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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 - 08:42 | 4064488 negative rates
negative rates's picture

May the farce be with you.

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.”

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..

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


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 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.


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!

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


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.

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."

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.

Thu, 10/17/2013 - 07:23 | 4064269 SoilMyselfRotten
SoilMyselfRotten's picture

Well grin, this is the biggest overnight move i can remember in a long, long time. Baby steps!

Invert that chart and its what we typically see.

Thu, 10/17/2013 - 07:53 | 4064348 GrinandBearit
GrinandBearit's picture

Agreed, but they'll be much larger moves coming the near future.

Thu, 10/17/2013 - 07:27 | 4064270 Randoom Thought
Randoom Thought's picture

And what does this imply? To me, it says that gold is treated by the banks, not as money, but as a commodity to be manipulated. It has no tangible value to Wall Street.

Thu, 10/17/2013 - 07:24 | 4064272 swanpoint
swanpoint's picture

Silver too, Bit-chez.

Thu, 10/17/2013 - 08:21 | 4064411 SilverRhino
SilverRhino's picture

And the price action in silver is almost completely identical in terms of slope, percentage rise and light smackdown in response to the spike.  

Thu, 10/17/2013 - 07:24 | 4064273 GMadScientist
GMadScientist's picture

Where's that fat little gnome, Faber?

Thu, 10/17/2013 - 07:27 | 4064282 Charles Nelson ...
Charles Nelson Reilly's picture

Tagging Asian box and showering in his gold.

Thu, 10/17/2013 - 07:35 | 4064301 spinone
spinone's picture

How's that for a topper?

Thu, 10/17/2013 - 07:38 | 4064307 Teddy Tenpole
Teddy Tenpole's picture



I tagged an asian box once, tighter than hell.

Thu, 10/17/2013 - 07:39 | 4064310 GMadScientist
GMadScientist's picture

That's a Shar-Pei.

Thu, 10/17/2013 - 07:38 | 4064309 GMadScientist
GMadScientist's picture

"Taking golden showers from Asian boys" you say?

Thu, 10/17/2013 - 07:27 | 4064281 goldenbuddha454
goldenbuddha454's picture

I really wish Cruz would have saved his filibuster for yesterday's fiasco.  It would have had a much greater impact on America.  As it is now, his filibuster will go down as mostly ineffective.  Timing is everything.  Had he filibustered for the last 24 hours up until the an hour or two to default, people would have actually attempted to find out what the ruckus was about instead of flipping through to TMZ and ET to find out the latest on Miley Cyrus. I hope this is lesson learned for Cruz.  I think he's as close as it gets to the real deal.

Thu, 10/17/2013 - 07:43 | 4064320 Teddy Tenpole
Teddy Tenpole's picture



I think you're as close as it gets to being akak (ie: super douche).

Thu, 10/17/2013 - 08:02 | 4064374 BandGap
BandGap's picture

This whole charade was a test run. Air all your dirty laundry and get the masses ready.

Thu, 10/17/2013 - 07:27 | 4064284 FreeNewEnergy
FreeNewEnergy's picture

Tylers, WAKE UP! There will be no repeat of the debt ceiling crisis. Maybe the government CR funding, but the debt ceiling has been SUSPENDED, and the power to borrow more put exclusively in the hands of Oblahblah.

There will be no more debt ceiling debate. This bill took that completely off the table.

Thu, 10/17/2013 - 07:28 | 4064285 firstdivision
firstdivision's picture

How much longer until OPEC demands all payments in gold/silver/bitcoins?

Thu, 10/17/2013 - 07:31 | 4064293 duo
duo's picture

that's the real question.  Everything else is noise.


Thu, 10/17/2013 - 07:36 | 4064304 Teddy Tenpole
Teddy Tenpole's picture



need I even say it?  (pssst, it's never)

Thu, 10/17/2013 - 10:16 | 4064803 RaceToTheBottom
RaceToTheBottom's picture

Not really never.  But it is setting up as an all or nothing war between the Printing Don't matter crowd and the PM crowd. 

Once the financial prostitutes decide the game is up, it will switch very fast....  All IMHO

Thu, 10/17/2013 - 08:09 | 4064390 Doña K
Doña K's picture


Iran Turkey are doing gold for oil now, but..... Sadam, Quadafi, House of Saud next? Powerful inflate-or-die stuff in play.

fasten you seatbelts


Thu, 10/17/2013 - 08:12 | 4064393 Cognitive Dissonance
Cognitive Dissonance's picture

The USA or its proxies will 'drone' any nation or individual who (seriously) tries to circumvent the global reserve currency.

Most cornered animals will fight to the death.

<The US global reserve currency will die.....a long drawn out death. But die it will.>

Thu, 10/17/2013 - 08:22 | 4064416 sumo
sumo's picture

"The USA or its proxies will 'drone' any nation..."

And that includes KSA, if it gets out of line and threatens the petrodollar.

Thu, 10/17/2013 - 08:37 | 4064473 Zero Point
Zero Point's picture

Just after the US military starts pointing their weapons the other way.

Thu, 10/17/2013 - 07:35 | 4064300 Teddy Tenpole
Teddy Tenpole's picture



wow tyler, so gold wil rrrrip all the way to 1,360 on the next short cover wave...LOL

...another tremendous interview with tyler durden...

Thu, 10/17/2013 - 07:37 | 4064306 toadold
toadold's picture

Deary me, the "We Buy Gold" and the "Cash for Gold" signs are still up. So who are the bottom feeders selling the stuff they buy to?....Heh.

Thu, 10/17/2013 - 07:40 | 4064314 GMadScientist
GMadScientist's picture

Good thing too; if you had to steal those chains from the ghetto in person, you might not make it home.

Thu, 10/17/2013 - 07:40 | 4064311 Quinvarius
Quinvarius's picture

Slam dunking over the Goldman midget.

For the next 90 days, do we even have a debt limit?  I have not heard a number yet.

Thu, 10/17/2013 - 07:42 | 4064317 GMadScientist
GMadScientist's picture

I've heard "3 ka-jillion" bandied about.

Thu, 10/17/2013 - 07:41 | 4064316 jballz
jballz's picture


does make me wonder why there was no stop trigger on the way up, the way there was on the two big sell days. Why are they making gold rally?



Manipulation, bitchez

Thu, 10/17/2013 - 07:45 | 4064325 Teddy Tenpole
Teddy Tenpole's picture



more buyers than sellers?

Thu, 10/17/2013 - 07:52 | 4064345 GetZeeGold
GetZeeGold's picture



Do you have a newsletter?

Thu, 10/17/2013 - 08:06 | 4064380 prains
prains's picture



i believe it's called the Dipshiticus; Daily Dribbles and Odd Secretions

Thu, 10/17/2013 - 08:12 | 4064397 RealityCheque
RealityCheque's picture

Of actual gold...yes

Of paper that says "gold".... who the fuck knows anymore.

Thu, 10/17/2013 - 07:55 | 4064355 NoWayJose
NoWayJose's picture

They are not making gold rally, they are just temporarily suspending their selling. None of the factors that lets them hold down gold has changed. My stack is shining brighter, and I have two pre-agreement orders of silver on their way, but the manipulators have not lost control (yet). I am happy, but skeptical that this move won't get slammed yet again.

Thu, 10/17/2013 - 07:58 | 4064364 Quinvarius
Thu, 10/17/2013 - 07:51 | 4064344 Calculus99
Calculus99's picture

If I was Chilton I'd re-open that investigation.

Can't have loose cannon bulls bringing this market into gross disrepute by bidding up price $40+ in a matter of minutes.


Thu, 10/17/2013 - 07:53 | 4064350 Devotional
Devotional's picture

Is this a legit rally? anyone?

Thu, 10/17/2013 - 08:00 | 4064369 NoWayJose
NoWayJose's picture

I don't believe legit rallies happen over a 10 minute timeframe. If it is legit it will climb steadily but slowly for a few more days. It looks more like a quick spike up (or a quick short cover) and that buyer may be done.

Thu, 10/17/2013 - 08:42 | 4064489 GetZeeGold
GetZeeGold's picture



As legit as a rally can be from Tijuana.

Thu, 10/17/2013 - 08:26 | 4064433 sumo
sumo's picture

A legit rally would have Jim Cramer crying on camera in anguish over "his people", and demanding the Fed open the gold window.

Thu, 10/17/2013 - 07:56 | 4064353 jubber
jubber's picture

seems to be a lot of support in this today..., could the  Chinese be finally calling time on the paper market as well?

Thu, 10/17/2013 - 07:58 | 4064362 ratpack1968
ratpack1968's picture

We are so fucked. Lead, rations, Jack Daniels and cigarettes will be as good as gold soon.  

Thu, 10/17/2013 - 08:03 | 4064372 GetZeeGold
GetZeeGold's picture



Fella could have himself a pretty good weekend in Vegas with all that stuff.

Thu, 10/17/2013 - 08:11 | 4064395 RealityCheque
RealityCheque's picture

Getting drunk and smoking is a priceless endevour. There is no amount of AU I would swap for that warm feeling of being nicely twisted on grog and enjoying a roll-up.

Unless you're offering some Krugerrands. Then I may consider. ;)

Thu, 10/17/2013 - 08:01 | 4064370 Devotional
Devotional's picture

Portugal is to sell its next pile of treasuries/debt in USD ... these asshole politicians are going to crucify us too. Hard assets everyone, it just makes sense does it not? I cannot believe that our leaders are marching everyone into the abyss.

Thu, 10/17/2013 - 08:30 | 4064451 sumo
sumo's picture

"I cannot believe that our leaders are marching everyone into the abyss"

Yeah, it's not like politicans have ever done that before ;-)

Thu, 10/17/2013 - 08:58 | 4064544 GMadScientist
GMadScientist's picture

Draghi is to sell its next pile of Portuguese debt...these assholes...

Thu, 10/17/2013 - 08:14 | 4064399 youngman
youngman's picture

The New York Clan will be selling their paper gold as they think everything is fixed now in the Government...the world will be buying as they see the US is not fact they see it is failing..and fast

Thu, 10/17/2013 - 08:22 | 4064417 jubber
jubber's picture

moving up again

Thu, 10/17/2013 - 08:37 | 4064471 GrinandBearit
GrinandBearit's picture

$1320 area is the line in the sand.

Thu, 10/17/2013 - 08:25 | 4064428 Sufiy
Sufiy's picture

So, in the end Higher Debt Limit does mean Higher Debt Amount???

Jim Rickards – Why China is Buying Gold & Calling for a De-Amercanized World


  Jim Rickards steps in with his analysis of the recent China Call to De-Americanized World and its implications for the Gold market. China buys Gold by tons now on the dips and taking the physical delivery.

Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates. GLD, MUX, TNR.v, GDX


"Andrew Maguire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 0.80 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday. 

   All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maguire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now."

Catalyst: Uncovering China’s Rush for Gold GLD, GDX, MUX, TNR.v

"While a lot of people are still wondering why the Gold is beaten down again, it is important to keep the big picture in front of you. As it is happening with Copper now the main player in this market is the same - China is on track to implement state level plan to diversify US Dollar based assets.   We would like to share with you brilliant report conducted by Jan Skoyles on this subject."

Thu, 10/17/2013 - 08:32 | 4064454 JPMorgan
JPMorgan's picture

PMs soar and so they should on the news of more reckless can kicking and guaranteed debt creation.

But be wary and ready, option expiry near the end of the month.

Thu, 10/17/2013 - 08:36 | 4064467 gianakt
gianakt's picture

Chinese spoted selling long bond, and buying gold through BIS all morning long!!!

Thu, 10/17/2013 - 08:38 | 4064477 OliverTwist
OliverTwist's picture

When gold was down a lot of $$ within a minute, some were saying: Who is so stupid to sell like this?

Now gold is up in the same manner, but I can`t hear the same people saying: Who is so stupid to buy like this?


Thu, 10/17/2013 - 08:46 | 4064499 RhoneGSM
RhoneGSM's picture

Ollie: Short covering is asset preservation. Short selling is optimism in callling a correct move.

Thu, 10/17/2013 - 08:57 | 4064536 GMadScientist
GMadScientist's picture

Trading debt paper for promise to deliver paper is stupid.

Thu, 10/17/2013 - 11:53 | 4065209 lemarche
lemarche's picture




Thu, 10/17/2013 - 08:48 | 4064511 ZH Snob
ZH Snob's picture

they buy it under 1300 and it shoots up over 1300; they stage another naked short, get it back under 1300 and buy some more. 


anyone see a pattern here?

Thu, 10/17/2013 - 08:52 | 4064525 sumo
sumo's picture

Yep, TPTB are having fun. Because even after MF Clusterfuck Global and the CFTC Clown Show, there are still muppets who want to trade futures.

Thu, 10/17/2013 - 08:57 | 4064537 FunkyOldGeezer
FunkyOldGeezer's picture

So... this wasn't a manipulation of any kind? It surely works both ways.

Thu, 10/17/2013 - 09:08 | 4064588 Sufiy
Sufiy's picture

And here we go with more real news that matter:

Gold Catalyst: Chinese agency downgrades US credit rating

 We have the downgrade of the US rating where it matters most: by the Buyers of US IOUs. S&P or Moody's will not dare to make the move as DOJ was very fast to remind S&P who is in charge, but Fitch this time was more following the real mess coming out of Washington, DC with its Negative Watch for US rating.   Now the desire of China to buy all available physical Gold can be put into perspective of long term state-level planning to diversify its currency reserves out of US Dollar based assets.

Thu, 10/17/2013 - 09:36 | 4064671 The Continental
The Continental's picture

US government and Federal Reserve have made a secret deal with the Chinese government:  you help us suppress the gold price while we load the boat and we'll continue to sell out T-bills in a discrete and non-disruptive manner.


China wants their gold back, the gold that was stolen by the US when it granted China most-favored nation status.


Thu, 10/17/2013 - 09:36 | 4064672 The Continental
The Continental's picture

US government and Federal Reserve have made a secret deal with the Chinese government:  you help us suppress the gold price while we load the boat and we'll continue to sell out T-bills in a discrete and non-disruptive manner.


China wants their gold back, the gold that was stolen by the US when it granted China most-favored nation status.


Thu, 10/17/2013 - 11:40 | 4065148 rosiescenario
rosiescenario's picture

Like the majority here, I had figured the massive, focused paper gold sales, clearly designed to drive the price down, were coming from our Fed via one of its tribal minions in NYC. The logic here being, if you are selling something (notes, for eample) denominated in U.S. dollars, you need to keep their apparent value up.Today the thought crossed my mind that just maybe this is not the real picture.


What if you were a foreign country that was holding many U.S. dollars and you were very nervous because more and more were being created out of thin air. So you decide to hedge these dollars with something that moves counter to the dollars' weakness.....something like, maybe, gold. But you have a bunch of these damn $$ and you need a real shit load of gold to adequately hedge your dollars. How do you go about amassing all that gold at a decent (low) price?


Well, you periodically nuke the paper gold market. So, maybe, I had been wrongly accusing my own government of manipulating gold's price.....maybe it has been China all along???? AND, since my own government sees the advantage to them of weaker gold prices, all their regulatory functionaries are instructed to turn a blind eye to this most obvious market manipulation. Hell, maybe my own government actually cooperates with the Chinese under the threat from them to actually quit buying the notes I must keep selling to financemy deficit government operation?



Thu, 10/17/2013 - 11:50 | 4065196 lemarche
lemarche's picture




+40$ in 15MINUTES (with no retracement so far...)


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