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Indian Rupee Drops To Record Low Against Dollar, Gold Crash Accelerates
The unintended consequences of a centrally-planned world continue to peek through at the most unexpected of place, as moments ago the Indian Ruppe just plunged to a new all time record low against the USD, with the USDINR rising over 60 for the first time, triggering stops and overriding any potential USD selling intervention that the RBI may have attempted just below the resistance level which took place 59.985 according to Reuters.
A snapshot of events in India currently via Bloomberg:
- Rupee drops 0.9% to 60.2250 per dollar; touches record 60.26.
- USD/INR one-month implied volatility falls 32 bps to 11.60%; level suggests there is 68% chance rupee will drop to 62.2976 per dollar in a month (see that story here)
- USD/INR risk reversal drops for third successive day, falling 17 bps to 1.80%; gauge of investor sentiment reached 2.23% last week, reflecting biggest pessimism on rupee in a year
- Yield on nation’s 7.16% sovereign bonds due May 2023 rises 4 bps to 7.542%
- One-year IRS falls 1 bp to 7.43%
Meanwhile the drubbing of gold and silver continues, with the yellow metal crashing to a three year low of $1224, down $50, silver down to $18.44, and the scramble to liquidate all metals into electronic pieces of "paper" accelerating.
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Higher rates to fleece mom and pop is more palpable than a bail-in. Use excess reserves sitting in connected banks to by bonds on the cheap.
Central bankers are PISSED! Especially that clown in India who is trying to prop up his shitpaper by beating on gold owners.
YaY! Gold down another half a C note. This is great. I hope it falls even further. I love a fire sale. As soon as it pops up a C or so, (and it will) I'll have my buy signal and I'll be backing up the truck for a few more heavy stacks.
liquidate all PAPER metals into electronic pieces of "paper" accelerating.
Good. Paper gold is worthless anyway so this crash is a good thing.
The Fed will not stand a competing currency, right down to a Bit Coin.
My take.
Inverse surge FTW!
Remember all that gold buying (at top dollar) that India and China were doing? Well, as their economies implode, guess what they’re going to be forced to sell? GOLD! And TPTB aren’t going to buy it back at top dollar, no no no… they’ll buy back all that gold from India and China at its new, LOW, much lower price which is why you see gold/silver prices declining. I see gold below $1,000/oz, hell, even $800/oz in the far off months ahead. Gold won’t explode in price until it all comes back home and TPTB hold the majority of it and then BLAM, watch it skyrocket. It’s a waiting game. After India and China have been picked clean of gold, time to go after tangible assets. People (and banks) in those countries will be selling their grandmothers for a nickel if it means putting food on the table.
Lets say I have something in my possession that I paid $10,000 for and tell you it’s worth $20,000. You agree and pay me $20,000. Years go by and you are down on your luck and desperate for money and offer to sell me that same item for $20,000. I now tell you to pound sand and it’s only worth $5000 now. You being desperate and without money, tell me you can only scrape together $1000 but you have a boat and chunk of land you can sell me to make up the difference. I agree and take your $1000, boat and chunk of land. Another year goes by and you want to that item back from me and I tell you the new price is $50,000. You scrape your money together and buy it. (repeat and up/down buy/sell cycle forever)
I think this is what we’re seeing play out, and will continue to play out, until some mega-huge event like WW3 hits.
Well, I tried to warn all the Gold Bugs that it was just a Big Bubble and they all said mean and naughty things to me to try to hurt my feelings. OH, I know just how all those martyrs felt! There I was, sweet and meek and innocent, and horrible Gold Bugs were calling me names. . .I just bet they are sooo sorry now! Which makes me think of an Irish poem!
Joan of Hark!
They gave the Poor Girl naught but trouble,
For warning that Gold was a bubble!
Now, The Tower of Babble
Has fell on the Rabble,
And Gold Bugs got buried 'neath Rubble.
Squeeky Fromm,Girl Reporter
The world is coming apart at the seams. Your snarky advice translates into either: 1. Play the market and wait for metals prices to completely divorce themselves from the fundamentals, or 2. Trust central bankers and invest in dollars and their other ponzis.
Does it suck that many of us paid more for metal than its current paper price? Yes. But I would rather have the metal than trust history's biggest liars and thieves.