Commodity Smackdown In Progress

Tyler Durden's picture

While the immediate catalyst will be heralded a weak ADP report, commodities in general have been sliding all morning. In the last few minutes (and for the third day in a row) Silver and Gold prices have slumped hard around the 8ET hour. What is somewhat odd about this smackdown is that the USD is being sold aggressively against the JPY (tested 97) and EUR (above 1.32). Oil is not smackdown-retardant and has dropped back under $91.50 for WTI. S&P futures are 6 points off overnight highs (a mere -2 from the close).

 

 

Oil and Stocks too...

 

But the USD is weaker?

 

Charts: Bloomberg

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jubber's picture

Look at Dr Copper, down 2.5%

kliguy38's picture

but but.....isn't this the best time of the day to sell large numbers of contracts........otherwise you might think this is manipulated

Debtonation's picture

That's just JPM.  Make sure you take delivery.

GetZeeGold's picture

 

 

Yeah......about that.

 

Hunt for PMs or ammo today......I just can't decide.

Muddy1's picture

Both, today and every day.

GetZeeGold's picture

 

 

Tried that yesterday.....figured I'd have a better shot if I just zeroed in on one.

AllThatGlitters's picture

 

OK, those who were expecting a test of the lows, time to step up (if you can find inventory at the retail level that is).

You can still get gold bars for just $25 over spot, so I never saw the shortages in gold that was apparent in silver.

 

Watch gold's beating today live:

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

 

Gven all that's been published about gold disappearing in size, perhaps this smackdown is the one that depletes retail gold inventory for good?

 

rajat_bhatia's picture

As a gold bug would say , "if I bury my head in the sand, and don't look at the smack down, then there is no smack down and my stash is still wort $2000/oz :-) "

TeamDepends's picture

Still not getting it, raj.  Try harder!

Pinto Currency's picture

 

April 29 - May 1 is the the May Day holiday in China.

When the Cat's away, the rats will play.

Pinto Currency's picture

 

A useful link on the Shanghai Gold Exchange posted.

See the physical delivery statistics (now compare that to the Comex):

http://www.goldminerpulse.com/v/shanghaiGoldExchangePhysicalDelivery.php

 

  • Peak One Day Delivery: 35.7 tons of gold, 22 March 2013.

  • Current Month Delivery: 208.6 tons of gold as of 26 April 2013.

  • Peak One Month Delivery: 328 tons of gold, March 2013.

  • Gold Delivery Since 1 January 2013: Gold delivery (year to date): 1030 tons.

unwashedmass's picture

 

well for those of us who bought in the 400-600 range...we still got a long, long way to go to losses.....we are now at the point where those who didn't sell -- shares or bullion -- aren't going to sell. 

now this is all about  JPM working the market to try and get rid of its massive exposure. 

before the lid blows off on the media blackout of this insanely corrupt market.......and bank. 

LawsofPhysics's picture

Wake me when the price in fiat dollars gets below $300 and ounce, that's the dollar cost average on my physical holdings.  Don't be such a sore loser just because you have no physical.  What is the fiat money supply again?  Yeah, that's what I thought, troll harder loser.  I have no problem exchanging a coin for the value of someone's labor, many will no longer be accepting those paper promises...

greatbeard's picture

>> $300 and ounce, that's the dollar cost average on my physical holdings.

Sorry, but somebody has to call bull shit on that claim.

Panafrican Funktron Robot's picture

Copper and crude also getting taken to the woodshed.  Price levels to look at:

Gold under 1350

Crude under 85

Copper under 3

RUT under 900

Copper under 3 is probably the most significant price point to watch.  It's really damn close.  

James_Cole's picture

Copper under 3 is probably the most significant price point to watch.  

In the words of Joe Biden 'this is a big fucking deal'

whatsinaname's picture

Tell that to most of your countrymen and they will tell you what a buffoon you are Rajat.

btw.. most of the black money is held in gold did ya know ?

Pegasus Muse's picture

The CRIMEX says the price of their Paper Silver is $23.45/ounce at the moment.

But over at APMEX I can't an ounce of the Real Deal, actual Physical Silver,  for less than $31.55/oz.   

http://www.apmex.com/Category/1190/1_oz_Silver_Bars.aspx 

That's more than a 25% price delta.

Looks like the manipulated scam-ridden NYMEX/COMEX prices don't mean squat in the Real Marketplace.  The Paper Pumpers are losing their relevance and 'price setting' ability due to their pervasive corruption.  

 

SilverRhino's picture

Industrial silver shot is still a good deal.  1 dollar premium and still available in 25 ounces or more. 

 

BurningFuld's picture

Can you bring Ammo back over the border? Caus' they be no shortage of bullets in Canada.

new game's picture

delivery forthcoming...

phys baby phys!

hoarding (stacking and piling), warehousing, stashing, rat holeing.

forming a new support group for hoarders anon. - H.A.

I am powerless over buying the dip...

TeamDepends's picture

And you thought you could get away with not maintaining your boat properly.  Tsk, tsk, tsk....

Jreb's picture

Dealers in Canada are stock piling. Demand is growing rapidly here - one guy told me he is peeling through 3 months worth of ammo in a few weeks. Deman is high but not as bad as the US. They are expecting shortages come summer due to US delivery issues. Some stuff is already either non existant or in short supply (US built 223 is something of a running joke in most places).

Can't even buy it here without a Canadian license anyways and if you had one you would have to get preaaproval from ATF to move it through the border before you even came to shop. 

Besides.... keep yourt hands off our ammo :-).

Spider's picture

Newbie here - Anybody know a good place where I can see how many gold/silver contracts are trading on COMEX on a relatively live basis?  Just want to get a feel for how much volume is happening on these smackdowns

Thanks!

NoDebt's picture

That's the one I look at.  It's been on a slow burn for months.  Europe and Asia slowing down for months is the reason, in my opinion.  We're next.

I think we're going to find out that a recession CAN happen, even with the Fed and every other central bank holding the pedal to the floor.

Which reminds me- I saw the first article today about EXPANDING QE even further ($160B/mo.??) because of all the bad data coming out the last few months.  OF COURSE!  Why didn't I think of that!!  Let's do more of that stuff!!

101 years and counting's picture

copper now at lowest prices since sept 30, 2011 when the SPX was plunging to 1075.  good reason for copper to get beaten down: http://www.kitcometals.com/charts/copper_historical_large.html#lmestocks...

TeamDepends's picture

Gold $7,000!?!?  It's a good start....

TeamDepends's picture

Back up the truck, boys!

ghengis86's picture

Where? My LCS is still charging $31+ on ASEs. Not stopping me, but the sale is in paper only

TeamDepends's picture

Wherever you can mate, wish we could help you.  We are merely trying to promote the "Mayday Silver Binge", whereby serfs the world over are encouraged to buy silver even if they have to sell something of value.  Come on everybody, let's break JPM's back today!

unwashedmass's picture

 

yeah, "something of value" being sold to buy hard gold or silver? Exactly what would that be? USD? Bonds? No, treaauries? yeah, that's the ticket --- maybe want to get the silver or gold to get out of the way of the 20% haircut coming to a bank near you soon. 

or, lemmme see.....AMZN stock....yeah, in the rip roaring recovery, retail is going to do soooooooooooooo well. 

gimmee a break. 

TeamDepends's picture

Read the post again, brother.  Serfs don't have stocks or bonds.  We are talking about that third guitar you don't need, a couch, that fine china that nobody cares about except grandma....

McMolotov's picture

I'll keep the fine china and sell grandma instead. That Fancy Feast shit that she eats is getting expensive.

TeamDepends's picture

Yet another business opportunity in this hyper-prosperous economy:  Soylent Green Corporation!

Blano's picture

31.50 is the floor at my LCS.

Lost Wages's picture

Why buy ASEs when you can just get generic bars/rounds? I've never understood buying silver from the government mint and paying tax. That is bullshit.

howenlink's picture

...meep...meep...meep...meep

The Second Rule's picture

PM smackdown alongside a USD smackdown? Headscratcher indeed.

uno's picture

PM smackdown regardless of anything else.

mayhem_korner's picture

 

 

These smackdowns are like contractions in child birth.  The closer together and more intense they are, the nearer we are to full decoupling.

CrimsonAvenger's picture

That's fine - but the big boys still don't realize the game has changed. Smackdowns don't scare us away - they bring out the buyers.

it's like in Rocky, when he's daring Mr. T to hit him - "he's not getting killed, he's getting mad"

http://www.youtube.com/watch?v=eyPdtdlzf7Q

mayhem_korner's picture

 

 

Oy.  They should've stopped at Rocky II.

Race Car Driver's picture

If we had any kind of education system at all, students would be taught that popular media is not entertainment, but dangerous, mind-altering propaganda to be shunned. But, popular media is education these days ... and so, Rocky l & ll are okay, but anything after that is junk.

Feh.

unwashedmass's picture

oh. gold silver down in the new york markets. 

how odd. 

firstdivision's picture

Oil getting pounded as well.  Those long NG are going to be upset soon as drillers switch over and supply rises. 

Hohum's picture

firstdivision,

Drillers will only go over to NG if the price is sufficient.  Look at wtrg.org on Monday morning and see where drill counts are headed.  Do a little research!