• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

Chart Of The Day: When ETF Paper Beats Gold Rock

Tyler Durden's picture


Demand for physical gold across the world continues to surge at an unprecedented pace leading India to blame its soaring current account deficit, sliding currency and even deteriorating economy on it (even if failing in its attempts to regulate demand for the yellow metal), and yet gold continues to slide. How come? One word - paper, or rather, ETF paper.

And more vividly, the combined holdings of GLD and IAU.

So, for now, paper does indeed beat rock.

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Tue, 06/18/2013 - 15:50 | 3669188 flacon
flacon's picture

Short GOOG, IWM. 


GOOG is ripe for the picking:



Look at IWM (Russell 2000) - it's a good time to buy puts:



Bonus, JPM is looking like it can't keep it's erection either:



Tue, 06/18/2013 - 15:52 | 3669195 Pladizow
Pladizow's picture

RoShamGold Bitches!

Tue, 06/18/2013 - 15:55 | 3669203 Herd Redirectio...
Herd Redirection Committee's picture

NFLX, GOOG, Tesla...  I don't want to try call a top, but wow, those boys have got some room to run.  To the downside.

Tue, 06/18/2013 - 15:56 | 3669207 Divided States ...
Divided States of America's picture

I agree on IWM...but not sure about GOOG....I bought puts on IWM today.

Tue, 06/18/2013 - 16:02 | 3669231 Spider
Spider's picture

So 30% of the trust's gold is gone?  If it keeps selling it should be empty by year-end - there's your plan...

Tue, 06/18/2013 - 16:09 | 3669251 DoChenRollingBearing
DoChenRollingBearing's picture

I am really getting tired of seeing all of these paper gold flecks all over the damn boulders and rocks here in NW Quebec.  Ohh, that is real gold?  Sorry, my bad!

Plusieurs detailles plus tard...

And when do they turn on the heat around here?  High will be 61 F, brr...

Tue, 06/18/2013 - 16:10 | 3669258 Pinto Currency
Pinto Currency's picture


GLD shares are being redeemed for physical delivery - note the post Cyprus acceleration.

It is part of the run to physical underway worldwide.

Tue, 06/18/2013 - 16:31 | 3669314 Nue
Nue's picture

Seeing as GLD shares are leveraged 100 to 1 going to be some disappointed GLD holders

Tue, 06/18/2013 - 18:15 | 3669523 Bindar Dundat
Bindar Dundat's picture

They are driving the price down so that they can

a) pay paper out in cash

b) confiscate or

c)  both of the above.

Rule of investment number one:

Nothing is an accident and nothing is as it appears.

Tue, 06/18/2013 - 19:40 | 3669691 fockewulf190
fockewulf190's picture

The only paper I'm interested in is located in the bathroom.

Tue, 06/18/2013 - 16:20 | 3669291 knukles
knukles's picture

You best be fishin', DoChen...
And catch yourself a buncha walleyes, when ya gut 'em fry the livers up in butter or better yet, Crisco, post haste
About as close to heaven as possible....

Tue, 06/18/2013 - 16:35 | 3669322 Yen Cross
Yen Cross's picture

 Extra Virgin, Olive Oil.

Tue, 06/18/2013 - 17:46 | 3669478 Harbanger
Harbanger's picture

"About as close to heaven as possible...."

Eating crisco will get you there even faster.  It's a hydrogenated transfat designed to last forever.  Maybe its good for emegency food storage, but that's about it.

Tue, 06/18/2013 - 19:11 | 3669643 Chariots of the Feds
Chariots of the Feds's picture

Actually they make great candles for emergency and survival.  Loooooong lasting.

Tue, 06/18/2013 - 20:52 | 3669927 Diogenes
Diogenes's picture

Don't use Crisco lard is healthier, better for cooking and baking and tastes better.

Tue, 06/18/2013 - 16:10 | 3669253 Pinto Currency
Pinto Currency's picture


Tue, 06/18/2013 - 16:11 | 3669260 NotApplicable
NotApplicable's picture

I bet it's already empty. The remaining 70% is likely nothing but Comex "good as gold" delivery receipts.

Tue, 06/18/2013 - 17:25 | 3669447 midtowng
midtowng's picture

Exactly. The selling is going to be over at some point, probably not too far into the future.

I've been sitting on a butt-load of cash for a couple months now waiting for the gold charts to turn up.

Tue, 06/18/2013 - 16:04 | 3669238 knukles
knukles's picture

The real philosophical question needed to be discussed broadly, in public is: "Why should the Central Bank have such influence?"
Yeah, yeah yeah, I already know the answers and arguments.
Just sayin', it's not being discussed besides venues such as this.

Needs another Hamilton/Jackson moment

Tue, 06/18/2013 - 16:52 | 3669361 ChanceIs
ChanceIs's picture


I have been wondering the same thing the last eight years - since my monetary consciousness awakening and rising awareness that there is something other than Keynesian BS - that would be von Mises.  Of course I always suspected debt, as in B. Franklin: "I would rather go to bed hungry than wake up in debt."   Duh.  (Not to take anything away from that genius.)  I think that I will see if I can arrange to attend Bernanke's going away luncheon and present him with a copy of Franklin's Autobiography.  I mean....you were supposed to have read that in the eighth grade.

Funny how the Coinage Act of 1792 stipulted the death penalty for dicking around with the value of a dollar.  But the Dead White European Males - what did they know?

Hey!!!!  Somebody has to decide how much money is placed in circulation.  The Constitution specifies it as Congress.  Congress decided to subcontract it out.  Nothing wrong with that.  But if it went that route, they were supposed to do so dilligently - as in asking the basic question....does our contractor of choice (that would be the Fed) have a conflict of interest in performing its new role?  Duh.  Foxes watching the hen house bitchezs!!!!!!

Tue, 06/18/2013 - 17:38 | 3669468 smlbizman
smlbizman's picture

it is being talked about knucks...on the internet were the biggest crowds congregate...fuck tv

Tue, 06/18/2013 - 17:55 | 3669488 Ghordius
Ghordius's picture

why? because it's an instrument of power. like nuclear power/arms

control over the FED is control over the global fiat currency

a tremendous amount of power. and it even pays bills, btw

Wed, 06/19/2013 - 02:39 | 3670556 e-recep
e-recep's picture

but but what about free market theory?

Tue, 06/18/2013 - 16:23 | 3669299 Satan
Satan's picture

The NSA say they foiled that plot.

Tue, 06/18/2013 - 16:29 | 3669312 Umh
Umh's picture

I didn't know they were into foil. They always seem to paint their opponents as into foil.

Tue, 06/18/2013 - 16:37 | 3669329 Alpo for Granny
Alpo for Granny's picture

You didn't foil that.

Tue, 06/18/2013 - 17:28 | 3669450 youngman
youngman's picture

From here on out..all we are going to hear about are the foiled plots the NSA caught.....100´s of them I am sure....lol.....all to be trotted out in front of some congressional meeting....to keep up the good works....and funding...

Tue, 06/18/2013 - 17:46 | 3669479 spanish inquisition
spanish inquisition's picture

NSA - "Of the hundreds we foiled, we will show you 2! We are still sorting out the retarded kids the FBI was setting up and may find one or two more."

Tue, 06/18/2013 - 19:03 | 3669618 Jendrzejczyk
Jendrzejczyk's picture


Funny and truthful

Tue, 06/18/2013 - 16:36 | 3669325 Strider52
Strider52's picture

Negative: That's GOTTA be an NSA Bad Word. Your accounts have been frozen, they ARE listening to YOUR phone calls, etc. Expect a visitor you've never seen before.

Tue, 06/18/2013 - 18:10 | 3669513 Almost Solvent
Almost Solvent's picture

Fuck Langley and all those asswipes.

They can nSa my balls in their mouth.

Tue, 06/18/2013 - 18:42 | 3669579 neidermeyer
neidermeyer's picture

Almost Solvent ,


For maximum effectiveness you need to work at including the word detonator into your conversations.

Tue, 06/18/2013 - 16:49 | 3669352 Silveramada
Silveramada's picture

when they are ready they 'll blow the ponzi themselves, after the suckers are dragged into stocks, s&p, bonds and shorting the PMs sector, they will buy and let the short squeeze take care of the prices...they will be already long gold & Silver


Tue, 06/18/2013 - 17:56 | 3669492 Groundhog Day
Groundhog Day's picture

tna puts make more sense since there is daily time decay in the etf,  if you can handle the volatility

Tue, 06/18/2013 - 16:15 | 3669276 neidermeyer
neidermeyer's picture

Tesla .. Why would anyone buy a car that requires so much thought to drive ,, start planning the day before to make sure it's charged up ,, chart all the charging stations along the way , pack snacks for the wait while you charge up ...and when you forget to condition the batteries and they go flat you have a $40K bill not covered by the warranty ... Good Times I'll tell you..


For Gods sake buy a $25,000 used Mercedes SL already and DRIVE .

Tue, 06/18/2013 - 17:55 | 3669490 aka Gil
aka Gil's picture

Agreed, MB makes a sweet driving machine. Buying a used one coming off a 2 or 3 year lease redemption offers great value.

Tue, 06/18/2013 - 21:26 | 3670042 Tapeworm
Tapeworm's picture

Tesla is hypertech compared to Fiskar-Fisker, or whatever.

 A 5400 pound car that does 40 miles on batteries if it runs at all. All for 100,000++ FRN's.

 I saw that Consumer Reports actually bought one to test. That is a good reason to never subscribe to their magazine. The car puked before it made any miles on the test track.

 Of course the taxcows are on the hook for the failure of such a piece of shit company and their "tech".


Any dope that knows anything at all about cars would never have considered for a moment to buy a 5400 pound turd car with those performance figures. It took the goomint maggots to put the taxcows on the hook for such a project.

Tue, 06/18/2013 - 17:23 | 3669443 midtowng
midtowng's picture

While its fun to accuse all ETF's of not having gold, it isn't true. There IS some physical gold behind the ETF's, and the sooner you deal with that effect the better off you'll be.

Tue, 06/18/2013 - 18:00 | 3669501 aka Gil
aka Gil's picture

So what's your point? You have to redeem a very large number of shares for physical. Soros can (and probably did) pull that off, but the little fishes will end up with the heartache of a fool.

Tue, 06/18/2013 - 18:10 | 3669515 midtowng
midtowng's picture

My point is that the physical market is getting temporarily saturated from all the ETF selling.

This will all end in time, of course, but it isn't just a factor of paper manipulation. That's all I'm saying.

Tue, 06/18/2013 - 17:35 | 3669464 SRSrocco
SRSrocco's picture

Gold and silver keep falling even though gold is now getting close to break-even for the top gold miners.  Also, the majority of top 12 primary silver miners are losing money below $25-25.

Also, the price of gold and silver will continue to rise because costs are rising:

Silver Price to Rise as Top Miner’s Production Evaporates


Tue, 06/18/2013 - 15:53 | 3669200 gatorengineer
gatorengineer's picture

Black or Red.... same odds..... Casino is rigged.

Tue, 06/18/2013 - 15:57 | 3669213 flacon
flacon's picture

How else can one make money if not for taking advantage of a rigged market? Don't tell me that you are still a PRODUCER in this environment, trying to make an "honest" wage! Pfft. Ayn Rand warned about the delusions of PRODUCERS thinking they can change the system. The only way out is to DISENGAGE. 


Tue, 06/18/2013 - 18:03 | 3669505 fourchan
fourchan's picture

We are John Gault.

Tue, 06/18/2013 - 16:02 | 3669232 SheepDog-One
SheepDog-One's picture

Yep that's why I bypassed all this long ago and bought as many firearms and ammo that I could, and have been selling it off for double and triple. No need to play in their rigged casino at all.

Tue, 06/18/2013 - 16:12 | 3669265 Mugatu
Mugatu's picture

Yes, but now they have paper guns too!

Tue, 06/18/2013 - 16:13 | 3669270 SheepDog-One
SheepDog-One's picture

Well, plastic....but anyway you need a $5,000 special printer too.

Tue, 06/18/2013 - 18:08 | 3669509 markettime
markettime's picture

I would wait for the 50 day moving average to be breached, then buy puts or go short. Unless the fed comes out and announces a 125 billion per month print fest. 

Tue, 06/18/2013 - 15:53 | 3669198 kliguy38
kliguy38's picture

ETF game has destroyed any "undesirable" assets deemed "too important" for the ponzi to let rise so of course they divert the peeps funny money into these frauds......nice touch boyz

Tue, 06/18/2013 - 15:53 | 3669201 roadhazard
roadhazard's picture

I heard on CNBS this morning that Bernanke was going to really dump on Gold at the meeting and it will be taking a big hit. I didn't hear anymore because I left. So there might be a big sale on Gold and Silver coming.

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