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Gold Breaks Below $1200

Submitted by Tyler Durden on 06/27/2013 14:01 -0400

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 - 16:19 | 3700719 rational

Dang all these gold pushers on zerohedge are going to need a new line of work...

Thu, 06/27/2013 - 16:21 | 3700732 Godisanhftbot

work? they've been on obamastamps from day1, living in their moms basment

Thu, 06/27/2013 - 16:39 | 3700841 Jackagain

85 billion a month of useless fiat is being pumped into the world system every month, and the Fed says they will continue this insane course until Madoff gets out of jail....but that won't

fuel inflation anytime you quess....

Gold & silver are long term insurance policies.

Thu, 06/27/2013 - 16:22 | 3700741 Gaffing_Nome

geez. I understand what's going on...being a bit younger (esp. regarding all things econ) didn't know what a dang credit union was 5 years ago. Saw/procured first ASE less then a year ago. Spent 24/7 reading/studying and observing forum talk right around the time ZH popped up. The usual tin-foil "friend" loss stuff (I tried my damned hardest to inform everyone).
Not a rich dude, no debt...have all the material crap I'd ever want. Was a sofa-surfer for many years. Anyway. A few lucky/well timed somethings happen and the stack of Au weighs as much as many of my persons with a bit of yellow stuff for fun. The problem: no kids/wife/fam/friends (I like good ppl). It may sound odd? But... now that ungrand experiment is (seems) fast approaching its end, I feel fucking cold (it's 100f outside, heh). I'm going to do another grab-o today...but taking the whole thing in (epistemically-whole), hard fer me to feel "good". Fantasy: SHTF (check) and somehow it works out (I know zero about RE) in 5? 10? Years....can sell pms, buy RE and use it/resources to start (don't wanna say school) a place which the young (kids now) ones can...oh I dunno, learn whatever the antithesis is of the crap on the tee-vee/shitty rand mc-nelly txt books teach these days.
Pipe dream.

Thu, 06/27/2013 - 17:02 | 3700923 22winmag

I bought at $1,700 and I bought again two days ago.

No regrets here.

Thu, 06/27/2013 - 17:09 | 3700945 Cashboy

Sorry, but maybe somebody could explain to me the reason Gold is going down; I am not just talking about paper gold, I am talking about the Real Gold.

The price is so low now that I have started buying in Thailand, Thai Baht Gold.

This is Real gold bars that the buy/sell price is listed by the government.

Just look how the price is dropping and it is readily available and used by Thai people that don't trust the banks and value of the currency.

http://www.goldpricethai.com/

Look at the way the Physical stuff has fallen in the last 8 months.

http://www.goldpricethai.com/charts.php?type=1-year

I have bought it today at 18,280 bt on the basis:

1) It seems too cheap now.

2) I am not trusting the banks; even the Bangkok Bank now worries me.

Thu, 06/27/2013 - 17:19 | 3700987 robertocarlos

I bought the real precious. A year supply of toilet paper. The good stuff too.

Thu, 06/27/2013 - 17:32 | 3701039 Godisanhftbot

does it say Apple Inc on it?

Thu, 06/27/2013 - 17:35 | 3701045 Fix It Again Timmy

Be patient - it's a put on....

http://www.youtube.com/watch?v=GnHLgxKUsEA

Thu, 06/27/2013 - 17:44 | 3701084 Satan

I know that the gold I bought today will be worth more than my Enron shares in 50 years.

Thu, 06/27/2013 - 18:20 | 3701201 Levadiakos

I can buy a lot more gold with the same amout of paper I raised 2 years ago selling gold and don't tell me inflation is 40%

Thu, 06/27/2013 - 18:22 | 3701210 Bansters-in-my-...

The people who bought gold and silver at the top should be buyinng hand over fist now so as to Lower there average cost.

Just saying.

Thu, 06/27/2013 - 19:05 | 3701317 LongBallsShortBrains

Losers average losers

Paul Tudor Jones

Thu, 06/27/2013 - 18:26 | 3701223 reTARD

Beep, beep, beep. Trucking is backing up. Getting ready for another pick up.

Thu, 06/27/2013 - 18:43 | 3701262 bookofrao

My prediction
Gold at $LOG in 1 yr

Thu, 06/27/2013 - 21:12 | 3701536 Aurora Ex Machina

I don't want to spoil your party, but holding shinies isn't a safety net in all of this. Gold was just a weapon. (It'll hit $880 before too long, then hold). Silver is a joke: there's enough stockpiled for weapons for 17 years now.

Sorry people, but you were just a means to an end.

It's all binary now, grow the fuck up. No-one cares if you have shiny rocks in your monkey paws.

No, seriously: NO ONE CARES IF YOU HAVE SHINY ROCKS IN YOUR MONKEY PAWS. IT'S PATHETIC YOU IMAGINE THAT THIS MATTERS.

What? You expected to be special here? Damn, you know nothing about predators. Yeah, they just fucked you. Deal with it. You don't have the power or economic block to challenge them, which means you get fucked. If you're surprised, you ain't being paying attention. NSA says hi. Oh, and GS says: "TEE FUCKING HEE".

/muppets ~ and before you unleashed your venom and stupidity, some of us worked REAL FUCKING HARD to get gold up there in 2011 to allow the "average investor" to ride the tide, and cash out healthily, to allow the smart and swift to survive. It was a gift, not a fucking Stone Henge 1,000 year deal you muppets. And you wonder why we wonder why we fucking bother...

It's 2013 - you're all fucked.

p.s. We see you pruning the remixes there, oh Corporate whores, and we're not impressed. You have to imagine a world without you, and if it would be better. Fucking parasites.

Fri, 06/28/2013 - 01:45 | 3702524 trader1