Goldman Says Gold "Slam Dunk" Sell, Ready To Buy All Its Clients Have To Offer

Tyler Durden's picture

Goldman, which is the hedge fund best known for originating prop order flow in the opposite direction of what its sellside "research" team tells its clients to do (see Tom Stolper), has never been clearer on gold: "Gold is slam dunk sell for next year because the U.S. economy will extend its recovery after lawmakers resolve stalemates over the nation’s budget and debt ceiling, Goldman Sachs Group Inc.’s Jeffrey Currie said." How the economy will expand, especially with the Fed supposedly tapering (even though everyone saw what happened to markets and the economy at the mere mention of "tapering" the last time around) and eventually ending QE - the only driver of upside market momentum in the past 5 years - was not discussed. What was, however, clear is that Goldman will continue buying all the gold its clients have to sell until the bailed out hedge fund's price target of $1,050/ounce is hit.

Some more amusing commentary from the Bloomberg wrapper article: "[Gold] has tumbled 21 percent this year to $1,322.28 an ounce on speculation that the Federal Reserve would reduce its $85 billion monthly bond-buying program, known as quantitative easing, as the economy recovers." Well, uhm, now that such speculation has been proven false, will gold rebound? Why of course not. Recall that as Paul Singer said, the most direct consequence of soaring gold prices is even greater loss of confidence in fiat, and that is something neither the Fed, nor the BIS' gold selling (we would say trading, but who's fooling whom here) team would be happy with.

To be sure, Goldman is not alone in worrying about the future of fiat.

Currie and Ric Deverell, the head of commodities research at Credit Suisse AG, both said on a panel at the Commodities Week conference in London today that selling gold is their top recommendation for trading in raw materials in the next year. Gold is heading for its first annual loss since 2000, and is the third-worst performing commodity in the Standard & Poor’s GSCI gauge of 24 raw materials this year, after corn and silver.

But going back to Currie, and his floral descriptions:

Once we get past this stalemate in Washington, precious metals are a slam dunk sell at that point,” Currie said. “You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices.”

Of course, the fact that neither is actually happening is irrelevant to the vampire squid, whose last "slam dunk" trade was to buy crude to $150 in the summer of 2008.... weeks before it hit $30.

Finally, as for gold being a slam dunk sell, explain that to JPM, which continues to scramble to get every ounce it can, last night quietly transferring yet another 4,459 ounces of vault gold from Scotia Mocatta to its own vault deep under 1 CMP, which may or may not be for sale.

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Save_America1st's picture

Queue up the muppet pic of Kermit smashed along side the curb...

Leonardo Fibonacci2's picture

All in a day of doing God's work.........yet the opposite & blasphemous way!!!!

Treasonist cowards with their constant manipulation. 
Erect the gallows, lads.  Once a century or so, it becomes obvious its time to use them again

Rory_Breaker's picture

Great! Discount sale in gold extended for a few more days or weeks.

Funny thing is nothing sells these days unless it's on discount.

synergize's picture

LOL a US Economic recovery based on what?  Also, what about all that money finally findings it way into the economy?  No thank you i'll buy gold alongside Goldman

----------------

If you are fed up with whats happening with the government - it all stems from one major thing: the government's control of our money.  We have placed in our government the ability to control the money supply and dish out new money to whomever they please (usually their cronies and the banks) and to spend and create that money in infinite amounts to SUPPRESS we, the People.

To break this system we have to bring back real money and thus limit government control over money and our lives.  We can break the system by overwhelming the physical markets and give a no-vote to their control over money - they key is the small silver market.

Join the Silver Pledge - an effort to change the system by having investors join up and buy physical silver - together we can break this market and take back our government.

You can read more here:

http://www.communitysynergy.com/subscribe/silver_pledge_site.html

If you dont like it dont sign up - but for people who are sick of sitting and doing nothing at least lets work together to BREAK this silver market

Arius's picture

LAST CALL

 

goldman has never been clearer ... all hands on deck whatever we can get from any muppets left, do not care about future muppet business because there wont be any business ....

now they are trying to have a managed debarcation from Titanic ... this is the phase of first class passangers starting to get into the lifeboats while the orchestra continues fearlessly to play music in the back (muppett sell call)

i would say they will try to cap it under 1350 for the rest of the week, then off to the races....

 

this is the LAST CALL before train leaves the station

TheDarkKnight's picture

Hmm

US is going to possibly miss its bond payment date coming up in october. In that case it is a train leaving the station (huge train starts slowly but wait til it picks up momentum) . Bond prices would drop like a rock with yields skyrocketing across the board. FED cant let that happen so you can expect them to continue with bond purchases which means DOW @ 20k

Always front run the fed my friends

 

However in the offchance Ben grows some balls and says fuck off to america and cuts the QE-juice, well then yes LAST CALL is correct but in that case hope you got lots of food and ammo stocked up!

quasimodo's picture

Famous last words, reminds me of the boy who cried wolf but the version where the wolf never appears

Arius's picture

or the wolf doesnt really exist right? just smt to scare the kids ... lets hope you are right and the wolf is a creation of our imagination ...

Money Maker's picture

Gold just went up over 10 dollars per ounce in seconds..fun

Theosebes Goodfellow's picture

So Goldman has now decided to compete with my skanky local pawn shops, eh? Are they going to have the 8 ft. tall "WE BUY GOLD!!" signs out front as well?

Kirk2NCC1701's picture

There's at least one easy way to see if The Gold Man is lying* through its gold-filled teeth:

Look for Price Decoupling between Platinum and Gold.  The Pt/Au price ratio should increase, if... IF the "economy will improve", as they and the IMF claim.

Why?  Because in an "improved economy", car sales will go up.  As will demand for industrial uses of Pt, especially for catalytic converters in cars.

 

* GS Sales Trader (ExtraNormal bears): http://www.youtube.com/watch?v=t3HapmpEEZM

rosiescenario's picture

......for those here that are older, its the last chopper out of Saigon.....with a few folks hanging off the landing skids...

EINSILVERGUY's picture

Good reference.

Low point of America. I remebber being 14 and watching the humanity trying to scrabble over the embassy fences, up the stairs just to try and get to that little pad on the top.

I remember the helicopters on the horizon and see in the ones that had just landed with the refugees, many with just their clothes or a small bag, jumping off and the helicopter pushed off of the deck into the water just as another helicopter lands and the prcocess repeated itself. I know the next 5 years sucked until Nov 1980 and we at least thught we had turned the corner

the problem now is we are the refugees and the helicopters aren't coming and wouldn't have anywhere to take us.  Time to start hunkering down like the marines at Khe Sahn. It ain't going to be pretty

 

 

 

SilverRhino's picture

My only question.  How much gold has been harvested from the Asteroid Belts if ANY?  

Silveramada's picture

FUCK GS, HSBC, UBS, JPM and co....

 

 

halfawake's picture

+1000 i wish gold would go down to $1050usd, that would be fantastic. gotta fix my boat first, though.

SilverSavant's picture

    PM manipulation is theft. It is down dirty dispicable theft.  It sounds so benign, but it is the very worst crime going on in the world right now.  It rewards the thieves and robs the good people who try to protect themselves from the additional inflation theft.  It will end badly, of course you readers all know that.  It is just the sheer perversity and wrongness that is seldom mentioned.   I wish I was one of you poets and comedians, so that I could put this in a way that catalysed action.  This must be stopped or it will tear the world apart and cause the four horsemen to ride like never before.  But what is one to do?   I am more convinced than ever that silver is the lever that can bring these criminals down.   It gives me hope to see that others are learning this too.  It was clear to me more than a decade ago that silver was their only weakness.  When I said it then, it was too early in several ways. I was a believer in the USA, the land of laws and justice.  Now I know there is no justice or law when it comes to the fiat money power of today.

Are we finally in the last chapter of this story?  I submit, that if we use the silver lever, that we can NOW move the financial world in the direction, THAT SUPPORTS GOOD PEOPLE AND PUNISHES THE THEIVES.  Now, can be the last chapter of that story and the start of a much better one.   Every day that passes, means more uglyness and more death in our future as the world of just-in-time supply gets more out of balance.    SILVER, much more than Gold, has always been feared and hated by the Bankers.  When they removed it from it's position as money and forced the gold standard on the world, they basically won a monetary war over the East (China, India, and the region, who all used Silver as their main source of money and who have not forgotten)  It is the One thing that they cannot print and that has been shrinking in supply for 60 years.(don't bother checking this on Google, there is no truth there on this subject.  When you do your own research, don't be fooled by the way they use melt silver as supply either.)   Many do not know that silver is second only to petroleum at being the most crucial industrial mineral. The world will not go on without silver.  The largest supply in the world was held by the US and they sold the last of that 8 years ago and have been grabbing every other available ounce to keep their paper money game alive.  By their actions to hold the price silver down, the Central Bank Owners have created their only Achilles Heel.  Investible grade Silver supply, or in other words, Silver available to be used as money, is 1/10 of what it was in 1980.  At least 50 of the world's Billionaires could buy the annual supply at today's price and output.  If they did, the black suits would show up and so would the shadows on the roof.  That is the only reason that major investors have not done just that. Hoever, they cannot stop the small investors of the West, or the Big investors of the East.  The shrinking supply is daily more visible.  Silver, like gold is moving to the East and to the strong hands in the West.  The day their control of the futures' market slips is the day the world learns what money really is. The price of silver will not be measured in dollars at that time.  You will pay in ounces of gold or silver. 

    Buy Silver if you are tired of being a victim. Buy Silver if you want to hack at the taproot of the system.   Buy Silver if you are ready to take some leveraged action to protect yourself and your loved ones.   One day I look forward to meeting all my friends in my silver family and toasting to our Victory over stupidity and the sociopaths that created this catastropy.   If we survive?   Will you survive?  Extend your arms, lever your effectiveness, buy all the silver that you and your circle can get.  Best of all, don't believe what I am saying, learn for yourself, why Silver is the lever you want to be using, right now, to provide real security in this world of madness.   Silver is the power of Good and the power of the people.  Besides, there isn't a better thing you can do to hurt the bank owners and their big government tools.  Anything else you do, you are playing on their field in their game.  Have you noticed that you always loose?  Are you tired of loosing?  Buy Silver Yesterday. 

HoofHearted's picture

We did! Now if we can get the damned post office to stop stealing the stuff. I guess Fatty the postal worker has to have something for driving on people's lawns, and the overpaid wages and extravagant benefits aren't enough.

Yes, I buy locally when I can, but when you are able to buy junk silver at 12x face at an estate auction, you take your chances and insure the hell out of the package. Between postal workers and that canoe, I've got nothing left, though....

Jack Napier's picture

Buying physical silver is both the single most effective form of lawful (for now) civil disobedience and the most effective method of undermining the corrupt ruling power structures which can only afford to function in an environment where money grows on trees. Stop using their usurious luciferian money, embrace real money once again as history shows us will inevitably occur, and take away their power. Silver is also the hands down best way to preserve and expand your wealth over the coming storm. Gold is great too.

But, Rome wasn't built in a day, and it won't crumble in a day. Don't expect a big payoff tomorrow. Don't expect results as long as new dollars are "making markets". The reward will be in buying power when dollars are no more. Anyone looking for dollar denominated profits is cruising for a let down.

The end result will be all other goods in services denominated in grains or ounces of gold and silver as the founding fathers decreed before the traitor Alexander Hamilton fixed the gold/silver ratio under the freemason George Washington's watch. The price of an ounce of gold will either be an ounce of gold, or 10 ounces of silver possibly (floating ratio required for market equilibrium), but a silver dime will buy far more than a loaf of bread after a century of price suppression for the PR campaign, and thus supply depletion which has necessitated IOU proxy substitutes to divert demand that would otherwise break the exchanges.

A bi-metal standard will be necessary to keep things honest - competing currencies - neither of which grow on trees. This cannot happen if people are willing to continue to be slaves to debt based money.

buyingsterling's picture

Amen. I promise to buy silver.

midtowng's picture

My gold buy at 1,200 is looking better and better.

GetZeeGold's picture

 

 

I noticed that Goldman has a new kiosk in the local mall......fiat for gold.

They have a pair of pliers attached to a cable....so you can pull out your gold filled teeth. An Obamacare kiosk is right next to it so you can buy your wickedly expensive healthcare plan with the proceeds.

One stop shopping....I like it!

Reader1's picture

All right, Sir.  Bend over and say AHHHHHHHH!

Tabarnaque's picture

Why isn’t the Comex defaulting yet? The Comex is left with about 23 tons of gold in their registered inventory (as per Harvey Organ’s web site). From this you have to subtract what will be delivered in the month of October. When October is over, they should be left with about 10 tons of gold. This quantity of gold is so ridiculously small that it screams at something evident: The big players in the gold market (I really mean all of them) have all agreed to keep the price of gold as low as they can for as long as they can. If such was not the case then any big player, being a central bank or a hedge fund, could force the Comex into a default this very month of October. All they need to do is buy 10 tons of gold and the Comex is forced to settle in cash. By comparison, around 10 tons of physical gold is sold and delivered every day out of the Shanghai Gold Exchange.

So the question is why doesn’t this happen? Any opinion in the crowd? 

fonzannoon's picture

Because they are just as happy to settle in cash and not blow up the financial system.

HoofHearted's picture

Why not? Well, because...well, why don't you talk to the nice two gentlemen over there with their holsters and assault rifles. They would like to remind you how much you love Big Brother, his ACA, and your free telephone. Now you wouldn't want to go rocking the boat when there are some rounds of .223 chambered up right there beside you, would you? You could have a terrible time committing suicide by shooting yourself in the back of the head five times...

Seriously...Bunker Hunt. Look what the criminals did to him when he saw a good sale and tried to take advantage of it. Eventually this will all go to shit, but they will fight you in nasty ways before that happens...

fockewulf190's picture

I know the Great Reset will be devestating beyond belief, but I will relish the day seeing the blood suckers who work for the TBTF banks streaming out of their headquarters Lehman style. They will be dodging bricks on the way out....if not more. Sorry fuckers, all the waiter/waitress and bar tender jobs will all be filled...thanks in great part to all of you.

PS: Don't forget to make sure you sell any scrap of physical silver or gold you may have in your possesion and buy moar stocks. Your masters will thank you for obeying.

GetZeeGold's picture

 

 

The Comex is left with about 23 tons of gold

 

Call us when it hits zero.....it should be interesting to see how they spin it.

TheDarkKnight's picture

I'm guessing they deal far more aluminum and copper than gold to want to carry more than 10 tons of gold.

Arius's picture

it will be declared when cannot be hidden anymore ... most probably you will get all kind of arm twisting, lies, denials, promise for deliveries which are out of the door etc.

We are talking MONTHS .... THIS IS IT! 

Goldman Slam Dunk call confirms it.  It is their last bullet, never used before at such nonsense when US Gov is contemplaning default....

IndyPat's picture

They can take the gold tooth at the mall...or,recover it from your ashes later.

thunderchief's picture

This wreaks of desperation.
They are not only liars, they are asshole lying liars.

Money Maker's picture

Nah, Goldman Sachs are probably on the hook for 23,000 AIG call contracts at 5 dollar strike. They are desperate AIG stays below 5 a share.

auntiesocial's picture

do as I say, not as I do... the muppets that get blindsided this time deserve it.

JuliaS's picture

If you believe in recovery, sell gold.

That's fine piece of advise coming from Goldman.

LooseLee's picture

The economy will improve in 2014? How funny.

Bahamas's picture

LooseLee...I think they meant the economy  will improve for the 0,1%

 

NidStyles's picture

They have to force the narrative to keep in their position as the only game in town. From where I am sittting they seem to be trying to move in on the JPM positions and try to take over stewardship of the paper gold.

bullionbaron's picture

Gold is a slam dunk asset to save in if we could do so unimpeded by government and their taxes (ie as a competing currency)

http://www.bullionbaron.com/2013/10/let-australians-save-in-gold-instead...

Ghordius's picture

from your link: "Fourth scenario: A family is saving in Gold (with intent to purchase a home) from 2005 to 2013 and as a result of doing so their purchasing power has increased due to a strong gain in Gold relative to house prices. Should they have to pay tax on the gain when they sell their Gold to buy the house?"

well, bullionbaron, that's the difference between "civilized" and "barbarous". guess what? plenty of countries in this world that are barbarous enough not to tax "gains" in gold

bullionbaron's picture

I am not lucky enough to live in one of them!

hedgeless_horseman's picture

 

 

Just for fun, try offsetting the gains with a loss on sales of your USD holdings.

LawsofPhysics's picture

Quite simply, all taxes are only as good as the ability to enforce them.  Taxes that can't be enforced, aren't really taxes at all.

HoofHearted's picture

Rather than selling my gold at a gain, I've simply bought with it. Same with silver. I bought a decent 5' x 8' trailer from a guy for $13. Of course each of those dollars was from before 1935, but I've got the bill of sale to prove the sale. Looking to buy a nice zero-turn mower for about $60 worth of gold. It's what the face value says, at least. Take advantage of their bullshit. Buy a house with gold. Let the other guy decide how he wants to handle the gold itself, but find a likeminded individual and spend honest money rather than fiat. I've allegedly bought a few guns with gold, but then everything got lost in that fateful canoe trip....

Its_the_economy_stupid's picture

Mine will not see the light of day for a long time.

alexdg's picture

Last call to give up your gold as prices will fake a smash and then rally past 1360 and breakout the LT downtrend. http://cl.ly/RqdK

Grande Tetons's picture

From my cold dead hands. 

GetZeeGold's picture

 

 

Plan B was suppose to be a secret......how did you find out?