Gold Celebrates America's Three Month Can Kicking, Soars

Tyler Durden's picture




 

Remember that persistent seller of epic and oddly periodic amounts of gold futures contracts, whose dumps have resulted in two NYMEX "stop logic" shutdowns in the past month alone, and whose daily tape bombing is now watched carefully by all (even the CFTC's Bart Chilton who can rejoice - the CFTC is now open and he can go back to "supervising" the market and stuff)? Well, he is mysteriously absent this morning, as gold (which is now back in backwardation for the second day in a row) soars by $50 from $1275 to $1320 in the matter of minutes, showing just how furious the short covering spreed in the gold space can and will be when it becomes clear just how right Dagong was. The next such instance of clarity we expect will take place in December, early January when the farce repeats itself.

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Thu, 10/17/2013 - 07:20 | 4064264 Legolas
Legolas's picture

We need to throw the gold Ring of Power into Mount Doom, located in the heart of Mordor (Washington).  The question is, who will volunteer for the quest?

Thu, 10/17/2013 - 07:34 | 4064298 BeerBrewer09
BeerBrewer09's picture

Damn, I want to buy some new argentum when it falls under $20.

Thu, 10/17/2013 - 07:40 | 4064313 Doña K
Doña K's picture

I still think it's transfer of payment from one institution to another. Sell hard from an oversees account and node to the other to buy hard as soon as the selling stops in a US account.

Someone is helping someone else. It could also be taxation differentials in play from the same institution 

Thu, 10/17/2013 - 07:47 | 4064331 GetZeeGold
GetZeeGold's picture

 

 

Lots of room to make up on that debt level/gold chart....a whole lot.

Thu, 10/17/2013 - 07:54 | 4064351 boogerbently
boogerbently's picture

China downgrade.

The "spenders" won.

Continued printing assured.

 

Thu, 10/17/2013 - 08:00 | 4064367 SilverIsKing
SilverIsKing's picture

1. Gold likes fiscal irresponsibility.

2. US Government is 100% fiscally irresponsible.

Therefore, gold will get what it likes forever.

Gold to the moon and beyond.*

* until someone dumps a few million paper ounces on the market during thin trading.

Thu, 10/17/2013 - 08:34 | 4064457 Max Hunter
Max Hunter's picture

Gold will go up only as much as they let it. No higher. The cat's paw will stop this water shooting from the spout.

Thu, 10/17/2013 - 08:38 | 4064475 Pegasus Muse
Pegasus Muse's picture
Early Stages of Hyperinflation Next Year-John Williams

 

16 October 2013

Economist John Williams says the U.S. budget and debt ceiling circus is not the real problem.  Williams contends, “The issue here, very simply, is the long term solvency of the United States of America. . . This gap based deficit is going to kill us . . . We are going to be in very serious trouble in this next year, and the global markets know this is happening.”  Williams goes on to explain, “They are not going to address the long term solvency problems of the United States.  That’s going to trigger a massive decline in the dollar in the not-too-distant future, and that, in turn, will give us the early stages of hyperinflation in this next year.”  Williams says, “We’re basically at a point where we can’t kick the can down the road.  This is it. . . . Going forward from here, you’re going to generally see a weaker dollar, and it will get much weaker.  You’re going to have a dollar panic, but I can’t give you the exact timing on that.” Another potential problem is a credit downgrade of U.S. debt.  Williams says, “If we get a downgrade here, that would accelerate the process of the dollar selling and moving us again into the early stages of hyperinflation.”  Williams says you can protect your wealth by holding hard assets.  Williams goes on to say, “If your assets are denominated in dollars and Treasury bonds, those will become worthless in hyperinflation.”   

http://usawatchdog.com/early-stages-of-hyperinflation-next-year-john-williams/

Thu, 10/17/2013 - 14:02 | 4065869 fockewulf190
fockewulf190's picture

Expect big turbulence throughout November as the biggest delivery month of the year at the COMEX crawls ever closer.

Thu, 10/17/2013 - 07:35 | 4064302 malikai
malikai's picture

Closed again. Beware, the 'seller' will probably be back..

https://www.quantsig.net/live.html

Thu, 10/17/2013 - 08:18 | 4064405 oak
oak's picture

this could be lead, inflection and wide, which one? the dsdev narrowed, the change will come when it expands in an opposit direction.

Thu, 10/17/2013 - 10:02 | 4064746 malikai
malikai's picture

It's normal, just closed. When dCorrel is positive, it's likely leading. Wide can happen in a lead as well. If you're subscribed, you can see a good current example of a lead by looking at Gold/BTC Ratio. There's some real good action in BTC right now.

Thu, 10/17/2013 - 12:37 | 4065396 oak
oak's picture

thank you sir.

Thu, 10/17/2013 - 07:36 | 4064303 JenkinsLane
JenkinsLane's picture

Wtf

Thu, 10/17/2013 - 10:46 | 4064941 Legolas
Legolas's picture

You're right, terrible post.  I dreamed last night that I actually found the reset button and was able to hit it.  Unfortunately, I woke up this morning feeling like I was on the edge of Mount Doom after throwing the ring into the fire and realizing there was going to be no trip home.

 

Thu, 10/17/2013 - 07:22 | 4064266 Cognitive Dissonance
Cognitive Dissonance's picture

CNBC.com comedy article of the day. "Gold is so yesterday, the VIX is the new safe haven."

 

As a traditional safe-have asset, gold typically rallies during periods of
heightened economic risk, but in recent years gold's behavior has befuddled many
analysts. Over the course of the over two-week U.S. government shutdown, for
example, gold has fallen 3.35 percent.

 

"As the world becomes more virtual, the value of a physical commodity as a
store of value or hedge against turmoil is falling," said Scott Nations,
president and CEO of NationsShares, told CNBC Asia's Squawk Box.

Thu, 10/17/2013 - 07:23 | 4064271 lewy14
lewy14's picture

The Magnetar trade on global financial ruin is the new safe haven.

Still trying to construct one: the magical, multi-leg self-funding hedge that pays off when the world ends.

Ideas?

Thu, 10/17/2013 - 07:25 | 4064277 GMadScientist
GMadScientist's picture

Amusing you still think there will be a counter-party with legs for you to attempt to hump, dear poodle.

 

Thu, 10/17/2013 - 07:34 | 4064286 Arius
Arius's picture

NO suprise here...

GOLDman recommendation last week was very clear ...

Nice timing though to pick the pockets of US muppets .... got to love to see their faces in the morning when they see the screens ... awake up stupidos! yeah, well they never will ... they have ill gotten gains which are being stolen mercilessly from them.

Thu, 10/17/2013 - 07:43 | 4064321 Doña K
Doña K's picture

Vicks vaporub? The word says it all.

Thu, 10/17/2013 - 07:29 | 4064291 Urban Redneck
Urban Redneck's picture

real education/knowledge paired with real skills and discipline

Thu, 10/17/2013 - 07:32 | 4064294 malikai
malikai's picture

Don't forget good, trustworthy and educated family and friends.

Thu, 10/17/2013 - 08:37 | 4064472 Max Hunter
Max Hunter's picture

Some food and water sounds prudent. They want you to believe in their digital world. Could we make it any easier for them? Jesus God in Heaven.

Thu, 10/17/2013 - 08:37 | 4064474 Max Hunter
Max Hunter's picture

Some food and water sounds prudent. They want you to believe in their digital world. Could we make it any easier for them? Jesus God in Heaven.

Thu, 10/17/2013 - 07:34 | 4064299 lewy14
lewy14's picture

Good answer. But I was thinking of something easier.

Like an algo set up to break even on VIX term structure (sell some long dated, buy short dated) and jackpot when it inverts.

(One does not simply "buy" the VIX).

Thu, 10/17/2013 - 07:44 | 4064322 GMadScientist
GMadScientist's picture

That's not a hedge, that's timing, and not even good timing.

 

Thu, 10/17/2013 - 07:48 | 4064334 lewy14
lewy14's picture

I got this idea from the Artemis guys - Tyler was posting their stuff on the VIX a while ago.

If you've got a better idea I'm all ears. Not sure about why the timing thing isn't good; the whole point to a self funding hedge is that the timing isn't sensitive - you can just keep waiting.

Thu, 10/17/2013 - 08:54 | 4064531 GMadScientist
GMadScientist's picture

Happy Sailing!

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/04/Fear%20Trade.jpg

In short (pun intended), once you start setting up the butterfly, you can't exit until there isn't a market from which to collect.

Thu, 10/17/2013 - 07:47 | 4064332 Squid-puppets a...
Squid-puppets a-go-go's picture

i'm certain there's a Boromir meme for your post

Thu, 10/17/2013 - 09:13 | 4064603 Urban Redneck
Urban Redneck's picture

You want a short cut to winning at a rigged table game... go to work for the House. Otherwise, the only way to win is not to play their game. If you insist on staying on the playing field, then I would recommend PE/VC where the basis tends to be a multiple of cash flows as opposed to an even more inflated multiple of what the next next biggest fool thinks forward earnings are going to be.

Thu, 10/17/2013 - 07:34 | 4064297 spinone
spinone's picture

Go long horse drawn well drilling equipment

Thu, 10/17/2013 - 07:38 | 4064308 Poor Grogman
Poor Grogman's picture

The collapse trade has gone into backwardation recently, as more people would rather have the actual collapse now rather than paper promises of future collapse...

Thu, 10/17/2013 - 08:03 | 4064376 prains
prains's picture

....not to mention a collapse trade is the essence of an oxymoron

Thu, 10/17/2013 - 10:27 | 4064846 AugmentedFourth
AugmentedFourth's picture

I'm still trying to get rid of all the Zimbabwes from my last collapse windfall!

Thu, 10/17/2013 - 07:40 | 4064312 Acet
Acet's picture

The Farse is strong in these ones.

Thu, 10/17/2013 - 07:49 | 4064336 Pope Clement
Pope Clement's picture

Yeah baby, Viva Persia !

Fri, 10/18/2013 - 05:35 | 4068039 Acet
Acet's picture

Touche'!

Thu, 10/17/2013 - 07:54 | 4064352 GrinandBearit
GrinandBearit's picture

If an asteroid or comet does ever hit the earth again, I hope it lands right on top of CNBC headquarters.

Thu, 10/17/2013 - 08:36 | 4064470 Manipulism
Manipulism's picture

Hey but Martin Armstrong said it also:

The fundamentals are really worthless because you can always extract just the ones to support your current view to “talk your own book” as they say. The Dow Jones Industrials bottomed within the channel nicely on the daily level and the target was on point as well the first week of October – the 9th (see Array). This is NOT a pattern of a major top. This is a basing pattern and equities may be the last savior we have. If you cannot store gold, you cannot keep excess money in a bank, and if you are European, well you may just have to get as much out of Europe as you possibly can – equities are movable, transportable, and liquid.
This is why I do not like people who try to pretend the sale in gold on Friday was not real. It is better to realize the trend sh you DO NOT buy losing your shirt and then lose confidence or your marriage because you followed some gold “analyst” who just talks it up and his own self-interest. If the market is doing something you think is wrong, well may be you better check you logic.

http://armstrongeconomics.com/armstrong_economics_blog/

Lately he sounds like a MSM shill.

 

Thu, 10/17/2013 - 10:42 | 4064924 Cthonic
Cthonic's picture

No single asset class is panacea.  That said, most Western investors on the whole remain heavily underweight in gold and other precious metals holdings.  Gold is a form of insurance and the vast majority who stand to lose the most (upper middle class) aren't carrying a policy.

Thu, 10/17/2013 - 10:49 | 4064950 Bay of Pigs
Bay of Pigs's picture

Marty sounds a lot like Gartman. Sad, as most of us know now that he sold out to get out of prison. It's the only explanation that makes sense as he was a staunch gold bug for many years.

Thu, 10/17/2013 - 08:51 | 4064519 Svendblaaskaeg
Svendblaaskaeg's picture

"..As the world becomes more virtual, the value of a physical commodity as a
 store of value or hedge against turmoil is falling.."

LOL - pull the other one!

Planet Earth, 20 March 2000

"..Snowfall are now just a thing of the past.."

"Children just aren't going to know what snow is, he said."

"British children could have only virtual experience of snow. Via the internet, they might wonder at polar scenes - or eventually "feel" virtual cold."

http://www.independent.co.uk/environment/snowfalls-are-now-just-a-thing-...

Thu, 10/17/2013 - 07:21 | 4064267 GrinandBearit
GrinandBearit's picture

Banksters won't have it.  They'll most likely slam it back down... some way, some how.

When gold spikes $100+ overnight, then I'll start getting excited.

Thu, 10/17/2013 - 07:25 | 4064275 Randoom Thought
Randoom Thought's picture

Lol ... who do you think controls price? You don't actually think that gold price moves are detemined by "market forces", do you?

Thu, 10/17/2013 - 07:49 | 4064339 GrinandBearit
GrinandBearit's picture

Never ass-u-me.

Regardless of why/how it moves, big dips are all buying opps.  I've posted that here MANY times.

Thu, 10/17/2013 - 07:27 | 4064279 firstdivision
firstdivision's picture

You act as if a slam down on price is a bad thing.  I pray they go full on Armaggedon and slam it to $1 so people panic in the streets and are willing to sell their gold to me, and I'll double the price to them and give them $2. 

Thu, 10/17/2013 - 07:45 | 4064324 ParkAveFlasher
ParkAveFlasher's picture

That's charitable! +1

Thu, 10/17/2013 - 07:45 | 4064326 GrinandBearit
GrinandBearit's picture

I take full advantage of these discounted price levels, believe me. 

Recently bought more at $1260  :o)  

Thu, 10/17/2013 - 07:46 | 4064328 Zero Debt
Zero Debt's picture

Why such a perfect cap at 1320?

Thu, 10/17/2013 - 07:51 | 4064342 GrinandBearit
GrinandBearit's picture

You noticed that too.

Do NOT follow this link or you will be banned from the site!