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Gold Breaks Below $1200
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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The banks are bringing down the paper value in order to buy physical at lower cost right now.
Yeah, I just made a purchase about a week ago. I paid with a credit card that I don't pay interest on until 2014. Too funny. I like beating the banks at their own game. Now it is time to buy more inherently valuable metal with worthless plastic. I have the assets and the bank has a future promise. I win.
Whatever anyone may say or do, we all have been shown where the real power lies. It is certainly not with the producers, or the buyers, everything is Kool aid. The belief in fiat is firmly entrenched and unless the banksters themselves decide to move gold the other way, we bugs are fucked.
Look at inventories. They can't play the fiat game forever. This is desperation, not control.
Can't you see what is happening?
They are talking bail in all over the show. IOW if you keep your money in the bank, you will get a hair-cut. You saw that in Cyprus.
What does a rational person do. he buys physical gold and removes it from the bank.
Wild panic, then they loose all leverage over you, their ponzi scheme starts to crumble.
This is panic because people are starting to move out of the system. Once one person does it, no problem, but when it becomes a groundswell, it will crush their system.
And to decimate the price of gold, print some money and take the paper longs out.
There must be a divergence coming up between physical and paper, and this action we are seeing now is a desperate attempt to forestall that. It is going to have the exact opposite consequences, I guess.
Fuck them, buy physical!!! I'm arranging my chair in front of the show. This is going to spark!
They've been issuing $85 bill/mo. here in the USA, and $70 bill in Japan (official reported who knows reality) for everything from MBS to sovereigns to hold up a growth paradigm that's totally broken. Just imagine deploying one month of that firepower to suppress gold just as Volker so strongly recommended. Coordinated multi-CB crushingly demoralizing if you're into pricing things in terms of short term momentary debt money. Confusing all monetary theorists and Exter's pyramid, Gresham's Law, common sense. Currency war. If gold isn't a threat then why are they directing all the flotilla gunnery point blank? If you're making allocations which are quiet and pleasing to the CBs, you're coopted. Action and contact are telling you the hot spots and where the most prized strategic positions lie.
Without the big lie, Bonds are meringue, equities are souffle, currencies are frappe, real estate is the marriner's albatross, but gold still hurts when you drop it on your foot. And worldwide, you drop it in a shop, everyone takes good notice. Any shop in the world. Any time from Eden to Armageddon. Does a continental or assignat draw even a ho-hum?
Why Gramma, what fantastic losses you're to have, all the better to bail you in, my dear.
Lock steerage down. We don't want pandemonium on this sinking craft. Bwahahahahaha.
http://www.youtube.com/watch?v=DyEEOxDTCRM
did the beardedclam speak today....yawn
It's cheaper to cash settle a force majeure with a lower paper spot price if you're a cocksucker (ahem JPM) bullion back who's current Gold tonnage lacks the delivery claims against it this month.
This is much bigger than Bear Stearns or Lehman. Surprised so many can't figure it out by now. The paper game is fucking dead.
Game Over bitchez...
not that I really care because I hold my precious for the long term, but can someone explain exactly what the fuck is going on? Are big money people that fucking dumb, or do they see something?
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsMTDReport.pdf
The 26th was metals settlement date on the futures, normally you see a slight bump up the day afterwards, but that is in a normal environment when there isn't a shitload of people standing for delivery.
There it is, straight from the CME. 9800 delivery notices - 980,000 oz, ~30 tons Due tomorrow EOD. 'Seems them Duke boys have got themselves in a real pickle this time, I don't know how they're gonna' get away from ole Sheriff Lobo - twang twang'. Gives more credence to the reports that JPM's about 80k oz short, wonder if their paper sell binge has freed any up for them - nah, they'll probably just lift it straight from the GLD stockpile.
Yes, they're idiots. See, e.g., "the subprime crisis is contained."
Clearly the central banks are in serious need of some barbarous relics. The US has to send Germany their gold and first they need to obtain said gold before they can ship it to Germany. The UK hardly has any gold since Mr. Brown sold most of it at a very cheap price. The gold standard is coming and the central banks will actually need gold to back the new currency. Once the central banks have the amount they require......."to the moon Alice".
BTFD. That is all.
This so doesn't reek!
Madness...shear madness. I would not be surprised to see Silver hit the $12-15 range in the near future. It looks like somebody (gee I wonder who) is working hard to break peoples confidence in the gold and silver market. It won't work...but they're gonna try. If Silver finds it's way to $12...I'm buying with both fists and feet.
What's not to like?
Keep stacking and let's hope the fire sale continues for a while.
My average cost is about $25 I guess, but hey, nobody forced me to buy...
+1 Exactly! Its not about how far down it goes, its about how long it will stay there so I (we) can buy a shitload more. Its really that simple. I give a fuck about anything else. The thesis does not change. EVER. And screw that ass clown who comes on here contending that we live in a state of denial. AAPL, JPM and Deutche Bank shares won't buy me fuck all and since they are digital, I can't even wipe my ass with them, but these shiny, heavy barbaric 1 oz fuckers will fetch me the same shit in exchange that they always have.........ALLLLLLLL DAAAAAAAAAAYYYYYYYYYY LONGGGGGGGGGGGG. Fuck you Ben Bernakabe.
bought one hundred ounces today. still a bargin. Go back to $50 an ounce when TSHTF...
gold is crashing because Ben wants it to crash. And what Ben wants Ben gets. He's got the keys to the printing press and nothing else matters.
only thing I don't understand is why the let it rise as much as they did ... I hope one day the behind the scenes story is actually told. Should make for good tragi-comic reading in the fallout shelter.
"I don't understand is why the let it rise as much as they did"
They were going short betting it would fall and so it has.
After 2008 an explanation could be:
They let it rise, to increase inflation expectations to fight the deflationary collapse. Once the increased inflation expectations became a threat to further money printing in 2011, they hit the brake.
Now they must continue money printing while the economy is slowly growing, so they need falling inflation expectations.
China and dramatically rosen real interest rates makes it easier for them to crash it now. They need to crash it now, because once the rates start to go lower again, the upward pressure could make it too difficult.
qe1 and qe2 were too small and the qe3 finally provided enough funds to corner bond, equity, commodity and all other markets. i think so.
best explanation I've heard yet
No wonder they call him chairsatan
As of March yields are way way up, gold is way way down.
IMO, these are margin calls which are covered by selling the most liquid assets, gold and USTs
Same as in 2008, gold dropped first then the market followed suit.
The move today tells me that margin calls are continuing relentlessly and they won't stop.
Q3 is going to be pretty fucking interesting.
particularly if taking into consideration full blown KGB style propaganda from Fed members today
He's evil!
The Japanese Hari Kari Gold Plunge awaits tonight.
why am i seeing michael jackson in your avatar?
I remember when one of my clients in 2009 made the simple observation that MGM stock was cheaper than a gallon of milk, or gas, and how long can that last - when everyone else was Leaving Las Vegas, i think silver at $18 and gold at less than production costs when there is extraordinary demand internationally, how long can that last? I am going all in.
Yeah! That's the spirit!
Having held a half ounce coin, once, I have to admit it's pretty cool stuff.
+1 It is totally fucking cool!
When you thumb-flick a kruggerand in the air, it chimes with harmonics.
so small, yet so dense and heavy.
unlike an frn.
+1 AND REAL
cheaper it is, faster it flows to china. in exchange they will send the 1.99 usd battery powered toys.
as to Ben Shalom-and you still think jews don't control everything in finance? oh, the fools!
Central banks are so evil they can even debase and devalue the elements.
From the once-was-an-element, AU, to the takes-mineral-rights-even-though-it-ain't-a-mineral, OIL;
up almost $2 because?
"Central banks are so evil they can even debase and devalue the elements."
~~~
When all the 'physical' elements are valued at ZERO... I'm sure people will be SPRINTING to Mt. Gox to buy bitcoins so they'll have currency to buy their kid a kosher Happy Meal...
I dumped 1/4 of my bitcoins for Ag near Bitcoin's top. I'll do it again when the time is right. Or I'll trade some silver for bitcoins if that looks like the thing to do.
Hate on the BTC all you want. ;)
B'ing TFD here.
Gold support near $1150
http://bullandbearmash.com/chart/spot-gold-daily-falls-channel-support-b...
Technicals all bearish. Sillver looks about the same.
Gee Wally, thanks. We hadn't noticed anything going on since May 2011.
+100 lol
Don't argue with the magical 'Elliott Waves'... The Bernank fixes his Ctrl+P schedule during a ceremonius seance, whereby he calls upon the spirit of Ralph Nelson Elliott [with Neely & Prechter holding his hands on either side]...
Bernanke wiping his ass with gold foil right now.
Now that's what I call 'shitting bricks'...
Technicals assume a market.
Double post.
today is the perfect day for zh...as I look at gold busting through the $11 handle...
just going to sit back and wait for this place to encapsulate the insanity, along with WB7...good times...
Sounds like a plan.
that sound you hear is my truck backing up
beep...........beep............beep...........beep
Gold is worthless just like equities or soveriegn debt.
Only dollars from Ben are worth anything because....?
Because you get paid in Ben's dollars, because you pay taxes in Ben's dollars and because you buy gold using Ben's dollars...
... unless your bullion dealer accepts custom made mittens and hand carved rocker chairs you make in the basement, in which case he needs more help than you do.
then I guess you should stock up on goats.
I would truly like to thank TPTB for this opportunity. For all of you cokehead traders, please, go fuck yourself. You are a pimple on the ass of humanity and I hope you junk the fuck out of me for being the worthless piece of shit you truly are.
Sincerely,
FUCK YOU.
They think crack is a better investment. You can always tell who has nothing better to do, and nothing left to lose.
+1 IR. These idiots all assume we never sell but we do. They don't understand the time frames we use either. I last sold silver in April 2011 and dumped a lot of it for the numismatic hedge. Sure I have purchased since then too but at much lower prices then I sold at. I am tired of explaining how markets work to them.
Ben Bernanke and Jamie Dimon are jamming the precious down to give the average American a good chance to buy. This is the best thing for the future of our country. Take advantage of this opportunity. Thanks Ben!
Keep going lower! I want to buy as much as possible.
i think it will go below 1000. just befor china announce it got 4000t of gold and then the party will start. we will see what happent after german
(merkel) (re)election
eurusd up
usdjpy up
dow up
gold silver down
crude and bond somewere here to stay
sumertime
Nominal price of gold will get to 699 that is the target and buying gold here is like catching a falling knife. Gold is a long term protection for wealth, there is no doubt to that. However its function as a utility for mercantilism is no where near the capacity that the US dollar is around the globe. Yes I know anyone will accept gold, except you cannot walk around with gold bars very easily to buy your ferraris and caviar or should I say Tesla's. Anyway like all financial instruments today, it is no longer a zero sum game, that gave way when financial derivative products came along and rehypothecation went into overdrive. Todays financial markets are more akin to hot potato. So gold in nominal terms can go down and will go down because it is in the best interest of those that control our currencies. Guys this is about competitive advantage and the almighty dollar is not going anywhere. However gold down at 699 will be the buy of the century and it will go straight up from there as the weight of debt to gdp destroys all CEntral banks credibilities and money any kind of money will be subject to counterparty risk and the mistrust will drive everyone into a new monetary system, but that reset is years away. So you can buy gold now, but you will be very disappointed in the short term. Long term I agree with you....its just that time moves awfully slow when your asset is depreciating!
Only a fool would pay any attention to you. the one thing I know for sure is that prices are not predictable.
Go ride a flag pole.
The dollar will go to the bin faster than you think. US power is being challenged globally not only through the dumping of the dollar as a reserve currency, but on the political and military front as well. This can only mean one thing: The world is beginning to smell a corpse, and this is not good news for anything US related.
Look for a better than 50% chance of USSA/Russian confrontation within about 6-8 weeks.
IMO
!
so.. btfd?
What you know about Gold
When you watch me shake it, I don't fake it
I've been shining all day
You can't make it
You can't take it
Your just a thin Gold chain on layaway
http://www.youtube.com/watch?v=aqeYgDejQG8
Amazing support at 1200, congrats to all that have been long and strong since 1900.
goldomega.
gold pimped by the same frauds who hustled bitcoins to ya at >200
There must be someone out there buying heavy physical volumes, who?
No, this could all be a trade in paper gold.
Typically you wouldn't find many who would borrow to buy physical gold, would you?
Most people who buy paper, however, do that because they "trade" and hope to make a profit. A lot of that is leveraged trades. They are now being squeezed so the pips squeak!
I wouldn't dream of selling a single Kruger at the moment. As a matter of fact, I will buy one again tomorrow, and the day after, and the day after that. At these prices they are cheaper than any I have bought in the last two years.
Marc Faber. There are quite a few very wealthy people who wouldn't dream of listening to Govt. bullshit.
remember those 5000 word essays right here on zh, telling you that unless you went long gold you would be living out of a cardboard box?
lol
It ain't over 'till it's over.
Yeah, it is.
It takes a special person to contradict a tautology.
It takes a realist
Not realist enough to look up the definition...
tell that bs to your margin clerk
No margin, no clerk.
thats good, wouldnt want to amplify a loss from 1900 to 1200 with leverage.
That's what GLL is for....
What is this thing "leverage" that you speak of?
This game lasts way longer than you're able to comprehend.
It also ends more dramatically than you can ever imagine.
Ha ha. The world is going to hell in a pot!
There must be some weird things happening. For anyone to sell gold to get, what, paper, at the best, he must have bought gold with credit. So there is now a squeeze on, of some sort.
Buy physical with cash, hold it tight and see who laughs last.
If you liked gold yesterday, you should love it today.
Oh, I have just found out what the difference between OBAMA and OSAMA is. BS!
keep shorting papers , and buying physical
I guess my perfectly timed buy @ $1320 wasn't so perfect. That was just my first swing. I still have one more to go.
I think they learned the quick sudden drop wasn't the way to go. Better to make it Red every day to finally break the goldbugs spirit.
A year from now you won't be worried about it. buy some more today; this is a really pounded price.
It hurts my nuts in sympathy to think about what is going to happen to all the new expert gold haters. TV is a bad thing for people without actual data and experience. But I guess they got to learn it first hand.
At least I wasn't the only one that noticed the new influx of morons.
This place, and most blogs, have been overrun with gold trolls and sock puppets.
The age of ADHD, lack of education, ignorance of history and zero attention span.
Interesting how these genius all-knowing sock puppets were nowhere to be found when Au was higher; seems like they would have been trumpeting the folly of buying physical metal even then: "hey you morons, it's gonna fall to 500 bucks! Just wait until June 2013!"
Contrarian that I am, the psychology of this tells me to buy moar, within my means.
LC55 my friend, hold off on that. The market is emotional right now and that is not a good time to buy in my experience. All the same, if you can find a distressed seller, then by all means consider a buy. It's never a bad idea to buy some though. Be cognizant of what you are buying though and hedge low mintages vs spot price. This is not a good market for bullion bar which is why I own very little bar. Doing it this way decreases your long term risks. Just saying.
Please give us a break. 1200 bucks is a big chunk of change. I balked at 750 and did not pull the trigger, mostly because I was in debt. Thought about going in at 1500, selling the car and buying gold. Or putting it on the cc of all things. It's not easy to figure out, except if you have excess fiat. The 5k in my drawer is not excess but it ain't doing nothing iether. So I think again about PMs and look what has happened this month.
I am not a strong believer in asset hypotheses. But if I was being sold an asset at $1900 and the price went down to $1200, I'd be pissed
Not if you could read a long term chart. It's all a matter of perspective. by the way, I have no idea what the asset hypoteses is; but fortunately it hasn't hurt me any.
I am not a strong believer in asset hypotheses. But if I was being sold an asset at $1900 and the price went down to $1200, I'd be pissed
We are especially when it is done illegally.
I'm telling anyone who will listen...if you own physical gold right now, you should be thanking the stars and buying more. You will receive a windfall unlike any other.
For those with other metals and mining stocks, well, this is more of a speculative position. But the general trend should be up.
If you can hold it - hold onto it!
Enjoy your gold buggery
HUI +2.68% --- I'm taking a big bong hit off hopium.
hmm, DUST down 9%.
Normally it is inversely correlated to price of gold.
This is the new "normal" where normally everything is just unreal.
Not really; it's always been this way. Crazy. The trouble with the future is it always arrives and it's rarely what you thought it would be.
I'm going to start buying it again if/when it hits $1000.
And if it doesn't get to $1,000; then you won't have any? but why did you want it in the first place? Logical failure.
Key word: "again"
Reading comprehension failure.
Because @ $1000 gold. For $6000USD he can hold 6oz. of gold instead of the 5oz today.
This is the one part of the game , I have never got my head completely around.
I bought my gold coins in the $650 range....as insurance though. See ya in 10 years...
then your losing will begin
Gold getting CRUSHED
Paper gold.
Bullshit, the real thing
http://www.monex.com/prods/gold_eagle_chart.html
I can see Bartiromo's nipples hardening as she talks about the dump in Gold prices and the Ponzi casino stocks ramping up.
All of them appear as it they are having orgasms when gold and silver drop.
These paper pushing bobbleheads do not realize that they are cheerleading their future doom.
Those nipples won't get as hard as my dick at these prices.
people REFUSE TO UNDERSTAND that the fed is now powerless to stop a deflationary depression. gold is simply a messenger - and it is SCREAMING that we're heading into a future with a dramatically lower supply of money flowing through the economy.
Deflationary environments are highly prosperous and expansionary. For once I would like you morons to at least attempt to read a book on economics. All depressions are the result of inflationary events.
Keep the Faith.
Keep the Phyz.
You got into physical not as an investment, but as a means of protection.
When the other bubbles pop, which they will, what would you rather be holding?
A paper IOU or metal?
Follow the lead of the whales, institutional investors and central banks. They are not hording paper. They are scooping up physical.
As they are part of the insider's club, they know something is coming that would favor the metals.
Does it not make sense to mimic these actions?
Stand your ground.
For all those playing the paper side of things, please be careful.
Coming weekend; gold tier1. Paper derivatives saved, no force majeure. Black swans are fighting eagles in the air, wtf.... Adding mr. Bernanke. I mean paging...
somewhere, they must be having the same convo about bitcoins. "its an investment, sure I paid $230, but eventually I will make a fortune"
I just came back from the future. People that did not own precious when the collapse came are slaving away in the mines trying to recover any scraps that are left in the earths crust. The smart owners of gold and silver have overseers to crack the bullwhip on the miners. Poor things.
"People that did not own precious"
Doesnt get any geyer than that
That's not what happened here:
https://www.youtube.com/watch?v=DyDCaSqxhUc
I watched Battlefield Earth too. I was one of the few who thought it was a good movie. Travolta is a bit campy but good.
you know what puzzles me here - those who sell gold now what do they plan to spend their USD on ? T-bills ? stocks ? or just sit on paper ?
More gold at a lower price....and some silver....but not yet. I think the elite will try to run gold below $1,000 and see what happens. They are net buyers right now.
I've been holding GLL....
They're spending their USD on margin calls.
Farmland is still bubbling up as well I think.
all that nice gains, gone in a heartbeat...
:D
they call it unrealized gains for a reason...
I bought back at $1000 ...for Insurance not investment. Still profit is fun, but not my goal.
who the hell would sell their stack at these undervalued prices?
i sure as fuck won't.
they didnt sell iomega until it was .000001 cent either
upvoting your own posts is, well, weak sauce.
Gold bugs. You can't deny that all of their assertions that it is "the only real money", etc. is just an attempt at self-consolation and keeping their morale up. What usually exists below manic assertions is confusion, uncertainty, hope, illogic or personal agendas. Having a fixed idea is not a good condition to be in. It prevents one from observing, correcting, changing, etc. Gold is a commodity, an asset, a store of wealth or whatever, just like so many others. It's good to be diversifed and have some in your overall portfolio. It's not the be all and end all. Nothing is. No one knows how this game will end. When a reset or major change occurs no one knows what role gold will actually play. It's best to cover all your bases and be balanced and flexible. That is survival orientation to me.
Ahh, you're another one of those. "Nothing is really knowable" guys...
ok, look, gold bugs are hysterical loonies, but don't let that sway you.
I can technically buy 50% more silver for the same price today as a few months ago. What's not to love about a good sale? Unfortunately I'm also earning less these days so my purchases will be smaller. I have a hunch that my situation is not that uncommon out there. We're all on a smaller budget these days.
What is Ben going to do about DEFLATION is the real question.
Gold knows something, Ben. Deflationary collapses are gut wrenching and blood drenching. Bail-Ins, Cents on the Dollar, Haircuts and all that ... mark my words. Stack and stash.
Yes there are lots of deflationary signs now. And that is the one strongest factor that will lead to an increased QE, no tapering.
We're all on a smaller budget these days.
Tell it to the Fed, /LOL/sarc,double sarc.