety fer sure.

Tue, 04/16/2013 - 14:12 | Link to Comment JoBob
JoBob's picture

Oh, No! Not another mindless conspiracy theory!

Tue, 04/16/2013 - 11:43 | Link to Comment MythicalFish
MythicalFish's picture

What's a 'bullion bank'?

 

Only banks I know are fiat banks and ponzi banks.

Tue, 04/16/2013 - 12:01 | Link to Comment JOYFUL
JOYFUL's picture

...“Entities went to the LBMA and said, ‘We don’t trust anybody anymore.  We want our physical metal.’  They were told they would be cash settled instead by a bullion bank.  The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.

This is why this smash has been orchestrated because of the run that has been taking place on physical metal.  So Western governments had to do this because of an imminent run on the unallocated LBMA system.  The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/15_Ma...

Bullion banks are special tunnels or 'gateways' dug into the heart of the formerly first world, through which the accumulated wealth of many generations flows out into various directions(mostly Eastwards)...

since a sizeable part of this wealth first flowed into the same hands via looting and pillage(mostly Eastwards)this is something fairly 'natural' in the flow of things. But distinctly uncomfortable for those who had been promised a lifestyle and entitlements similar to what their parents generation had enjoyed. It's taking a long time for folks to get to grips with that fact...which would be OK, except that there's very little time left before the curtain goes down on the current version of 'civilization,' and something not very predictable comes along to replace it. If you're not already pyschologically prepared for this, it's getting kinda late.  Stragglers usually fare poorly in a retreat under enemy fire.

Tue, 04/16/2013 - 13:06 | Link to Comment widget
widget's picture

Why are voting buttons for the above post disabled?! Is the FED able to soft censor on this blog perhaps?

Tue, 04/16/2013 - 13:08 | Link to Comment fuu
fuu's picture

He led with itallics, been a bug since the arrows were added. If it really matters to you just open the page source and manually click the link in there.

Tue, 04/16/2013 - 11:45 | Link to Comment Serfs Up
Serfs Up's picture

My Time....it is coming....

Tue, 04/16/2013 - 12:02 | Link to Comment Winston Churchill
Winston Churchill's picture

Can I interest you in some rope ,and something to dull those tines ?

Tue, 04/16/2013 - 11:46 | Link to Comment Tsunami Wave
Tsunami Wave's picture

LOL at all the losers, idiots, and general all around morons who think gold is in a 'bear market' but is up nearly $40 right now.  hahahahahaha

Tue, 04/16/2013 - 11:50 | Link to Comment CheapBastard
CheapBastard's picture

<<morons who think gold is in a 'bear market' but is up nearly $40 right now>>

 

Adjustment...<up 100% from its $700, 2008 level>>

Tue, 04/16/2013 - 13:16 | Link to Comment akarc
akarc's picture

"Adjustment...<up 100% from its $700, 2008 level>>"

Welcome to what will make 2008 look like a cake walk.  Take a little stroll back in history. Oh to about 2008. See how "everything" was impacted. Now tell me, "this time is different", "Won't happen again", "I have a cave in the mountains with everything I will ever need to fight of the starving hoardes and the seek and destroy government".

Consider how many people are no longer statistically relevant due to the events of 2008. Now add to that millions more of many of still statistically relevant people who are hangin on by a thread. Or those who have been lulled into believing, whoa, missed that bullet.

Tue, 04/16/2013 - 11:47 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

What difference does it make? - just BTFD!

Tue, 04/16/2013 - 12:05 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

If, IF you can get the phyz.  All else is more Ponzi.

Tue, 04/16/2013 - 11:48 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

Investigate the LBMA now! A nest of vipers....run by JP Morgan, HSBC, Barclays, Deutsche, Scotia Bank, SocGen, Goldman, Standard Bank...
and coordinated by Michael Cross of the Bank of England, and the figurehead Stewart Murray, with an ex Rothschild consultant Douglas Beadle in the mix...

And London Gold Fixing Limited, and London Precious Metals Clearing Ltd (LPMCL)....

Tue, 04/16/2013 - 12:00 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

O...nearly forgot... that great Swiss Institution ...SBC (intersection) UBS

Tue, 04/16/2013 - 13:53 | Link to Comment silverserfer
silverserfer's picture

I thought the LBMA was recently sold to the Chinese about 6 months ago?

Wed, 04/17/2013 - 10:09 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

That was the LME. London Metal Exchange.

Tue, 04/16/2013 - 11:51 | Link to Comment the grateful un...
the grateful unemployed's picture

not that long complicated or devious. physical buying takes gold off the market, reduces the amount of margin in aggregate, and forces margin calls. when Spain or Portugal dumps gold on the market some, or maybe a lot of it goes into private hands - the gold that goes into private hands is no longer available for delivery in the futures market - and that would be bullish for the price if the players were leaning heavily on the short side and they had to close their positions - and they will be soon - if this keeps up. the CBs do not want to see gold crash, but Bernanke can't lower rates, and he is reluctant to provide more stimulus when the money goes right into the thing that will derail his fiat currency experiment. strange bedfellows indeed, he has to defend the price of gold or it will take down all ASSET values including his mbs paper. my guess is they will be buying gold to put a bid under it soon. and once he finds himself backed into that corner - defending the gold market - the end of his fiat regime is at hand. sweet

Tue, 04/16/2013 - 11:50 | Link to Comment Buzzworthy
Buzzworthy's picture

Disappointing analysis from an otherwise intelligent fellow like Chris Martenson.  He analyzes the paper derivatives market in "gold" and comes to his conclusions without understanding the fundamental two-tiered nature of the gold market - physical and paper.  CM, they are not the same thing.  What are you going to do when the $POG falls to $400 an ounce?  Do you think that you will be able to buy an ounce of gold anywhere on the planet?  How do you explain massive physical demand and consumption and yet a falling price?  Oh, wait, manipulation, right?  Wrong.  Prices are falling because the fundamental basis for the paper derivative is disappearing.

For as long as goldbugs continue to equate paper with physical they are going to misunderstand gold and what is actually happening.  Do yourself a favor and IGNORE any analyst who has never heard of Another and Friend of Another.  Read FOFOA's blog and the Thoughts to get the real story.

Tue, 04/16/2013 - 12:04 | Link to Comment dwayne elizando
dwayne elizando's picture

So you think the paper price will go to zero soon?

Tue, 04/16/2013 - 12:41 | Link to Comment Buzzworthy
Buzzworthy's picture

Yes.  The paper price will fall to zero.  Trading is likely to be halted well before that though, say in the low 100s.  And yet you won't be able to find a single oz anywhere.  Then, after a period of time a revaluation will be announced many many times higher than even the recent high of $1950.  This is what Another explained and the best part of it is that this has all been planned since the late 1970s.  Its just a matter of time now.  The greatest transfer of wealth in human history will not be from the 99% to the 1%, it will be from the 99.9% who hold no gold to the 0.1% who do.  And silver will not be along for the ride.

Tue, 04/16/2013 - 13:51 | Link to Comment tdag
tdag's picture

All these people who say "gold will go to $10K or $100K or whatever"--I don't buy it. Gold is a store of value. It buys x barrels of oil and y loaves of bread and z Oz of silver. Sure, these ratios fluctuate, but they stay within a range. People buy gold (and silver) as a hedge against BOTH inflation and deflation - because it holds a relatively steady value. This steadiness also explains the psychological "draw" it has on people -- it "feels" steady and calming in unsettling and turbulent times.

Tue, 04/16/2013 - 14:03 | Link to Comment forwardho
forwardho's picture

Hypothetically,  what if it becomes one of the only "stores" of value.

In a crash situation where do you think the trillions in personal assets will be stored?

In a bank?

 

Tue, 04/16/2013 - 14:24 | Link to Comment tdag
tdag's picture

It depends on what's crashing. Not all asset classes can or will crash simultaneously.

Tue, 04/16/2013 - 13:52 | Link to Comment KnightTakesKing
KnightTakesKing's picture

What makes you think that silver won't be along for the ride?

Tue, 04/16/2013 - 14:10 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

The central banks hold gold only.

Tue, 04/16/2013 - 14:31 | Link to Comment dwayne elizando
dwayne elizando's picture

I like reading about ANOTHER and FOA but I'd bet on a government confiscation and ban on both metals before they just simply revalue it upward.

Wed, 04/17/2013 - 03:55 | Link to Comment StychoKiller
StychoKiller's picture

And replace the FRN with WHAT?  Would you trust anything ANY Govt would have to say re: finance/economy after The Great Implosion™?

Wed, 04/17/2013 - 03:48 | Link to Comment StychoKiller
StychoKiller's picture

First, someone's gotta start bitchin' about a default from LBMA or Crimex, then the stampede to the exits begins (look out below!)

Tue, 04/16/2013 - 12:03 | Link to Comment dwayne elizando
dwayne elizando's picture

So you think the paper price will go to zero soon?

Tue, 04/16/2013 - 17:44 | Link to Comment auric1234
auric1234's picture

Sooner or later it will meet its fundamental value. Will that be soon? Nobody can tell for sure.

 

Tue, 04/16/2013 - 12:03 | Link to Comment dwayne elizando
dwayne elizando's picture

So you think the paper price will go to zero soon?

Tue, 04/16/2013 - 12:08 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Gua-ra-fucking-teed it'll go to "zero": 

When Phyz is King, paper-gold will be worth less than toilet paper.  Too smooth and less absorbing.

Tue, 04/16/2013 - 12:39 | Link to Comment Acet
Acet's picture

Paper gold is just:

"I promise I'll give you the Gold later (cross my heart and hope to die) and by the way my word is so good that I don't even need to put up more than 3.5% of today's value of that Gold as collateral (and in fiat) and actaully, I don't even need to have any Gold at all"

 

In this day and age of banks that are above the law and most markets are openly rigged, such promises are worth very little.

 

Tue, 04/16/2013 - 12:16 | Link to Comment Acet
Acet's picture

It really is very simple:

The paper market is an IOU market. The prices in that market are affected not just by the perceived value of the underlying commodity but also by the risk that those who have issued the IOUs will not deliver.

For something such as Gold which is not perishable, not consumed in any significant quantity and has very low storage costs per unit of value, Standard Economic theory would postulate that the price of an IOU should always be lower than the price of the actual good in-hand, simply because the IOU has a risk of default which does not exist when one has direct possession of the physical commodity.

Amazingly, for years people have accepted IOU prices as being the sames as physical prices.

The huge slam as we now had just increases the perception of risk of non-delivery and thus the risk premium between the IOUs and physical, which might very well cause people to challenge the until now common pricing of physical Gold as being the same as Gold-IOU prices.

Tue, 04/16/2013 - 12:30 | Link to Comment oak
oak's picture

agree, this is his worst one.

Tue, 04/16/2013 - 13:09 | Link to Comment sand_puppy
sand_puppy's picture

Chris Martenson is an advocate of holding physical PM's, though that wasn't the focus of Part 1 of this piece.  In part 2, he recommends physical possession:   "I am going to be moving more of my wealth into real things, especially gold, as soon as I think a new bottom has been put in."

Tue, 04/16/2013 - 11:51 | Link to Comment FieldingMellish
FieldingMellish's picture

Gold dropped to about 10% under the marginal all-in cost of production (now around $1500). In 2008 that cost was around half ($750) and gold bottomed at $681 or about 10% under. Just sayin'....

Tue, 04/16/2013 - 12:44 | Link to Comment Buzzworthy
Buzzworthy's picture

Miners will be confiscated by governments.  Best to get out of those as soon as possible.

Tue, 04/16/2013 - 13:54 | Link to Comment samcontrol
samcontrol's picture

.....what about  miners that are Canadian or Austalian and/or offshore US.... please explain how hey take a mine from PZG in MExico,.?

 

Tue, 04/16/2013 - 14:55 | Link to Comment dwayne elizando
dwayne elizando's picture

Most of these governments move in tandem and most of the metal in the ground has already been sold into the future.

Tue, 04/16/2013 - 11:51 | Link to Comment jmcadg
jmcadg's picture

Bored!

But strangly my ounces still weight the same!

Tue, 04/16/2013 - 12:13 | Link to Comment XitSam
XitSam's picture

Strangely, so do mine!  +1 to sir.

Tue, 04/16/2013 - 11:50 | Link to Comment Quinvarius
Quinvarius's picture

The problem is when they run out of the real metal and LTCM themselves.  Doing what they do to a limited form of money that anyone can store forever in their closet is why they are having physical supply issues.  They want the paper market to be the market.  But it isn't.  Now everyone wants out of the banking system and out of paper, so they are getting endgamed.  Reaction: attack.  Counter reaction: Lose more physical to the markets.  The markets will just keep hoarding the physical metal until the price is right for a return to paper risk.  And this is not the right price.

Tue, 04/16/2013 - 11:52 | Link to Comment TrulyStupid
TrulyStupid's picture

This gold sell off will be followed (shortly) by a stock market crash which will create the necessary clamor for a truly massive QE episode. Critics of QE will shortly be pleading Chairman Ben to resume it. That is the only way to forestall a deflationary collapse and a bankster wipe-out.

Tue, 04/16/2013 - 11:53 | Link to Comment LoneStarHog
LoneStarHog's picture

Message To Dumbshits:  Get The Hell Outta Trading Paper And They Will Have No One To Screw!

Anyone involved in the CRIMEX paper markets is a TRAITOR!

Tue, 04/16/2013 - 12:06 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

thats exactly what I said about the Turd last year. He got screwed at MF Global and lost it all, then he went and bought some paper on the crimex, I called him a traitor and he BANNED ME from his useless site. Deadbeat..hypocrite

Fri, 04/19/2013 - 20:33 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

SHAMEFUL that someone MF Global’d would immediately go to the crimex, and the TURD of all people. He’s even been interviewed on Goldmoneynews with James Turk’s man Alisdair McLeod, you’d think he should know better. Wow. Seriously, if you want massive paper gains you can dare slv calls and gld calls and gld puts but at this time I think slv puts are all used up and gld puts would be a waste. No margin is needed. Traitor though you may call that too I still took physical delivery a few days ago and this morning of shiney sunshine mint bars and that’s what counts. IF any paper games net me paper in excess I can turn to food, bills or more physical gold & silver, so be it. If I lose it’s my business, I won’t blame anyone else, even the Bernank.

Tue, 04/16/2013 - 11:54 | Link to Comment Colonel Jessup
Colonel Jessup's picture

This is so very obvious to all of us informed ZHers - but the sheeple, if they haven't woken up by now, are just going to allow themselves to be led to slaughter. They deserve what they get. They are not even bothering to hide the manipulation anymore - it is so overt and blatant that if we had a real, functioning SEC, they would investigate, indict, and jail the criminals responsible.

Talk to the average person - ask them if they sa what happened to PMs yesterday. You will get nothing is response except the thousand yard stare....

Tue, 04/16/2013 - 12:44 | Link to Comment Strider52
Strider52's picture

I was surprised that two ordinary sheeple, one co-worker and one a friend, remarked that they had noticed, even with Boston news, that $POG had dropped thru the floor, and made a comment to me. I replied with "Wait 3 weeks."

Fri, 04/19/2013 - 20:51 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Impressive. I’ve only had 2 people at work have any awareness of it. I doubt for some time more will notice. The next time I hear anyone new at work mention it I bet gold will be over 2200, maybe even a drop from 2500 to 2000 will catch their attention… maybe not.

*** additional comment ***

upon showing some of my silver today to someone I got the incredulous response (at work) "why wouldn't you just buy mutual funds, they have a guaranteed return!"

Words simply can not describe.

Tue, 04/16/2013 - 13:28 | Link to Comment Dishonesty Fatigue
Dishonesty Fatigue's picture

Soon enough that thousand yard stare will be the realization that the train is coming, and they're tied to the tracks.

Tue, 04/16/2013 - 13:30 | Link to Comment Dishonesty Fatigue
Dishonesty Fatigue's picture

Wait, I'm giving them too much credit. There won't be any realization, just carnage.

Tue, 04/16/2013 - 11:55 | Link to Comment Aaaarghh
Aaaarghh's picture

I'll just keep buying my sovereigns happy that when the collapse comes, I'm safe. I care not what the manipulated paper price appears at day to day :) only physical matters

Tue, 04/16/2013 - 12:39 | Link to Comment Pure Evil
Pure Evil's picture

Although, nothin like pickin up a few pieces at fire sale prices, eh mate?

Tue, 04/16/2013 - 12:40 | Link to Comment icanhasbailout
icanhasbailout's picture

"prescient"

Tue, 04/16/2013 - 11:58 | Link to Comment kevinearick
kevinearick's picture

Try, Try, Try Again

The majority breeds on government as the solution instead of the problem because it is paid, in debt, to do so. It supported the jokers that gave China our factories, China leveraged the “income” to buy America, exchanging jobs for welfare, Bill Clinton became its icon accordingly, and these same robots are now pushing to put Clinton’s old lady in office. If it wasn’t Kissinger, Brown and Obama profiting off the exercise, it would be somebody else.

The Bay Area efficiently puts America out of work, paid for with Bernanke’s printing press. That’s what it does. Why would you bother bombing America when you can get it from a used-up wh- for pennies on the dollar? By the time Jerry Brown and crew get done, you won’t be able to pay your property taxes with social security. Why wouldn’t you expect the hedge funds to short America?

The last couple of generations have sold out their children and parents for pension promises, which are always inflated away, if not outright confiscated. If you must assign blame, look no further than the mirror. You are the only person you can change.

America and China is just the latest in a long line of marriages gone bad, but not before its example infected the entire global economy. The economy is going down because labor didn’t get on that ship. Labor doesn’t play by reptile rules. Capital replaced it with automatons.

Unless you are part of the global capital cabal, your economic prosperity depends upon three things:

Whether you are married;
How many children you have; and
How well you build a family bank.

Everything else is whistling past the grave.

China knows all about gold, currency and technology, but it forgot how to love its children, like every failed culture, including America. Try as it might, the majority will never replace parents, not with socialism, not with communism, and not with capitalism. FU all and your “it takes a community to raise a child.”

The majority bet against parents with family law, lost, and now it pays. Insurance is and always has been a Ponzi scam. Slice ‘em, dice ‘em, and rearrange the resulting securities any way you like; measuring productivity by the ability to create debt against future generations, and call it money, always ends badly, for the majority.

Tue, 04/16/2013 - 12:00 | Link to Comment Meat Hammer
Meat Hammer's picture

Congrats to those who were able to back the truck up to the coin shop yesterday.  

Tue, 04/16/2013 - 12:40 | Link to Comment Pure Evil
Pure Evil's picture

I just got emailed that I may have to wait up to 4 weeks for delivery.

Tue, 04/16/2013 - 12:58 | Link to Comment Strider52
Strider52's picture

Pure: I didn't wait for the total bottom in price. I loaded up 2 weeks ago from Gainseville, got it last Saturday. Sure, I didn't buy at the exact bottom, but mine is already delivered...

Tue, 04/16/2013 - 14:53 | Link to Comment Pure Evil
Pure Evil's picture

Some people are just smarter than others.

Tue, 04/16/2013 - 15:06 | Link to Comment silverserfer
silverserfer's picture

meat, they had no bullion, just 90% at 19x face. thats like a $5 premium over spot. Only got 1 roll. They alway have something for and are not the type to hold back on inventory. Dry, dry, dry, around my parts.

Tue, 04/16/2013 - 16:19 | Link to Comment klockwerks
klockwerks's picture

Well my friend, tho old Durango was ready to back up but no one was selling, OUT OF STOCK, was all I saw

Tue, 04/16/2013 - 12:02 | Link to Comment pbr streetgang
pbr streetgang's picture

the comex is criminal. treat them accordingly

Tue, 04/16/2013 - 13:51 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

"the comex is criminal.  hedge accordingly".  There, fixed it for you.  ;-)

At this point, you'll get more mileage out of adapting than expecting ppl to storm the barrickades.  Buy phyz!

Tue, 04/16/2013 - 12:02 | Link to Comment Right-on Left-off
Right-on Left-off's picture

One has to play both sides of the market, up and down.  In fact this volatility was great for that.

This trashing was easy to see and play.  In 3 days of trading across the last two weekends, $100k was made.  

Now positioned long.  It'll be a little bumpy but up the wall of worry no less.

Tue, 04/16/2013 - 12:02 | Link to Comment Cantankerous Canuck
Cantankerous Canuck's picture

What I don't get (and would love for someone wiser and/or more experienced to explain) is if these raids and smashes are so profitable for the bullon banks, why does anyone expect them to ever end?  Aren't we all playing Charlie Brown to the banks' Lucy with the football?

Tue, 04/16/2013 - 12:20 | Link to Comment oddjob
oddjob's picture

It ends when Charles kicks lucy in the chops.

Tue, 04/16/2013 - 14:09 | Link to Comment FeralSerf
FeralSerf's picture

When he does that, there'll be a .40 S&W hollow point with his name on it.

Tue, 04/16/2013 - 12:36 | Link to Comment hardcleareye
hardcleareye's picture

It ends when they have all the wealth, then they go after each other.

Tue, 04/16/2013 - 13:23 | Link to Comment css1971
css1971's picture

Every time they suppress the price, I acquire a little more physical gold. I imagine there are pros acquiring vast amounts of physical when the prices drop.

Price controls cause shortages.

Wed, 04/17/2013 - 04:04 | Link to Comment StychoKiller
StychoKiller's picture

Shh, don't tell Lucy, but we've been taking the air (Au/Ag) out of the football...

Tue, 04/16/2013 - 12:05 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

The greediest bastards of all time...broken markets, broken government, and broken backs of the common people they steal from. ESADMF's!

Tue, 04/16/2013 - 12:02 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Martensen rocks!

Tue, 04/16/2013 - 12:06 | Link to Comment moneybots
moneybots's picture

"I also wonder if perhaps instead of signaling that the dollar is safer than gold, that the banks did not unintentionally send the larger signal that deflation is gaining the upper hand?"

 

Everything has been slipping.   Commodities and economic data.  Employment has been soft.  I don't think the bankers need to send a signal.

Tue, 04/16/2013 - 12:08 | Link to Comment jomama
jomama's picture

i locked in 100oz. Ag from bulliondirect @ 2620 :D :D

hopefully they deliver...

dealers must have gotten fucked so hard from the last two days...

Tue, 04/16/2013 - 12:13 | Link to Comment forwardho
forwardho's picture

I take the above evidence of computer assisted declines of this magnitude to be a sign that our "markets" are completely broken and quite vulnerable to a crash.

Really?

You just now figured this out?

For G-ds sake man where have you been? Our "markets" have been a complete and total farce since the first TARP bailout.

Trillions and Trillions have been "created" out of thin air and pumped into a dead system, but this is "the" sign of vulnerability?

The ship sank, the passengers are in the water pretending to be asleep in their cabins. The illusion will be kept until the last one drowns.

Tue, 04/16/2013 - 12:47 | Link to Comment Pure Evil
Pure Evil's picture

I think you have to go back even furthur than that. Started in 1983 with 1987 being the first Fed intervention to re-prop the market up, (publicly anyway).

Tue, 04/16/2013 - 12:13 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Most people ask the wrong question. One should ask the question: "how is gold price determined?" Or one should ask how ANY price is detrmined when there is an intermediary involved providing infinite liquidity. Can there possibly be a free market price when the intermediary can provide infinite supply or infinite demand at its whim? (Obviously not)

The entity (or entities) providing infinite liquidity can if they so choose, not participate or not provide infinite liquidity at any given time and when they do, what looks like 7 sigma events might occur. But it is only a 7 sigma event from the perspective of the controlled market. I am pretty sure that the assumption of a gaussian distribution is based on free market dynamics and an essentially infinite number (for statistical purposes) of independent actors.

Do NOT follow this link or you will be banned from the site!