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Gold Hammering Leads To Another Overnight Gold Market Halt

Tyler Durden's picture




 

Shortly after 1amET this morning, someone with no apparent fiduciary duty to their client's for best execution or any apparent trade allocation expertise decided it was time to dump 1500 contracts into an entirely illiquid gold futures market. The 150,000 ounce notional sell order ($184.5 million), captured graphically by Nanex, sent the price down $10 instaneously, tripped the exchange's circuit breakers and halted the market's trading for 20 seconds (once again). This is now the 4th market halt in the past 3 months (and this time on no news whatsoever), as the manipulative monkey-hammerings from who knows whom (BIS?) is becoming increasingly obvious.

 

Via Nanex,

This sort of thing is happening far too often: see also the drops on April 12, 2013,  September 12, 2013, October 11, 2013 and November 20, 2013 which also resulted in trading halts.

1. December 2013 Gold (GC) Futures Trades.



2. December 2013 Gold (GC) Futures Trades - Zoom 1.



3. December 2013 Gold (GC) Futures Trades - Zoom 2.
The 20 second halt shows up clearly. 



4. December 2013 Gold (GC) Futures Depth of Book (how to read).



 

 

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Mon, 11/25/2013 - 09:31 | 4187388 AlaricBalth
AlaricBalth's picture

Desperate times require desperate measures.

Mon, 11/25/2013 - 09:34 | 4187400 The Mist
The Mist's picture

No, obviously it's just some trader that thinks it's a good idea to sell a mass of gold in 1 trade. Surely they are that dumb, right? RIGHT?!

Mon, 11/25/2013 - 09:43 | 4187402 GetZeeGold
GetZeeGold's picture

 

 

You always get the best price when you sell it all at once.

 

Why hold something worth it's weight in gold....when you could be in QE laced equities?

Mon, 11/25/2013 - 09:49 | 4187449 BaBaBouy
BaBaBouy's picture

The Constant MANIPULATION Just Shows HOW IMPORTANT GOLD IS

To The US Gov, And Maintaininig The Dominance Of The

Worlds Reserve Money Paper Fiats (USD's) ... ]

""" Looks Like GOLD Is THE KEY!!! """

Mon, 11/25/2013 - 09:57 | 4187473 MillionDollarBonus_
MillionDollarBonus_'s picture

I don't know much about the gold market, but technically the chart just looks awful. The major resistance lines have been confirmed and reconfirmed, and a siginificant downtrend has formed. When you consider the opportunity cost of not owning stocks, it's puzzling to me why anyone would be in the gold market. Facebook and Twitter have treated me extremely well, and I continue to operate a simmple dollar-cost averaging strategies on these hot tech stocks. It seems pretty obvious to me that blue chip equities are and alway have been the place to be in the short term and long term, so why don't goldbugs get this?

http://accredited-times.com/2013/11/22/disruptive-government-programs/

Mon, 11/25/2013 - 09:59 | 4187485 fijisailor
fijisailor's picture

You're such a smart investor.  At what price do you actually plan to buy physical gold?

Mon, 11/25/2013 - 10:03 | 4187492 Shocker
Shocker's picture

With today's times, pretty much any price.

Layoff / Closing List

http://www.dailyjobcuts.com

.

 

Mon, 11/25/2013 - 10:32 | 4187582 tmosley
tmosley's picture

Well, they've got to do SOMETHING with all that gold they just got from Iran.  The last few smashes were from the gold they got from Venezuela.

Funny that the central banks of "our" enemies are weaker hands than so many of us.

To me this implies a new tactic--beggar thy enemy then approach with a "deal" that only costs them some "worthless" gold in exchange for at least temporarily relieving some of the financial and monetary terrorism.  Soon I expect that we will run out of enemies with any gold left, and will start going after neutrals or "friends" or maybe even doing something stupid like going after China, though I suspect China has been the primary beneficiary of all these gold grabs.

Mon, 11/25/2013 - 10:41 | 4187614 Pladizow
Pladizow's picture

Once is happenstance, twice is coincidence, but three times is enemy action.” – Ian Flemming, Creator of James Bond

Mon, 11/25/2013 - 11:06 | 4187690 NoDebt
NoDebt's picture

The fact that no regulator is even trying to figure out why this is happening tells you something about who's doing it.

Mon, 11/25/2013 - 11:26 | 4187747 Stuart
Stuart's picture

Either the regulators are literally so stupid that they make a mockery of the word "regulator" or they are complicit.    At this point, either seems plausible..certainly feasible.

Mon, 11/25/2013 - 11:41 | 4187802 Oracle of Kypseli
Oracle of Kypseli's picture

And of course the deal with Iran includes that they will not sell oil for gold.

Mon, 11/25/2013 - 11:42 | 4187806 rosiescenario
rosiescenario's picture

If the reverse of this were happening in some commodity such as oil, wheat, corn, etc. you know that the regulators would be all over it.

 

As you point out, obviously the Fed is the man behind the curtain...the puppetmaster.

 

 

Mon, 11/25/2013 - 11:51 | 4187827 Son of Captain Nemo
Son of Captain Nemo's picture

'tmosley'

You just received 10,000 BTC on that one!

Mon, 11/25/2013 - 10:08 | 4187506 Keyser
Keyser's picture

Next stop, $1100... That's when I will be adding to my stacks. 

 

Mon, 11/25/2013 - 10:21 | 4187540 Balvan
Balvan's picture

Gold is dead! Get over it, guys

Mon, 11/25/2013 - 10:45 | 4187631 Charles Nelson ...
Charles Nelson Reilly's picture

hmmmm, interesting.  somehow it's been money for 5000 years.... so you're analysis is wrong.

Mon, 11/25/2013 - 10:50 | 4187645 Svendblaaskaeg
Svendblaaskaeg's picture

"Gold is dead! Get over it, guys"

Not dead - just pining for the fjords

Mon, 11/25/2013 - 11:30 | 4187752 TWSceptic
TWSceptic's picture

That's what they said in 1976. Thanks for your comment, which only strengthens my presumption.

Mon, 11/25/2013 - 10:45 | 4187623 RazvanM
RazvanM's picture

The gold price could go down to 0. Then, the next step will be to be payed to own it.

Mon, 11/25/2013 - 13:13 | 4188082 SilverSavant
SilverSavant's picture

hello again!!!!!   MDB is laying down the establishment propaganda line with awesome skill.   THIS IS SARCASM  This writer is the very definition of Da Bomb.   But go ahead and encourage him, it is so much fun. 

Mon, 11/25/2013 - 10:54 | 4187656 Shrapnel
Shrapnel's picture

MDB.....HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

Mon, 11/25/2013 - 11:41 | 4187800 GovernmentMule
GovernmentMule's picture

One of the sheeple has spoken!

Mon, 11/25/2013 - 09:58 | 4187476 fijisailor
fijisailor's picture

Yes and that alone is one of the many good reasons to buy physical.

Mon, 11/25/2013 - 10:05 | 4187493 PP
PP's picture

You can not halt SGE (Shanghai Gold Exchange) and SHFE (Shanghai Future Exchange) because in SGE there are 20% outstanding contract demand for delivery, if you nake short in SGE like in Comex, you suiside.

Mon, 11/25/2013 - 10:15 | 4187516 PP
PP's picture

Bonus information, Chinese foreign department are registering Chinese who lived in Japan "To facilitate the evacuation"

This is biggest blackswan event than Fed's perpetual tapering talks

100% no war? 100% no bombard mainland Japan? think again......

 

 

Mon, 11/25/2013 - 10:41 | 4187612 oak
oak's picture

china appears to prepare the war against japan step by step. in truth, no body knows. the more important question, is japan ready for it?

Mon, 11/25/2013 - 11:42 | 4187801 Calmyourself
Calmyourself's picture

No, launching ground to air missiles or ground to ground is a skirmish, China has no lift to get troops to Japan.  Divine wind anyone..  Japan can go nuclear power in about ten minutes..

Mon, 11/25/2013 - 13:56 | 4188208 Oracle of Kypseli
Oracle of Kypseli's picture

How about the 70+ US Installations in Japan and the pacific?

Mon, 11/25/2013 - 11:36 | 4187786 oak
Mon, 11/25/2013 - 11:44 | 4187814 Uchtdorf
Uchtdorf's picture

Need a cross-reference, please. I've got connections to a Marine in Okinawa.

Mon, 11/25/2013 - 10:04 | 4187497 Nothing but the...
Nothing but the truth.'s picture

Preciuos metals are the mortal enemy for the US $ . By manipulating their value , the Fed can continue with it's misguided, force feeding of  asset bubble policies.

Mon, 11/25/2013 - 14:49 | 4188371 Oracle 911
Oracle 911's picture

The catch in this is this, the Chinese, Russians and other eastern countries will own almost all of the western gold.

Mon, 11/25/2013 - 19:41 | 4189210 TheHound73
TheHound73's picture

<<Preciuos metals are the mortal enemy for the US>>

How so? I buy physical gold and stash it, not letting it circulate in the economy.  On the other hand, whomever I bought physical from now has my fiat to do with as he/she will.  I would think that a lower Gold price would attract more buyers, getting gold in to more hands.  Widening the base of the pyramid, as it were.  Of course this is not to imply that Gold is a pyramid scheme at prices above their industrial ("intrinsic") value...

Mon, 11/25/2013 - 09:52 | 4187456 espirit
espirit's picture

I'll continue to trade [Beni-Bux] for the stackable...

Thank You very much.

Mon, 11/25/2013 - 09:52 | 4187462 CPL
CPL's picture

Everyone has watched it for six years.  It's got nothing to do with equities switching.  It has to do with insanely overleveraged ETN and ETF instrumentation priced in USD.  It is now the only method of manipulation.  So if equities being used as a saw horse, sure, by the method of selling a piece of over leveraged paper gold for another equally worthless stock or t-bill.

In the market it's a lateral swap of capital, if you did the same thing on the street it would be called three card monte.  Just gotta find the pretty lady under the cards...if she was ever there.

 

 

Mon, 11/25/2013 - 09:56 | 4187467 MillionDollarBonus_
MillionDollarBonus_'s picture

I don't know much about the gold market, but technically the chart just looks awful. The major resistance lines have been confirmed and reconfirmed, and a siginificant downtrend has formed. When you consider the opportunity cost of not owning stocks, it's puzzling to me why anyone would be in the gold market. Facebook and Twitter have treated me extremely well, and I continue to operate a simmple dollar-cost averaging strategies on these hot tech stocks. It seems pretty obvious to me that blue chip equities are and alway have been the place to be in the short term and long term, so why don't goldbugs get this?

http://accredited-times.com/2013/11/22/disruptive-government-programs/

Mon, 11/25/2013 - 09:59 | 4187488 Bearwagon
Bearwagon's picture

So, you don't know much about the gold market, eh? Well, let me help out a bit: That ain't no "market" anymore! It's all rigged (ready to explode). But do go on: Destroy the world and what ever is left of humanity, and you will experience a (brief) moment in time, when the ROCE will be far above 20%. That would surely be worth a few trillion dead, if only the profits would be okay, right? Right?!

Mon, 11/25/2013 - 11:19 | 4187719 dryam
dryam's picture

MBD,

You seem to show up when much misdirection is needed. Seriously, who is providing your paycheck, the Fed, the administration, the treasury, the banks, Homeland Security????

The real story is the all out war on gold right now evidenced by the stipulation in the Iran deal reached over the weekend which prohibits Iran from selling oil for gold payments.

Imagine that, gold is a so-called meaningless substance yet part of one of the biggest political agreements in a long time contains stipulations against gold in order to keep this massive charade going.

Seriously MBD, who gives you a paycheck to try to disrupt these ZH forums?

Mon, 11/25/2013 - 11:49 | 4187824 superflex
superflex's picture

Tyler like the page clicks.

Figure it out.

Mon, 11/25/2013 - 12:33 | 4187963 Son of Captain Nemo
Son of Captain Nemo's picture

dryam

You left out the "fact" that the Iran deal evaporates for the U.S. in 6 short months...

I also do believe that 6 months will not fix the endemic collapse of the U.S. bond markets.  What is in that package deal for Iran is nothing less than a win-win with details that may never be revealed.

Hint.  Lots of smiles coming from Vlad Putin on his reacquisition of the Ukraine for new business along with the ouster of Michel Saakashvili in Georgia that was announced a little over a week ago.

Couple that with China's victory dance announcement over pegging their currency to oil vs. USD and all you see is a desperate helpless clinging White House Congress Federal Reserve that has no means to pay any of it's foreign obligations, most significant among them a MIC that spies on it's people and closest allies and can no longer sustain it's offensive metastasizing posture.

Poke Uncle Sam with a fork.  He's Done!

Mon, 11/25/2013 - 11:17 | 4187713 Papasmurf
Papasmurf's picture

I agree with you.  You don't know much about the gold market.  You can't draw resistance lines or trendlines on gold charts.  That's meaningless.

Mon, 11/25/2013 - 09:59 | 4187481 PP
PP's picture

These f**king golden shit trader(s) especially like the number "1500" per trade when they dumps contract

Mon, 11/25/2013 - 10:57 | 4187668 asteroids
asteroids's picture

For someone to throw away $100M, their bank balance must at least be 100x to 200x bigger, so $1B-$2B. The number of guys that can throw away that kind of money and not care is pretty small.

Mon, 11/25/2013 - 16:30 | 4188676 Cacete de Ouro
Cacete de Ouro's picture

Mikaël Charozé, BIS, now in Hong Kong, whose various tasks included the "management of the liquidity for big amounts" primarily interventions and portfolio diversification, as well as "holding and managing proprietary positions on all currencies including gold."

http://www.zerohedge.com/news/bis-fxgold-intervention-profiles-and-after

Benoit Gilson, Head of Foreign Exchange & Gold At The BIS, Basle/Basel/Bâle

http://www.zerohedge.com/news/2012-12-28/fleecebook-meet-benoit-gilson-h...

Mon, 11/25/2013 - 09:37 | 4187412 TeamDepends
TeamDepends's picture

And desperate they are because the COMEX vaults are almost empty!

Mon, 11/25/2013 - 09:43 | 4187431 GetZeeGold
GetZeeGold's picture

 

 

Dude.....shhhh!

Mon, 11/25/2013 - 09:52 | 4187459 Bullionaire
Bullionaire's picture

I suggest we "coin" a new phrase for this PM phenomenon: "getting Charozéd."

http://www.zerohedge.com/news/meet-people-bringing-you-currency-manipulation-daily-basis

As in "Gold Got Charozéd Yet Again," or "And Now Back To Your Regularly-Scheduled Charozé-ing"

Mon, 11/25/2013 - 11:20 | 4187727 unrulian
unrulian's picture

I wonder what K Henry is doing these days?

Mon, 11/25/2013 - 09:56 | 4187470 TeamDepends
TeamDepends's picture

Never!  We will not be silenc

Mon, 11/25/2013 - 10:01 | 4187489 SWCroaker
SWCroaker's picture

+100  Ha ha!  Hoo hoo!  That was hilari

Mon, 11/25/2013 - 10:14 | 4187494 GetZeeGold
GetZeeGold's picture

 

 

ous!

Mon, 11/25/2013 - 13:28 | 4188116 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Ye

Mon, 11/25/2013 - 09:42 | 4187426 philipat
philipat's picture

They are totally shameless and in the knowledge that they are beyond prosecution. Why does anyone still trade in the paper Gold market, knowing they are "Fighting The Fed"?

On a different tack, WHY has nobody filed a Freedom of Information request to CFTC for the papers in the Investigation into the manipulation of Silver?

Mon, 11/25/2013 - 10:25 | 4187549 RaceToTheBottom
RaceToTheBottom's picture

I thought someone posted here that the FED has fine print allowing even warning that they will use PM selling/buying to manipulate/defend the dollar.

That is exactly what they are doing.  This might explain why Bart and others cannot say they are breaking the law.  Because the law is written saying they will do exactly that.

My thinking is when do they stop?  When does it go so far down when it is in their best interest to stop and let it ride up a bit? 

I don't think they want to kill it dead, they just want to stop it being a viable competitor to the dollar.  If they kill it dead, that money will go to bit coin and possibly new vehicles.  They like their ability to control gold.

Mon, 11/25/2013 - 20:32 | 4189332 StychoKiller
StychoKiller's picture

Exchange Stability Fund (ESF), search for it by name!

Mon, 11/25/2013 - 09:53 | 4187460 slaughterer
slaughterer's picture

Between these manipulative events you will have institutional and political selling: IMF, Iran (now hat PM sanctions are partially lifted), India, etc.  Target EOY gold price is about $1,100.

Mon, 11/25/2013 - 10:23 | 4187543 BandGap
BandGap's picture

India is back trading Euros for oil with Iran. The deal made this weekend is to once again skirt a currency based on something tangible.

Only a matter of time till the shit hits the fan. 3-4 weeks?

Mon, 11/25/2013 - 10:07 | 4187504 Nothing but the...
Nothing but the truth.'s picture

And just how much physical PM's are backing all these short trades ?

Mon, 11/25/2013 - 10:44 | 4187626 astoriajoe
astoriajoe's picture

GO BIG OR GO HOME!!!!

Mon, 11/25/2013 - 09:32 | 4187391 Bearwagon
Bearwagon's picture

To even speak of a "market" doesn't seem appropriate ...

Mon, 11/25/2013 - 09:37 | 4187411 Zero Debt
Zero Debt's picture

The Efficient Market Manipulation Theory and Manipulation Efficient Frontier concepts still seem to be valid.

Mon, 11/25/2013 - 09:32 | 4187392 new game
new game's picture

bad news is june low of 1187.90 is next stop. below that is true market bottom of last 20 years.

patience has its rewards!

Mon, 11/25/2013 - 09:57 | 4187458 Quinvarius
Quinvarius's picture

They can't get an exploit based selloff anymore and they are stupid to try.  They would have to expend so much gold to work the price down, they would have severe difficulty buying it back.  What you see is the end of the game.  If they can't get the big moves, they lose.  I have been watching their stop hunts of the last few weeks.  When they don't get any stops, and cannot run the price down, they are forced to try and cap the price and try again.  It is the same pattern over and over.  The exchange exploit isn't working. 

Mon, 11/25/2013 - 10:28 | 4187561 PT
PT's picture

I think they plan on "liberating" gold from certain countries so they can sell it again.  I got no evidence, just following a line of thinking to its logical conclusion.  Anyone know the truth?

Mon, 11/25/2013 - 11:18 | 4187722 fijisailor
fijisailor's picture

Sounds right to me.  Maybe we are very near the bottom.

Mon, 11/25/2013 - 13:26 | 4188113 seek
seek's picture

There's not a lot left for them to work with, is there?

Any weak hands have been blown away with a drop from $1900 to $1200, COMEX inventory has been drained, and naked shorts don't appeal to people who what physical. I think whoever was sucking COMEX dry actually backed off from breaking it, because they realized it would impact their ability to acquire more at low prices. So most likely China sucked COMEX almost dry, then went and hit GLD while letting Fed/JPM play their COMEX game.

So the only avenue left is them trying to suppress demand. I think we'll see more activities inducing CBs of other countries to discourage gold buying.

Mon, 11/25/2013 - 09:34 | 4187395 stinkhammer
stinkhammer's picture

millions of voices suddenly cried out in terror and were suddenly silenced

Mon, 11/25/2013 - 11:27 | 4187743 Colonel Klink
Colonel Klink's picture

Nobody has yet to inform them the Empire loses!

Mon, 11/25/2013 - 09:33 | 4187396 Chief Kessler
Chief Kessler's picture

Not nearly as bad as the hammering that the ex-chief is going to put on Ted Nugget tonight ladies

Mon, 11/25/2013 - 09:38 | 4187413 GetZeeGold
GetZeeGold's picture

 

 

Admit it....you hate Ted Nugget cause he's a white guy.

Mon, 11/25/2013 - 10:28 | 4187560 BandGap
BandGap's picture

Who the fuck is Ted Nugget?

Mon, 11/25/2013 - 10:32 | 4187580 GetZeeGold
GetZeeGold's picture

 

 

Some white guy.

Mon, 11/25/2013 - 10:34 | 4187592 Trimmed Hedge
Trimmed Hedge's picture

Taylor Darden's brother-in-law...

Mon, 11/25/2013 - 09:34 | 4187398 Quinvarius
Quinvarius's picture

The guys doing the billion Dollar hammering have to be getting super pissed by now.  LOL.  They get like 5 and ten dollars exploiting the electronic system where they used to get 40.  They are stuck in grind mode, and there is no profit in grind mode.  Just a deeper hole.

Mon, 11/25/2013 - 10:13 | 4187514 Al Huxley
Al Huxley's picture

Yeah, they're really not getting the bang for the buck that they used to. 

Mon, 11/25/2013 - 11:08 | 4187696 Hulk
Hulk's picture

and now we are fully recovered. $200 million in manipulation doesn't go very far these dayz...

Mon, 11/25/2013 - 09:34 | 4187399 Kina
Kina's picture

The only reason to dump $184m of fake paper gold on the thinnest market possible in one dump...is to find the lowest possible price......... i.e. corrupt manipulation once again...by a person(s) who should be dragged onto the street and publicly hung.

Mon, 11/25/2013 - 09:37 | 4187409 Ban KKiller
Ban KKiller's picture

Or regulators of truth and justice tell us that the markets are free...free to be manipulated, that is.

Mon, 11/25/2013 - 09:36 | 4187404 JustObserving
JustObserving's picture

A day without gold hammering is a day without sunshine fo the Fed.  Thailand was having a massive increase in gold buying and now it is in tumoil.  Indians would be buying like crazy here except gold is about $1550 an ounce in India now.  That leaves China as the sole savior of gold here.

Mon, 11/25/2013 - 09:41 | 4187405 obelisks
obelisks's picture

meanwhile.........................................

 

Iran will be barred from accepting gold as payment for oil

Mon, 11/25/2013 - 09:41 | 4187422 Dr. Engali
Dr. Engali's picture

The fucking central bankers win again.

Mon, 11/25/2013 - 09:45 | 4187434 GetZeeGold
GetZeeGold's picture

 

 

Iran will be barred from accepting gold as payment for oil

 

Why do that when we can just pay for it in nukes?

Mon, 11/25/2013 - 10:33 | 4187581 PT
PT's picture

No, they'll sell gold for oil, and then the US will systematically "liberate" the gold from Iran so they can dump it on the market again in a futile attempt to drive the price down.

Or maybe it is time for me to go back to sleep. 

Mon, 11/25/2013 - 10:50 | 4187644 SmallerGovNow2
SmallerGovNow2's picture

Is that what the UN "deal" was REALLY about?

Mon, 11/25/2013 - 20:36 | 4189342 StychoKiller
StychoKiller's picture

It's all about the petrodollar, make no mistake.

Mon, 11/25/2013 - 10:14 | 4187520 One World Mafia
One World Mafia's picture

Is that a prediction?

Mon, 11/25/2013 - 12:45 | 4187989 Son of Captain Nemo
Son of Captain Nemo's picture

obelisks

Can you say "window dressing"...

Besides it will only be for 6 months anyway.  Besides, what other parts of the deal didn't we hear about?

Mon, 11/25/2013 - 09:38 | 4187414 Seize Mars
Seize Mars's picture

Anyone who wants to store their labor in units of paper promises is out of their fuckin' mind.

Mon, 11/25/2013 - 10:36 | 4187598 PT
PT's picture

Before I even get a chance to see my store of labour in paper form, it is given to a third party in the form of electrons, and one day the third party might decide to keep a significant portion of it and there is nothing I can do about it because third party is unknown and lives thousands of miles away.  Freaky!

Mon, 11/25/2013 - 23:40 | 4189688 Seize Mars
Seize Mars's picture

Neat trick, that.

Tue, 11/26/2013 - 01:57 | 4189894 PT
PT's picture

The longer you cultivate trust, the bigger the potential payoff.

Mon, 11/25/2013 - 09:38 | 4187417 Kina
Kina's picture

People still refering to technicals...they are total BS.... it is attempted price targetting...ie lowest price dumping gold on thinnest markets every night can achieve.....trying to do a tech analysis is insane.

 

The analysis is when will they run out of resources, will or need to dump hundreds of millions of gold over and over on quiet markets.... well the resources will never run out siince they are selling fake gold...and backed endless money printing....  the onlly thing that will bring them to order is prosecution and execution...which wont happen because it is TPTB that is the corrupter here.

Mon, 11/25/2013 - 10:25 | 4187551 Bastiat
Bastiat's picture

Prosecution won't happen.  Only failure to deliver will stop them-paper gold will lose its credibility defeated by an arb against a real physical market like Shanghai.

 

 

Mon, 11/25/2013 - 10:34 | 4187584 One World Mafia
One World Mafia's picture

"well the resources will never run out siince they are selling fake gold"

Physical supply is finite.  When supply really runs out, it will be felt.  Though I wonder if some of the times when the market was supposedly tight and premiums rose, if that too was faked as it's happened more than once where it was followed by huge price drops.

Mon, 11/25/2013 - 09:40 | 4187420 fijisailor
fijisailor's picture

So the question still remains:  Why is there a circuit breaker now when there wasn't earlier this year when the price dropped over $100 in one dump?

Mon, 11/25/2013 - 09:44 | 4187430 Barry McBear
Barry McBear's picture

If memory serves, and we're talking about the same day, I believe there were 3 circuit breakers in short succession.

Mon, 11/25/2013 - 09:49 | 4187445 fijisailor
fijisailor's picture

It dropped a whole lot more than $10 back then in one big dump.  That I'm sure of.

Mon, 11/25/2013 - 11:50 | 4187831 Bay of Pigs
Bay of Pigs's picture

You are correct. Nothing was stopped back in April. Friday London PM Fix was $1535 (12th). By monday morning (the 15th) it was down to $1419 and finished at $1395.  A $140 drop.

Mon, 11/25/2013 - 14:12 | 4188255 seek
seek's picture

COMEX is very vague on the details of their "stop logic" program, but it's clear that it's not just a price move that triggers the circuit breaker, but also volume and liquidity -- they shut it down if there's not enough. In April I suspect there was enough volume and liquidity to prevent the breaker from triggering, and today, not so much.

In reality, I suspect it actually depends on if they are triggering stop losses and if anyone is buying the paper. If you're manipulating the market, drop a monster order on it to bomb the price, and no one buys, so the price goes lower and no one buys still -- and in the meantime zero stops are triggered -- your manipulation has failed, and indeed suddenly that order could drive the paper price to zero, or something way lower than you're willing to sell for. So, trigger the breaker and pretend all is well.

It's all symptoms of the gold market being really broken, IMO. Price discovery will happen someday, but not today.

Mon, 11/25/2013 - 09:40 | 4187421 Barry McBear
Barry McBear's picture

If someone was doing this to the price of oil or grains upwards they would ban trading.

 

Not that I'm complaining, I'll be making my bi-annual physical PM purchase at a lower price now thanks to these actions and as usual will celebrate by taking a small boat trip in choppy waters. 

Mon, 11/25/2013 - 09:42 | 4187425 Kina
Kina's picture

HOw long before people abandon the COMEX. Why would you  buy on the COMEX when every purchase comes with endless short selling....if it is abandonded then it loses is gold price setting ability as people find other means to get gold...

Mon, 11/25/2013 - 09:53 | 4187466 yogibear
yogibear's picture

The countries holding gold should just keep buying it at COMEX prices.

Take a good guess at when the COMEX can't deliver physical at the market. 

The mother of all short squeezes occurs when the COMEX cannot deliver physical at the manipulated prices.

Russia and China are looking at this like a pack of hungry wolves. Be patient.

Mon, 11/25/2013 - 09:43 | 4187427 Jannn
Mon, 11/25/2013 - 09:43 | 4187428 yogibear
yogibear's picture

Gold is an enemy of the Central Bankster money printers. 

Mon, 11/25/2013 - 09:44 | 4187432 Dr. Engali
Dr. Engali's picture

I'm sure the CFTC is aware of this, and will take the appropriate action....... Turn on some porn.

Mon, 11/25/2013 - 09:47 | 4187440 GetZeeGold
GetZeeGold's picture

 

 

I'm thinking the new guy is not going to be looking to be making waves here.

 

I'd give it a year or so.

Mon, 11/25/2013 - 09:48 | 4187447 Charles Nelson ...
Charles Nelson Reilly's picture

I hear Bart Chilton is into some weird 80's style hair fetish porn where all the females have Jersey bufonts.

Mon, 11/25/2013 - 12:49 | 4188007 Son of Captain Nemo
Son of Captain Nemo's picture

So when will WB give us some artwork of "Bukkaki Bart" surrounded by his mentors the usual suspect(s) Jamie, Lloyd and Ben Shalom giving him a hair treatment?

Mon, 11/25/2013 - 10:22 | 4187538 Papasmurf
Papasmurf's picture

The CFTC is in cahoots or they would have disconnected this trader from the system.

Mon, 11/25/2013 - 09:45 | 4187435 Balvan
Balvan's picture

Big race, who is gonna reach 1000 first, gold or bitcoin?

Mon, 11/25/2013 - 09:56 | 4187471 reload
reload's picture

could be either, but only one could concievably go to zero.

Mon, 11/25/2013 - 11:39 | 4187794 tmosley
tmosley's picture

Yup, paper gold can go to zero.

BTC can't really go to zero without killing the internet first.  It's too useful, and being able to make payments worldwide for free is a hell of a feature.

Mon, 11/25/2013 - 13:34 | 4188142 DoChenRollingBearing
DoChenRollingBearing's picture

+1 and + 1

Mon, 11/25/2013 - 09:47 | 4187439 1stepcloser
1stepcloser's picture

Funny my gold, in my possession, didn't disappear for those few moments...  All is well!

Mon, 11/25/2013 - 09:53 | 4187465 uncle.bigs
uncle.bigs's picture

The purchasing power of your gold just dropped.  If that doesn't bother you, you're a Moron.

Mon, 11/25/2013 - 10:10 | 4187482 GetZeeGold
GetZeeGold's picture

 

 

No problem....we can always just print more.

 

Am I going too fast for you here?

Mon, 11/25/2013 - 10:00 | 4187490 1stepcloser
1stepcloser's picture

Purchasing power of gold didn't change... using the Fiat Dollar as your baseline measuring stick has clouded your judgement..  

Mon, 11/25/2013 - 11:41 | 4187793 TWSceptic
TWSceptic's picture

So the USD goes down for over a decade vs gold, did post about that before you posted about it going up for a single year vs gold? So far since 2000, it has been a 12-1 win for gold. If that doesn't bother you... well you know what you are.

Mon, 11/25/2013 - 09:48 | 4187441 quasimodo
quasimodo's picture

I wonder what KWN will be screaming about today........lol. Another regular will be featured telling us "this latest move bla bla bla"

I am guessing another headline with a picture of distressed traders on the floor somewhere with thier jaws hitting the floor.

Mon, 11/25/2013 - 09:50 | 4187454 Charles Nelson ...
Charles Nelson Reilly's picture

What's your point?

Mon, 11/25/2013 - 09:50 | 4187455 fijisailor
fijisailor's picture

Yea those pictures of traders on KWN are funny since those guys can't even yell as fast as a regular trade/manipulation these days.

Mon, 11/25/2013 - 09:48 | 4187442 quasimodo
quasimodo's picture

dup doggonnit

Mon, 11/25/2013 - 09:48 | 4187443 new game
new game's picture

raw land, raw pussy and raw honey...

sweet sassy and a place to exchange...

Mon, 11/25/2013 - 09:49 | 4187446 BigSimes
BigSimes's picture

The Good News: The more obvious the gold smashing, the more obvious the desperation. Soon a Black Swan will dump a massive turd on the Cartel's shiny shoes and it'll be in their best interest for Gold to Rise Like the Pheonix.

The Bads News: If you're not happy with paper money and Gold smashing gets you down, you can always go for a real flash in the pan - ButtCoin. Problem is, when there's no sunshine or electricity, no ButtCoin.

Mon, 11/25/2013 - 09:51 | 4187453 Machination
Mon, 11/25/2013 - 10:23 | 4187545 GetZeeGold
GetZeeGold's picture

 

 

That's OK....the NSA, CIA, and IRS love it.

Mon, 11/25/2013 - 09:57 | 4187475 yogibear
yogibear's picture

It will be interesting when the short squeeze comes. It will be epic.

Some countries have the ability to buy ever more.

When the COMEX can't deliver it will be a sight to see.

Mon, 11/25/2013 - 10:15 | 4187521 J S Bach
J S Bach's picture

They can only thwart nature for so long.  Sooner or later, the rubber band will snap back in their faces.  Therefore, put your money on the laws of nature (and economics).

Mon, 11/25/2013 - 10:16 | 4187523 DebtSlaveZombie
DebtSlaveZombie's picture

Zero Hedgers, gold is going back to it's pre-Lehman levels.  There is absolutely nothing stopping gold from dropping to 1000, 900 or even 800 bucks an ounce.  If the past two weeks doesn't convince you nothing will.  Do not fight the fed is the mantra of this bubble.  But, here's the thing... this can go on for a long time.  DOW 20,000 in 2015 for sure.  If we have another year like this year it will be 2014 when it happens.  There is nothing stopping this market.  NOTHING.  Too many people are missing this rally.  The mania phase will be a sight to see.  This isnt the mania phase...this is the base of the spike.  We will hit DOW 25,000 before we get to the end which may be 2016 but whats stopping it?  This market has broken every fence in its way.  It has trampled everybody that resisted.  And as long as the Fed is stuck with holding rates to all time lows they have to keep buying more and more.  They have to.  Then they will start making equity purchases and buying back student loans.  They will go until the Fed balance sheet is 50% or more of GDP and thats 4 trillion away!!!  This will continue until DOW 25,000.  S&P 3,000 and gold 700.  Mining stocks will be decimated.  This is just getting started.  It's the new normal. 

Mon, 11/25/2013 - 10:34 | 4187548 GetZeeGold
GetZeeGold's picture

 

 

Yeah.....and the debt ceiling will no longer rise cause we've seen the errors of our ways.

Mon, 11/25/2013 - 10:30 | 4187553 1stepcloser
1stepcloser's picture

good luck finding $700 physical.  What can't last forever, wont!

Mon, 11/25/2013 - 10:32 | 4187575 SmallerGovNow2
SmallerGovNow2's picture

The DOW will only go to 25,000 when the price of a loaf of bread or a gallon of gas goes for $25...  

Mon, 11/25/2013 - 11:52 | 4187837 Calmyourself
Calmyourself's picture

See Venezuela, Zimbabwe etal..

Mon, 11/25/2013 - 10:38 | 4187606 BandGap
BandGap's picture

The Fed cannot hold rates where they are much longer - banks are taking it up the ass.

More and more people are recognizing that the select few are taking from the masses. You can't really believe this will all last another year. Two things sit right on your fucking nose - another debt ceiling skirmish and Obabafucking Care.  Add into the mix the new Axis of Complete Confusion - Israel & Saudi Arabia. The system the US has in place cannot cope with this, there is zero leadership.

Did I mention Japan and China?

We are right near impact, the train went over the cliff a year or so ago.

Mon, 11/25/2013 - 11:19 | 4187724 DebtSlaveZombie
DebtSlaveZombie's picture

The market can stay irrational way longer than any of us can stay liquid.  The Fed wins.  The Central banks win.  What happens when the market "breaks" and margin calls start coming in?  They sell everything.  Gold will go even lower when the market cracks.  If you cannot see the real damage being done here you'll feel the ultimate pain in the end.  Long S&P Short Gold will make people RICH over the next year.  Everyone is piling onto Yellenomics.  All the central banks around the world will do this for years... DOW 25,000 and an unemployment rate of 12%.  Have a new BMW but have to sell plasma for groceries.  New car purchases will be crazy.  8 year financing at 0% but milk will be 8 bucks a gallon.  Annual returns of 20% in the equity markets but the middle class will be a disaster.  Credit card teaser rates of 0% for 2 years but reset to 23.99 after the teaser period.  It's the new "great deal on the front end but break your back and kill you on the back end" era.  DOW 25,000 in 2016 but deep market correction in 2017 to DOW 16,000.  Then back to DOW 25,000 again.  Then DOW 35,000.  Lol.  It's over people.  In 10 years we will see DOW 50,000 and 20% unemployement.  I know it sounds completely crazy but cheap money will NEVER go away.  MBS and treasury purchases are here to stay for good.  Yellen will double that in the first 4 years.  10 yr rates will swing between 1% and 4% like a cheap tech stock.  Cheap money and volitility are here.  Go long S&P and enjoy the next 10 years.  Because after that all bets are off.

Mon, 11/25/2013 - 12:06 | 4187879 Seeking Aphids
Seeking Aphids's picture

Disagree DSZ (great moniker btw).....they don't  need to push gold that far down, just keep it hovering around where it is now. In fact, we will probably see people hedging their bets as the markets go up by buying into some gold ETFs (assuming your view is correct). The Chindian put will also remain as a solid floor to gold imho. Don't see it dropping below 1200 for these reasons (although you never know with the Fed/BIS).....on the other hand I agree it may be a while before it goes up for the reasons you mention. The trick will be to be in when it does shoot up..........most will miss it. One thing that makes me doubt the scenario I have proposed is the incredibly negative take on gold right now....usually a very good contrarian indicator ....this whole slam down could be a set up?....if that is the case we could see a sudden increase in the short term...interesting times indeed.....

Mon, 11/25/2013 - 15:37 | 4188521 DebtSlaveZombie
DebtSlaveZombie's picture

You're right.  We don't know how this thing is gonna end up.  The contrarian/fear/flight to safety trade turns into a bear market with no support when there's no risk on the equity side.  Sure, we could see a 10-15% pull back.  But what happens then?  BTFD.  Fed ups its stake.  Adds more to the treasury side.  Central banks can go long anything.  They can control the market for years.  Why?  Because we are allllll in it.  Those that dont have equities may still have cheap debt. Whether its mortgages, new/used car loans, student loans, home equity debt, personal loans, etc, etc.  Everybody has an interest in low rates because of consumption lifestyle.  So if the fed controls rates they lure everyone into the slaughter house.  Even foreign bond holders.  Then they talk about tapering/slaughtering and what happens?  Market correction.  Then the weak/insolvent market screams and says "ok!!! ok!!! Please give us cheap money back we're drowning...we'll keep buying if you just support us!"  Then everyone climbs on board with the FED because it's their hand we are all feeding from.  We cant hunt anymore.  We are broken, tired and hungry.  And the FED is there to feed us.  This is our Randall Flagg moment.  He let us out of that prison cell in 2008.  Now, we must swear our allegiance to him.  ANYTHING FOR YOU!!!!! MY LIFE FOR YOU!!!  Thats what the market is screaming right now.  Total allegiance to the dark side.  It's gonna get ugly eventually.  But it's booze, coke and hookers for at least the next 5-10 years.  Welcome to the Kenny Powers Market. 

Mon, 11/25/2013 - 10:17 | 4187524 Trimmed Hedge
Trimmed Hedge's picture

I bought gold at $1,900

When do I break even again?

Mon, 11/25/2013 - 10:19 | 4187533 Papasmurf
Papasmurf's picture

2015

Mon, 11/25/2013 - 10:27 | 4187554 GetZeeGold
GetZeeGold's picture

 

 

I bought gold at $1,900

 

Someone had to I suppose.

Mon, 11/25/2013 - 10:32 | 4187577 Jim B
Jim B's picture

I am averaging down my SLV purchases.  This BS will work until it doesn't!

Mon, 11/25/2013 - 10:23 | 4187541 1stepcloser
1stepcloser's picture

Be glad you own it any price and never sell your wealth insurance for Fiat FRNs.  Your ahead of 95% of the zombies.. You do have physical right?  If not then sell it for FRNs and Convert to Physical..

Mon, 11/25/2013 - 10:33 | 4187578 rationaldemocracy
rationaldemocracy's picture

I have physical..doesn't let me sleep at night any better

I am only 20-something and I get the feeling that everyone else that owns physical is over 60 and has Alzheimers

Mon, 11/25/2013 - 10:40 | 4187608 1stepcloser
1stepcloser's picture

You know why?  Most can remember having the dollar pegged to gold at 35\oz and having real silver in thier change..  The young'ins love their paper currency...

Mon, 11/25/2013 - 11:19 | 4187726 PT
PT's picture

I knew it was time to buy gold when the CBs started selling it all.  Never had the money to do anything about it though.  Watched the price go from $300 to $1900 in what, 12 years?

Still, young 20 yos need more than just gold.  They need to make themselves valuable.  If all they have is gold then they'll end up swapping it for food, getting 5 bucks an ounce at the local pawn dealer because they're too young and too desperate to know or do any better.

Mon, 11/25/2013 - 11:13 | 4187702 PT
PT's picture

1.  Own a little physical.
2.  Get on with the rest of your life.  For all we know, gold may not realize its true value again until we've had hyperinflation, everyone has lost their jobs, and 99% of the population has swapped all their PMs for food.   As much as I see sense if owning PMs, I understand your frustration.

The 20's are the part of your life where you are supposed to be building.   Find out what you love doing, acquire skills, resources, experience, make things happen.  Find the right people.  Talk to the right people.  Get their advice.  Time spent with the wrong people is time wasted.  You lose your life one day at a time.  Don't waste your youth and do not waste your enthusiasm. (And don't thank me for saying all that stuff - they're a bunch of empty words, much, much, much harder to put into practise.  Good luck!)

I watched a young man start his own business, build it up from nothing.  After a certain point I told his mother, "Even if he goes broke and loses his business, that young man will never work for anyone else ever again.  For the simple reason that he knows too much."  Remember, they can repossess your house and your car and every thing you have ever worked for, but they can never repossess the knowledge and experience sitting inside your brain. (Unless they beat you about the head with a hammer.)

Gold is a passive insurance policy, one day it should pay out big time but you might not be able to afford to wait that long.  Build a real business, park some of the profit in PMs, but concentrate on growing a business.  The guy that lives under a rock while collecting gold could easily lose it to a swindler or to starvation (swapping gold for food).  The guy that builds business skills and business experience will learn to survive even if he loses his stash - he might find it more valuable to swap his gold for osmium or medical equipment for a short time before converting it back to gold for a profit.  Who knows?  You won't know if you don't look.

Disclaimer:  I do not consider myself "successful".  I had my goals and dreams and I am a long way from even starting to make them come true.  When I try to figure where I went wrong, I think I nailed it with the advice I gave above.  Hard work and hard study is not enough.  You need to know the right people, build experience in a setting where you can afford to fail, and you probably need to borrow bucket loads of money too.  (I've always avoided debt, nowadays I think that worked against me.  But remember that there is good debt and bad debt.  Good debt pays for itself.  Bad debt costs even more.  It's worth making repayments on a machine of a thousand bucks per week if that machine is giving you ten grand per week.  It's not worth making repayments on a machine that makes you no money and breaks down all the time.  And don't forget, you also need customers.)

Repeat disclaimer:  I know nothing.  Find a successful person ( but one that you can trust ).  Listen to them. 

Mon, 11/25/2013 - 11:07 | 4187691 DirkDiggler11
DirkDiggler11's picture

You will break even moments after the S&P breaks down ...

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