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Goldman Closes Gold Short

Tyler Durden's picture




 

It appears Goldman (together with virtually everyone else focused on physical not paper gold) has bought enough gold from its clients. Now, there is only upside.

Goldie on gold:

We closed our short trading recommendation on gold

 

We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels. Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.

Explains the rip in gold this morning, and why it will continue to do so consider Goldman's "bias" to keep buying more gold from its clients (especially since any forecasts of "reaccelerating" growth now merely spark bouts of uncontrollable laughter). Buy until Goldman says to go long.

 

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Tue, 04/23/2013 - 07:51 | 3487319 Racer
Racer's picture

How come there are no gold coins to buy for days now if there is no conviction....

Tue, 04/23/2013 - 07:53 | 3487329 achmachat
achmachat's picture

not as easy to find as before... but if you look hard, you'll still find them.

If you can, find a few investment buddies and buy together. You can still get good deals if you buy a minimum of 10 one-ounce gold coins.

Tue, 04/23/2013 - 07:57 | 3487341 maxmad
maxmad's picture

Its very hard to find any gold coins right now... The ones that are available have a huge premium attached!  This is insane!  looks like price controls are backfiring!

Tue, 04/23/2013 - 08:00 | 3487348 maxmad
maxmad's picture

Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.

 

They are so full of sh&t!  If they really expect falling gold prices, they would have held their shorts!  Either liars or Dumb a$$es, you decide!

Tue, 04/23/2013 - 08:05 | 3487366 TwoShortPlanks
TwoShortPlanks's picture

Like a thief in the night.

Tue, 04/23/2013 - 08:22 | 3487411 Harlequin001
Harlequin001's picture

'The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels.'

Yeah that and a 400 tonne short, but we won't go into that eh, people might get sent down...

Ooops, made myself titter then for a moment...

Tue, 04/23/2013 - 08:41 | 3487465 Pinto Currency
Pinto Currency's picture

 

Harlequin - it is amusing how Goldman writes like no one else has any information.  They might have said

"The move since initiation was surprisingly rapid coming two days after 15 bank CEO's met with President Obama and was triggered by a single 400 tonne (12+ million oz.) sell order dropped on the market by one major bank over 30 minutes which took out major stop losses and artificially cascaded the market when asian markets were closed for the weekend."

Tue, 04/23/2013 - 11:13 | 3488161 Herd Redirectio...
Herd Redirection Committee's picture

And they could have said "And timing is everything in trading, and we somehow nailed the timing, better listen to our advice next time, we are smart and looking out for you"

When gold got hammered down I made the comment that "buy when people are fearful", my buddy tells me "Wait for Buffett to say it".  These people seriously believe these big boys are out there looking out for them???

Tue, 04/23/2013 - 19:50 | 3490850 mjcOH1
mjcOH1's picture

"Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.

They are so full of sh&t! If they really expect falling gold prices, they would have held their shorts! Either liars or Dumb a$$es, you decide!"

Oh ye of little faith. They've obviously left the money on the table as a gift to the muppets.

Tue, 04/23/2013 - 20:58 | 3491079 Long_Xau
Long_Xau's picture

I gotta admit I felt worried up until the middle of the statement. But then I realized they were bearish due to:

ETF outflows as conviction in holding gold continues to wane

BTW what do ETFs have to do with holding gold again? This interpretation makes sense to me: ETF operators are no longer convinced that they should even try to hold any physical gold for their clients.

Tue, 04/23/2013 - 11:30 | 3488273 widget
widget's picture

Imagine if GS was under the honesty spell from "Liar Liar". They would be bankrupt in one week.

Tue, 04/23/2013 - 13:33 | 3489081 Sokhmate
Sokhmate's picture

In your bra.

Tue, 04/23/2013 - 09:03 | 3487516 rogeliokh
rogeliokh's picture

Even this doesn't help, they still f**king metals every morning, so far $10 been eating since AM. Everyday same sh*t, and those crooks not letting Americans trade Gold/Silver on Forex platform, otherwise due to this manipulation there never been much easier trade, Wake up at 6:30 AM push SELL 1:20 PM close short. Day after day. Friday Biggest drops always. Crimex GOLD trade is an ATM.

Today target 1402-1405 by 1:30 PM Manipulation? Of course, If everyone knows that in 8:20 AM it must
drop and when it's going after that
what kind of "FREE" Market is that? ATM machine.

Tue, 04/23/2013 - 10:04 | 3487914 Meat Hammer
Meat Hammer's picture

So what you're really trying to say is keep stacking.

Tue, 04/23/2013 - 11:17 | 3488182 Herd Redirectio...
Herd Redirection Committee's picture

Yeah, they are trying to condition people, that the easy money is in TRADING GOLD, not holding gold.  Sell in the morning, and buy at the end of the day, will make you some money, but you are being co-opted by TBTF, you are helping them.  And the day that the paper gold market dies, don't think they will tell you to buy physical on that day, either!  You will lose your ass with a paper Gold short on that day.

Tue, 04/23/2013 - 08:43 | 3487478 TeamDepends
TeamDepends's picture

There's a muppet born every minute.

Tue, 04/23/2013 - 08:21 | 3487417 Croesus
Croesus's picture

@ Maxmad:

My friend, everything is up to interpretation.

Ignore the rest of the "noise" in their statement. The first 4 sentences are basically GS telling the world how great they are. As you correctly pointed out, the sentence starting with "our bias" is hypocritical bullshit.

But there is a grain of truth in it:

"Our bias is to expect further continued ETF outflows"


 

 

 

Tue, 04/23/2013 - 08:29 | 3487435 Harlequin001
Harlequin001's picture

Now I have a question for you, if silver spot is $23 ish and I can buy real silver for $28 ish, what is the premium say against corn, or oil.

How much are these other 'stuffs' actually trading at over spot, and why?

Tue, 04/23/2013 - 08:37 | 3487457 Croesus
Croesus's picture

@ Harlequin001:

I can't tell you, since I follow the Gold market, almost exclusively.

Tue, 04/23/2013 - 08:54 | 3487526 maxmad
maxmad's picture

Very true if you look at gas, we are paying such a high premium compared with the spot Brent Crude its sick!  But you have consider things like taxes, deliery costs, forward costs, etc... They make it virtually impossible to fiqure out the exact premium charge on certain commodities such as gas.

Tue, 04/23/2013 - 10:14 | 3487950 Pinto Currency
Pinto Currency's picture

 

Croesus,

re. "Our bias is to expect further continued ETF outflows"

Agreed.  We can expect to see the ETFs drawn-down as investors take physical delivery. 

Tue, 04/23/2013 - 12:40 | 3488682 Croesus
Croesus's picture

@ Pinto Currency: 

The demand side for Physical Gold, is almost unreal. Two Short Planks had a post yesterday, where he summed it up, perfectly:

Quote: "You think the squeeze is tight now...LOL...you haven't seen anything yet. Try to imagine a Gold Market where Central Banks are scrambling to repatriate their Leased Gold as well as a Retail Market hell-bend on buying physical...it won't happen...THEN, try to cope with the prospect of the general public - fuelled by MSM - getting into the market."

RE: http://www.zerohedge.com/news/2013-04-22/bill-fleckenstein-hold-tight-yo...

Fundamentals do matter, in the real world, contrary to what some may think. The fundamental demand for physical Gold, virtually guarantees that its relative purchasing power will eventually be multiples of where it is now.

 

Tue, 04/23/2013 - 10:50 | 3488068 Kirk2NCC1701
Kirk2NCC1701's picture

If there's one thing the Squid is NOT, it's "dumb". More like "crazy like a fox".

Tue, 04/23/2013 - 11:24 | 3488228 Confundido
Confundido's picture

Liars.

Tue, 04/23/2013 - 07:55 | 3487330 GetZeeGold
GetZeeGold's picture

 

 

Got a briefcase full of IOUs. Trade it with you for some gold.

 

I'm talking real gold.....not COMEX Gold.

Tue, 04/23/2013 - 08:10 | 3487386 new game
new game's picture

i might be interested in the briefcase...

Tue, 04/23/2013 - 09:44 | 3487818 therover
therover's picture

Let me guess the combination of the briefcase....007

 

GOLDFINGER ! 

Tue, 04/23/2013 - 10:52 | 3488077 Kirk2NCC1701
Kirk2NCC1701's picture

Yeah, more like a Briefcase Full Of Blues.
Where have I heard that song before?

Tue, 04/23/2013 - 07:56 | 3487336 Sheeple Shepard
Sheeple Shepard's picture

 

 The finest economic "brains" in the world people:

"The International Monetary Fund (IMF) has been hosting a conference on rethinking economic policy, organised by four experts in the area, including the IMF's own chief economist.

One of the other organisers - the Nobel Prize winner George Akerlof of the University of California - had a vivid analogy for the state of uncertainty the economics profession now faces.

"It's as if a cat has climbed this huge tree - the cat of course is this huge crisis. My view is 'oh my God the cat's going to fall and I don't know what to do'."

Another one of the organisers, David Romer also of the University of California, picked up the analogy: "The cat's been up the tree for five years. It's time to get the cat down from the tree and make sure it doesn't go back up."

The trouble for the economics profession is, according to the last of the conference hosts and another Nobel Prize winner, Joseph Stiglitz: "There is no good economic theory that explains why the cat is still up the tree""

*SLOWCLAP*

http://www.bbc.co.uk/news/business-22223249

Bernanke says "Shoot the cat!"

Tue, 04/23/2013 - 08:09 | 3487380 Temporalist
Temporalist's picture

I think the plan is to either drop bundles of paper from a helicopter onto the cat's head so it "voluntarily" falls out of the tree or to stack paper so high they can climb the tree.  Solution #1 may kill the cat (failure) and solution #2 is a failure because the tree is surrounded by quicksand and they can't stack pallets of paper high or quick enough.

While those are the present "solutions" the ongoing modus operandi is to pile the bodies of debt slaves and serfs so high that the kleptocrats can avoid the quicksand and stand atop the carnage they wrought while they devise more "solutions".

Tue, 04/23/2013 - 08:24 | 3487420 toys for tits
toys for tits's picture

Now their policies are the equivalent of taking axes to the tree to get that god damn cat out.

Tue, 04/23/2013 - 08:32 | 3487445 aka Gil
aka Gil's picture

No worries, cats always manage to get themselves down from trees. You say that cat's been up there 5 years? Oh my...

Tue, 04/23/2013 - 09:00 | 3487568 imaginalis
imaginalis's picture

short cat, long gold

Tue, 04/23/2013 - 10:08 | 3487928 Meat Hammer
Meat Hammer's picture

Shoot the goddamn cat and then go get a dog.

Tue, 04/23/2013 - 10:57 | 3488088 Kirk2NCC1701
Kirk2NCC1701's picture

Using a different analogy then...

I know for fact that you can always get more pussy (cat) if you have more gold.

Tue, 04/23/2013 - 21:19 | 3491143 Hive Raid
Hive Raid's picture

Benjo Shalom says: you can shave a cat's balls many times, but you can only circumsize him once.

 

I thought his beard looked familiar.

Tue, 04/23/2013 - 08:49 | 3487504 TeamDepends
TeamDepends's picture

Here is a better analogy:  A parasite entered the cat and is slowly devouring it from the inside out.

Tue, 04/23/2013 - 08:11 | 3487390 Skin666
Skin666's picture

The trouble for the economics profession is, according to the last of the conference hosts and another Nobel Prize winner, Joseph Stiglitz: "There is no good economic theory that explains why the cat is still up the tree""

Try Ludwig Von Mises's book "The Theory of Money and Credit"

Only been around since 1912!

Logical Positivists are fucking morons!

Tue, 04/23/2013 - 08:21 | 3487414 Skin666
Skin666's picture

"What is needed for a sound expansion of production is additional capital goods, not money or fiduciary media. The credit boom is built on the sands of banknotes and deposits. It must collapse."

"If the credit expansion is not stopped in time, the boom turns into the crack-up boom; the flight into real values begins, and the whole monetary system founders."

"The final outcome of the credit expansion is general impoverishment."

"Credit expansion is the governments foremost tool in their struggle against the market economy. In their hands it is the magic wand designed to conjure away the scarcity of capital goods, to lower the rate of interest or to abolish it altogether, to finance lavish government spending, to expropriate the capitalists, to contrive everlasting booms, and to make everybody prosperous."

"What is needed for a sound expansion of production is additional capital goods, not money or fiduciary media. The credit boom is built on the sands of banknotes and deposits. It must collapse."

Human Action by LvM. Published in 1949

 

Tue, 04/23/2013 - 08:53 | 3487518 css1971
css1971's picture

They don't ever dare say the name of the dark lord out loud.

Tue, 04/23/2013 - 08:18 | 3487402 negative rates
negative rates's picture

5 years in a tree w/ no food, and those are your best guys??

Tue, 04/23/2013 - 08:20 | 3487408 newworldorder
newworldorder's picture

The big economic thinkers still believe in their flawed economic profession. Econcomics has evolved into statisticly driven economic modeling, practices by academics who have not worked in any "wage generating" activity in which labor is converted to capital. They do not have a clue, but have convinced politicians who also have not worked in wage generating activities, that they have all the answers. Perfect marriage of two useless occupations.

That said, economists are not capable of doing true economic analysis. Macro economic analysis is a function of human social behavior. I would be more impressed if this group had also invited the top people in social behavior to this meeting.

They are not trying to fix the system. Rather they are trying to prevent the current finacial system from imploding/exploding. Nothing new will come out of this meeting.

Tue, 04/23/2013 - 11:37 | 3488326 Herd Redirectio...
Herd Redirection Committee's picture

Exactly, they aren't trying to put the house thats on fire out (which is a better analogy), they are trying to keep people calm at the front door, and convince people of the merits of their firefighting effort, while the back door is wide open, and the 'select few' are smash and grabbing everything they can get their hands on.  I mean, just the theft from seniors, by keeping interest rates so low, is of criminal proportions, and yet, most Baby Boomers haven't even caught on yet!  What do they think is going to happen over the next couple years as they try to cash in their stock portfolio?  Up, up, up???

Tue, 04/23/2013 - 09:07 | 3487594 Smiddywesson
Smiddywesson's picture

When you utterly destroy the middle class, nobody cares about your cat.  The rich got theirs, and everybody else can't afford a ladder.

These idiots don't understand the simple fact that people won't spend what they don't have. 

Tue, 04/23/2013 - 14:40 | 3489518 Diogenes
Diogenes's picture

They've been spending what they don't have for years, now their credit is tapped out. That is the problem.

Tue, 04/23/2013 - 07:55 | 3487337 unwashedmass
unwashedmass's picture

the plan backfired. 

instead of fleeing in panic, the peasants bought...and keep buying. 

with leverage at 100:1, you have to be one lucky person to get the one ounce. 

too bad, ben, lloyd, and jamie, the peasants KNOW what you've done, and what a pickle you are in. 

and our hearts fuckin' break for you.

Tue, 04/23/2013 - 08:29 | 3487439 Sean7k
Sean7k's picture

We may not know why, but I would suggest the plan didn't backfire at all. These guys don't do failure. They knew exactly what the response would be. The bigger questions are: how were the measuring the response? and why are they encouraging the concentration of pms in other countries?

The people never win. We need to look harder and smarter. Jesse's Americain cafe has an interesting piece that references Fekete's ideas regarding backwardation and contango that are a good place to start.

Tue, 04/23/2013 - 08:36 | 3487454 unwashedmass
unwashedmass's picture

 

I think you are giving Bernanke and the boyz a lot more credit than they deserve. they are arrogant. they are isolated. they have no contact with the real world. think mitt romney and having no clue -- no connection == to average folks. they believe they are superior.....and that everyone else is stupid and easily led. 

i think they've been stunned by the reaction in the retail markets. if they hadn't been, we would have seen them paper bomb gold down to 1K. silver down to 19. 

Now they've made what was a very bad situation for them exponentially worse. 

now the world is going to see them exposed...if they can't keep a very tight handle on the mainstream media. 

this could result in major calls for breaking up the TBTF banks. 

and.....god help us I never thought this might happen --- if things get very nasty, a takedown of the band of jokers at the CTFC. 

 

Tue, 04/23/2013 - 10:01 | 3487550 Sean7k
Sean7k's picture

In our universe, we parse units of currency in local, regional economies. In their universe, they create waves of value instruments with the purpose of enriching a small segment of the population, over the entire planet. They deal in trillions, not thousands. They live in sterile extravagance, while we aspire to a McMansion. In terms of scale, we have zero ideas regarding their map of the future- except it includes the continued dominion over us all.

I think they have been stunned that more people didn't participate and bring down the LBMA and Comex and are now looking at what price they have to hit to inspire the right amount of panic buying. Panic in China and India? Yes. In America and Europe- merely pressing. The premiums have gone up, but they are manageable and mines are accepting the new price schedules. 

Stock is delayed in silver, but still obtainable, especially from NTR. Gold is very available in most forms with a $55-60 premium. 

Why would they breakup banks? Only if they have something better in store- and not better for us.

Tue, 04/23/2013 - 12:13 | 3488541 Herd Redirectio...
Herd Redirection Committee's picture

Think of this Boston bombing, for eg.  Do you want to concoct a story that will convince/fool the top 5% most intelligent members of society, or do you concoct a story that will convince/fool the other 95% of the population?  Because one story is unlikely to convince both groups.

So transferring the analogy to the gold smash, I think they knew what the reaction would be from 90% of those in the West, and they likely knew what the reaction by the other 10% would be.  So in that sense, they knew what the outcome would be, and it was what they wanted (granny sold her gold earrings), but that doesn't mean they control the entire outcome (Middle East, India, China, and stackers doing what else... Stacking!)

Tue, 04/23/2013 - 14:44 | 3489532 Diogenes
Diogenes's picture

"Ain't we got all the fools in town on our side? And ain't that a big enough majority in any town?"

                                        - Mark Twain

Tue, 04/23/2013 - 09:12 | 3487617 Croesus
Croesus's picture

@ Sean7K:

My thinking is leaning in the same direction, that the plan is moving, according to plan. These guys aren't stupid.

Something to think about:

There is no way to clear the derivatives mess from bank books. The amount of "money" simply doesn't exist. They know this too, and it wouldn't be the first time that "someone set fire to their own house, so they could collect the insurance money".

 

 

 

 

Tue, 04/23/2013 - 10:06 | 3487916 Sean7k
Sean7k's picture

No, there isn't, but who could payoff any default? Could this be the way they get rid of the big bank structure to pave the way for something wicked this way comes? 

Unfortunately, there are too many scenarios right now to narrow the focus and we probably won't know for certain until just before they lower the boom. On the other hand, WE will probably have some inkling, the general public will just get hosed. 

Tue, 04/23/2013 - 10:19 | 3487974 chdwlch1
chdwlch1's picture

I agree and think a reset is coming.  Follow the flow of gold and I think the picture becomes more clear. Here's some history that should put today's shift of gold from West to East in perspective (from Julian D.W. Phillips of Gold Forecaster)...

"When the U.S. dollar was devalued in 1935, it was done so only in terms of gold. It was not devalued against foreign currencies. Exchange rates were then fixed against each other. Other governments did not devalue their currencies against gold. The result was that while gold was trading outside of the U.S. in the foreign currency equivalent of $20 there, it was trading at $35 in the U.S.

With markets relatively unsophisticated in those days, alongside limited communication abilities the original arbitrageurs [dealers between two markets] found they could buy gold at the foreign currency equivalent of $20 and sell it into the U.S. for $35. Is it any wonder that the U.S. gold stocks roared up to 26,000+ tonnes?

Was this a financial error in an undeveloped world? We have no doubt it was not. It was the ideal quick way to shift the gold reserves of Europe away from the war zone to the relative safety of the U.S. The war arrived in Europe four years later.

But foreign governments weren’t stupid. European governments permitted this move, even though it was seen as a market event. Remember that gold was the basis of money then so such a shift had to happen with government approval. This had to happen within the monetary system in force at the time. The fact that it happened so smoothly implied total government cooperation.

We see it also as an example of how the banks work completely with monetary authorities to ensure complete control over the monetary system. The same is true today as we see the efforts of governments primarily directed at repairing the banking system and government finances with scant attention to the national economies below them.

With a war on the way Europe sent its gold to the U.S. without governments being seen to do it. The move came about as a result of ‘market forces.

But you may rightly say that surely that wasn’t the end of the story? Of course not!

With a huge U.S. army based in Europe after the war, the flood of dollars from the U.S. to Europe happened from the forties right through to the sixties [Eurodollars] continued. European nations, including France, Italy, Switzerland and Germany led by President de Gaulle, kept selling their U.S. dollars for gold. Once Europe’s gold returned to it [as the war was out of the way and reconstruction just about complete], Europe had its gold back. Then the change in the monetary system occurred and the dollar (the exclusive currency in which nations could buy their oil to run their economies with) closed the gold window and excluded gold from the day-to-day system but remained in national vaults. It was then that the experiment, now 42 years old, in un-backed paper currencies began. European central banks were then rewarded by the extraordinary rise in the gold price in the seventies and eighties.

This two-way process of gold to and from the U.S. only became visible with hindsight."

 

Tue, 04/23/2013 - 11:10 | 3488141 Clycntct
Clycntct's picture

Nice work.

 Shows me how little I know.

Tue, 04/23/2013 - 14:15 | 3489370 The_Dude
The_Dude's picture

Amazing insights...almost like the good ol' days on the Hedge.....

Tue, 04/23/2013 - 08:06 | 3487371 spankthebernank
spankthebernank's picture

I would love to meet a Muppet...they truly must be one of a kind.

Tue, 04/23/2013 - 08:13 | 3487394 unwashedmass
unwashedmass's picture

 

muppets actually made money this time -- 10%. far less, of course, than what GS usually makes on its recos designed to fleece the muppets. 

that said, this one was done under government orders......so it wasn't like GS could do its usual full frontal on the clientele. 

thing to watch is what they do now......i'm sure they were buying hand over fist during the 1300s. 

Tue, 04/23/2013 - 08:20 | 3487409 toys for tits
toys for tits's picture

They could be a manly muppet.

http://www.youtube.com/watch?v=2MFn8L9tIrg

Tue, 04/23/2013 - 11:13 | 3488155 Kirk2NCC1701
Kirk2NCC1701's picture

The 'Muppet' doesn't matter. Focus on what you CAN do.

Each beat-down strips another layer off the bullion market, as different supply types and unit sizes disappear (change owners).

The first layer we saw getting stripped in the paper-to-bullion conversion, is the retail level of coins and 1-10 oz silver bars.

The next layer to go will be the rich retail market. 100-400 oz silver will go, as well as 1-10 oz units of gold.

At the same time, the CBs of BRIC+ countries are buying up the 400 oz gold bars by the ton.

When all the bullion is sold off, the big players will act. Buy that's for another time.

Tue, 04/23/2013 - 08:10 | 3487385 EL INDIO
EL INDIO's picture

Silver is a better buy right now:

The GSR (Gold/Silver price) is getting really hight which means Silver is getting very depressed.
I compared the silver price to copper, oil , the commodity index and the usd index. It got quite depressed versus all of them recently. That means Silver has been hammered much harder than anything else. That makes it a bargain right now.

Another info that you might find useful is the following:

I got daily gold and silver prices from 1968 to 2011 some time ago from the LBMA website and used it to do some statistics. Here is what I found:

The probability for the GSR to be < to:

55 = 48.9 %
56 = 52.2 %
60 = 60.3 %
67 = 72 %
72 = 80.8 %
77 = 90.1 %
86 = 95.8 %
97 = 99.9 %
99 = 100 %

As you can see Silver becomes a good buy for a GSR > 55.
We are now at GSR> 60 so we have a > 60% chance to see Silver outperform Gold.
If the GSR goes to > 77 there would be a > 90% chance to see Silver outperform Gold.

At that point exchanging Gold for Silver would be a no brainer.

Tue, 04/23/2013 - 09:58 | 3487886 fiddler_on_the_roof
fiddler_on_the_roof's picture

Statistics is a lie.
Where are Asians lining to buy silver ? None. They only like Gold, just like all ce tral banks.
Only misguided western goldbugs like silver.

Place your bets. I say GSR moves above 100

Tue, 04/23/2013 - 10:34 | 3488024 TeamDepends
TeamDepends's picture

How much gold does Apple use in their computers?

Tue, 04/23/2013 - 10:59 | 3488082 fiddler_on_the_roof
fiddler_on_the_roof's picture

How much copper is used by builders in their buildings ?
Gold has a 100 year supply overhang, but is it being sold ?
Silver is like nickel, copper, iron, wheat, You just consume them each year.

Tue, 04/23/2013 - 12:17 | 3488563 Bay of Pigs
Bay of Pigs's picture

Are you even remotely aware of how much silver China is mining and importing? They export none.

Tue, 04/23/2013 - 15:14 | 3489664 fiddler_on_the_roof
fiddler_on_the_roof's picture

Wrong. China exports Silver but they do not export Gold, which they mine.

Tue, 04/23/2013 - 10:30 | 3488006 ParkAveFlasher
ParkAveFlasher's picture

Thanks El Indio, this is great stuff.  I follow your silver calls which have been accurate for quite a few turns now.

Tue, 04/23/2013 - 08:40 | 3487466 Yamaha
Yamaha's picture

To answer that question read Grant Williams piece out last night - the only comments that make any sense.  Where are you Tylers?  Missing the boat - who the fuck cares about Goldman?

Tue, 04/23/2013 - 07:52 | 3487323 saulysw
saulysw's picture

US Growth? What, in food stamp numbers?

Tue, 04/23/2013 - 08:19 | 3487410 kill switch
kill switch's picture

Growth?

 

Like Pinocchio's nose.

Tue, 04/23/2013 - 07:53 | 3487325 Seasmoke
Seasmoke's picture

Fucking lowlifes should not be allowed to have Gold in their names.

Tue, 04/23/2013 - 07:53 | 3487326 colin
colin's picture

so another smack down coming then?

Tue, 04/23/2013 - 08:06 | 3487365 outamyeffinway
outamyeffinway's picture

Right, to meet their $1,200 call. They just don't want to be in the trade because of all the phyzz they're buying. At least their call is lower, how do they justify to their clients otherwise? What a joke.

Tue, 04/23/2013 - 08:08 | 3487383 swissaustrian
swissaustrian's picture

Possibly, but the smackdown in China today happened due to the weak Chinese PMI.

Tue, 04/23/2013 - 07:53 | 3487328 RSBriggs
RSBriggs's picture

You would think that Goldman/JPM/et. al. wouldn't use the word "conviction" - convictions can't wane if there aren't any arrests made in the first place. 

 

Oh...  Wait....   Nevermind.....

Tue, 04/23/2013 - 07:53 | 3487334 fonzannoon
fonzannoon's picture

who the hell sold their gold? Were they collecting paper?

Tue, 04/23/2013 - 08:02 | 3487352 Sheeple Shepard
Sheeple Shepard's picture

Not just any piece of paper! Its a piece of paper that says you have a piece of paper that says you own gold.

Tue, 04/23/2013 - 07:56 | 3487340 Silverhog
Silverhog's picture

I want to get whatever the hell Goldman is smoking. 

Tue, 04/23/2013 - 07:57 | 3487343 Sheeple Shepard
Sheeple Shepard's picture

Hopium and belly-button lint. Its a potent cocktail.

Tue, 04/23/2013 - 08:52 | 3487523 francis_sawyer
francis_sawyer's picture

I don't know what Goldman is smoking... But if you're taking their advice, YOU are smoking circumcised poles...

Tue, 04/23/2013 - 08:09 | 3487382 yrbmegr
yrbmegr's picture

They're not smoking anything.  They're telling the muppets to sell so they can buy cheap.

Tue, 04/23/2013 - 08:00 | 3487346 VonManstein
VonManstein's picture

No, Sell Gold on the 24/25th and and buy back on 2nd Of May

Tue, 04/23/2013 - 08:03 | 3487355 fonzannoon
fonzannoon's picture

Eh?

Tue, 04/23/2013 - 08:08 | 3487374 swissaustrian
swissaustrian's picture

Chinese banking holdiday from April 29th-May 1st and options expiry on April 25th.

Tue, 04/23/2013 - 08:04 | 3487360 Arius
Arius's picture

did you mean the ooposite?

Tue, 04/23/2013 - 08:08 | 3487384 VonManstein
VonManstein's picture

when i say "sell" i mean short. never sell your gold. but the trade above is the plan

Tue, 04/23/2013 - 08:19 | 3487406 new game
new game's picture

two things you never sell; gold  gun

don't buy it if you cant keep it for life and pass it on to kin...

this assumes you have a pot to piss in.

Tue, 04/23/2013 - 07:59 | 3487347 Dan The Man
Dan The Man's picture

 "...as conviction in holding gold continues to wane..."

 

Ahem...that's holding gold PAPER ?!?!  

Tue, 04/23/2013 - 08:01 | 3487351 unwashedmass
unwashedmass's picture

1000 tons have gone to Shanghai now over the last couple weeks of this "intervention". 

the days of the dollar are ending. 

welcome to the third world.....

and all this is happening to save the banksters' butts. 

UNREAL> 

Tue, 04/23/2013 - 08:08 | 3487377 Ghordius
Ghordius's picture

"the days of the dollar are ending", might be, might be, but I had a good friend that started to say that on August 15th, 1971 and repeated this in his letters every August thereafter, until 2001... the USD outlived him

Tue, 04/23/2013 - 08:46 | 3487401 ChanceIs
ChanceIs's picture

I have a good friend who is an investment banker.  I asked him a few years ago when Greece would default on his debt.  He (necessarily) is very "bought into" the system.  He basically very reluctantly agreed that it was going to happen.  But he allowed a lot of wiggle room that it might work out.  Said something like: ' You would be surprised how long these things can take to resovle and what might happen along the way.'

Of course Greece has defaulted many times in the last few years.  It's just that the ISDA won't call a spade a spade.

Tue, 04/23/2013 - 08:30 | 3487441 unwashedmass
unwashedmass's picture

so far, we've seen the aussies walk out on the dollar in trade with china

half of asia with their emerging trade union

brazil

russia

turkey

france 

and several smaller countries....

its vaporizing beneath our feet.....

 

so it might not have been happening in 1971, but it sure is shit is happening now. 

all its going to take is one arab country walking out now..... and its game over. 

anyone selling their gold or silver bullion now is simply deranged. 

Tue, 04/23/2013 - 10:15 | 3487949 viahj
viahj's picture

China and KSA are already working together building refineries and not using the USD to do so.  KSA exports more oil to China than the USA. 

Tue, 04/23/2013 - 08:46 | 3487490 css1971
css1971's picture

It takes a while for an empire to end. Faster today than ever before though.

Tue, 04/23/2013 - 08:04 | 3487354 EmileLargo
EmileLargo's picture

GOLDMAN SACHS = FILTHY SCUM

Tue, 04/23/2013 - 08:04 | 3487359 newworldorder
newworldorder's picture

What pisses me me off the most is their "in your face" behavior that that they can do what they want by their manipulations, knowing they have the backing of governments. Taking credit for their "trading calls" and telling the public how well their research is. Screw them all.

Tue, 04/23/2013 - 08:05 | 3487368 EmileLargo
EmileLargo's picture

When the system collapses, they will have nowhere to hide or run. They will be caught in the streets and strung from the nearest pole where they belong.

Tue, 04/23/2013 - 08:30 | 3487443 Skin666
Skin666's picture

Exactly!

When the public come looking for the architects of this disaster, how is Blankfiend et al going to protect themselves?

What if people start crowdfunding executions of these kleptocrats?

In the interconnected world of the 21st century, I just can't see how these wankers will get away with it!

Vive la (anarcho-capitalist) revolution...

Tue, 04/23/2013 - 08:47 | 3487486 unwashedmass
unwashedmass's picture

 

jamie dimon bought hisself an island in micronesia last month. you think these guys are gonna stick around? get real. they are readying their bunkers now. 

Tue, 04/23/2013 - 09:02 | 3487564 Skin666
Skin666's picture

And a little reconaissance will locate the stupid fuckers! Find the island, and you've found Dimon!

How does a bodyguard protect you from a sniper rifle a mile away?

Tue, 04/23/2013 - 14:50 | 3489580 Diogenes
Diogenes's picture

That's why they are toughening and dumbing down their police forces, and buying them millions of rounds of ammo and thousands of armored personel carrieres (with your money).

Tue, 04/23/2013 - 08:06 | 3487373 Arius
Arius's picture

a bit of change in the wording of your sentence and you will not be so upset ... from "backing of government" to "owning" ... so, it is their little board game and if you dont like it so be it.

Tue, 04/23/2013 - 08:42 | 3487469 Cacete de Ouro
Cacete de Ouro's picture

So where are the Chinese walls at Goldman? Looks like they don't exist if top executives like Blankfein and others liaising with the US Gov and with other central banks can 'influence' both the research department and prop traders. Did someone say SEC?

 

And anyway, who wrote this trade recommendation and it's closure statement. Who are the research guys, or is this a publication without individual names?

Tue, 04/23/2013 - 08:06 | 3487362 EmileLargo
EmileLargo's picture

In India, Jewellery makers cannot get ANY PHSYICAL. This is how fucked up the exchanges have become.

Tue, 04/23/2013 - 08:06 | 3487375 apberusdisvet
apberusdisvet's picture

WOW!  Goldman still thinks that its statements/recommendations are relevant?

Tue, 04/23/2013 - 08:08 | 3487376 hitman1234
hitman1234's picture

I wonder what GS had to do with the recent HUF rumourville about dropping the rate from 5% to 1% given the EUR/HUF buy recomandation made 2 days ago

Tue, 04/23/2013 - 08:07 | 3487378 Downtoolong
Downtoolong's picture

Our bias is to expect further declines in gold prices

And that's why they're buying and closing their short ??? Funny, even their lies don't make sense anymore. 

 

 

Tue, 04/23/2013 - 08:34 | 3487451 youngman
youngman's picture

to perfect a trade....its a we know it all trade..and you don´t....they knew the paper was going to be dumped...and they knew when it was going to stop too...rigged...they have computers right next to the NY Stock exchanges computers....and probably more....I wonder how Bart Chilton is dong on his investigation..probably got another cool million in his off shore account to look elsewhere again...no fox in this henhouse...you can bet they are buying the real metal....and have a safe place to store it for the "partners".....they know the paper market is dying out...that scam is over...so they are dumping the paper for the real metal....I too think the paper price will go down as people realize that there is no metal behind it....just a fee or two...and the day traders will move to NetFlix or some other play...

Tue, 04/23/2013 - 08:08 | 3487379 yrbmegr
yrbmegr's picture

Buy!  Buy!  Buy!

Tue, 04/23/2013 - 08:12 | 3487388 ChanceIs
ChanceIs's picture

See King World New today - already this morning:

Andrew Maguire interview on LBMA "default" refusal to deliver, and

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/4/23_Andre...

Jim Sinclair (trough King) friend refused delivery from Swiss allocated account - drug money laundering concern - although its OK for HSBC:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Si...

Tue, 04/23/2013 - 08:14 | 3487392 EmileLargo
EmileLargo's picture

What is going on is insane. The entire Western financial system will collapse.

Tue, 04/23/2013 - 08:20 | 3487415 GetZeeGold
GetZeeGold's picture

 

 

Dude.....you can't actually say that crap.

 

Hold it down.....you're gonna scare someone.

Tue, 04/23/2013 - 08:28 | 3487431 newworldorder
newworldorder's picture

I am inclined to think that their activities are in keeping with the final defense of the "new world order." There is also the legacy wealth of centuries tied up in fiat money regimes that must not be allowed to evaporate. They will defend all of this for no other reason than their belief that social order has to be maintained at all costs in order to still pursue the "one world order."

Tue, 04/23/2013 - 08:33 | 3487432 ChanceIs
ChanceIs's picture

The governments have implicitly approved the gold price manipulation last week.  They are looking the other way if not having commanded it.  Much is made of the meeting of the heads of the hydra in the Oval Office a day before the gold crash.  Make of that what you will.

The case that we are having the equivalent of a bank run against physical gold which has been fractionally reserved ad infinitum is very, very solid.  I can only postulate what will happen.  My educated guess:

1) AG Holder refused to prosecute obvious criminal bankers for drug laundering on grounds of banking stability,

2) The banks will be hard pressed to make good on the gold.  There will be a huge argument over the settlement price. Would it be the average coin sales price, or would it be the price "arranged" by those same banks which now have to make good.

3) The government(s) have already revealed their attitude towards...shall we say...private property through the Cyprus action,

4) In the name of banking stability, the governments are likely to come in with a hard line and tell the gold holders  to take the price dictated to them,

5) There will be massive litigation,

6) If nothing else, the nakedness of the banks will be totally exposed,

Will that collapse the system????  I think that it will usher in the change.  That might be the break up of the big banks.  It might mean the continuation of the games with a global currency e.g. SDRs.  My rose colored galsses tell me the former.  Survival instincts say the latter.  At least in America there will be a lot of anger.  Americans down deep don't trust government.  Witness the recent refusal to regulate guns.

Tue, 04/23/2013 - 08:34 | 3487449 new game
new game's picture

just a tad of confusion; this is the logical outcome of manipulation.

stand back, relax and play some chess with a great player and sharpen your skills.

think 4 moves in advance if you have a brain that can take 2 to the 4th power.

then multiply that by x(manipulation) and walla-who the fuck knows...

Tue, 04/23/2013 - 08:24 | 3487426 docj
docj's picture

...our economists’ forecast for a reacceleration in US growth later this year.

Their economists either

1) believe this - in which case anyone taking GS' deserves the screwing they will surely get

2) don't believe this - in which case you want to be on the opposide side of whatever GS says to do from here forward

Tue, 04/23/2013 - 08:27 | 3487433 new game
new game's picture

barter is becoming the new norm.  when these brokers can not supply the demand they will go under with their overhead-no product.  the beginning of the supply chain will hold out for higher prices as greed is in contol right now.

same, ditto, gov. manipulation; as is the ammo situation(h.s. buy of 1.6billion). 9mm .5/bullet blaz brass-say what? double.

markets are breaking apart as government/gs jpm-cartels of manipulation has created this.

what is next?

Tue, 04/23/2013 - 08:35 | 3487450 FreeNewEnergy
FreeNewEnergy's picture

Goldman Sachs will (if not already are) become the world's greatest contrary indicator. Whenever they say sell, buy, and vice versa.

I'm waiting for them to make a loud, boisterous call on stocks, like S&P 1750 or some other shit, so I can buy puts. Meanwhile their duplicity never ends. It is even in their own comments, after closing out their gold "short," they say:

Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.

Fucking wankers are so damn bold as to speak out of both sides of their cock-filled mouth at the same time.

Hang Blankfien and the rest of these crooks.

Tue, 04/23/2013 - 09:02 | 3487570 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Did the muppets just get flipped for real ?

Tue, 04/23/2013 - 09:05 | 3487593 TalkToLind
TalkToLind's picture

Short and distort, muppet bitchez.

Tue, 04/23/2013 - 09:09 | 3487611 anthonymaw
anthonymaw's picture

It is pretty clear from recent gold price fluctuations that the price has hit support due to supply side destruction at the cost of production of an ounce of refined gold at around US$1400

If the price were to drop lower, the refiners would terminate supply so we now have market price/quaitity equilibrium.

This is similar to the situation back in the 90's when central banks like the Bank of England were selling off their physical holdings and the price hit bottom around US$250 per ounce, except now they market movers are dumping digital gold.

News of US economic "reacceleartion" without significant job creation and in the face of endless Quantitiative Easing is just dishonest disingenius reporting.

As the cost of gold production rises, it can be seen how gold bullion holdings are a hedge against inflation.

Wed, 04/24/2013 - 00:18 | 3491623 MeelionDollerBogus
MeelionDollerBogus's picture

WHICH PRICE is at support?

Coin prices (not collector / numismatic) ?

Bar prices?

PAPER contract prices? These prices are now moving distinctly. Collectively they move sort-of together, sort of like how darts from a sabot all move sort-of together for a while.

 

Tue, 04/23/2013 - 09:10 | 3487614 One World Mafia
One World Mafia's picture

The govt is revising the methodology for computing GDP:

http://www.youtube.com/watch?v=g5OfBxk00LI

Tue, 04/23/2013 - 09:23 | 3487691 TalkToLind
TalkToLind's picture

Instant growth!

Tue, 04/23/2013 - 09:21 | 3487679 Herdee
Herdee's picture

No problem buying in Canada.In Calgary or elsewhere you can go to Albern coins online,they welcome American buyers but you can only use a credit card for collector coins from the Mint(not for bullion).ScotiaMocatta has an online store and of course you can talk to Kitco.ca up here and open an account.I believe you need $2,500 to open with Kitco.ca and they don't use credit cards.Not sure about any taxes at the border.The other option is to simply buy through Sprott on the stock market. Gold is PHY.U , Silver is PHS.U , Plat. & Pall. are PPT.U ,Sprott is easy to find on the web. I believe their Company stock symbol is Sii -Toronto.Other options are precious metals royalty funds: FNY, RGLD, SAND, SLW. And finally,low mintage coins are available at the Royal Canadian Mint (Mint.ca),they also take credit cards for collector coins.

Tue, 04/23/2013 - 09:35 | 3487763 MeelionDollerBogus
MeelionDollerBogus's picture

silvergoldbull.com is in Canada and keeps running out of silver inventory.

I got my deliveries pre-crash.

COLLECTOR COINS cost extra money, they are not an investment, they look pretty. You overpay for collector coins.

Tue, 04/23/2013 - 09:33 | 3487749 MeelionDollerBogus
MeelionDollerBogus's picture

Fuck that.

Either Goldman is lying and everyone should be ready for a rapid rise,

or Goldman is lying and signalling they hear of deeper cuts in which case people should be ready to buy like gangbusters.

There's no long-term downside to gold, anyone selling gold to Goldman for fiat paper is finished

Tue, 04/23/2013 - 10:03 | 3487904 1000 splendid suns
1000 splendid suns's picture

KingWorldNews has been reporting on the LBMA defaulting. LBMA actually stands for 'Ill Be Amazed', as in if they make it through May without being burned to the ground.

Tue, 04/23/2013 - 10:24 | 3487980 Meat Hammer
Meat Hammer's picture

What else is left to buy when you own everything?  Ultimate power.  The honorable G. Edward Griffin nailed it. 

If we are the 1% of Americans who even think about owning gold then we will be the new so-called "rich" when the rest of the country is left holding their dicks.  

I never thought I would buy into conspiracy theories, but TPTB don't live in reality, they create it.  Crash the dollar, impoverish the populace, and they will hand over their sovereignty...for their own good.  We saw it with the bombers in Watertown.  There was a time when the local citizenry would've formed a posse and hunted down those mother fuckers...not anymore.

Dimon, Blankfein, et al could easily sip Mai Tais and bang lady-boys in Thailand until they die, but I don't think that's the way they tick.  They want it all. 

This will end badly...by design.  I hope I'm wrong.  

Tue, 04/23/2013 - 10:56 | 3488091 Bansters-in-my-...
Bansters-in-my- feces's picture

If you invest through Goldman Sachs or bank with goldman Sachs you are fucking delusional and part of the whole problem.

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