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Beware Sudden Unexplained Collapses In Commodity Prices

Tyler Durden's picture


Yellen is in; nothing is resolved in DC; and there's no news on the wires - so it makes perfect sense that once again as the 830ET period ticks by that commodity prices - especially gold, silver, and copper enter what many in the business call "free fall." All sarcasm aside, this is becoming far too ubiquitous - but of course with the CFTC closed for business, while the cat's away the algos will play.

Margin calls from yesterday's MoMo massacre, perhaps? Or just a need to show the market that Yellen is no uber-dove...?



and think we are being conspiratorial... here's the withching hour for gold over the last 15 days...


Charts: Bloomberg


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Wed, 10/09/2013 - 08:29 | 4037432 hugovanderbubble
hugovanderbubble's picture



Wed, 10/09/2013 - 08:36 | 4037439 Arius
Arius's picture

shaking up the tree one last time (whatever we can get) ... right before the bombarder and the heavy cavalry  showes up ....

Wed, 10/09/2013 - 08:36 | 4037453 Stuart
Stuart's picture

It wouldn't matter even if the CFTC was open for business.  They've clearly shown their cards and they are not on the side of the retail investor. 

Wed, 10/09/2013 - 08:39 | 4037464 GetZeeGold
GetZeeGold's picture



Buy're gonna have to sell it to afford healthcare.


The tricky part is all in the timing.

Wed, 10/09/2013 - 08:47 | 4037488 tmosley
tmosley's picture

While the rat is away, the other rats shall keep playing just like normal?

Wed, 10/09/2013 - 08:49 | 4037494 remain calm
remain calm's picture

1200-1250 will be the buy of our lifetimes. Get ready to load the truck.

Wed, 10/09/2013 - 08:53 | 4037505 greatbeard
greatbeard's picture

>> the buy of our lifetimes.

If I had a nickle for every time I heard that......

Wed, 10/09/2013 - 08:59 | 4037515 kliguy38
kliguy38's picture

It may seem like hyperbole to you now, but over time you may look back and have an attitude adjustment

Wed, 10/09/2013 - 09:17 | 4037520 philipat
philipat's picture

What a fucking joke this has all become.

And as all here understand, it makes fuck all difference if the CFTC is in place "Doing it's Job" or not. The only further concern is that these assholes have become so totally shameless, they obviously don't give a shit that everyone KNOWS what is going on, because they know that they can do whatever they want without any fear of prosecution. So, with love from Jamie and Blythe: Fuck you all.

Wed, 10/09/2013 - 09:18 | 4037567 DaddyO
DaddyO's picture

In my view, PM price is irrelevant for the most part if your strategy is protection from inflation and currency debasement.

If you're trading then these markdowns become problematic, although the old addage of Buy Low, Sell High becomes important.

I don't trade so let the bastards have their way with slamdown...


Wed, 10/09/2013 - 09:52 | 4037583 Manthong
Manthong's picture

Keep in mind that the Fed ain’t the government and is operating full time as well as all it’s private bank clients (certainly not us) .

..essential .gov still plugging away, including PPT and of course, the other higher level interventionists

.. and their Directors never quit…

Credit may be starting to give them fits..

It will be interesting to see how the kabuki plays out.

Until credit bitch slaps the interventionists and they let loose, there is no (free) "market"

But I do not underestimate the power of the Heidelberg.

..any yes, liquidations of paper PMs as the margin calls of a spooked market happen will add to the mix.


Wed, 10/09/2013 - 10:09 | 4037701 Max Hunter
Max Hunter's picture

How anyone could take this market serious is beyond me. The crushing of anything and everything they think neccessary for their own survival. I hope every one of those suits are hanging from a light pole some day. I hope people realize they are the cause of the collapse comming.

Wed, 10/09/2013 - 11:50 | 4038023 Herd Redirectio...
Herd Redirection Committee's picture

Buy gold for when currency dies.  And when currency has died, obviously don't barter your gold willy nilly.  It should be used for capital transactions only.  Land, house, vehicles, business assets. Otherwise you barter batteries, cigarettes, fresh water, moonshine, a can of beans....

Wed, 10/09/2013 - 12:03 | 4038077 Meat Hammer
Meat Hammer's picture

Exactly!  Every payday grab some shiny, even if it's just one silver eagle, stick it in the safe, and sleep well.  You don't day trade the phyzz, so don't worry about the price in fiat toilet paper.  If the S does not HTF by the time you're dead, then your kids will be protected from currency devaluation.

Buy with both hands, no matter the price, because we all know the history of fiat currencies.

Wed, 10/09/2013 - 09:22 | 4037577 El Oregonian
El Oregonian's picture

Keep your nickles, I'll load up on discounted gold with mine.

Wed, 10/09/2013 - 13:27 | 4038450 Iam_Silverman
Iam_Silverman's picture

"Buy're gonna have to sell it to afford healthcare."

Ahah!  great catch.  So that is how they came up with the pricing levels for those ACA plans.

Bronze, Gold Silver and Platinum.  How very transparent!

Wed, 10/09/2013 - 08:45 | 4037466 Arius
Arius's picture

it depends how you define the retail investor ... if you mean holders of paper promises - no, they are not on their side. 

in all fairness they are ripe for the taking, and thats what these tree shaking are trying to accomplish ... thats my take

Wed, 10/09/2013 - 08:40 | 4037471 PP
PP's picture

everyone place a small long position, without price stop order, and demand delivery, will kick CME and crooks go to hell and pernament solve this Evil for human being

Wed, 10/09/2013 - 09:49 | 4037625 RaceToTheBottom
RaceToTheBottom's picture

I thought only very large orders from very large customers can demand delivery when purchasing GLD or even SLV?  Am I mistaken?

Wed, 10/09/2013 - 08:37 | 4037458 Zer0head
Zer0head's picture

speaking of the Cavalry

that douche with the Bow Tie on Bloomturd

he's taken to calling the Tea Party "Neo Confederates" and not only that he has suddenly embraced the constitution,  specifically the 14th amendment

He and  Fluffy his faux blonde pal were aghast, absolutely aghast that Boehner and his "Neo Confederate"  friends were behaving in an unconstitutional manner. Indeed they called in a professor from Princeton and waxed eloquent with Fluffy's folorne looking ex on the constitutional legalities surrounding the debt ceiling.

video clip

Wed, 10/09/2013 - 08:54 | 4037502 29.5 hours
29.5 hours's picture


Good clip. The "expert" spoke so assuredly that Sec. 4 of the 14th Amendment "made it absolutely clear that Republicans would be acting unconstitutionally" if they prevented the raising of the debt ceiling.

Sec. 4 of the 14th Amendment is all about very specific issues of the time:

1) Confederate money and debts incurred by the states in the former rebellion would not be recognized

2) Any attempts by former Confederate politicians to find ways to repudiate the debts of the U.S. in putting down the rebellion (as in bills before Congress) would not be allowed.

That was the clear intent--not some future disagreement over budgets or spending.


Wed, 10/09/2013 - 08:59 | 4037512 29.5 hours
29.5 hours's picture


Note that those scumbag former slave owners in Congress actually did try several underhanded means to prevent payments to U.S. veterans who served to keep the country in one piece.

Wed, 10/09/2013 - 09:46 | 4037631 oddjob
oddjob's picture

They planned to stop payments to Civil War veterans?

Wed, 10/09/2013 - 18:40 | 4039537 StychoKiller
StychoKiller's picture

Search for the term "Bonus Army"


Wed, 10/09/2013 - 08:59 | 4037516 greatbeard
greatbeard's picture

>> the Tea Party "Neo Confederates"

I guess it all depends on your perspective.  Other than the slavery and racism thing, I'm right proud of my southern heritage.  Racism knows no geographical or ethnic bounds and slavery was only by the few, so calling me a confederate really don't faze me.  Call me a Yankee, now thems fighten words.

Wed, 10/09/2013 - 09:06 | 4037531 Headbanger
Headbanger's picture

Damn Yankee!

It could be worse. You could be called Canadian!

Wed, 10/09/2013 - 09:12 | 4037554 Zer0head
Zer0head's picture

if you watch the clip (and subsequent clips) Keene is using the term "Neo Confederate" as a pejorative



Wed, 10/09/2013 - 09:29 | 4037600 Spastica Rex
Spastica Rex's picture

"Queer" use to be used as a pejorative against fags.

Wed, 10/09/2013 - 09:31 | 4037604 Sean7k
Sean7k's picture

If they start paying attention, they will find the whole country is becoming neo-confederates. An Arizona representative called Obama die fuhrer and the people all over America are fine with it. The only call for an apology was from democratic reps. Tyrants are always blind to public condemnation. 

Watch the government fall, but start thinking about how we want to progress after. ANYBODY that seeks to rule others is a tyrant.

Wed, 10/09/2013 - 10:36 | 4037788 Canadian Dirtlump
Canadian Dirtlump's picture

Last time til the next time. All I can do is wear my ballistic mask to prevent facial blowtorchings, and candy apple red cameo edition jock strap to lessen the pain of what will become yellen's 10 hole dock martin boots, instead of ben's stilettos - and mentally masturbate about the day this compost pile of fraud finally lights on fire and I can hand out the fuck you's I've been dying to.

Wed, 10/09/2013 - 11:21 | 4037905 greatbeard
greatbeard's picture

>> I can hand out the fuck you's I've been dying to.

Hey, I've got a bulging full sack of those I'm dying to dole out.  Maybe not a healthy way to handle things, but it is what it is.

Wed, 10/09/2013 - 10:20 | 4037728 The.Harmless.Who
The.Harmless.Who's picture

Fuckin' Bastards! 


You can drop gold and devalue the paper in my pocket, thus diminishing its buying power, but you'll not get me to sell up!!!! 


I hate these PM Manipulators!!!!!!!!


So angry right now.  Gold should be WAAAAAAAAAAAAAAY higher.



Wed, 10/09/2013 - 11:26 | 4037912 Crash Overide
Crash Overide's picture

Weird, in that second chart it appears that every time Gold makes a move up it goes right back down soon there after. I don't get it?

Wed, 10/09/2013 - 08:33 | 4037436 philosophers bone
philosophers bone's picture

Decided on the drive into work that I will celebrate / mourn Ms Yellen's nomination / rubber stamp appointment as Fed Chair with a silver purchase.  Feel free to join in.

Wed, 10/09/2013 - 08:47 | 4037489 Kaiser Sousa
Kaiser Sousa's picture

Right behind you...

Wed, 10/09/2013 - 09:34 | 4037584 Money Maker
Money Maker's picture

Janet is old school - rumor has it that she has already placed Bernankes helicopter on E-Bay and placed an order for a B-52. Yellen plans on carpet bombing these markets to new highs! This is clearly bullish - because you cant fight the Fed, no matter what the crippled shit flinging monkeys in Washington are doing.


Wed, 10/09/2013 - 09:29 | 4037596 jvetter713
jvetter713's picture

Done.  My bi-weekly purchase is in.  Thanks for the suggestion.

Wed, 10/09/2013 - 09:39 | 4037619 ejmoosa
ejmoosa's picture

All the bemoaning about prices.  I've been buying between 14 and 40....and with yesterday's purchase I am a day's move from being even.

I have been buying silver as a store of value, not a get rich quick scheme.


And in the long run, it will clearly work.  

Always has.  Always will.



Wed, 10/09/2013 - 10:00 | 4037671 Kaiser Sousa
Kaiser Sousa's picture

Ditto...bought from thing Ive ever done...sound money = freedom....

Wed, 10/09/2013 - 12:34 | 4038214 Not My Real Name
Not My Real Name's picture

I bought an ounce of Au myself yesterday for the very same reason. Buy what you can, when you can, and just keep stackin.

Wed, 10/09/2013 - 08:35 | 4037441 dcj98gst
dcj98gst's picture

Plenty of freshly printed fiat to naked short the paper PM's -- the banks will have.  Keep stacking.  They more they manipulate, the quicker it will eventually resolve with real price discovery.

Wed, 10/09/2013 - 08:39 | 4037465 101 years and c...
101 years and counting's picture

all selling of pm's is manipualtion. all buying is capitalism at work.

Wed, 10/09/2013 - 11:54 | 4038051 silverserfer
silverserfer's picture

says the papermonkey

Wed, 10/09/2013 - 08:33 | 4037442 quasimodo
quasimodo's picture

Hell ya! Crash and burn it bitches. Stupid f-kers wanna put them on sale all the time then play along kiddies.

Wed, 10/09/2013 - 08:55 | 4037503 Winston Churchill
Winston Churchill's picture

Hold fire, and keep some dry fiat.

I see them pushing gold down to $1050 before the manipulation fails.

Before Oct. options expiry IMO.

Wed, 10/09/2013 - 08:35 | 4037443 quasimodo
quasimodo's picture


Wed, 10/09/2013 - 08:35 | 4037444 RealityCheque
RealityCheque's picture

Thanks for the celebratory discount Janet. You cunt.

Wed, 10/09/2013 - 08:36 | 4037451 quasimodo
quasimodo's picture

You make the assumption she has a cunt

Wed, 10/09/2013 - 08:43 | 4037478 RealityCheque
RealityCheque's picture

I'm sure she has a hole of some sort, perhaps with razor sharp edges. Sort of like Sarlacc from star wars, with hair.

Wed, 10/09/2013 - 09:29 | 4037605 jvetter713
jvetter713's picture

I think the movie "Teeth" was based on her.

Wed, 10/09/2013 - 09:03 | 4037530 jmcadg
jmcadg's picture

No, I think just that she IS a cunt. So is the Bernanke ... and Dimon, Blankfein, Corzine et al.

Wed, 10/09/2013 - 10:04 | 4037686 Jafo
Jafo's picture

A cunt is useful but there is doubt that Yellen will be of any use.

Wed, 10/09/2013 - 08:37 | 4037452 quasimodo
quasimodo's picture

Why do I keep getting duplicate posts........arg

Wed, 10/09/2013 - 08:33 | 4037447 hugovanderbubble
hugovanderbubble's picture

I think silver will have one or two more bearish legs, till a big bottom; 16-18$ Range for loading, not before imho

Wed, 10/09/2013 - 10:14 | 4037711 Al Huxley
Al Huxley's picture

My experience is that below around 22 the Comex price doesn't much affect what I'm able to buy the real stuff for anyway.  18 Comex -> 23 at the coin shop.

Wed, 10/09/2013 - 08:34 | 4037449 Stoploss
Stoploss's picture

Nikkei is up, pretty much a no brainer.

Short away..

Wed, 10/09/2013 - 08:34 | 4037455 Zymurguy
Zymurguy's picture

BTFD... get ready to buy moar phizzz!

Wed, 10/09/2013 - 08:37 | 4037460 Dr. Engali
Dr. Engali's picture

But we were assured that after a thorough investigation that there was no manipulation of commodity prices whatsoever. All other asset classes yes, but not commodities and especially not precious metals.

Wed, 10/09/2013 - 08:41 | 4037468 toadold
toadold's picture

Well it is assumed that the Democratic Controlled Senate will rubber stamp Yellen for the job buti it is also possible that the appointment could be slowed down and harsh questions could be asked before she makes it through. What would be the effects if she doesn't get the job before mid November??

Wed, 10/09/2013 - 08:41 | 4037477 Canuckistan Al
Canuckistan Al's picture

Bring it baby, for the first time in a while, I got plently of "dry powder" to BTFD.

Wed, 10/09/2013 - 09:17 | 4037562 Save_America1st
Save_America1st's picture reason not to load up on phyzz silver at these prices if you can.  Anything under 30 is still a great deal and supplies are good at these rates.  If it gets punched under 20 or lower at some point premiums will still have to price it in around these levels or higher, and supply will start to dry up again as well.  I like this 21 to 22 area for as long as they give it to us and will keep grabbing as much as I can allocate even as it eventually starts to break back up into the 30's and beyond until supply is just plain gone at any price. 

Wed, 10/09/2013 - 08:46 | 4037491 10044
10044's picture

Commodities prices are down because the dollar index is up....cnbc just said so, and I have full faith in the best financial news channel in the world.

Ok, I just made myself puke

Wed, 10/09/2013 - 09:09 | 4037543 Tabarnaque
Tabarnaque's picture

And the dollar is up because Yeah-len will print moooaaarrrr... The Rigg-ulators are working hard on the job today.

Wed, 10/09/2013 - 08:53 | 4037499 Peter Pan
Peter Pan's picture

We are in a time where the market has been so molested that what we are seeing contains neither rhyme nor reason.

Accept what is happening as a transient state after which reality will re-assert itself.

Gold will be smacked up and down repeatedly so as to break the will of its owners and so as to put the fear of God into those contemplating its purchase.

Wed, 10/09/2013 - 09:15 | 4037558 greatbeard
greatbeard's picture

>> so as to break the will of its owners and so as to put the fear of God into those contemplating its purchase.

Mission accomplished.  Now where did I hear that before and how did it turn out?

Wed, 10/09/2013 - 08:54 | 4037500 jaap
jaap's picture

So disgusted with the American excellence of the CFTC

Wed, 10/09/2013 - 09:11 | 4037549 Tabarnaque
Tabarnaque's picture

They are exceptionally corrupt. 

Wed, 10/09/2013 - 08:55 | 4037504 swabeyjw
swabeyjw's picture

Perhaps just a reverb play through to the currency markets. For the fast of hand, there is money to be made in them there hills and valleys.

Wed, 10/09/2013 - 08:54 | 4037506 nxt
nxt's picture

So we just wait for $1050 gold,buy & then watch it take's that simple that's what

everyone is waiting for??

Wed, 10/09/2013 - 08:56 | 4037510 RealityCheque
RealityCheque's picture

The last 2 weeks have been so obvious and so brazen, even by the standards of the last 2 years. Not like them to be this predictable. what the hell is coming around the next corner that has these bastards throwing caution to the wind and deciding to beat PMs without their usual covert tactics?

What was that stat? All of the last few Fed chairs has faced a systemic crisis within a month or two of taking the job. Got your "Depends" Janet? You cunt.

Wed, 10/09/2013 - 09:17 | 4037570 Tabarnaque
Tabarnaque's picture

They are getting desperate, The system cannot be maintained much longer. The relentlessness and aggressiveness of their market intervention in the price of gold is evidencing that something big is boiling below the surface. The USD is trashed all over the world. The Fed cannot taper. 

Wed, 10/09/2013 - 12:08 | 4038097 Herd Redirectio...
Herd Redirection Committee's picture

"The last 2 weeks have been so obvious and so brazen"

With the Taper, the desperation really showed.  Everyone expected it to be called off after a month or two or three, but to be called off after jawboning it for 3 months, wow, it reeked (of being boxed in).  So they make it seem like a surprise, and somehow a sign that the Fed is in control and willing to make difficult choices (when it is only in control of the USD, which is rapidly being torched, and soon will be but a flaming heap).

Then with the shutdown, everyone said it was meaningless (in that, in the face of massive problems, they squabble about relatively minor ones), and they will avert it at the last minute.  Most thought the loss of credibility from shutdown would not be worth it, but still the Ds & Rs decided to put on a good show (in the hopes of polarizing the nation?).

The idea that the Elite are 'in control' of anything is a fallacy.  Of course they have influence, and they have power, but the current system has been pushed to the brink, and in serious need of reform.  They can't prevent collapse, so they will try to control collapse, IMO.

Wed, 10/09/2013 - 13:55 | 4038549 Seeking Aphids
Seeking Aphids's picture

These are desperate times, we just don't realise it because we are in the midst of it. We are living during a period of catastrophic climate change and are in the midst of the worst nuclear disaster in history. The removal of fuel rods in Fukushima in November may be the beginnning of the end of that disaster and may cause an environmental nightmare the like of which we have never seen.......all of the ongoing actions should be seen in this light as the powers that be know very well what kind of shit is about to hit the fan.....peasants don't get told until its too late. Who knows what plans are in the works.....this peasant sure doesn't. Might be a good idea to stock up on frozen food, canned goods, etc. The basics of life could get very expensive if we have to test everything for radiation......

Wed, 10/09/2013 - 08:58 | 4037513 Sufiy
Sufiy's picture

We can expect the Gold price to be under pressure to impose the false interpretation of extremely bullish fundamentals, but this manipulation will end with the real fireworks in this sector.

 Flashback - Jim Puplava: Janet Yellen to the Chair And Michael Woodford Is The New FED's Play Book.


 It is time to repost our entry with Jim Puplava and find out the implications of the nomination of Janet Yellen to the FED. We can expect the Gold price to be under pressure to impose the false interpretation of extremely bullish fundamentals, but this manipulation will end with the real fireworks in this sector. Debt ceiling increase will happen after all this political posturing and new Chairperson will be even more accommodative in its polices based on Michael Woodford's narrative.

Wed, 10/09/2013 - 09:04 | 4037532 Mrs. Haggy
Mrs. Haggy's picture

We just have to make sure to keep buying.  Especially after big drops.  That's where manipulating prices will bite the manipulators in the ass.  It's a battle of wills and the numbers eventually have to end up in the hands of the physical owners.  Buy, buy, buy!

Wed, 10/09/2013 - 09:06 | 4037538 Zadok
Zadok's picture

Not to be negative, but what's the difference wrt CTFC before and after the non-shutdown shutdown?

Wed, 10/09/2013 - 09:27 | 4037593 Jethro
Jethro's picture

I was trying to figure that out myself. Maybe they miss out on OJT?

Wed, 10/09/2013 - 09:11 | 4037550 Save_America1st
Save_America1st's picture shocker there.  Just keep B'ingTFD's folks, plain and simple.  The longer they extend and pretend that physical silver is barely worth the cost of mining production, the better it is for us stackers. 

When the SHTF one day soon and phyzz prices skyrocket...that's when I'll start feeling bad for those who didn't heed our warnings to stock up on PM's. 

And that's when my lead and lead delivery systems will be brought out on full alert. 

The unfortunate drawback to trying to be a good person and alerting people of the importance of stacking silver is that 99% of the people you try to reach out to will never do it.  That means when the SHTF those who know you are a stacker might turn on you in desperation.

It's also not so much who you tell that you might have to worry about, but who THEY tell that you don't know about that you need to worry about. 

The flip side to that scenario also is that those who don't stack silver also rarely have stacked weapons.  And they know damn well that stackers have weapons.  But that's when it comes down to sheer numbers...the zombie hoards against the well defended stackers. 

I hope this country doesn't have those days ahead in our future...but that's why it's better to be prepared and not need it than to not be prepared and need it badly. 

Wed, 10/09/2013 - 09:42 | 4037626 Hobbleknee
Hobbleknee's picture

Please refer to first rule of fight club.

Wed, 10/09/2013 - 12:13 | 4038123 Herd Redirectio...
Herd Redirection Committee's picture

Offer the first few zombies in the door an ounce of silver to fight on your side? 

Medieval towns used to have corpses outside the walls (a hanged man, for eg), to demonstrate to visitors what the punishment for crimes (such as theft, rape, murder) were, inside the walls of the town. 

Wed, 10/09/2013 - 09:14 | 4037560 kito
kito's picture

you should all be grateful that commodity prices are dropping. now your black friday towels at walmart will only be 19 cents this year!!!!! you are all so UNAPPRECIATIVE!!!!

Wed, 10/09/2013 - 09:29 | 4037597 Mrs. Haggy
Mrs. Haggy's picture

All joking aside, a part of me wants to thank the manipulators for keeping gold and silver affordable for me.  Sucks for those who need to sell it though.

Wed, 10/09/2013 - 09:16 | 4037566 orangegeek
orangegeek's picture

It's just another leg down - wave 5 of 3.


Should take us to around $1100 - then the correction back to $1400.

Wed, 10/09/2013 - 10:41 | 4037804 gatorengineer
gatorengineer's picture

Damn I was really hoping for 7 of 9......

Wed, 10/09/2013 - 13:02 | 4038313 Iam_Silverman
Iam_Silverman's picture

"Damn I was really hoping for 7 of 9......"

I doubt she'd be of much help, but you never know....  Have you been assimilated?  You do know that resistance is futile, don't you?


Seven Of Nine

Wed, 10/09/2013 - 09:18 | 4037571 yogibear
yogibear's picture

When Old Yellen starts opening her trap she'll reveal the money printer she is. More and more QE to debase the US dollar.

Wed, 10/09/2013 - 11:54 | 4038042 Legolas
Legolas's picture

Didn't they end up having to put down Old Yellen?

Wed, 10/09/2013 - 09:25 | 4037582 Silverhog
Silverhog's picture

Republicans are already getting 90% of the blame no matter what President Bummo has to say. So what have they got to lose. Go for broke. When all those free cell phones go quiet it will get the lazy folks attention. 

Wed, 10/09/2013 - 13:06 | 4038349 Iam_Silverman
Iam_Silverman's picture

"When all those free cell phones go quiet it will get the lazy folks attention"


I really don't see that happening.  How else are the "community organizers" going to let them (members of the FSA) know when it is time to vote again?

Wed, 10/09/2013 - 09:35 | 4037616 sablya
sablya's picture

More bizarro behavior in the currency and PM markets.  Yellen is as dovish as they come - more printing, more currency debasement, must be a good reason to bid up the dollar and dump PMs.

Wed, 10/09/2013 - 09:40 | 4037623 Hobbleknee
Hobbleknee's picture

Why not short the paper every morning and convert it to physical every month?

Wed, 10/09/2013 - 10:01 | 4037681 Kirk2NCC1701
Kirk2NCC1701's picture

They are whacking PM to front-run the flight to safety: from USD to Gold.

Most of it has to do with keeping up the MV game, I.e. the Money supply times the Velocity of money.

Wed, 10/09/2013 - 10:40 | 4037800 Keyser
Keyser's picture

Money velocity is key. It has been stagnate for some time in the US, coupled with twice the outflows from the US vs inflows. 

Wed, 10/09/2013 - 10:39 | 4037794 Keyser
Keyser's picture

Screw it. I'm long PM's and short the S&P. They can only hold it together with bailing wire and chewing gum for so long. 


Wed, 10/09/2013 - 10:40 | 4037799 gatorengineer
gatorengineer's picture

Guys,  I think you have just witnessed a paradigm shift....  perhaps the world or at least Amerika has now changed.  I believe we have entered into the deflationary spiral to the bottom.  


Something has broken.  Print to infinity, and the dollar is up, gold down, and the 10yr up in yield.....  If there were true fear the 10 yr yield would be plummeting and gold would be up $50, and the dollar would be approaching $1.40......

Wed, 10/09/2013 - 12:18 | 4038153 Herd Redirectio...
Herd Redirection Committee's picture

"deflationary spiral to the bottom."

What is it that triggers hyperinflation, in your opinion?

IMO, it will always be preceded by deflation.  In trying to 'stop the bleeding' the banksters and money-men create a bunch of money out of thin air and try to lend it to their cronies, to bail them out, as they have so many times before.  Except this time people know debt is being monetized.  And suddenly there is a rush to spend USD, as the writing is on the wall, that your USD are about to be devalued...

Wed, 10/09/2013 - 10:53 | 4037829 TaperProof
TaperProof's picture

I don't have a lot of money in options right now, but what I have today is FUCKED.   Gold demand may get too strong closer to the imaginary default day of October 17th for them to manipulate down much more though.   ... the problem is options expiration is the 19th, I wish expiration was the 28th or the like.

Wed, 10/09/2013 - 11:43 | 4037992 JPMorgan
JPMorgan's picture

I've been building an cash position for the last couple of months.

Those assholes at Goldman are calling for $1000 gold and after what happened in April I'd rather play a game of wait and see.

It certainly wouldn't surprise me if we had a re-test of this years low.


Wed, 10/09/2013 - 13:10 | 4038379 Iam_Silverman
Iam_Silverman's picture

"Those assholes at Goldman are calling for $1000 gold"

Can it really ever get below its current support position with all of the demand coming from China and India?  Whenever the price lowers, I see demand pull it back to its previous level.

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