• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

Commodities Are Crumbling

Tyler Durden's picture


Despite the surge in prices for NatGas (and record time-of-year prices for gasoline),  WTI crude oil prices are stumbling back to $93.50 this morning. Copper is also sliding but the real action - once again - is in Gold and Silver. Following yesterday's flash crash in gold, silver is having a conniption this morning as the 8amET period once again brings volatility. The selling coincided with the smaller-than-expected trade deficit - perhaps indicating indirectly less room for Fed QE? But in this new normal market, do they really need a reason to smack them down. Stocks are not moving as this occurs but bonds and the USD are modestly bid.


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Tue, 01/07/2014 - 10:23 | 4307744 Johnny Cocknballs
Johnny Cocknballs's picture

Look at 10 an or so.   If you didn't know better, you might suspect that some fuckery was afoot...

Tue, 01/07/2014 - 10:33 | 4307790 Serfs Up
Serfs Up's picture

Ah....not this shit again.

I was kind of hoping that 2014 would not be a repeat of 2013...a waste of a year if ever there was one.

Tue, 01/07/2014 - 11:51 | 4308107 Canadian Dirtlump
Canadian Dirtlump's picture

Something is fucky alright.




Either way I'll just  keep praying the bastards responsible for this end up drowning in a pool of used asshole bleach.

Tue, 01/07/2014 - 10:23 | 4307746 IridiumRebel
IridiumRebel's picture

Bitcoin is up off the lows! I spoke to my unicorn today and he said it should continue to rise past 1000 on its way to nirvana.

Tue, 01/07/2014 - 10:23 | 4307747 Max Damage
Max Damage's picture

As long as Twitter gets manipulated up and then transfered to everyones pension funds all is well in the Wall Street world

Tue, 01/07/2014 - 10:24 | 4307753 Possible Impact
Possible Impact's picture

If you stand for delivery, is it there?

Tue, 01/07/2014 - 13:34 | 4308516 MarsInScorpio
MarsInScorpio's picture

That is exactly why the price is being manipulated down - because the people responsible for coming up with the hard metal are having to buy to replenish their stock - and they want to buy as low as possible, for obvious reasons.


But sooner or later, the demand will put this game on hold, and the price for the metal will climb in response to the demand for the metal (as opposed to the promise of the metal on paper).


My popcorn is popped, and I'm enjoying watching how long the West can pump the price down to fulfill the orders of the East. It's a dead-end strategy for the West - and they know it.


Tue, 01/07/2014 - 10:24 | 4307754 jubber
jubber's picture

So what happened to this from UBS this morning/

UBS sees gold demand of 1.49mln oz this week due to the rebalancing of the DJ-UBS Commodity Index

On silver, DJ-UBS Commodity Index rebalancing may mean 44.27mln oz, or 8.86K contracts, of silver buying this week.

Tue, 01/07/2014 - 10:26 | 4307760 shepherd
shepherd's picture

Gold is useless. Warren Buffet was right. When will you learn.

Tue, 01/07/2014 - 10:31 | 4307779 akak
akak's picture

What good is Warren Buffet?  You just dig him up out of some snakehole only to bury him right back in the ground again.

Tue, 01/07/2014 - 10:34 | 4307791 Smegley Wanxalot
Smegley Wanxalot's picture

Warren Buffet is good for compost.

Tue, 01/07/2014 - 10:58 | 4307885 buzzsaw99
buzzsaw99's picture

-1 that old fart is mostly nonorganic by now

Tue, 01/07/2014 - 13:33 | 4308508 Manthong
Manthong's picture

I seem to recall reading that Buffet was smart enough to sell 130 million ounces of real silver for about 7.50 in 2006.


Smooth move.

Tue, 01/07/2014 - 13:38 | 4308528 MarsInScorpio
MarsInScorpio's picture



You were being sarcastic, right?


Today, silver is selling for 260% of what he sold it for.


Tue, 01/07/2014 - 13:28 | 4308491 Kirk2NCC1701
Kirk2NCC1701's picture

What's he good for?  Traci Cool. 

She takes good care of his... "barbaric relic", while he looks after her... assets.  No doubt.  ;-)


Tue, 01/07/2014 - 10:45 | 4307828 wisehiney
wisehiney's picture

He said bonds were the worst investment on earth when the 10 yr was yielding 5%. Glad I ignored him.

Tue, 01/07/2014 - 10:50 | 4307854 shepherd
shepherd's picture

I'm not here to defend Warren Buffett. Just making the point that if you want to see a bunch of crying losers, Zerohedge is the best place on the interent.

Tue, 01/07/2014 - 11:00 | 4307892 wisehiney
wisehiney's picture

I remember seeing that same post in early 2008. Was that you?

Tue, 01/07/2014 - 12:17 | 4308195 shepherd
shepherd's picture

You're here since 2008? Will there come a time, when you realize that you are as much bullshitted here as you are elsewhere?

Tue, 01/07/2014 - 12:42 | 4308288 Jack Napier
Jack Napier's picture

Leading the sheep to the slaughter are we shepherd?

Tue, 01/07/2014 - 12:46 | 4308303 shepherd
shepherd's picture

Sheep are sheep. Wether on Zerohedge or elsewhere.


Tue, 01/07/2014 - 15:04 | 4308821 Dickweed Wang
Dickweed Wang's picture

How about this shep - go fuck yourself

Tue, 01/07/2014 - 13:02 | 4308385 DebtSlaveZombie
DebtSlaveZombie's picture

The website didnt begin until jan 2009.

Tue, 01/07/2014 - 12:59 | 4308373 DebtSlaveZombie
DebtSlaveZombie's picture

This site didnt exist in 2008.  

Tue, 01/07/2014 - 11:05 | 4307915 jcaz
jcaz's picture

Wow- quoting Buffett AND picking on ZH-  you must be, like, some sort of super-trader or something,  or maybe you run the biggest hedge fund on earth-  you should go on CNBC Fast Money next and dazzle them with your knowledge of finance.....

Tue, 01/07/2014 - 11:08 | 4307929 Kina
Kina's picture

So people shouldn't complain about corruption, madoff, LIBOR, etc.... because that would be acting like a looser... also complaining about NSA and so forth.



Tue, 01/07/2014 - 12:18 | 4308198 shepherd
shepherd's picture

I'm talking about the goldbugs, sucker.

Tue, 01/07/2014 - 14:55 | 4308775 GoldenGal
GoldenGal's picture

Shepard you may be right ....all these pms are just worthless  barbarous relics.. Perhaps I should cut my losses now and sell so I can free up some capital to buy netflix stock

Tue, 01/07/2014 - 15:32 | 4308930 Agstacker
Agstacker's picture

Member for 1 week 2 days...

Tue, 01/07/2014 - 10:28 | 4307764 arkel
arkel's picture

Gold is so undervalued today when you compare it to the Fed's balance sheet / Money Supply. In relative terms, it's cheaper now than it was in 2001. Back up the truck.

Click here to see the chart I created illustrating this

Tue, 01/07/2014 - 10:37 | 4307804 TheHound73
TheHound73's picture

Nice chart.  But doesn't change the fact I have to work 3 times as many hours to buy an ounce.

Tue, 01/07/2014 - 10:41 | 4307817 arkel
arkel's picture

Sure, but how much less could you buy if gold were at $5,000+? Consider $1,200 a gift.

Tue, 01/07/2014 - 12:04 | 4308156 Gallopin Gold
Gallopin Gold's picture

What an awesome chart, Arkel!  Thanks!

Tue, 01/07/2014 - 13:29 | 4308493 malikai
malikai's picture

Nice work mate.

The first thought that comes to mind is what TPTB would say about the 40% number: "It's irrelevant."

Of course, it's only irrelevant until it becomes very fucking relevant.

But I guess our overlords probably think they have a plan for that, too.

Tue, 01/07/2014 - 13:47 | 4308553 quasimodo
quasimodo's picture

Be thankful you have the option to buy an ounce(?)

Tue, 01/07/2014 - 10:46 | 4307836 Quinvarius
Quinvarius's picture

I have been pondering whether or not to create this chart myself.  Good job.  The gold price is crazy low vs what the US says it has.  But the US doesn't really have anything at all.  They can pull 400 tons a year out of their asses to replenish on a good year.  So I would hold them at around that level.

Tue, 01/07/2014 - 10:54 | 4307868 arkel
arkel's picture

I created the chart assuming the US has 8,133 tons of gold. Obviously if that number is lower, the gold price should be higher in terms of dollars. 

Tue, 01/07/2014 - 11:14 | 4307954 Tinky
Tinky's picture

While I am sympathetic with your view that gold is currently undervalued, I find your chart to be flawed given that your stated correlation is gold/currency in circulation. Do you really imagine that all of the money/credit that has been created in recent years is in circulation?

Tue, 01/07/2014 - 11:20 | 4307981 arkel
arkel's picture

What difference does it make if it's in circulation? The dollar was created... You're probably talking about the velocity of money which may be slow now, but that doesn't change the fact that there are more dollars in the system. 

Tue, 01/07/2014 - 15:47 | 4308987 Tinky
Tinky's picture

Do you have a reading comprehension problem, or do you not understand the distinction between "in the system" and "in circulation"?

Tue, 01/07/2014 - 10:28 | 4307765 LawsofPhysics
LawsofPhysics's picture

Crumbling?  All my commodities look just fine, a little cold, but quite intact.

Gold is special, can I take delivery for under $500 an ounce?  Wake me when I can, then you can say it "cumbled".

Tue, 01/07/2014 - 10:33 | 4307786 IridiumRebel
Tue, 01/07/2014 - 15:35 | 4308944 Stares straight...
Stares straight ahead's picture

What is the little pizza-looking icon at the bottom of the board supposed to be?

Tue, 01/07/2014 - 18:37 | 4309545 TheHound73
TheHound73's picture

The first known commercial application of Bitcoin was 10,000 BTC for 2 pizzas.  The icon tracks how much that amount of BTC is worth at today's exchange rate.

Tue, 01/07/2014 - 10:36 | 4307792 akak
akak's picture


All my commodities look just fine, a little cold, but quite intact.

Just as long as they aren't tin --- it turns into a non-metallic powder after prolonged periods under around 60 F, and rapidly so in below-freezing temperatures.

Tue, 01/07/2014 - 10:45 | 4307832 LawsofPhysics
LawsofPhysics's picture

Tin? my god man, stop living in the fifties.

Tue, 01/07/2014 - 11:00 | 4307866 akak
akak's picture

I like the look and feel of tin --- nicer than pewter --- but the solid tin cup that I bought years ago in Bolivia has long since crumbled into dust.  Guess I don't keep the house warm enough.

It's called "tin pest": https://en.wikipedia.org/wiki/Tin_pest

Tue, 01/07/2014 - 11:02 | 4307901 Possible Impact
Possible Impact's picture

There is a YouTube for everything:

grey tin (tin pest) time-lapse video


Tue, 01/07/2014 - 11:07 | 4307925 wisehiney
wisehiney's picture

Tempest in a Tin cup.

Tue, 01/07/2014 - 15:06 | 4308829 css1971
css1971's picture

Pewter is basically tin these days. No lead in it, a wee bit of copper.

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