Gold Retraces Half Of Record Plunge

Tyler Durden's picture

With its biggest 8-day rally in 20 months, Gold having jumped another 1% this evening has just breached $1445 and retraced half of the record plunge from April 12th. It would appear that the record physical demand that we are seeing in every corner of the globe is indeed leaking back into the actual price of gold.

Spot Gold has retraced half of its record plunge losses...

with the best 8-day performance since early September 2011...


Charts: Bloomberg

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freewolf7's picture

Great beginnings...

Ahmeexnal's picture

Seems like Jamie Dimon just had his leg sawn off!

DoChenRollingBearing's picture

Just when I want to go out and buy some more.  We'll see if there is any at my LCS tomorrow.

true brain's picture

Question: how much fiat currency has been converted into gold since the crash?

serious. anyone with answer.

bonin006's picture

I don't see how there can be any conversion - just gold and FRNs or whatever changing hands.

flacon's picture

How much has silver regained from the smackdown? ... um-hmm... I thought so.... nothing...




Ahmeexnal's picture

Explosions in Al-Abama.  Is this how the banksters cover their PM smackdowns?

Mark Carney's picture

Im proud to say I bought that DIP!


Although, I did have to pay the physcial price, not paper.


Oh and I have been dealing with SilverGold Bull out of Calgary, fantastic! I got my order in 1 week, not bad ocnsidering......but they are swamped!

knukles's picture

Can you spell whiplash?
I knew you could.

And we have COMEX settlement coming up?
Somebody's getting their nads squeezed what with all the new shorts created last week


Treacherous shit
Nobody but a gubamint idjiot coulda thought this shit would work.
Trhe Law of Unintended Consequences is a Bitch

StychoKiller's picture

Well, when all ya got is a tonne(s) of paper gold...

GetZeeGold's picture



I took my ball....walked off the field....and took the week off.


Good luck getting any gold out of the'd be better off begging at Fort Knox.

Badabing's picture
Gold Retraces Half Of Record Plunge

but not silver?


could silver be the problem PM for the COMEX thats in short Phys. supply?

TeamDepends's picture

And the game was played with a paper ball to no ones satisfaction.

greggh99's picture

Actually, about a buck.

lickspitler's picture

Bitcoins retrace 70% of their move down.


one eye pm stackin fucktards'-

ClumsyBoatman's picture

keep your shitcoins nerd, I'M ALL IN

AllThatGlitters's picture

flacon - Silver is at $23.40 tonight. The low in the smackdown was $22.05.  

That's about a 25% retracement.

Last I checked, 25% is different than nothing.

Watch it moving higher tonight live:

Jack Napier's picture

Premiums have eaten into any spot price drops since the high 24's anyway, but still a good buy anywhere in the ballpark. Gold gets all the glory, but the entire silver bullion market cap is only $30 billion which is absurd. The GSR should be less than 10:1 if it was adhering to mining output, and more like 1:5 if it adhered to available supply. I'm glad silver is the metal staying down so I can buy more of it.

James_Cole's picture

flacon - Silver is at $23.40 tonight. The low in the smackdown was $22.05.  

That's about a 25% retracement.

Last I checked, 25% is different than nothing.

Yeah but that's exactly the wrong way to look at it, better to look at it having 75% left to go before being where it was a week ago. 

Jack Napier's picture

The vault is half empty type eh? =P

AllThatGlitters's picture

Sure James_Cole - just correcting a factually incorrect statement was all.  :-)


It probably have 100% left to go to get to where it should be.


I still think the situation in Silver is different than it is with Gold.  Something bigger is brewing with Gold right now. We aren't seeing the inventory drainage is silver are we?  Just gold?  Silver has a different and compelling fundamental story to be sure, but right now, all the head-scratcher activity is taking place in gold.

Jack Napier's picture

It's a tale of 2 different dynamics. Gold is being drained on the exchanges (metal of kings). Silver is being drained from the dealers (peoples' money). That's why silver premiums are higher.

Prior to the takedown the COMEX already had the largest ever quarterly outflows of physical gold to start the year off. My guess is that the writing is on the wall, and it's a smash and grab. Hedgies are now focusing on gold according to Andrew Maguire's recent KWN interview. Silver is too small for institutional money anyway, but it will move where gold leads, and then some.

James_Cole's picture

I still think the situation in Silver is different than it is with Gold. 

Silver is simply the more volatile investment, also more heavily reliant on industrial demand. 

akak's picture

Volatility is not synonymous with risk, nor is there any correlation between volatility and value.

Besides, the volatily in the silver market, as in the gold market, is much more a function of the spasms in our failing fiat currency regime, and the corrupt financial system in symbiosis with it, than it is a reflection of anything fundamental to the metal or its (physical) market themselves.

James_Cole's picture

People almost almost always look at probabilities / statistics in the direction of their desire, rather than the weighting. 

And besides, in terms of buying - physical buyers haven't benefited from these lower prices that much...

putaipan's picture

virtual reality check- bitcoin @ 156.5$.

Pegasus Muse's picture

Netdania Spot Price: $23.29/oz.

APMEX Monster Box: $16,170 / 500 oz = $32.34/oz.

Premium over Spot: $9.05 

This price divergence indicates the CRIMEX spot price is (has become) a meaningless number in the REAL MARKETPLACE.  

So you fraudsters and scamsters and market riggers at the COMEX/CME/CFTC go ahead and play your shyster games amongst yourselves on your corrupt paper exchange. 

REAL PEOPLE who want REAL SILVER are paying REAL MARKET PRICES to get it.  Thanks to your CRIMEX market manipulation and other market interventions (the long bullion, short miners trade; the lack of CAPEX financing, etc) the supply of REAL SILVER isn't what it would otherwise be. 

Way to go, assholes. You shat bed; now you get to sleep in it.


donpaulo's picture

silver up 1.69%

gold up 1.44%

as I type this

flacon's picture

The same amount as the amount of gold that has been converted into fiat. 

/I know, I am a smart ass tonight. 

Croesus's picture

@ True Brain:

A shit-ton!

It's really impossible to answer that question, unless you called and asked every dealer large and small, all over the world, plus the mints, plus the exchanges. You also have to assume that all of them are being honest.





true brain's picture

This amount of fiat, converted into physical gold, will not be spent any time soon; this same amount is assumed to be taken out of banks account etc. Question: what is the ripple effect on economy? if it can even be measure? what is effect on banks if this amount is large enough?


seek's picture

COMEX by itself has seen about $1B in gold walk out the door (from 4/16 to last night, 670,000 troy ounces has left the building.)

We don't know how much LBMA has seen go away, but GLD has seen redemptions of $2.27 billion as of last week -- it's claimed by media that's people selling and running away from gold, but it's more likely it's actually gold redemption given what's going on. So that's $3.3 billion.

Add the mystery LBMA plus most retail inventory worldwide, I'm sure it's past $5 billion.

Go Tribe's picture

The only way this works out for them is if we get inflation. Which is interesting, inflation arriving when everyone is talking about deflation.

mt paul's picture

i'm in 

for a few large..

eclectic syncretist's picture

"Question: how much fiat currency has been converted into gold since the crash?

serious. anyone with answer."

Again, I refer you to the COMEX, where over 1,000,000 ounces of gold have been called for delivery so far this month.  As of today there are 2,210,735 ounces registered.  So the answer is "a very high percentage of the gold that is available"

AllThatGlitters's picture

DoChen - I was planning to do so too.  The move higher tonight is my fault. I merely thought about picking some up, and if my LCS doesn't have anything, the online dealers I've referenced as having plenty of inventory have suddenly started showing delays in many different items.  Doh!

RaceToTheBottom's picture

"Seems like Jamie Dimon just had his leg sawn off"


I hope it was his third leg, the dickless wonder

Big Slick's picture

That's why he's STILL richer than you

greatbeard's picture

>> he's STILL richer

Some folks keep score with money, some don't.  Jamie is far richer than I and I'd not change souls with him.

xtop23's picture

I'd have prefered it went to zero. Total disconnect. I just have this feeling they're letting it rise now to play it the other way and try to shake confidence with another smash down. Not that it will work but..... we'll see what happens.

scrappy's picture

I think you are onto something.

Croesus's picture

@ xtop23: 

You know another smackdown is coming. I keep reiterating the point that in this recent buying frenzy, how much Gold is going to strong-handed buyers?

Some of these people who are buying have the right idea, but:

Do they understand the dynamics of the market? Swaps, leases, hedging, paper vs. physical, etc.?

Some of these buyers will be hitting the sell button the minute they see the paper price drop, because they don't understand what is really happening here.

I can tell you that I have dry powder on standby, just for this event. I think it will be "The Last Smackdown", and therefore:

1. "They" will be hitting the 'price' hard (think $500-$600 drop).

2. Many of the dealers (especially LCS) will be skittish about buying.

3. Weaker longs will be desperate to unload.




xtop23's picture

I think if we see a $500-600 drop in Au it's game over. Gold drops sub 1k, I'd sell my 69 Z28 for extra powder.There won't be anything left but dust bunnies.

Edit: I'd keep the crossram though.

de3de8's picture

I know you must be kidding, but just in case, I'll buy yor'e Z, it will go to a good home and have plenty of playmates.

xtop23's picture

DZ302....houndstooth int...Muncie 4SP....hugger orange....3.73 posi..... unrestored.

Bought in '81 for the princely sum of 14 grand with a loan from my father. It's the only classic I kept.

That was the one time I just had to have a car.

Unfortunately, I was too GD stupid to buy the '66 Hemi Satellite or '70 Plymouth Superbird I could have at 25k for either.

I've been through a '69 GTO, a '71 340 Demon, a '67 GT Mustang, '71 440 Challenger, and a '70 RT Charger to name a few.

I was always big into Mopars, but something about those shark gills did it for me.

de3de8's picture

Does not get much better than that,other than rs and jl8, but original...sweet. I don't have my very first cars but do have 64, 70,75,78, original owner corvettes, all original unmolested. Have 65 Mustang, 66 Starfire, 70 nova, 86 944turbo ( original owner 3k mi) 04 srt10 pu( orig own 800 mi ) 99 7.3 f-250 ( orig owner 21 k mi), 10 6.2 Raptor,11 500gt and 10 Camaro. Three others for every day. Can't coun't the stuff iv'e been through and wish I still had. I was never into Mopars in the day, but love them now. Too young and too stupid at time to realize all muscle cars cool. Cars, shows and working on them keeps me goin!
Good to make acquaintance.

xtop23's picture

Ditto. I like the GT500, but that much power with a solid rear axle is sphincter clenching to drive quickly. I can't imagine driving the new one at Thunderhill. I'd need an Ativan drip to keep my underwear dry.

I'm eyeing the C7 with great anticipation. If the Z06 version is anything like I think it could be, my wallet is going to take a beating.

Great avatar btw. 

I like the new ILE as well but it's just too big for my taste. I like cars that transition much faster with quicker turn in. You have to spend too much time setting your entry with that big a missile. 

I tested a 430 Scuderia that was almost automotive bliss..... but how do you convince the pregnant wife that 200k is money well spent? 

de3de8's picture

Could not agree more with all your thoughts. I had the 10 500 and as soon as I saw the SVT reveal on the 11 with German sourced aluminum block, had to have it. Have installed the whipple 2.9 package from ford racing to supposedly provide 750 horse. Never had it on dyno, and with Corsas not too bad. Ton of fun though as you can literally drive by throttle!
I too eagerly await the c7, especially the performance variants, and as you the Z06. Also intrigued by the new Z28 will be a beast but hardly bragging rights that 300 lbs lighter than ZL 1 but still several hundred more than mustang. Almost pulled the trigger on the boss Ls but did not. My biggest regret is not buying a brand new Ford GT, an 06 in 06. Had check cut and at last minute dealer wanted 2k more. I said no on a deal where I had the price struck for list price on the road all in taxes, title, tags. Now used gt's going for 175k and up. Oh we'll live and learn! Greed will get you every time.
Ferrari's. what can I say, if had money to burn, no question. Just too much $$$ for me, considering alternatives. I have driven a few, ones owned by good friend. A 512. When people asked how it drove could only say " you have to experience it yourself to understand". The best I could come up with is like driving a Rolex!
Off to first Carlisle show tomorrow.
As usual, a pleasure with the back and forth.

xtop23's picture

Nice, sounds like a good time. 

That Ferrari totally stunned me. I had never before, or since, driven a car that shifted that quickly. Next level kind of stuff. Very, very impressive. Late brake the corner, get your line, pass the apex, slowly feed in the gas, then mash the throttle and slide to the candy stripe. Indescribible.

My only complaint with it was being a little down on power. I haven't tried it but I'm sure the 458 addressed it.

10k services turns me off though.

Ouch on the GT40. I haven't driven one, but I did see an orange one that had been kitted out at Laguna. Uncorked and boosted, it sounded like nothing I have heard before. 

I saw a few pics of the new Z28 and yeah, I liked the idea of it. I wasn't fond of the different tail light treatment. The 19's look good and there's something to be said for stripped down no frills "go rides" though.

I'm really curious what the new automatic is like with the C7 as well. Being 6'6" and 245lbs. I have to modify the seating situation on just about any car I take autocrossing if it's a manual. Deep dish steering wheel, floor mounted seats with minimal padding or low rise custom brackets, and occasionally cutting out the lower portion of the dash. If I don't, heel-toeing is basically impossible. A well sorted, throttle blipper, automatic 'vette could really do the trick.

BB512? Classic. The only one I've ever seen was Sammy Hagar's. In Tahoe one night, his son Aaron drove it to Cabo Wabo and let my buddy Rob and I futz around with it. 

Gotta love cars. There's worse things to be addicted to :)