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Bonds & Bullion Battered As Russell Retraces Half FOMC Ramp

Tyler Durden's picture


While stocks were the headline-makers yesterday, they mostly range-traded today taking a breather to think (even with a double-POMO) as the rest of the world's asset classes did their thing. The Dow closed at a new recxord highs but the Russell 2000, however, lost over half its gains from yesterday! Markets everywhere saw major moves... in no particular order, JPY carry trades disconnected from stocks (EURJPY fading) - until the last few minutes of failed ramp-levitation; 5Y Treasuries underperformed back to 3-month highs (up 11bps - the most in over 5 months) and the Treasury complex saw its biggest bear-flattening (5s30s) in over 2 years; WTI crude rose notably on the day , back above $99; and gold (and silver) was monkey-hammered to 40-month lows - with the biggest 2-day drop in 6 months. Following yesterday's smackdown, VIX initially followed through but as the day wore on, demand for protection grew and VIX closed higher... oh, and it's not all glee in stocks as internals today triggered another Hindenburg Omen.


Stocks were very mixed... (only the Dow green - new record high)


But for gold (and silver) - it was a very ugly day... (gold closed at its 'average' price of the last 7 years and lowest since July 2010)


Stocks got no support from JPY crosses once Europe closed...but were in great demand as algos tried to lift stocks to their highs into the close...


And the afternoon saw VIX decouple as protection was bid...


As it seems the high-beta honeys were not in vogue today as Russell 2000 gave back more than half yesterday's gains...


Treasuries were clubbed...


As the term structure flattened dramatically...


The 5th closing Hindenburg Omen in the last 2 weeks...


Charts: Bloomberg


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Thu, 12/19/2013 - 17:07 | 4261748 BKbroiler
BKbroiler's picture

damn.  gold's almost a buy

Thu, 12/19/2013 - 17:09 | 4261758 FieldingMellish
FieldingMellish's picture

Wait until it reenters double digits, then consider it.

Thu, 12/19/2013 - 17:23 | 4261803 Dr. Engali
Dr. Engali's picture

Gold going to double digits? WTF are you smoking?

Thu, 12/19/2013 - 17:35 | 4261847 FieldingMellish
FieldingMellish's picture

How is that more far-fetched then the calls of $50,000 gold? Its actually far more reasonable.

Thu, 12/19/2013 - 17:47 | 4261898 Bay of Pigs
Bay of Pigs's picture

I wouldn't use the word "reasonable" in any of your posts.

And "far moar resonable" is just crazy talk troll.

Thu, 12/19/2013 - 17:51 | 4261910 ParkAveFlasher
ParkAveFlasher's picture

1) Price controls work.

2) Gold rusts, floats, and gets moldy.

3) Fiat currencies last forever.

4) Governments limit themselves.


Thu, 12/19/2013 - 18:04 | 4261961 kk1532003
kk1532003's picture

5. I love you


6. The check is in the mail


7. I promise I won't come in your mouth

Thu, 12/19/2013 - 17:55 | 4261917 He_Who Carried ...
He_Who Carried The Sun's picture

>>Wait until it reenters double digits, then consider it.<<


Nice joke! I'd say 980$ to 1040$ is the

appropriate range to get big and physical again... ;-0

Thu, 12/19/2013 - 17:55 | 4261931 FieldingMellish
FieldingMellish's picture

...and when it hits $700 again? Load up the truck at $500? Its got to be a winner at $250, right?

Thu, 12/19/2013 - 17:59 | 4261941 fonzannoon
fonzannoon's picture

The reason anyone with a brain owns gold is for the day it is not measured in dollars. Anyone else is just speculating.

Thu, 12/19/2013 - 18:04 | 4261955 He_Who Carried ...
He_Who Carried The Sun's picture

>>...and when it hits $700 again? Load up the truck at $500? Its got to be a winner at $250, right?<<


Troll away, silly git!

Thu, 12/19/2013 - 20:46 | 4262370 PLira
PLira's picture

new FieldingMellish

It is quite the Gold troll. On every Gold related thread for the last few days.

Best case in this poster is to ignore him. He likely gets paid for each post, so deprive it of the money, imho.

Thu, 12/19/2013 - 17:10 | 4261755 FieldingMellish
FieldingMellish's picture

New low in PMs before month end, maybe tonight. Sub $1000 by end 2014.

Thu, 12/19/2013 - 17:18 | 4261775 FieldingMellish
FieldingMellish's picture

Only 1% to go now... any minute...


Once $1180 is taken out, the floor will be a good $50-$60 below that. I doubt $1200 will be seen again this year and not likely for a few after that.

Thu, 12/19/2013 - 17:20 | 4261785 mayhem_korner
mayhem_korner's picture



If you can deliver it in < 48 hours, I'll buy all of your physical gold today for $1,200/oz. 

What say you, troll?

Thu, 12/19/2013 - 17:33 | 4261848 fonzannoon
fonzannoon's picture

People will break one by one on here until there are very few left. This guy apparently is mentally broken.

Thu, 12/19/2013 - 17:47 | 4261897 BKbroiler
BKbroiler's picture

Well I'd rather be called broken than be broke.  Damn glad I got out in January.  I love me some gold, but rule 1 is don't fall in love with your investment.  When gold plus premium is 1K and silver plus premium is $20, back in I go.

Thu, 12/19/2013 - 17:46 | 4261899 FieldingMellish
FieldingMellish's picture

and the constant hatred for anyone not pro-gold is proof that more pain is still to come. Far too many in love with what they believe is "insurance". Its just a yellow metal.

Thu, 12/19/2013 - 17:52 | 4261922 fonzannoon
fonzannoon's picture

do my posts prove that I don't hate anybody?

Thu, 12/19/2013 - 18:02 | 4261960 BringOnTheAsteroid
BringOnTheAsteroid's picture

You've got to think long term son. Trying to bottom pick the gold price is dumb. Your statement reflects a very shallow understanding of history, an arrogance that only, generally, a Gen Y can muster. Thousands of years of civilisation have gone before you where integrity was a far more common attribute of man and you think the dog and pony show of modern finance will last. It's going to be a tough lesson for you when thousands of years of history removes it's glove and slaps modern investing banking across the face.

Thu, 12/19/2013 - 17:50 | 4261903 fonzannoon
fonzannoon's picture

whatever works for you. I did not buy it to sell it. Ever. What I have will be passed down. I disagree with most on here that this has to end anytime soon. But it will end, probably in a very bad way. When it does gold may be hard to come by. Or maybe not. Who gives shit right? We are all just passing through.

Thu, 12/19/2013 - 17:59 | 4261939 Billy Sol Estes
Billy Sol Estes's picture

Bury that shit and never sell it or tell the IRS you ever possessed it.

Thu, 12/19/2013 - 18:10 | 4261981 BKbroiler
BKbroiler's picture

Who gives shit right? We are all just passing through.

farts in the wind.  I don't have the luxury of losing that much money, had to sell and sell big when I thought it was going down.  If all the other bases were covered, I'd probably sit on it also.  Short attention span, I guess.

Thu, 12/19/2013 - 17:35 | 4261853 FieldingMellish
FieldingMellish's picture

Why would I own any gold now that the price is in freefall?

Thu, 12/19/2013 - 17:42 | 4261882 fonzannoon
fonzannoon's picture

Just out of curiousity, because sometimes I forget who I am talking to on here, are you the 22 year old kid who trades a whole bunch? The one who was shorting the S&P the last 100 points up? 

If not, then my apologies to you. I don't agree with what you are saying, but I am thinking of someone else.

Thu, 12/19/2013 - 17:46 | 4261896 FieldingMellish
FieldingMellish's picture

You are thinking of someone else. I was investing in PMs and miners for 12 years now. Not anymore.

Thu, 12/19/2013 - 17:48 | 4261904 Bay of Pigs
Bay of Pigs's picture

12 years and you packed it in now?

LOL, you really are a stooge then.

Thu, 12/19/2013 - 17:51 | 4261912 fonzannoon
fonzannoon's picture

The only thing I would be doing with the miners right now is shorting them. The other thing I would be doing is using gains in stocks to buy real assets. But that is just me. 

Thu, 12/19/2013 - 20:24 | 4262291 Al Huxley
Al Huxley's picture

I'm heavily short miners now, as of early this week.  Whole portfolio's solidly green, but what's far better is I suddenly don't give a fuck about conspiracies to sell gold, or pending LBMA or Comex failures

Thu, 12/19/2013 - 20:29 | 4262322 fonzannoon
fonzannoon's picture

Good stuff. Most people on here would attempt to short them but then have this moment

and then go back to going long them and losing their ass because it's the moral thing to do.

Thu, 12/19/2013 - 21:06 | 4262422 Al Huxley
Al Huxley's picture


Thu, 12/19/2013 - 17:58 | 4261945 kk1532003
kk1532003's picture

no, if you are selling then you may have been trading in PM's and miners for 12 years, but you damn sure weren't investing.  That would be like a riflr company stockpiling ammo prior to engagment, then surrendering it all after the first shot was fired.

Thu, 12/19/2013 - 22:26 | 4262596 SilverRhino
SilverRhino's picture

PM's are not an investment play for the short term at this point.   Any PM's I have are for retirement in oh .... 25-30 years or so. 


Thu, 12/19/2013 - 17:17 | 4261777 Charles Nelson ...
Charles Nelson Reilly's picture

yeah... cause I'm sure the appetite for physical gold will magically go away at sub $1000 gold.  Would love to see how the Comex & LBMA are doing when gold gets to $975 an ounce.

Even the manipulators aren't that arrogant and stupid.

Thu, 12/19/2013 - 17:17 | 4261782 BKbroiler
BKbroiler's picture

miners getting rocked.

Thu, 12/19/2013 - 17:21 | 4261789 Charles Nelson ...
Charles Nelson Reilly's picture

this is where you either got the balls to stick to your convictions or sellout because you believe what cocksuckers like Barry Ritholz & Ambrose Pritchard are telling us.

Thu, 12/19/2013 - 17:31 | 4261827 Al Huxley
Al Huxley's picture

I don't believe anything the mainstream establishment says about gold, I'm 100% convinced in about 2 years or less inventories will be gone, the reset will happen and things will go nuts.  So what I say doesn't apply to physical metal, which is a safe way to save long term, and have some kind of tangible asset when the big dollar reset finally happens - a lot fucking better for the average guy than 'balloon dog orange'.


But these mainstream guys are talking about paper gold, so when they say 'gold will go to 1000 by the end of 2014', taking it as 'paper gold' then yeah, they could be right, which would be great because those fucking balloon dogs aren't getting any cheaper, but at least gold is, as long as you get the real stuff, and take it home and hide it for later.

Thu, 12/19/2013 - 17:39 | 4261866 ParkAveFlasher
ParkAveFlasher's picture

+1000 for "balloon dogs aren't getting any cheaper", and any additional clown references this spawns.

Thu, 12/19/2013 - 17:35 | 4261849 nobodyimportant
nobodyimportant's picture

When Jim Sinclair says to dump gold I might listen.  All else is just noise.

Thu, 12/19/2013 - 17:39 | 4261868 FieldingMellish
FieldingMellish's picture

Jim Sinclair... CEO of a mining company and chairman of a metals exchange... yeah... no conflict of interest there. Beware the gurus you pick, they can lead you to ruin.

Thu, 12/19/2013 - 17:42 | 4261877 Charles Nelson ...
Charles Nelson Reilly's picture

pfffttt... guys like Sinclair could have retired long ago if they wanted.  There is little incentive for him to pick a war with the elites if he wasn't looking out for his fellow man.  

Thu, 12/19/2013 - 17:43 | 4261884 nobodyimportant
nobodyimportant's picture

Well I sure as hell am not picking you for a guru!  But if you are as smart as you think you are then your portfolio must make Jamie Dimon look like a pauper.

Thu, 12/19/2013 - 17:18 | 4261787 FieldingMellish
FieldingMellish's picture

There is no demand now, that is why the price is falling. All these "you can't get phyzz" stories have been circulating for years. Looking online, I can get coins for $50 over spot with a few days delivery.

Thu, 12/19/2013 - 17:29 | 4261817 Charles Nelson ...
Charles Nelson Reilly's picture

yeah, in the US there is little demand because the retards in this country wouldn't know the value of a 1 oz coin if it smacked them in the head.  Go over to CHina an tell us how their appetite is low.

Thu, 12/19/2013 - 17:32 | 4261841 FieldingMellish
FieldingMellish's picture

You believe any story out of China?

Thu, 12/19/2013 - 17:35 | 4261858 Charles Nelson ...
Charles Nelson Reilly's picture

No... none!  I believe those pictures of people lined up outside coin shops/jewerly stores have been faked by the chinese gov't so they can covertly keep buying US Treasuries?!?

Thu, 12/19/2013 - 17:58 | 4261938 ParkAveFlasher
ParkAveFlasher's picture

I believe the plurality of humankind stores surplus labor value in gold, in fact.  A bunch of inbred clowns however differ with this view, and concoct schemes of ever-expanding complexity to deny this.

Thu, 12/19/2013 - 17:22 | 4261793 Al Huxley
Al Huxley's picture

They still have 812 tons in GLD to sell.  When THAT's gone, whatever the price is at that time will be the bottom, is what I'm betting. In the meantime they're living the good life - short GLD, force the price down, extract the gold from customer redemptions and sell it to Asia at a mark-up - profit on the short leg and the premium, and keep the governments happy as it provides cover for the ponzi...  And then short the dumbass miners for good measure, since they're stupid enough to compete with a paper version of the product they mine.

Thu, 12/19/2013 - 17:35 | 4261860 FieldingMellish
FieldingMellish's picture

and to think for years all the bugs have been saying that GLD has no gold in it... well there seems to be enough to sell.

Thu, 12/19/2013 - 18:01 | 4261947 fonzannoon
fonzannoon's picture

Now that is a point I would agree with. I would have thought if there was an actual run on phyz this would have been over in 2 minutes.

Thu, 12/19/2013 - 20:21 | 4262299 Al Huxley
Al Huxley's picture

800 tons is a lot at least as far as Comex settlements go.  All the 'usual' sites were up in arms about how there's 600K oz standing for delivery this month - yeah, but that's only 20 tons.

Thu, 12/19/2013 - 17:22 | 4261791 RockRiver
RockRiver's picture

New low in PMs before month end, maybe tonight. Sub $1000 by end 2014.


LOL! That's a tough call, eh? Gave yourself a whole year to see it sink 100 bux more?


Bold call!

Thu, 12/19/2013 - 17:25 | 4261808 Toolshed
Toolshed's picture

Sure thing, miners will cheerfully dig all day so they can lose money. Riiiight.

Thu, 12/19/2013 - 17:33 | 4261836 FieldingMellish
FieldingMellish's picture

Miners account for less than 2% of the world supply. They could all be wiped out overnight by a sudden drop in demand.

Thu, 12/19/2013 - 17:33 | 4261846 Al Huxley
Al Huxley's picture

So far they seem happy to do that.

Thu, 12/19/2013 - 17:27 | 4261811 GVB
GVB's picture

I hope you post again when people realize there is no physical available. I will politely reply you were living in fairy tales land. for example, germany's gold is an act of war. Whatever happened to people's common sense...Based on the outflow of physical gold to east, it is a mathematical guarantee that this will end badly.. I am not asking for this, they have just fucked up. going to the bar now. 

Thu, 12/19/2013 - 17:17 | 4261762 Ham-bone
Ham-bone's picture

Under what legitimate circumstance is it possible and/or probable (with a Fed course of tapering underway and  assuming finalized by 2014 YE) that Treasuries maintain existing'ish yields while equities continue to drive upward?  And while PM's dive to new multi year lows???  In other words, in what set of circumstances can we watch what we are watching now and not simply say IT IS ALL A FRAUD???

In what set of circumstances does the cost of crude jump back to $100 on a strengthening dollar while PM's (with major cost driver of crude in their mining) collapse on dollar strength???  In what world, where equities are excited by economic strength which the Fed cites as the rationale for removing some QE, are commodities like copper or silver becoming ever less valuable???  Strange daze.

Thu, 12/19/2013 - 17:28 | 4261814 Serfs Up
Serfs Up's picture

Verily, it is a simple coincidence that every asset class is behaving exactly as necessary to script a favorable story line for the entrenched kleptocracy.


And, lo, you forgot to mention that oil magically elevates too, enough to continue the shale drillng that feeds the American exceptionalism story.


Stawks up, gold down, oil up, silver down, bond prices up, and Yen down.  It is enough to make a central planner wet their pants.

Thu, 12/19/2013 - 17:42 | 4261889 ChaosEquilibrium
ChaosEquilibrium's picture

SerfsUp:  That is ALL Bernanke needed to say at his presser:  recite your above paragraphs and walk off the stage!



Thu, 12/19/2013 - 17:28 | 4261822 Theta_Burn
Theta_Burn's picture

Thank you..

You could add that close to 80% of gold mines are outright losing money at this level.

Maybe China demanded either higher yields or smashed gold prices for their continued patience. it is amazing to watch tho.


Thu, 12/19/2013 - 17:30 | 4261835 Bryan
Bryan's picture

Don't worry.  The smug enonomists that are running things and think they have it all under control will lose control at some point.  It will be too late at that point to "fix" anything or keep it from falling apart.  The idiots will get fired or voted out, but the rest of us will suffer with the aftermath for decades.  It's the pride and arrogance of these twits that gets me; to think that just pumping a bunch of fiat cash into the economy will somehow fix it all with no afteraffects... it's the height of arrogant academic ignorance.

Thu, 12/19/2013 - 17:37 | 4261857 Ham-bone
Ham-bone's picture

is this whole taper charade one last chance to shake every last ounce of gold from the vaults??? 

London vaults (and COMEX)...the metal is gone...miners are despised...and every day virtual paper trumps physical metal...]


Thu, 12/19/2013 - 17:38 | 4261873 fonzannoon
fonzannoon's picture

Ham-bone do you actually think going from 85 bil a month to 75 bil a month will prevent the fed from eventually owning the bond market? Especially when they randomly up QE to well over 85 bil one month in the spring?

Thu, 12/19/2013 - 17:51 | 4261900 Ham-bone
Ham-bone's picture

Hey Fonz - the math sez no way.  $480 B /yr in Fed purchases won't do anything but maintain their 20%'ish ownership stake in the $10 Trillion publicly owned notes/ bond market...what with additional likely $600 B up to $1T in new issuance every year. 

For the Fed to own the Treasury market within even a five year period (2019), they need to dramatically increase their purchasing of Treasury's to like $2 T annually to take in all new issuance plus rollover plus non-gov Treasury debt that SS has to sell off now due to larger SS deficits

When the Fed sez they are doubling or tripling purchases...then Fed ownership of the Treasury market is in play

Thu, 12/19/2013 - 17:53 | 4261915 fonzannoon
fonzannoon's picture

I'm thinking they get to close to 50% by the next election. Would you say that is not possible?

Thu, 12/19/2013 - 18:09 | 4261948 Ham-bone
Ham-bone's picture

Everything is's just what's probable.

Assuming a conservative budget deficit of say $600 B /yr...and that SS will need to sell off likely $100 B / yr in intra-gov debt for their deficits...that is $700 B/yr "new" issuance and 2/3rds in notes/bonds...means bout $500 B/yr in new notes/bonds issuance.  If the Fed does not buy in excess of their taper level of $480 B / yr their % of ownership of the outstanding debt will be decreasing!!!  They need something like a QE Treasury bond focused tripling (increase Treasury bond purchases to $1.5 T while maintaining MBS @ $400 B...or QE to $2 T annually) to even get moving toward a 50% ownership by 2016 

Thu, 12/19/2013 - 18:49 | 4262084 fonzannoon
fonzannoon's picture

Ham-bone my buddy that has forgotten more about this than I will ever understand sees your math and says this.

"ham bone is a bit off with the current total (the Fed owns 33% of all 10yr durations at the moment, which is USTs, notes etc) 

and in 2012 the Fed bought MORE debt than was actually issued:

Also here if you look at the chart in this article it shows how we hit 70% of treasuries by 2017 and all the Fed has to do is keep buying at $65b+ per month.

The thing is ham-bone's math also bears this out: if the Fed is buying at $480b and the deficit is $700b as proposed than that is still 68.5% of all new issuance. And interestingly this is just around the (still intact for now) SOMA limit of 70%. In other words, it is going to keep increasing its total share slowly but surely as 68.5% is still a very hefty majority. Its safe to say it has effectively cornered this market. And remember the Fed only intends to crowd out the private market at first, some of the debt obviously has to still be sold to other countries.

But again a lot of this has to do with the maturity curve, look a the chart there in the FT link, several the longer dated durations are going to reach 50% by next year, so dont forget a big part of the Fed's mission is to roll all the government's debt towards the front end of the curve where interest is *practically* nothing. Its sort of the same thing, which is a useful tactic as it will take some time to reach 51% at $40bil per month, that is why I do think we will see a QE increase under Yellen in the not too distant future.

Fri, 12/20/2013 - 14:14 | 4262143 Ham-bone
Ham-bone's picture

Hey Fonz - ok, I'm looking at total note/bond market vs. focus on 10yr equivelant (I don't argue w/ the 33% 10yr, and likely similar for 7yr) but two big points from me...

1- Fed may get to SOMA limits on 10yr, 30yr but that simply means...

2- Foreigners are being crowded to the shorter duration notes w/ their $5 T and growing holdings meaning they are getting closer and closer to the exit like a giant pig in a python

Meaning the moment the Fed needs to step in will likely be when foreigners start to exit the note market en masse likely in conjunction w/ a huge QE increase...

Off to coach my sons B-ball team but will think on this and get back to you later.

actual spending was closer to $1 T last year but T debt remained steady @ $16.737 T for over 6 months from March 15 til Oct 15, so deficit only showed $600 B for end of budget year..but of course gov was spending and once debt ceiling was lifted all the debt was issued in the new budget year...we have already issued $500 B from Oct 17 til Dec 18 and w/ budget deal cancelling sequester, this year will be well in excess of $1 T deficit.

BTW - Jan 1, 07 ---> Dec 18, 12

Public debt was $5.1 T--->$12.3 T , intra-gov was $4 T...$4.9 T

Jan 1, 13 til now...intra-gov debt has added $50 B in the last year while public has increased by $800 B...intra gov debt is set to no longer be a marginal buyer of Treasury debt but to become a net seller...essentially a reversal of about net $100 B ('13 +50 B and '14 -$50 B) the first year and then growing.

Thu, 12/19/2013 - 17:10 | 4261763 Stoploss
Stoploss's picture



Thu, 12/19/2013 - 17:13 | 4261766 Possible Impact
Possible Impact's picture

Powder puff derby: The race to the coin shop to trade "Dry Powder" for tangible liquid assets.

Thu, 12/19/2013 - 17:13 | 4261770 gjp
gjp's picture

Stocks nicely consolidated gains, most asset classes range bound, and PMs crushed again.  Another perfect day for the fuckin financial fascists.  Fuck it.

Thu, 12/19/2013 - 17:14 | 4261771 fonzannoon
fonzannoon's picture

the beatings will continue....

Thu, 12/19/2013 - 17:16 | 4261781 BKbroiler
BKbroiler's picture

it may be a minute before morale improves.

Thu, 12/19/2013 - 17:26 | 4261804 locklimit
locklimit's picture

Time to engage in total anti-consumerism.  Its the only way to destroy this system of complete corporate slavery.

Thu, 12/19/2013 - 22:39 | 4262629 TheHound73
TheHound73's picture

Yep.  Under-the-counter and undeclared barter when possible.

Thu, 12/19/2013 - 17:26 | 4261807 thorgodofthunder
thorgodofthunder's picture

Here me now believe me later zuckers: (5/22/12)


Believe I called 1000/oz as soon as it hit 1800. 

Funny, the same zuckers who bought the now mellow yellow metal at 1800 probably bought fraudbook at 100 billion.  Most of you fools spending your beer money on souveneer shop nuggets that probably can only be cashed in for 20% fees.  Morons most of you.

There's a zucker born every minute I guess!


Thu, 12/19/2013 - 17:34 | 4261843 Al Huxley
Al Huxley's picture

What are you talking about? Facebook is America's future!  Everybody's LUCKY to get it for under 100!  I mean, compared to Linked-In its a steal! 

Thu, 12/19/2013 - 23:46 | 4261906 sixsigma cygnus...
sixsigma cygnusatratus's picture

I leveraged my FB and LNKD to buy more TSLA.  I had to take out a 3rd on my house to make the initial investment, but I figure I'll pay it all back from my huge BTC acct at some point.  Sure-fire win, can't lose!


Thu, 12/19/2013 - 17:35 | 4261852 Bryan
Bryan's picture

If not PMs, then what is your prescription for financial collapse preparation?  Or do you think this charade will just go on forever, oh wise one?

Thu, 12/19/2013 - 17:55 | 4261932 thorgodofthunder
thorgodofthunder's picture

Invest in middle income rental housing in dense urban areas.  High rise buildings.  People always need shelter and need to be close to jobs.  On buy where your yields exceeds the long term cost of capital.  That and swiss francs.  I have a large portfolio of both.

Thu, 12/19/2013 - 18:34 | 4262050 Bryan
Bryan's picture

I would think farmland too, although it's pretty pricey right now I think. 


Swiss Francs... interesting.  I don't know anything about that currency... is it backed by gold?  Kyle Bass says to buy gold with Yen.

Thu, 12/19/2013 - 17:37 | 4261859 Theta_Burn
Theta_Burn's picture

Because record sales worldwide, all in costs at most mines $12-$1300z make having a few nugz stupid?


Thu, 12/19/2013 - 19:19 | 4262151 Pareto
Pareto's picture

and I guess you're just the fucking prick to remind us of that?

Thu, 12/19/2013 - 17:33 | 4261837 silverserfer
silverserfer's picture

25 years till retirement for me I dont give a rats ass the price i will buy phisical relentlessly untill then. So will my son. 

Long live savers!

Thu, 12/19/2013 - 17:50 | 4261911 Billy Sol Estes
Billy Sol Estes's picture

Social Security nor the entire damn country will be around when I retire. At our current rate anyways the retirement age will be 88 and perpetually out of reach for people aged 87 and younger. It will be a fucking asymptote.

Thu, 12/19/2013 - 17:43 | 4261883 Obama_4_Dictator
Obama_4_Dictator's picture

Makes me sick to my stomach when I think about this and what's eventually going to come down the pike....hopefully Obama will get another term so he can fix Bush's mistakes.  Takes time you know.....

Thu, 12/19/2013 - 18:28 | 4262040 rqb1
rqb1's picture

If you like your president, you can keep your president.

Thu, 12/19/2013 - 19:26 | 4262172 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Things have actually got that insane. At least with his 3rd term the lines in the sand would be absolutely clear. The enemy could no longer hide behind the rules they have created to justify their theft.

Thu, 12/19/2013 - 21:30 | 4262481 Obama_4_Dictator
Obama_4_Dictator's picture


Thu, 12/19/2013 - 17:43 | 4261886 max2205
max2205's picture

Fuck all that shit till the Fed stops supporting the market

Thu, 12/19/2013 - 17:58 | 4261936 wagthetails
wagthetails's picture

crazy people don't know they are crazy.  i'm starting to think we're the crazy ones. 

Thu, 12/19/2013 - 18:01 | 4261949 FieldingMellish
FieldingMellish's picture

DING! DING! DING! We have a winner!

Thu, 12/19/2013 - 18:47 | 4262081 Conax
Conax's picture

but .. but..

mother had me tested.

Thu, 12/19/2013 - 18:02 | 4261954 RSDallas
RSDallas's picture

I think we are on the front end of corporate, hedge fund, pension or any big money selling because they are getting hammered or think they will soon get hammered in the market.  Gold is a trade for a trader, not a store of value.  CAT reported dismal orders, Europe is disintegrating, China is braking hard, bonds have begun their ascent again and the US is running out of believable bull crap.  All I can say is TIMBER and MOVE AWAY FROM THE DOOR!  

Thu, 12/19/2013 - 18:10 | 4261976 kk1532003
kk1532003's picture

really.  look at a 15 year chart lately?  Talk to me in 2028.


Traders are spinters, but this gane we are in is a marathon.



Thu, 12/19/2013 - 18:11 | 4261986 kk1532003
kk1532003's picture

gold will continue to fall in terms of $'s until...well until it doesn't....


100 years.  1913 until today.  Americans have a very short lighted view of things.  Everything was damn peachy in early 1929 as well.



Thu, 12/19/2013 - 18:13 | 4261988 chump666
chump666's picture

No decrease in POMO @$1.575b, market had $1.4b priced.  All long dated bonds as Gross suggested as the short dated have the juicy yield thus players coming in and buying.  That is all taper was and is and will ever be - a sleight of hand = meaningless, more concerning is EUR strength v's USD weakness as EM currencies collapse.  China will need to create a panic to get gold bid.

Any-day now...

Thu, 12/19/2013 - 18:14 | 4261990 polak potrafi
polak potrafi's picture

dostrzec wschod slonca

znad Wladywostoku


The carry trades pair


my darling monsieur

is acting out wild



is stable. Thanks God...

(unless in US

is gold what you've got:)


PS. Pani Jelen to poprawi

Thu, 12/19/2013 - 18:19 | 4262002 Quinvarius
Quinvarius's picture

Gold is down for only one reason, because it would look bad if it were allowed to trade.  This paper raid got hot and heavy before the FOMC meeting even started early Tuesday. The bankers are scared because they have been wrong about absolutely everything.  Paper gold is inscrutable.  It is no different than any other fiat currency in a market with no laws.  But physical gold is dirt cheap insurance.  And you are going to need it.

The only thing that surprises me is the bond market being out of control.

Thu, 12/19/2013 - 18:19 | 4262005 walküre
walküre's picture

I'm looking at FB and TWTR. These two will hit $100 next year. Not because they're awesome but because TPTB love a good story. At the same time, a loaf of bread will cost between $6 and $8 and gold willl go sub $1000, silver sub $15 because TPTB are having a jolly good time fucking with us.

Until we put all those guns & ammo to good use and clean house, they are playing us like fiddles.

Thu, 12/19/2013 - 18:20 | 4262019 FieldingMellish
FieldingMellish's picture

Until we put all those guns & ammo to good use and clean house, they are playing us like fiddles.


and that will never happen.

Thu, 12/19/2013 - 19:30 | 4262180 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Why not? I think shooting after Black Swans is good for the soul. Keeps them off the yard.

Thu, 12/19/2013 - 20:56 | 4262395 FieldingMellish
FieldingMellish's picture

Because as proven time and again, America is a nation full of cowards, run by cowards.

Thu, 12/19/2013 - 21:47 | 4262515 Obama_4_Dictator
Obama_4_Dictator's picture

Most Americans are pussies.....sometimes I think it would be better to leave...but then I realize there is not better place to go

Thu, 12/19/2013 - 21:47 | 4262508 Obama_4_Dictator
Obama_4_Dictator's picture

I do think Amerikans by and large will never fight back, there are maybe 3% that would do it - here in Texas a large portion of people will stand up and fight.  I was at the Alamop for the 2nd Amendment rally this summer - over 2 thousand people took to the streets with lodaed weapons. Only in Texas!

Thu, 12/19/2013 - 19:28 | 4262173 thismarketisrigged
thismarketisrigged's picture

we all knew they would monkey hammer gold and silver this week, question is what day was it going to be, and we got our answer today.


its a weekly thing almost, like for no reason, gold and silver must fall 3-4 percent plus once a week, but if the s&p and dow fall 0.05 percent, there is fed speak reassuring the markets they will be there.


gold falls 40 plus, yet if the dow loses 40 pts from 16,150 level, there is panic.


cant make this shit up.


i guess the best thing to do is keep adding gold and silver at these levels, bc with the printing press, its only a matter of time before gold surges to all time high levels.

Thu, 12/19/2013 - 20:28 | 4262318 Big Ben
Big Ben's picture

Gold seems to get bid up a week or so before Fed meetings, and then seems to get smashed back down shortly afterwards. I'm not sure what those gold buyers were hoping to hear the Fed say, but plainly the Fed didn't say it.

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