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Gold Breaks Below $1200

Tyler Durden's picture




 

From the moment Bernanke spoke, Gold and Silver began to accelerate to the downside. Gold legged lower into the NYMEX pit close and faded further in search of the $1200 round number (trading at $1199.90). Down around 12% from the FOMC (gold is now -38% from its highs in 2011).

 

 

Silver is following (down over 14% from FOMC) as the Gold-to-Silver ratio test 65x (double its lows in April 2011 around 32x) and back to the ratio that existed as Lehman failed.

 

 

As we noted yesterday, somewhat oddly, as goes gold so goes AAPL...

 

The other interesting on-again-off-again relationship of interest is Gold vs Housing (i.e. QE-driven excess vs the thing that supports QE or not)...

 

So to sum up today's remarkable market... Equities and Bonds are rallying hard on the basis that there will be no end to QE; and gold is crashing because QE is ending?

Perhaps some context is in order...


Charts: Bloomberg

 

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Thu, 06/27/2013 - 14:02 | 3699938 ParkAveFlasher
ParkAveFlasher's picture

Still shiny.

Thu, 06/27/2013 - 14:04 | 3699954 TheCanadianAustrian
TheCanadianAustrian's picture

Is it time to whip out the credit cards?

Thu, 06/27/2013 - 14:10 | 3699993 TheSilverJournal
TheSilverJournal's picture

...for silver. Look at that silver / gold ratio.

Thu, 06/27/2013 - 14:11 | 3700001 THX 1178
THX 1178's picture

Holy Fuck its wholly fucked.

Thu, 06/27/2013 - 14:19 | 3700056 Killtruck
Killtruck's picture

Come to Papa, my precious! I will not treat you so badly. You are not a zero in my arms, you are priceless. Come, come.

Thu, 06/27/2013 - 14:27 | 3700071 Ham-bone
Ham-bone's picture

GLD will continue to puke up it's phyz inventory to folks who will treat it so much better - and never sell it back when GLD might like to buy again.

Amazing also oil straight up, silver hanging in there...but gold attacked in after pit close.  Somebody is desperate.

Thu, 06/27/2013 - 14:29 | 3700115 geewhiz190
geewhiz190's picture

gold's weakness sticks out versus most other commodities today which are either flat or up.  my guess is distress in the hedge fund world, someone is getting margin calls.  could be close to a low as quarter ends as most gold stocks not falling with the metal.

Thu, 06/27/2013 - 14:46 | 3700227 fourchan
fourchan's picture

my pms are unimpressed by papers manipulation of the fiat price, try buying any at crimexes price lol.

Thu, 06/27/2013 - 15:10 | 3700374 SafelyGraze
SafelyGraze's picture

I told my associate that it costs 1200 to mine Au

he laughed. 'you mean below-ground mining'

I said I guess so

he said 'above-ground mining is cheaper. I pay a fellow minimum wage to stand at the curb and spin the sign that says We Buy Gold'

I asked what he paid for the product

he said 'we pay about half of spot .. plus there's tax on the storefront, the utilities, the property rental'

I asked what the cutoff is before they are unprofitable

he said, 'let's say I pay 0.5x on a spot price of x, then re-sell for 0.8x to my guy in nyc .. I clear 0.3x .. I have fixed costs of about 20k per month for wages and taxes and rental, so I've got to move enough ounces to stay in business"

 

Thu, 06/27/2013 - 15:25 | 3700446 Stackers
Stackers's picture

Got $10k in AAPL short profits sitting waiting for $15/silver.

Thu, 06/27/2013 - 15:34 | 3700512 augmister
augmister's picture

Good luck trying to find some!!!   The well is dry in my backyard.

Thu, 06/27/2013 - 15:22 | 3700450 WhiteNight123129
WhiteNight123129's picture

When TSYs get to 2.20 or below, SHORT TREASURIES BITCHEZ.

Paper pushers want to hurt PM holders, retaliate and SHORT TREASURIES if they rally to 2.20 on the 10 Years, the 30 Years strip is the sweet spot.

SILVER BITCHEZ.

The whole palladium, platinum, and to a lesser extent SILVER is up. This indicates a support from industrial demand, Gold unforunately does not have the industrial demand support which makes it harder to manipulate.

SILVER BITCHEZ

AND DO YOUR PART FOR THE CAUSE, SHORT TREASURIES WHEN THEY GET TO 2.2, INVEST IN TOBACCO SHARES AND YOU HAVE A POSITIVE CARRY (so the negative carry does not hurt you.)

TRY TO MANIPULATE THE PRICE OF TOBACCO DOWN CENTRAL PLANNERS, MWHAHAHAHAHA!!!!

 

 

Thu, 06/27/2013 - 16:37 | 3700832 BooMushroom
BooMushroom's picture

Rumors that cigarettes were to be reclassified as a scheduled drug would manipulate it quite nicely, I think.

Thu, 06/27/2013 - 18:06 | 3701166 LongBallsShortBrains
LongBallsShortBrains's picture

I would agree with you if the game were fair. However. You will run out of paper before they do. Guaranteed. Either get on their side, and profit, or get out. Trying to fight the beast is futile

Thu, 06/27/2013 - 14:56 | 3700293 Bastiat
Bastiat's picture

People always talking about gold liquidated to meet margin calls -- who the hell is long gold?

Thu, 06/27/2013 - 16:03 | 3700633 Spitzer
Spitzer's picture
The price of gold is headed for extinction. I for one don’t believe that the price of gold is headed for five digits. Long befor e that might happen, permanent backwardation* would shut down the gold f

utures markets.

Thu, 06/27/2013 - 16:23 | 3700749 Ghordius
Ghordius's picture

New Austrian? Fekete? Still struggling with that point. If true, the man is a genius - and yet... we'd be facing a complete new paradigm. A New Age, in earnest

Thu, 06/27/2013 - 16:44 | 3700867 Meat Hammer
Meat Hammer's picture

The price of gold is headed for extinction.

If that ends up being true it'll only be relevant to the price in global fiats because gold never has been nor will it ever be worthless.  

Thu, 06/27/2013 - 18:11 | 3701182 LongBallsShortBrains
LongBallsShortBrains's picture

I'm going to slip a bid on 20,000 tons at 50.03 an oz.

Who knows? They might flash crash it there. I'll line my garage with it if it becomes worth less.....

Thu, 06/27/2013 - 16:20 | 3700727 Ghordius
Ghordius's picture

a bit rich on lines like "dispensing Judaic barbarity" - this makes it propagandistic and so less trustworthy on it's factuality, do you realize? In fact, I think I spotted a few canards that would be quite damning

Thu, 06/27/2013 - 17:13 | 3700961 Kirk2NCC1701
Kirk2NCC1701's picture

After a massive correction or crash, There are 4 words you will NEVER hear from a Stock or Gold Bull:  "Sorry, we were wrong".

Remember also the following:

  1. You can make money in a Bull market or Bear market, and pigs get slaughtered.

  2. A gold mine is a hole in the ground, with a liar on top

  3. There were more millionaires made during the Gold Rush by selling pick, shovels, etc to gold prospectors, than from prospecting for gold.  This is still true today for every market out there -- including the PM bullion market, and the Libertarian products & services market.  That's a FACT, Jack!

Diversify and hedge your portfolio accordingly.  Or get slaughtered for being a dumb, greedy pig.

Thu, 06/27/2013 - 14:29 | 3700121 dryam
dryam's picture

No legit explanation for the drop a little past 1:00pm for gold/silver with NO other move in ANY other asset class (btw, palladium & platinum did not move either).

Thu, 06/27/2013 - 15:13 | 3700383 Ignatius
Ignatius's picture

The 'legit' explanation is the banking syndicate protecting their usurious franchise.

Thu, 06/27/2013 - 15:17 | 3700418 Taku
Taku's picture

Gold & PGMs now in opposite direction

Thu, 06/27/2013 - 14:32 | 3700132 Bay of Pigs
Bay of Pigs's picture

What physical?

Thu, 06/27/2013 - 14:39 | 3700185 kliguy38
kliguy38's picture

hehehe........mortimer....SELL SELL SELL!!!!!!...........hehehehehhe

Thu, 06/27/2013 - 14:55 | 3700214 Ham-bone
Ham-bone's picture

"somebody" is trying to shake lose as much phyz from GLD as possible before end of quarter - ALMOST LIKE SOMEBODY HAS TO DELIVER SOMETHING THEY HAVEN'T GOT??????????????????????

BOYZ N GIRLZ - THIS COULD BE THE BIG ONE!!!  SOMEONE WHO DOESN'T CARE HOW MUCH INFINITE PAPER THEY LOSE IS TRYING TO GET A SINGLE, VERY FINITE ASSET AND IN BROAD DAYLIGHT!!!!

Thu, 06/27/2013 - 14:56 | 3700294 duo
duo's picture

They are going to pay $200 over spot to NOT take delivery, so the lower spot is, the better.  Reasonable plan.

Thu, 06/27/2013 - 15:06 | 3700335 xtop23
xtop23's picture

Over the last few years I have spoken with friends and family regarding a need to have a goodly portion of their wealth in metals.

Yesterday I sent out blast emails that were somewhat more ....... emphatic?

I hope a few take it to heart.

When this explodes, and it will explode, I have a feeling the word "parabolic" won't even begin to describe the pricing for physical.

And yes, I put my money where my mouth is. I made a fairly substantial purchase yesterday and a bit smaller one this afternoon.

Listen to me or don't, I'm calling a bottom in physical.

Premiums will adjust to price movement from here.

Thu, 06/27/2013 - 15:13 | 3700391 ebworthen
ebworthen's picture

I'm with you.

However, you will likely get a roll of tin foil in the mail soon from said friends/relatives.

Just send them an index card with "March 2009" written on one side and "S&P 666" on the other side.

Thu, 06/27/2013 - 15:20 | 3700442 xtop23
xtop23's picture

lol we'll see.

Compared to the upside potential, downside risk looks damn near non-existent.

Anything's possible in this mess, I suppose, but this is approaching outright stupidity. Maybe I'm reaching for the falling knife /shrug.

I went over it again and again and just don't see how it can be a losing proposition at these valuations.

Thu, 06/27/2013 - 15:42 | 3700547 Ham-bone
Ham-bone's picture

 
"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."

Sir Eddie George, Bank of England, in private conversation, September 1999

Thu, 06/27/2013 - 16:05 | 3700644 XitSam
XitSam's picture

In my experience, people don't want advice. They want confirmation that what they are already doing is the right thing.

However, you may tell them to put 10% of their investment money in PMs. That way if other investments go south, and gold goes up 10x they break even, and gold has never in several thousand years gone to zero.

Thu, 06/27/2013 - 16:23 | 3700747 Pareto
Pareto's picture

There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!

There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!  There is no downside risk!

 

I stopped reading after "downside risk looks damn near non-existent."

You're buyig for the wrong reasons.

Thu, 06/27/2013 - 16:51 | 3700886 new game
new game's picture

my guess?!? 1,022.50 on August 23rd at 14:55 east coast dst usa...

Thu, 06/27/2013 - 18:15 | 3701190 LongBallsShortBrains
LongBallsShortBrains's picture

I hope you are right. But I got a good hunch my screen will show 950.00 for December 2013 gold futures......for thanksgiving.

Just a hunch

; )

Thu, 06/27/2013 - 15:13 | 3700400 Alexandre Stavisky
Alexandre Stavisky's picture

Staggered buys, no huge impulsive acquisitions, buy through thick and thin, buy high, buy a little more when low. Put your hard earned in the FREEZER.  You won't lose anything.  And you'll have the satisfaction of starving the banking fiat system of leveraging yours to further theirs.

 

Takes willpower, takes discipline, but long run you'll prevail.  Plain as the nose on your face.

Thu, 06/27/2013 - 14:43 | 3700209 augustusgloop
augustusgloop's picture

The Kanzlerin wants her gold

Thu, 06/27/2013 - 14:54 | 3700286 SAT 800
SAT 800's picture

Over a period of a few years this ratchet effect will probably be significant. I don't think the people that get their hands on the bullion bars that GLD is releasing into the LBMA are going to let go of them, either.

Thu, 06/27/2013 - 15:29 | 3700485 fallout11
fallout11's picture

I will buy more, a 'golden' opportunity for physical.

Thu, 06/27/2013 - 14:36 | 3700153 GVB
GVB's picture

Backwardation only when cities are on fire and 1 trillion dollar bills are being printed. That's for sure. 

Maybe (but unlikely, I think), when COMEX becomes cash settlement (which is equal to "out of physical")

 

If you're young, keep your stack. If your old, pas it to your (grand)children.

Better times to come, for sure. But I would not count on backwardation.

Thu, 06/27/2013 - 14:16 | 3700035 Stackers
Stackers's picture

Look at a 1974 to 1979 chart for some good reference. Up 300%, down 50%, Up 800%.

Thu, 06/27/2013 - 14:20 | 3700058 TheSilverJournal
TheSilverJournal's picture

And the big rise took place while rates were being RAISED. This is when the malivestments of artificiall lowering rates were exposed and freaked everyone out.

Thu, 06/27/2013 - 15:02 | 3700326 duo
duo's picture

during a time when the bills from Vietnam were coming due.  This decade we have Afghanistan, Iraq, and the security state to pay for with printed money.

Oh, and we had a trade surplus.

Thu, 06/27/2013 - 15:03 | 3700336 eddiebe
eddiebe's picture

Youp and unbelievably it's working. I feel like I'm in the twilight zone.

Thu, 06/27/2013 - 16:52 | 3700892 JuliaS
JuliaS's picture

As soon as Nixon shuts the gold window again, we're all gonna be rich!

Any moment now... any moment now...

Thu, 06/27/2013 - 17:18 | 3700981 Kirk2NCC1701
Kirk2NCC1701's picture

Goes to prove once again that The Fed can print longer than you can stay solvent.  Still wanna fight The Fed with a 1-string instrument? 

Diversify with other instruments and locations.  Or get your instrument broken by guys who are richer and stronger than you.

Thu, 06/27/2013 - 14:19 | 3700053 FL_Conservative
FL_Conservative's picture

Besides being purely a "paper" sell-off, this appears to be a coordinated takedown to get people out of PM's and into those truly "safe haven" investments, you know, equities and bonds.  Manipulated like anything else in today's "market".

Thu, 06/27/2013 - 14:40 | 3700193 hankwil74
hankwil74's picture

So... Netflix is a bubble, AAPL is a bubble, TSLA is a bubble, etc.  but gold should never, ever, ever go down.  Only manipulation could cause this precious metal to ever go down.  Got it.

Thu, 06/27/2013 - 15:10 | 3700373 Spastica Rex
Spastica Rex's picture

Set that scarecrow up and then knock that fucker down!

BOO-YA!

Thu, 06/27/2013 - 15:11 | 3700382 joak
joak's picture

When the price is 30-50 % above extraction cost, u cannot call it a bubble, no. What's the margin on an iPhone ?

Thu, 06/27/2013 - 15:18 | 3700427 FL_Conservative
FL_Conservative's picture

Okay, hotshot.  Econ 101 question for you.  If physical demand in at least China, India and the US is off the charts compared to any other period in history and yet the price goes DOWN, how do you explain it?   Tyler's already provided on 2 occasions the chart of the PM ETF's showing the contrast between the ETF selling and physical volume.  It's clear as fucking day for anyone with some gray metter between their ears.

Thu, 06/27/2013 - 17:08 | 3700944 JuliaS
JuliaS's picture

It explains that paper demand far exceeded physical demand and affected the price to a greater degree, much like demand for structured investments and MBS exceeded demand for actual houses that were backing them.

Marc Faber says the majority of people never owned gold.

The majority never "owned" a house either... and probably never will.

Thu, 06/27/2013 - 15:10 | 3700375 midtowng
midtowng's picture

It's not all paper. GLD still holds a bunch of gold, even if they don't back ALL of it.

Nevertheless, the charts say that this sell-off has hit the point of rediculous. The gap between the 200DMA and spot price is outrageous. The MACD is totally oversold.

I'm starting to buy again, and I don't care who else does because I think most of the sellers have already sold.

Thu, 06/27/2013 - 14:20 | 3700054 FL_Conservative
FL_Conservative's picture

eom

Thu, 06/27/2013 - 14:15 | 3700011 camaro68ss
camaro68ss's picture

my grandfather use to buy silver at $1. He had so much, he would use the 100oz bars as door stops and 25oz as paper wights.

Guess ill be getting myself some door stops soon.

Only problem is i spent all my money on guns and ammo lately.

Thu, 06/27/2013 - 14:17 | 3700038 TheSilverJournal
TheSilverJournal's picture

Back in the day, you didn't have to "buy" silver because silver was the money (at least the coins, minus pennies and nickels).

Fri, 06/28/2013 - 12:54 | 3703670 buyingsterling
buyingsterling's picture

Someone downvoted you! they prefer the clad.

Thu, 06/27/2013 - 14:49 | 3700252 midtowng
midtowng's picture

I've seen enough. I've been sitting in cash since it broke below $1,550. It's time to start buying.

Thu, 06/27/2013 - 14:05 | 3699960 Triggernometry
Triggernometry's picture

Beep Beep Beep Beep

*The sound of my truck backing up*

Thu, 06/27/2013 - 14:27 | 3700104 eclectic syncretist
eclectic syncretist's picture

I got paper buy orders in at $999.99 gold and 14.99 silver.  If they never get filled it would be fine with me, and if they do I'll be buying physical at the same time.  My favorite online source is rapidly being depleted of PM during this takedown, so I'll have to hope they still have some to offer if the price goes even lower.

http://www.mintproducts.com/

Thu, 06/27/2013 - 14:50 | 3700256 midtowng
midtowng's picture

Me too.

Thu, 06/27/2013 - 15:49 | 3700573 SirTaxedAlot
SirTaxedAlot's picture

Caaa Wooo Shhhhhh

*The sound of your money going down the toilet*

Thu, 06/27/2013 - 18:26 | 3701224 quasimodo
quasimodo's picture

Glug Glug Glug glu g g...............

The sound of your boat sinking:-) in a tragic accident of course

Thu, 06/27/2013 - 14:13 | 3700017 Panafrican Funk...
Panafrican Funktron Robot's picture

For those who keep track of/have read FOFOA, this is going exactly according to what he has laid out; continued drop followed by a force majure.

Thu, 06/27/2013 - 14:18 | 3700045 NotApplicable
NotApplicable's picture

As the more they smash it down, the easier their settlement becomes. Then the price goes dark. The only question is when do they pull the trigger?

Thu, 06/27/2013 - 16:30 | 3700792 dwayne elizando
dwayne elizando's picture

It is looking like FOFOA's right. Even the BIS is saying that the game is over. The central bankers central bank is setting up to take charge.

Thu, 06/27/2013 - 14:18 | 3700042 slaughterer
slaughterer's picture

NatGas got whacked today as well. 

 

Thu, 06/27/2013 - 14:19 | 3700055 NotApplicable
NotApplicable's picture

Obummer NatGas station coming soon to a municipality near you!

Thu, 06/27/2013 - 15:12 | 3700386 Midasking
Midasking's picture

Is the hundred year bear market in the dollar over? http://tinyurl.com/mem7o7x

Thu, 06/27/2013 - 16:21 | 3700733 Boeing Boy
Boeing Boy's picture

Martin Armstrong

ANSWER: Yes. we are approaching the minimum target in the proper time period June 2013. This is simply the way all markets behave. The bulk of the decline comes within the first 2 years. Gold is finally capitulating as the decline has been on HEAVY volume of liquidating long positions. Our Monthly Bearish Reversals are 1236, 1155, 1042, and 930. These define the key support levels. Our Weekly Bearish is 1233 then 1197, 1185, 1176, 1166. The optimum target is the bottom of the channel so we are looking at 1040 area to 1020 with the major support at 939-930.

Thu, 06/27/2013 - 17:38 | 3701052 DosZap
DosZap's picture

And now we know WHY, courtesy of Mr.Sinclair @ jsmineset.com.

http://www.mineweb.com/mineweb/content/en/mineweb-independent-viewpoint?oid=195855&sn=Detail

Still killing the investor for the damned crimianls.WE PAY for their mistakes, no one ever PAID for ours but US!!!!!!!!!!!!!Sorrry SOB's.

Thu, 06/27/2013 - 14:04 | 3699940 Dear Infinity
Dear Infinity's picture

Silver will be free by lunch time! www.comparesilverprices.com

Thu, 06/27/2013 - 14:07 | 3699972 Groundhog Day
Groundhog Day's picture

All i know is i will always lose less buying physical gold and taking delivery then trying to invest gamble in the rigged casino.  even if it goes to 800, i'll be better off.  Less chances to do something stupid with my money like buy rigged stocks and bonds

Thu, 06/27/2013 - 14:46 | 3700228 augustusgloop
augustusgloop's picture

All markets are rigged. 

Thu, 06/27/2013 - 14:09 | 3699985 StacksOnStacks
StacksOnStacks's picture

I hope so, I'd like to be swimming in American Eagles by dinner.

Thu, 06/27/2013 - 14:03 | 3699941 Dear Infinity
Dear Infinity's picture

Ben will deliver us all from evil.

Thu, 06/27/2013 - 14:18 | 3700043 john39
john39's picture

>>deliver us all TO evil....

fixed it for you.

Thu, 06/27/2013 - 14:27 | 3700108 TheSilverJournal
TheSilverJournal's picture

Managing a world fiat monetary ponzi until it's impossible to keep going any longer and therefore causing max pain on humanity is about as evil as it gets.

Thu, 06/27/2013 - 14:47 | 3700237 augustusgloop
augustusgloop's picture

give 'em hell! 

Thu, 06/27/2013 - 14:58 | 3700311 Bastiat
Bastiat's picture

 

>>Has delivered us to evil . . .

Thu, 06/27/2013 - 14:25 | 3700079 Harbanger
Harbanger's picture

He's a giver.  He gives more cash for the poor and gives cheap gold to the rich.

Thu, 06/27/2013 - 14:03 | 3699944 Dr. Engali
Dr. Engali's picture

With the quarter ending and reporting due, nobody will want gold on their books. The fund managers won't want to answer questions an to why they have an underperforming asset in their holdings.

Thu, 06/27/2013 - 14:10 | 3699991 francis_sawyer
francis_sawyer's picture

Did I just accidentally click on a time wormhole that transported me back to 1999?

Thu, 06/27/2013 - 14:27 | 3700105 markovchainey
markovchainey's picture

$5 silver and $250 gold again?  Oh please don't throw me in that briar patch!

Thu, 06/27/2013 - 15:32 | 3700501 seek
seek's picture

Plus no wars, no TSA, and oil selling for $17/bbl.

Thu, 06/27/2013 - 14:51 | 3700264 SAT 800
SAT 800's picture

The search for rationality in human mass behaviors is doomed; there isn't any. There isn't any better explanation for the price behavior but that lower prices cause people to sell out. All prices are un-stable because people buy rising prices and sell falling prices. Prediction is also impossible. Remember in 2008 Silver went from $21/oz. to below $10/oz. Why? There was no reason. It went on to rally to above $40/oz. Studying the price charts right now is actually encouraging for a Silver owner; because of the shape of the downwave; there's always buyers coming in; it's not just falling down the stairs. When we exhaust the supply of sellers; nobody can say. Apparently some people are being seduced into the Stock Market; this is scary, because it can absorb, potentially, all the money that currently sequestered in Silver Bullion. One can only hope that the Stock Market is sufficiently unstable and has enough "surprise" down-waves to give the potential victims pause.

Thu, 06/27/2013 - 16:15 | 3700705 Pareto
Pareto's picture

+1  this is scary, because it can absorb, potentially, all the money that currently sequestered in Silver Bullion.  because thats what a shithole does - it absorbs EVERYTHING in its shit vertex.  The shit abyss.

Thu, 06/27/2013 - 14:07 | 3699946 slaughterer
slaughterer's picture

It's dead Jim.

Thu, 06/27/2013 - 14:09 | 3699984 Tsunami Wave
Tsunami Wave's picture

When the hyperinflationary collapse comes, I'll make sure to pull out my
GLD or stock certificates and pay for my gas, alcohol, food that way. That is -- of course assuming, that the people or businesses with the stuff I need are willing to transact with stock certificates that can't be used to demand your 'fiat money' back from owning the security or another certificate that isn't redeemable in the shiny stuff ;)

Thu, 06/27/2013 - 14:04 | 3699953 FieldingMellish
FieldingMellish's picture

Somebody is trying to save a bullion bank. Which one?

Thu, 06/27/2013 - 14:15 | 3700034 tmosley
tmosley's picture

Probably the one whose vault has been emptied.

Or maybe the ones whose vaults have always been empty.

Thu, 06/27/2013 - 14:18 | 3700040 FieldingMellish
FieldingMellish's picture

Begins with a J? Ends with PMorgan?

Thu, 06/27/2013 - 15:01 | 3700321 youngman
youngman's picture

I have been waiting to see if JPM can get the extra needed to settle by tomorrow...that is the end day I think for them to settle what they owe and they are short a few tonnes......so it makes sense they are tanking the price.....and you bet its to save them....to many friends in high places...

Thu, 06/27/2013 - 14:29 | 3700124 disabledvet
disabledvet's picture

interesting thought. let's start naming names shall we: http://www.lbma.org.uk/pages/index.cfm?page_id=63&title=full_members hmmm.https://en.wikipedia.org/wiki/Phibro Andrew Hall..."the 100 million dollar man."

Thu, 06/27/2013 - 14:39 | 3700186 Central Wanker
Central Wanker's picture

Somebody is trying to save a bullion bank. 

That somebody isn't me!

 

Which one?

JPM is the one that has played the game "a bit" too hard and probably fucked its customers royally. If you count the figures from Comex reports together, JPM's Comex vault must be empty or it must have done huge cash settlements in the last couple of months.

Thu, 06/27/2013 - 15:07 | 3700360 holgerdanske
holgerdanske's picture

"an Gordon: I suspect it was akin to what happened in 1999. The then-governor of the Bank of England, Edward George, supposedly said that "any further rise in the gold price would take down one or more trading houses." He said the rising price of gold was curtailed through the work of the Federal Reserve and the Bank of England. It appears that a bullion bank was caught offside on the short side and they had to take the price of gold down quite dramatically to allow it to cover."

Show the establishment your middle finger and buy some physical gold!!!
If we all do that, they are fucked!

Thu, 06/27/2013 - 15:11 | 3700377 eddiebe
eddiebe's picture

The lemmings like going over the cliff.

Thu, 06/27/2013 - 14:04 | 3699955 Groundhog Day
Groundhog Day's picture

if you liked it at 1300, you got to love it under 1200

Thu, 06/27/2013 - 14:39 | 3700181 SAT 800
SAT 800's picture

That;s a very interesting point you touch on. The problem is that peoples psychology doesn't work that way. The reason that 99.9% of the populaton can't make any money trading is that they have this un-conscious drive to do whatever the rest of the flock is doing. I tried to get people to buy Silver at $4.35/oz. First one person, than another. Carefully selected people who traded stocks, had money, supposedly knew something, at any rate. No Deal. Impossible. I tried three times; by the third time I was just over-proving my thesis. Absolutely not; I never sold one ounce of silver to any of these three individuals. I didn't have anything to sell them; what I mean is I couldn't talk them into buying even one ounce. Why is this? It's because no-one else is buying it; so it must not be any good. The idea that you buy things of enduring value when they're cheap runs counter to human psychology. You only buy things when "everyone else" is buying them; and they're expensive. One of these three men told me, "I wish I could get in on the start of a new bull market"; I responded by telling him he was in on the beginning of a new bull market; but it was a market that he wasn't familiar with. No deal. Go away, don't bother me; you're a nut. One of them asked me much later, or a little later, depending on how you look at it; can I buy Silver now? at $40/oz. I told him "No"; you can't.  This is the same person who refused to even listen to anything about Silver at 4.35$/oz. Human beings have big errors in their wiring.

Thu, 06/27/2013 - 14:51 | 3700262 fonzannoon
fonzannoon's picture

To your point SAT, in the you can't make this shit up department. Someone from my LCS called me an hour ago and asked me the she should sell. I asked her why she was asking me. She said the owner of the LCS and the rest of the employees were freaking out and telling everyone they need to be selling right now.

Thu, 06/27/2013 - 16:11 | 3700671 Pareto
Pareto's picture

Thats the problem with most of the junkers on this site.  They see gold and silver like any other "investment". they don't see it as protection or preservation of value.  They stare at COMEX price as if it were God.  But, what they don't realize is that the ETF's for S & G, can be sold short into a market that is so thin that its just JPM and Bernake exchanging positions.  I welcome a COMEX price slam.  It demonstrates the increasing spread between paper and actual physical, making he COMEX increasingly less relevant by the day.  Take gold to $300 and silver to $5 and just try to get your head around the spread of about $1200 on gold and $20 on silver.  The contradition would be so apparent "try explaining that fucking reality away Jimbo".  COMEX is done.  Not a question of if, only when.

Thu, 06/27/2013 - 15:32 | 3700502 ebear
ebear's picture

"Human beings have big errors in their wiring."

Not errors, it's just that evolution can't keep up with the rate of change our species has undergone.  A very small percentage of the human population is responsible for scientific and technological advancement, the rest are just along for the ride or running active interference.  It's amazing that we made it this far.

Check it out.  Ask yourself how many smart people you know vs. dumbasses.

Thu, 06/27/2013 - 16:22 | 3700745 XitSam
XitSam's picture

There was an article about how vodka brands are priced. They are not priced by quality, they are priced to be more exclusive than the other brands. 'Higher price must be better, right?'

The only way I broke out of the same mould is by a real economic education (credit: Ron Paul, Henry Hazlitt and ZH) and thinking 'store of value'. I just want to keep what I earn and not be eaten by inflation.

Thu, 06/27/2013 - 14:46 | 3700233 Boston
Boston's picture

Order FILLED.....at 1200. 

 

Next open orders at 1100 and 1000 and 900.

Thu, 06/27/2013 - 16:22 | 3700738 KnightTakesKing
KnightTakesKing's picture

Paper? I don't believe you can buy coins/bullion at $1200 today.

Thu, 06/27/2013 - 17:38 | 3701054 Boston
Boston's picture

1oz Canadian Maples. No problem, from Texas Precious Metals at $43 over spot.

Thu, 06/27/2013 - 14:05 | 3699956 HowardBeale
HowardBeale's picture

"As we noted yesterday, somewhat oddly, as goes gold so goes AAPL..."

 

AAPL used its unpaid tax hoard to buy  physical gold?

Thu, 06/27/2013 - 14:05 | 3699957 Tsunami Wave
Tsunami Wave's picture

To whomever or whatever out there, thanks for making gold and silver real cheap for me to buy ;). I'll return the favour and buy more ;)

Thu, 06/27/2013 - 14:15 | 3700028 Tsunami Wave
Tsunami Wave's picture

My most sincere apologies to the primary dealer/central banking/unemployed troll pukes that are junking me. Come on girls.... Make it even cheaper for me :D. Bring those fake ass paper prices down even more for me.

Thu, 06/27/2013 - 14:26 | 3700094 Kaiser Sousa
Kaiser Sousa's picture

dont apologize to morons...

its beneath u....

Thu, 06/27/2013 - 14:05 | 3699962 rubearish10
rubearish10's picture

When this break from $1540 first happened, I thought it was an early recession warning. Now, I'm not sure WTF is going on. Taper? Non- Taper? Growth? Liquidation? WHAT!!!!!

Thu, 06/27/2013 - 14:12 | 3700006 Non Passaran
Non Passaran's picture

Tyler said it - it's the dual nature of reality... The future will change based on your decision to buy stoxx (more QE!) or PMs (the Fed will taper).
Clearly you should buy stoxx and get rich quick!

Thu, 06/27/2013 - 14:22 | 3700068 NotApplicable
NotApplicable's picture

Upcoming Comex force majure. The lower the better for the criminals who will have to settle in dollars.

Thu, 06/27/2013 - 14:25 | 3700085 rubearish10
rubearish10's picture

That's good. Can they include SLV and GLD please?

Thu, 06/27/2013 - 14:35 | 3700126 Winston Churchill
Winston Churchill's picture

Danger ,Slow motion deflationary collapse in progress.

Commodoties first then all the credit instruments(everything else )

crashes further ,and longer.

Economics 101,which Ben must have failed.,

Thu, 06/27/2013 - 14:06 | 3699964 FieldingMellish
FieldingMellish's picture

Miners are ignoring this move, at least for now.

Thu, 06/27/2013 - 14:09 | 3699989 rubearish10
rubearish10's picture

You must be joking, right?

Thu, 06/27/2013 - 14:13 | 3700015 FieldingMellish
FieldingMellish's picture

HUI up 1.6% still.

Thu, 06/27/2013 - 14:15 | 3700031 FieldingMellish
FieldingMellish's picture

My mistake.. 2% now.

Thu, 06/27/2013 - 14:29 | 3700118 rubearish10
rubearish10's picture

Maybe you missed something:

HUI = 53% off highs

Gold = 36% off highs

Sign off now. Good luck bro. 

 

Thu, 06/27/2013 - 14:32 | 3700133 FieldingMellish
FieldingMellish's picture

Buy low.. sell high.

Thu, 06/27/2013 - 14:41 | 3700201 rubearish10
rubearish10's picture

Oh, I get it. 

Thu, 06/27/2013 - 14:42 | 3700203 disabledvet
disabledvet's picture

the HUI chart basically says the price of gold peaked in 2006. obviously leverage did not. hence "we must have QE Mr. Chairman" (we owe very powerful people a lot of money.) and so they got it...and so "did" you. amazing double top...not a technical analyst but i believe that's one of "their" terms. in other words "there is a VERY real limit to liquidity" as well as gold. obviously the Fed Chairman's "taper talk" does create liquidity...but it strikes me of a VERY expensive kind. perhaps if "hawks stayed hawks and doves stayed doves."

Thu, 06/27/2013 - 14:40 | 3700195 FieldingMellish
FieldingMellish's picture

Stonking turnup. Now over 3%!

Thu, 06/27/2013 - 14:43 | 3700208 disabledvet
disabledvet's picture

is that a Che Guevera hat?

Thu, 06/27/2013 - 14:47 | 3700230 FieldingMellish
FieldingMellish's picture

Indeed... Woody Allen in "Bananas". Note the character's name....

 

Its my homage to what I think this whole financial system is... bananas.

Thu, 06/27/2013 - 14:06 | 3699965 Totentänzerlied
Totentänzerlied's picture

Kindly shift your trucks into reverse-gear, ladies and gentleman. Please use both hands while buying.

Thu, 06/27/2013 - 14:06 | 3699968 drink or die
drink or die's picture

Paging Robotrader and his "silver costs $5 to dig out of the ground" meme.

Thu, 06/27/2013 - 14:12 | 3700009 francis_sawyer
francis_sawyer's picture

That's passe'...

~~~

The NEW one is that YOU PAY A $5 FEE FOR THE RIGHT TO BE ABLE TO THROW IT OFF YOUR ROOFTOP...

Thu, 06/27/2013 - 14:13 | 3700021 Richard Head
Richard Head's picture

That was "Mathman."  Don't know why he isn't here gloating.

Thu, 06/27/2013 - 14:46 | 3700229 disabledvet
disabledvet's picture

copper's at three bucks. is that a pound? http://www.ask.com/answers/42384841/what-is-the-current-price-of-copper-... yepm three bucks. "that's the cost for mining silver too!" well...the easy to get to stuff. "if you want expensive we can do that too."

Thu, 06/27/2013 - 14:09 | 3699970 MFLTucson
MFLTucson's picture

Equities and Bonds are rallying hard on the basis that there will be no end to QE; and gold is crashing because QE is ending?

Thu, 06/27/2013 - 14:11 | 3699999 rubearish10
rubearish10's picture

Ummm, QE hasn't supported Gold since 2011. Dude, where ya been?

Thu, 06/27/2013 - 14:34 | 3700091 Bay of Pigs
Bay of Pigs's picture

Just like gold wasn't supported by QE from 2001-2008?

 

Thu, 06/27/2013 - 14:36 | 3700151 rubearish10
rubearish10's picture

Good point. The problem with the price issue obviously goes deeper than this discussion but we haven't even gotten close to the $2300 gold price adjusted for inflation. Gold will live after QE's destruction of every other asset class. Get it now?

Thu, 06/27/2013 - 16:01 | 3700624 Pareto
Pareto's picture

I get Bay.  Don't get you.

Thu, 06/27/2013 - 14:07 | 3699971 The Invisible Foot
The Invisible Foot's picture

Buying LPG. (Lolly Pop Guild)

Thu, 06/27/2013 - 14:07 | 3699973 bdub2
bdub2's picture

Can gold/silver "go negative"? 

Thu, 06/27/2013 - 14:11 | 3700005 rubearish10
rubearish10's picture

They have for me.

Thu, 06/27/2013 - 14:14 | 3700026 Bearwagon
Bearwagon's picture

Why that? Did you sell? If not - you haven't lost jack shit.

Thu, 06/27/2013 - 14:37 | 3700161 rubearish10
rubearish10's picture

Just blowin' off steam. Still average pricing my stack!

Thu, 06/27/2013 - 14:13 | 3700019 AndItsGone
AndItsGone's picture

Obama just issued Executive Orders declaring gold and silver toxic waste subject to EPA regulation. Fortunately, JPM Environmental Services will generously collect your metallic waste products for a $200/oz and $5/oz disposal fee, respectively.

Thu, 06/27/2013 - 14:17 | 3700037 bonin006
bonin006's picture

I suppose OSHA or the EPA could declare Au & Ag to be hazardous waste, and order you to pay an authorized agent to haul it away.

Thu, 06/27/2013 - 14:31 | 3700131 SmallerGovNow2
SmallerGovNow2's picture

molon labe...!

Thu, 06/27/2013 - 14:32 | 3700135 bdub2
bdub2's picture

SARC/ JACKASS' junkers

 

Fuck you and Bernanke Forever

Thu, 06/27/2013 - 14:08 | 3699979 youngman
youngman's picture

I am on the other side...I bought into it hard after the Cyprus deal...I thought that would be the trigger.....nothing happened and now this....I do not know what is going on....gold and silver are just as important today as it was last year...even more I think....somehting is up....it still has value....lots of value...more than some interest rate printed on a piece of paper....

Thu, 06/27/2013 - 14:11 | 3700004 ThunderingTurd
ThunderingTurd's picture

"More than some interest rate printed on a piece of paper."  How dare you?  This is the kind of thought process that makes market uncertainty elevated!  (/sarc off)

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