Visualizing The Great Gold Rout

Tyler Durden's picture

After a decade long rally, gold recroded its biggest two-day drop in 30 years during April. What caused this sudden decline? Is the gold cycle over, or is this just a dip in the market?

 

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Divine Wind's picture

 

 

Keep the phyz, and the faith.

Devotional's picture

I am keeping my physical but I am beginning to worry ... should I worry???

Devotional's picture

should I worry about the value going to the dogs?

espirit's picture

As the price goes down, I'm going to keep buying until there isn't any more.

SOP in Bizzaro World.

lasvegaspersona's picture

A paper market in gold will always go lower without support. Support has been withdrawn. The paper gold market is dead. After that we will get a physical only market if we are lucky.

malikai's picture

All I wanna know is..

Can I buy gold with an EBT card?

nmewn's picture

Yes!

But ya gotta use the ATM outside the local titty bar.

Harlequin001's picture

This is bullshit. Ask yourself this, if we live in a world where any central bank can print enough new money to buy all the worlds' gold, why isn't it constantly being shipped from one country to another at ever increasing prices? Why are China and Russia constrained to adding to their reserves FROM MINIMG SUPPLIES, and why will it take 7 years to repatriate one 10th of Germany's gold to the Bundesbank?

The answer is that gold is still, and has been for 50 years now the only 'commodity' that isn't for sale FOR ANY AMOUNT OF PAPER MONEY in the central banking system.

Why is that?

The answer is IMO because TPTB after WWII required collateral to make loans to rebuild a devastated Germany and Europe post war when there was no effective collateral other than gold. They needed to create new collateral to fund the rebuild, fast, and that collateral was debt. It was a requirement. They've done this before, they know how this ends, they knew how this would end back then and so do we now if you have any sense. It ends in both inflation and default, and when it does the only countries with gold will still be the post WWII powers i.e England and the US. Every other country including Asia knows that when the default finally comes the asset side of their now somewhat T Bill bloated balance sheets will implode, counterparty risk will be 100% and they will have no gold for their currency.

Try as they might there is no way the Fed or the BoE will allow any central bank to take gold paid for in post war fiat hence China and Russia scrabbling for mining supply.

If you want to go invest in the stock market go knock yourself out, I'm sure when push comes to shove you will find plenty of very tall fiat paid for buildings to jump off.

Me, I've got gold so I'm still struggling to give a shit.

Harlequin001's picture

Thanks, the gold market always was and still is THE most important market in the world, ever.

All these efforts at reducing interest rates are all ultimately to one end, to suppress the real price of gold, and they and we know it...

Let's face it, it might be some time before the gold price goes up, but ultimately it will be the only thing left.

So where's the risk? The answer is tax, watch out for that...

'The tax man cometh, and he drives a big fucking truck'

nmewn's picture

Understood...but the tax man doesn't know what fiat "price" I exchanged at...the date is only when it was minted, not when I exchanged.

It could have been yesterday or forty years ago. So its an issue of trust without a paper trail.

And time is one of their mechanisms for assessing value...and so it is with me. Of course we already know how trustworthy and above board they are, with the news of late ;-)

Harlequin001's picture

True. I think we've had this discussion before, my choice is to hold my gold in a different country in a recognised vault and behind a compliant tax plan.

The tax office is not one I'd choose to pick a fight with.

Different horses for different courses I suppose...

nmewn's picture

lol...well stated.

I'm not picking a fight with them but they extract their tax at the point of my earning it, before I even get my hands on it. Federal, progressive income taxation.

In a fair tax system that should be the end of it. Now that would make a great separate ZH post, to see how the statists define "fairness".

BringOnTheAsteroid's picture

How big a truck do you need to collect something that was lost in a tragic boating accident.

nmewn's picture

You'd be surprised how many boats I've lost over the years.

So I'm thinking I could do it on a motorcycle ;-)

DadzMad's picture

+1 for "I'm struggling to give a shit".  I'm going to borrow that one.

auric1234's picture

I recognise your FOFOA-speak but can't understand it.

What does "support" mean?

 

dunce's picture

I think it is like a jock strap, it holds your family treasures safe and secure.

jimmytorpedo's picture

my dogs eat gold for breakfast

blindman's picture

dogs eat their own shit, not gold. they have
no use for it.

SilverIsKing's picture

Gold dogs only.  The value of those paper dollars will eventually go to the junkyard dogs.

bank guy in Brussels's picture

No you should not worry about your gold

In Europe our fondness and respect for the value of gold is very, very ancient ... it goes back centuries.

Unlike Americans, we tend not to talk about it, partly because money-talk is often not so 'polite' here ... and partly because with things like gold, the value is assumed and understood, more than discussed.

Europe has seen revolutions, wars, foreign military occupation on a grand scale ... still within the living memory of elderly Europeans

Currencies come and go ... governments and armies come and go ... we know that here, so the place of gold among assets is almost instinctive ... we don't doubt gold's value ... this recent volatility in 'paper gold prices' barely registers with us. We think more of ounces and grammes.

When the Nazis occupied Belgium in the 1940s, a lot of gold went buried deeply into the garden dirt ... and stayed there till after the swastika flags were gone.

There is lots of gold here, very quietly ... no one really knows how much, because it is truly 'private' here, ha! (lots of privately-owned guns here, too, which we also don't discuss that much) ... Both the guns and the gold were useful for surviving the Nazi era ... and as we know in Europe, the wheel of history can turn

Keep the gold ... and the guns ... and like they say, a getaway or at least hiding-the-assets plan

Devotional's picture

now that is a reassuring comment! Thanks :)

Devotional's picture

now that is a reassuring comment! Thanks :)

The Shootist's picture

Good to know. Here in 'Merica, we're pretty dumb.

knukles's picture

Huh?

 

Hey Madge, git me 'nuther beer, girl.

nmewn's picture

In Amurika the one demanding is now named Clara ;-) 

(Burb!)

Such a sweet couple...lol.

dunce's picture

Black plastic sewer drain pipe is cheap and rugged and makes a good underground vault and if you rent a post hole digger the metal will be deep enough not to show up on a metal detector.

Hangfire's picture

The only thing you should be worried about is that the IRS now knows you have gold.  Get ready for the audit!    

Devotional's picture

luckily i am across the atlantic :)

i have read what the IRS has been doing in the USA. Sad to say the least and that is something Zimbabwe or any other dictatorship would do. Sorry guys, you ain't in the land of the free no more :(

nmewn's picture

First post...4/25/2013...I don't think you've fought yet, its in the rules.

"Should I worry?"

knukles's picture

Punch him. nmewn.

 

 

Wherz thet God damn beer, Madge?

Hulk's picture

Yah, Yah, hit him so hard that he'll see stars, bars and old popeye cartoons !!!

StychoKiller's picture

"I'm gonna beat you till candy comes out!"

Devotional's picture

true, i just signed up recently. so, where is the fight? I am in!

nmewn's picture

;-) 

Why do you value gold in fiat...were you programed that way?

knukles's picture

Kick him in the nuts when he ain't lookin' nmewn

 

Madge, where's that fucking beer, woman?

Hulk's picture

You lost already man, better cut back on the alcohol...

(Stop getting him that beer Marge)

(but she do like it when he has his beer goggles on...)

Harbanger's picture

"luckily i am across the atlantic :)"

That made me laugh.  No one will watch your back like your brothers in spirit.  Mark my words, you will be tested and asked.. "who are you Mo Fo."

oddjob's picture

Tell them you traded it for crack.

TeamDepends's picture

Come and git it, boys!  The IRS just dipped below cockroaches on the "necessary life form hierarchy" for most Americans, and will be dealt with as such.

klockwerks's picture

For what it's worth, went down to the wholesaler to pick up another MB this week and asked him whether gold was reportable. Just some but not eagles in rolls.

BringOnTheAsteroid's picture

You people are really struggling to grasp the hole in bottom of boat concept today.

This is the one of the truly valuable characteristics of gold that often gets over looked. It is one of THE ONLY entities that has intrinsic value (rarity) that can be held completety outside of the banking system and away from prying and despotic government hands.

Power hates gold, hates it to it's very last atom. It's something TPTB cannot control. Real estate can be seen and taxed, stocks can be taxed if they don't just vanish, bank accounts can be stolen, . Gold, tragically lost in a boating accident cannot be traced, ever and this is like an ice pick in the temple of tyranny.

BringOnTheAsteroid's picture

You people are really struggling to grasp the hole in bottom of boat concept today.

This is the one of the truly valuable characteristics of gold that often gets over looked. It is one of THE ONLY entities that has intrinsic value (rarity) that can be held completety outside of the banking system and away from prying and despotic government hands.

Power hates gold, hates it to it's very last atom. It's something TPTB cannot control. Real estate can be seen and taxed, stocks can be taxed if they don't just vanish, bank accounts can be stolen, . Gold, tragically lost in a boating accident cannot be traced, ever and this is like an ice pick in the temple of tyranny.

BringOnTheAsteroid's picture

Oi, who down arrowed that, bit harsh isn't it . . . . . oh, I get it, double post.

blindman's picture

don't worry, be happy.
you have not been foolish, right?

MFLTucson's picture

This fiat fraud will end when you least expect it and the last man standing will own Gold, not Google stock.

MicroSecession's picture

If you have physical gold for the right reasons there is no reason to worry.  If you have your heart tied to the $$ value of your portfolio, feel free to worry.  If, instead, you are looking for a multigenerational store of value, then you shouldn't worry at all.