This page has been archived and commenting is disabled.

Things That Make You Go Hmmm... Like Gold Bullion, Gordon Brown, & A Growling Bundesbank

Tyler Durden's picture


2013 was an absolutely seismic year for gold, but, as Grant Williams details in his latest letter, the way in which the tectonic plates shifted has yet to be fully understood. Simply put, the gold in every central bank's possession around the world is the property of the citizens of that country - not of the incumbent politicians or central bankers. Consequently, if the people want it audited, there shouldn't be any reason to say no ... unless... Williams firmly believes that in the years to come, when we look back at the great game being played in gold, we will pinpoint January 16, 2013, as the day when it all began to unravel - the day the Bundesbank blinked and demanded its gold...

"It was probably a mistake to allow gold to rise so high."
– Paul Volcker

After a run-up to a spike-high of $415.50 on February 2, 1996, gold began to fall. It fell fairly quickly at first, losing 3% in six trading sessions; and then the decline steadied for a while but remained consistent — until, around the end of the calendar year, gold suddenly and inexplicably spiked straight down. By the end of 1996, it had lost 11% of its value.

As 1996 turned into 1997 the price continued to fall; and the new year saw several inexplicable downdrafts of considerable size and alarming speed which, by the time the dust had settled at midnight on December 31st, 1997, had cut the value of an ounce of gold by almost a quarter.

Gold market watchers were baffled at the continued weakness in their beloved metal. They bemoaned their bad fortune and pleaded with the gods above, but neither activity made any difference — the price continued to fall. (Sound familiar?)

"What a year this has been for gold,


"The price of the yellow metal fell almost 30% from its peak at the end of August a year earlier, to bombed-out lows amidst a wall of selling which included several very sharp and somewhat counterintuitive selloffs, including violent plunges in both the April-May time frame and again into year-end.


"Throughout the year, the spectre of manipulation was never far from the minds of all those involved in the gold market, whether they were crying 'foul' or asserting that, of course, there was no manipulation whatsoever and that those who suggested there might be were nothing more than conspiracy theorists, kooks, and whackos.


"The main suspects at the heart of the conspiracy theories were, naturally, the bullion banks and the central banks.


"The bullion banks, of course, have the eternal motive: profit; but what possible reason could central banks have for suppressing the price? None whatsoever, of course. The gold market is too small and too inconsequential for them to take an interest.


"And yet, rumours abounded that the bullion banks were in dire trouble and that a rising gold price could send one or more of them over the edge and into insolvency as a scramble for physical metal exposed massive short positions that had grown out of a fractional-reserve-based lending system backed (if not explicitly, then certainly complicitly) by central banks..."

Now THAT, you may well have thought, was the heart-racking, pulse-pounding introduction to my year-end look at the gold market. No preamble, no carefully constructed narrative to entice you into my latest little web, just BOOM! Straight into it.

And every word of the above makes sense based upon what we've seen happen in the past twelve months in the topsy-turvy world of element 79, which holds down the spot in the periodic table just after platinum and just before mercury.

But of course, nothing is what it seems when we are discussing gold.

That words above are the intro to the year-end review of gold that I would have written in 1999 ... had I been doing such things back then.

2013 was, in many ways, a case of been there, done that; and to understand what is happening today, it is extremely instructive to go back to 1999 and reexamine some very strange goings on at the UK Treasury, AIG, Rothschild, Goldman Sachs, and Number 11 Downing Street.

(Cue dreamy harp music.)

The chart of the gold price between February 1996 and August 1999 (above)  will look eerily familiar to anybody who follows the gold market closely; and for those who don't, just stick around and I'll show you what you've been missing.


2013 was an absolutely seismic year for gold, but the way in which the tectonic plates shifted has yet to be fully understood.

I firmly believe that in the years to come, when we look back at the great game being played in gold, we will pinpoint January 16, 2013, as the day when it all began to unravel.

That day, the day the Bundesbank blinked and demanded its bullion, will be shown to be the beginning of the end of the gold price suppression scheme by the world's central banks; and then gold will go on to trade much, much higher.

The evidence of suppression is everywhere, though most refuse to believe their elected officials are capable of such subterfuge. However, the recent numerous scandals in the financial world are slowly forcing people to realize that anything and everything can be manipulated.

Libor, mortgage rates, FX — all were shown to be rigged markets, but NONE of them have the importance that gold has at the centre of the financial universe, yet all of them are far bigger markets than gold and therefore much harder to rig.

Gold is a manipulated market. Period.

2013 was the year that manipulation finally began to unravel.

2014? Well now, THIS could be the year that true price discovery begins in the gold market. If that turns out to be the case, it will be driven by a scramble to perfect ownership of physical gold; and to do that you will be forced to pay a lot more than $1247/oz.

Count on it...



- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 01/21/2014 - 21:45 | 4354034 Ignatius
Ignatius's picture

"The gold belongs to the people..."

'The People' didn't want the bank bailouts either.  How did that work out?

Tue, 01/21/2014 - 21:51 | 4354054 DoChenRollingBearing
DoChenRollingBearing's picture

The tectonic plates have not stopped moving, and we will need even more time to interpret what has happened (and what will happen in the near-ish future).

Nothing is written in stone about gold just yet.  But the +/- 6000 year history of humanity actively assigning high value to gold speaks for itself.

Old ideas are usually better than new ones.  Old ideas have withstood the test of time.  Many ancient ideas are with us still.

Tue, 01/21/2014 - 21:59 | 4354083 philipat
philipat's picture

And yersterday's (Latest) PM smackdown could have been predicted and was right on cue. Quiet markets because of the US holiday and the imminent First Delivery notices against the (Large delivery) February Comex contract suggested this would take place. A Comex default would be, well, quite embarassing so we can expect further efforts to supress the price and discourage physical deliveries to continue over the next week.

Tue, 01/21/2014 - 22:06 | 4354108 zaphod
zaphod's picture

Despite the draw down in physical stock, Germany only managed to get 5 tons out of the US. Where do you think the rest went?

Tue, 01/21/2014 - 22:23 | 4354164 DoChenRollingBearing
DoChenRollingBearing's picture

We do not know the terms and conditions of the agreement sending Germany's gold back.  That value is some 500,000 times as much as a BIG bearing order is for us.  EVERYTHING in our bearing orders is either documented by terms & conditions, or else is part of customary practices in international trade.

Specifically re your question, I doubt many people know...

Wed, 01/22/2014 - 00:55 | 4354502 Stuart
Stuart's picture


watch this.  Not generally a G Beck fan but he pretty much nails it here.   There is no gold and this whole takedown is to bailout the banks who were short just like G. Brown did. 

Wed, 01/22/2014 - 01:01 | 4354517 DoChenRollingBearing
DoChenRollingBearing's picture



OK, I will watch that, I am OK w/ Glenn Beck.

You and the ZH community might be interested in this as well:

Bron Suchecki is an expert on gold, he is a high level guy with The Perth Mint, he also writes his own blog on his own time.  While Bron is very mainstream (non-conspiratorial), and he has his disagreements with FOFOA, most of what he writes is just plain old good common sense.  The first two articles at Bron's blog below are in insider's (probable) knowledge of why Germany does not appear upset by slow gold delivery.  While Bron's comments are only somewhat parallel to my remarks about "terms and conditions", they do mirror them in one important way: we do not know what is in the agreement between the Bundesbank and the Fed:

Wed, 01/22/2014 - 01:30 | 4354557 Midas
Midas's picture

I bet the Bundesbank spends more time worrying than the Central Bank of DoChenRollingBearing does.

Wed, 01/22/2014 - 01:32 | 4354558 DoChenRollingBearing
DoChenRollingBearing's picture

Midas, that would likely be a good bet.

Wed, 01/22/2014 - 04:38 | 4354746 zhandax
zhandax's picture

Let's add another layer of complexity on top of that.  How much gold could a 1938 destroyer carry?  Several of you, I am sure, can remember the story from a few years ago about the Italian bearer-bond border bust (damn, is that a mouthful).  Digging through the sludge, the story seems that seven destroyers full of ancient Chinese gold was put on deposit with the fed in the late 30's in return for 60-year bearer bonds in distinctive boxes to keep it out of the hands of the invading Japanese.  These bonds were defaulted on in 1998.  The Chinese sued in World Court, and it was ruled that the bonds must be redeemed on Sept 11, 2001.  Oh, and the gold in question was held in the vaults in the WTC. 

Let's see, who has been getting gold deliveries?  China?  yup.  Germany?  Not so much.  Now this whole story is murkier than East River water, but the stench usually leads back to the bodies.  Just because there is damn little reason to wear a tin-foil hat these days, with everything being either admitted or proven, what if this whole tax and treaty supported effort to outsource jobs to China was just to arrange repayment of those bonds?  However it transpired, something is rotten and it ain't in Denmark.

Wed, 01/22/2014 - 06:23 | 4354815 Occident Mortal
Occident Mortal's picture

That all sounds rather contrived.



I much prefer the simple theory that China has ambitions and /or scenario planning for pegging the Yuan to gold.

Wed, 01/22/2014 - 07:48 | 4354824 GetZeeGold
GetZeeGold's picture



So what are they doing with almost 1 trillion per year in QE again?


So I heard someone say the economy and everything was great cause the DOW was at 16500........yeah.......about that.


If you want to buy a few ounces of gold you might find it....but if you need to acquire tons of the stuff....forget about it.....cause it's just not there.


Don't shoot the messenger....I'm just passing on what I've been told.

Wed, 01/22/2014 - 06:29 | 4354820 Squid-puppets a...
Squid-puppets a-go-go's picture

i honestly dont reckon that - having the balls to default on those purported bonds - the US would give a fuck about 'making good' of any indebtedness to china. World court has very little clout. Sorry.

But intriguing info eniway dude.

regardless, problem with this article is he reckons that the manipulation to suppress prices thus far will give way to 'price discovery' perhaps in 2014

I think gold prices will go much higher this year - perhaps to $3k. But the big moves up are going to be from manipulation, too - not price discovery.

Wed, 01/22/2014 - 06:48 | 4354835 negative rates
negative rates's picture

You could discover that the vaults are empty and want your gold in physcial asap. Both at the same time would create a physcial gold rush and a leveraged financial panic. Germany is the first, but how many more will follow suit.

Wed, 01/22/2014 - 06:57 | 4354843 Moe Howard
Moe Howard's picture

Do you have a link to the World Court ruling? Thanks.

Wed, 01/22/2014 - 09:50 | 4355000 outamyeffinway
outamyeffinway's picture

So there should be records of this court case..... Links?

Wed, 01/22/2014 - 10:05 | 4355065 OceanX
OceanX's picture

" That value is some 500,000 times as much as a BIG bearing order is for us.  EVERYTHING in our bearing orders is either documented by terms & conditions,"

That's true, but you are purchasing a product correct?

Usually, when you are asking for something you own, to be returned, you are not so encumbered with complex, "Terms and Conditions" 

Buy why are people to ready to make excuses?   This all started when the Germans merely asked to see their gold.  It was only after they were denied visual inspection that they decided they should just bring it back home.

Wed, 01/22/2014 - 10:05 | 4355066 OceanX
OceanX's picture

" That value is some 500,000 times as much as a BIG bearing order is for us.  EVERYTHING in our bearing orders is either documented by terms & conditions,"

That's true, but you are purchasing a product correct?

Usually, when you are asking for something you own, to be returned, you are not so encumbered with complex, "Terms and Conditions" 

Buy why are people to ready to make excuses?   This all started when the Germans merely asked to see their gold.  It was only after they were denied visual inspection that they decided they should just bring it back home.

Wed, 01/22/2014 - 10:20 | 4355119 LawsofPhysics
LawsofPhysics's picture

When fraud is the status quo, possession is the law.  If you can't physically touch "it", you don't "own" it.

Any questions?

Wed, 01/22/2014 - 11:53 | 4355408 teolawki
teolawki's picture

And it's a great deal more difficult to be deprived of property in your direct physical possession.

Wed, 01/22/2014 - 01:46 | 4354574 BanksterSlayer
BanksterSlayer's picture

Alasdair Macleod, January 20, 2014


"Timing for a schism between central banks over gold could hardly be worse for them. Evidence has been accumulating at an accelerating pace in 2013 of the large scale of leasing transactions by Western central banks, potentially leaving them with very little monetary gold in their vaults. Asian buyers have turned an estimated eighty per cent of this gold into jewelry, and it cannot be returned. Indeed, the circumstantial evidence suggests that with or without the Bundesbank’s knowledge, this may have been the fate of Germany’s gold."

Wed, 01/22/2014 - 06:53 | 4354842 Moe Howard
Moe Howard's picture

They had to steal the gold of Libya to pay Chavez. Who are they going to topple and steal the gold from to pay Germany?

Wed, 01/22/2014 - 07:07 | 4354848 RealityCheque
RealityCheque's picture

I nominate David Cameron. Because...why the fuck not.

Wed, 01/22/2014 - 09:37 | 4354971 StychoKiller
StychoKiller's picture

Wang Li bought a sixpack of Tsing Tao!

Tue, 01/21/2014 - 22:07 | 4354107 ZerOhead
ZerOhead's picture

The remaining undelivered 700 tons of German gold is worth around $25 billion dollars or so at todays market price or about 10 days worth of the Federal Reserves ongoing QEternity.

So Angie Baybay... grow some balls... pick up the phone... yes THAT phone... place an order on the CRIMEX for 7,000 tons and request delivery next month.

Or you could just go to the spot market and pick it up yourself and send the Federal Reserve the bill...

Tue, 01/21/2014 - 22:09 | 4354121 zaphod
zaphod's picture

Remember, no one asks for delivery. (Think of it as a Gentlemen's agreement between banks/nations)

Tue, 01/21/2014 - 22:11 | 4354124 ZerOhead
ZerOhead's picture

And I always thought gentlemen didn't listen to other gentlemens conversations...

Tue, 01/21/2014 - 23:00 | 4354256 logicalman
logicalman's picture

Tells you how many gentlemen are employed by NSA, don't you think?

Wed, 01/22/2014 - 14:02 | 4355915 Chief KnocAHoma
Chief KnocAHoma's picture

It is worth $25-billion until they admit the gold is pledged, repledged, sold or stolen. Then what is it worth. No a big conspiracy believer, but do some reading. Nixon closed the window for a reason. If gold is a worthless relic... why do that? Why not keep it open and let the worthless relic fly out the window?

The lies began in 1913 and have become more complex and deeper ever since. Did you ever lie to your girlfriend? Then you had to tell another to cover your cover story. Then another to cover the cover story of your cover story.

Most here at The Hedge have very good common sense. So let me ask a question - Is it more likely short sighted pols have lied for their own benefit and empowerment, or do you really believe 60% of the people can take government $ without massive printing and fraud? Gold would have held back the massive printing and maybe too some progress, so we made our deal with devil. We wanted a fluid ever expanding economy. Only now we have discovered, something that can not continue forever... won't.

If the gold price was adjusted to reflect money in circulation, what would that figure be? What about to reflect all $ on all accounts including digital?

Something is not right - and the settlement is gona hurt like a bitch.

Wed, 01/22/2014 - 03:40 | 4354710 Cap Matifou
Cap Matifou's picture

Not gentleman's agreement, rather honor among thieves. You know how long that uses to last.

Wed, 01/22/2014 - 05:01 | 4354768 ebworthen
ebworthen's picture

Something tells me gunpowder will enter into this argument at one point or another.

Wed, 01/22/2014 - 01:44 | 4354571 The Wisp
The Wisp's picture

The Iraqi Oil Belongs to the Iraqi People..

  American Oil Belongs to Exxon.. ( George W. Bush ) /s

Wed, 01/22/2014 - 09:46 | 4354996 outamyeffinway
outamyeffinway's picture

"The People' didn't want the bank bailouts either.  How did that work out?"


They're more willing to use their guns, that's how.

Wed, 01/22/2014 - 12:15 | 4355505 donsluck
donsluck's picture

More willing to BUY guns obviously. Hey, it's shopping! Use them? Not so much...

Tue, 01/21/2014 - 21:45 | 4354036 stant
stant's picture

martin armstrong is now writing its time for gold, hardly a gold bug, just a fyi

Tue, 01/21/2014 - 21:54 | 4354065 Uber Vandal
Uber Vandal's picture

Keep in mind he was calling for $900 gold by May...... Last year.

He says many things. Something will stick, and he will be right.

Tue, 01/21/2014 - 22:02 | 4354097 philipat
philipat's picture

And Armstrong has also fallen for the US shale oil propganda. He believes that oil will be the salvation of the US and that the US will become the world's largest producer of oil, ahead of Saudi. Just as the MSM-fed propaganda wants the sheeple to belive as part of the general misinformation about economic recovery.

Tue, 01/21/2014 - 22:14 | 4354129 ZerOhead
ZerOhead's picture

Yup... maybe for a couple of years at best...

Tue, 01/21/2014 - 22:44 | 4354222 BuddyEffed
BuddyEffed's picture

The only way the US becomes the worlds largest producer is if we add a few new states, like North and South Irax, West and East Arabia.

Wed, 01/22/2014 - 01:36 | 4354566 BooMushroom
BooMushroom's picture

Or change some of the old ones:
Saudi Glassparkinglot

TPTB have options...

Wed, 01/22/2014 - 01:23 | 4354548 disabledvet
disabledvet's picture

there was a tremendous demand explosion in the 90's...and yet here's the biggest price collapse of them all: It didn't reach the low of 6 bucks a barrel ala 1986...but ten bucks was pretty low...and lest we forget here was the biggest product launch outside of Windows 95:

hard to blame "Big Oil" but the collapse in fuel economy in the USA was dramatic.

hmmm. we now know there's a connection between Hurricane's and high oil there a connection between "collapsed energy prices and zero hurricanes" however?

Clearly "uncharted weather waters."

Tue, 01/21/2014 - 23:20 | 4354295 Muddy1
Muddy1's picture

Are you referring to Gerald Celente, by chance?

Tue, 01/21/2014 - 21:47 | 4354039 DavidPierre
DavidPierre's picture

According to Professor William Black, the entire financial system is headed for an even bigger collapse. 

As a major warning sign, Professor Black points to Treasury Secretary Jack Lew’s complaint about no money for regulation in the recent budget deal.  Professor Black says,

“Jack Lew is the anti-canary in the coal mine because Lew has been gutting regulation for virtually all of his professional life. . . . Lew is saying, my God we’ve gone so far we’re going to cause the collapse of the system. . . . You know when Jack Lew keels over, you know that carbon monoxide has already killed everybody reasonable.”   

“The system is ungovernable . . . It has already largely imploded.”

Tue, 01/21/2014 - 21:54 | 4354066 DoChenRollingBearing
DoChenRollingBearing's picture

All the more reason to GOTS...  Cash and gold are a pretty good combination if you have to pick just two assets.

Thank you for the link, I will go take a look.  One of these days it is going to blow.  Like a volcano (all at once) or like a gathering hurricane.

Get ready.  Get prepared.  Every way you can.  NO ONE knows how all of this will tuen out.

Tue, 01/21/2014 - 22:01 | 4354092 DavidPierre
DavidPierre's picture


Mega default? They don't care!

Forbes has reported of a potential (probable?) "mega default" out of China. They even tell us "when", Jan. 31st and "who", China Credit Trust company. This is hardly "mega" anything as it's only in the $500 million ballpark...(the actual meat not even being a ham sandwich.)... but it is a "thread" that if pulled on hard enough or long enough could spread like an infection.


This debt (trust) came about as a loan to a coal company and the author speculates that 12% or there abouts is the interest rate... take a broader view.

The broader view being "this is China". Their economy is hugely leveraged and they have built, rebuilt and over built. They have even built entire cities that are empty. I'm not talking about sparsely populated, I'm talking about empty as in NO ONE lives there! Are they crazy? Or stupid?

No I don't think so, follow this through. They have accumulated stockpiles of copper, lead, zinc, etc. etc. not to mention gold...for free! They have built bridges, highways and even complete cities...for free! Free? Yes, I'll explain in a moment. They have worked, produced and "traded" to accumulate "dollars" over the last 10-15+ years at a pace not even seen by the U.S. in the late 1800's and early 1900's. It has been a marvel to watch. They have as I mentioned also accumulated gold. They have probably now accumulated a stack that rivals what the U.S. supposedly has (had). And yes, much of the building and "business" was performed (or funded) by the use of credit, crazy amounts of credit!

So how does this make them any better off than any other country in the world if their financial system collapses just as fast or even faster than the West? I believe that going all the way back to August 1971 that they "knew". They knew that when we went off of the gold standard the "end game" was then carved in stone. I believe that they completely knew where this would all end a paper heap collapsed into a black hole of zero value. So what did they do? They "played the game".

They played the game and "helped" the U.S. go bankrupt by funding their debt needs. They also "built"...for their own future. You see, the Chinese look 100's of years to the future rather than to the next "quarter". I think that they fully knew that "when everything is worth nothing"...they would "have something". "Something" as in a brand new infrastructure. Infrastructure that the West can only marvel at. Who cares about the banking or financial system? Who cares if everything paper collapses..."we'll just start a new one"!

Do you see? They now have a modern country and it only took 10-15 years to build it (not to mention the small problem of poisonous smog). They knew that the financial system would ultimately come down so why should they go through a "re boot" to the system with rickety bridges and grass huts? Not only have they "modernized", they have also provided themselves with a place at the table...the HEAD of the table when it comes to currencies. They have in my opinion accumulated more gold than any other country in the world now has. They have created their own future and one that is bright because they have "money" (gold) while the West was "spending their past".

Will China just skate through a financial collapse...and one that may even start from an internal default? No, of course not but they are not looking at next year or the next 3-5 that it will take to pick up the pieces, they are looking out for generations to come! I have absolutely no idea "what" the event will be that turns the financial system upside down because there are just too many choices to pick from, I do suspect however that it will not be something "huge" and will be missed by most for several days. The Chinese however don't even care "what" it is because it doesn't matter. What matters is that their work is done, they have built infrastructure, modernized production, signed trade deals for the raw materials necessary for the future and accumulated "cash". Crazy or stupid? No, they have outsmarted the world while we watched...while they "helped us help them"! The last 10 or 15 years of work is viewed by the Chinese as virtually "free" when set alongside the next 100-200 years!

Tue, 01/21/2014 - 22:18 | 4354146 new game
new game's picture

pegged curency. gamed us at our own game. check mate!

Wed, 01/22/2014 - 05:12 | 4354780 Spitzer
Spitzer's picture

China has trade deficits with Germany and Germany's wages are higher then the US's


Savers will be savers

Wed, 01/22/2014 - 00:43 | 4354473 TheReplacement
TheReplacement's picture

Let's make a simple deal with China, food for gold.

Enjoy the reset.

Wed, 01/22/2014 - 01:33 | 4354560 prains
prains's picture about air for gold?

Wed, 01/22/2014 - 09:50 | 4355004 Big Corked Boots
Big Corked Boots's picture

Clean, drinkable water for gold?

These strategies will only go so far. The Amazon jungle will be a cornfield before the US can dig itself out of the hole bankers dug for us.

Wed, 01/22/2014 - 09:53 | 4355015 Villageidiot777
Villageidiot777's picture

GMO food for anything? Have you noticed chinese are buying farm land all over the world as fast as they can? The real question is, how is US going to feed its citizens in the future?

Wed, 01/22/2014 - 10:39 | 4355205 OceanX
OceanX's picture

The U.S. has plenty of farm land to feed the U.S.  --U.S. population is less than 5% of global population.


Our way of life and farming methods are toxic...

Wed, 01/22/2014 - 05:02 | 4354767 lakecity55
lakecity55's picture

........not only that, they continue to look for resources in Africa.

The West should make a deal with China to provide the military force to secure Africa, thus negating a larger build-up of the PLA. I think this is already happening. We will have to let some time play out.

Wed, 01/22/2014 - 06:49 | 4354836 Moe Howard
Moe Howard's picture

They now have a modern country?


Are you on crack?

Wed, 01/22/2014 - 10:47 | 4355229 Chief Kessler
Chief Kessler's picture


Wed, 01/22/2014 - 14:20 | 4355978 emersonreturn
emersonreturn's picture



you draw a compelling senario, i wonder however about the vacant cities.  buildings left vacant tend to decay faster than structures actually lived in.  if the chinese expect to have these stand for even 10yrs wouldn't the money and resources have been better left actually stored waiting?  remember the great push forward by Mao, when every wok and ancient bronze was melted badly and actually wasted?  yes, the chinese do think long term but they are human and fallible.  i agree scooping gold has and will serve them.  building empty cities...perhaps they realize the pollution will sky rocket and safe homes and business centres will be needed for the leaders sooner than we think.  i don't believe the leaders really care about the population (any more than do ours)  and would consider a hut a suitable home for sheeple.

Tue, 01/21/2014 - 22:08 | 4354118 HulkHogan
HulkHogan's picture

Thanks Greg. Great link.


Tue, 01/21/2014 - 22:50 | 4354235 scrappy
scrappy's picture

"Woof" to the Watchdog!

Wed, 01/22/2014 - 00:34 | 4354462 gwar5
gwar5's picture

"The system is ungovernable..."   ain't that the truth.


Won't put banksters in jail for the necronomy or the death certificate will say, "Self Inflicted,"  instead of "Accidental Death."

Wed, 01/22/2014 - 09:21 | 4354945 F22
F22's picture

+1 "Necronomy"

Wed, 01/22/2014 - 08:24 | 4354890 headhunt
headhunt's picture

Jack Lew is a lazy wanker and really does not have a clue as to what his job is.

Tue, 01/21/2014 - 21:47 | 4354040 Cognitive Dissonance
Cognitive Dissonance's picture

Very nice upward action today in the (junior) miners despite the fact that Gold and Silver were down for the day.

Tue, 01/21/2014 - 21:59 | 4354080 DoChenRollingBearing
DoChenRollingBearing's picture

Wow, I finally get the chance to disagree with mi amigo Cognitive Dissonance!  I would hold the gold, not the miners.  Too much risk holding miners (unless speculating), especially longer term.


Tue, 01/21/2014 - 22:13 | 4354128 Greenskeeper_Carl
Greenskeeper_Carl's picture

Depends on what you mean. GDXJ would see a nice run up if gold stowly but steadily climbed even back to 1400 or so. Not saying I hold it LONG term, that's what physical is for, but ill let it ride awhile

Tue, 01/21/2014 - 21:48 | 4354043 JLee2027
JLee2027's picture

It will unravel in basically, a flash, like a week, not over years.

Tue, 01/21/2014 - 21:57 | 4354078 Poor Grogman
Poor Grogman's picture

A week would be believable without algos.

Now I recon an hour would just about do to wipe out all the paper wealth.

The whole thing could be blamed on a " computer mixup "

" sorry chaps, the parties finished, and now for the weather"...

Wed, 01/22/2014 - 02:25 | 4354635 RafterManFMJ
RafterManFMJ's picture

If you like your wealth effect, you can keep your wealth effect...

Tue, 01/21/2014 - 23:11 | 4354282 The Next Millen...
The Next Millennium is Now's picture

After watching Christine Legardes speech and figuring in what could happen to China if the shadow banking system falls to due investor default, I expect we have much longer then one week. I would say we have more like 10 days (until the Lunar new year begins)

Tue, 01/21/2014 - 21:50 | 4354053 delivered
delivered's picture

A little off topic/subject here but do you remember the quote from the movie Gladiator by I believe senator Brakkus who was watching the games organized by the new Ceaser - "Fear and wonderment, a powerful combination" (to keep the masses in-line). I couldn't help but think of this when just today, our good friend Warren Buffett announced a $1 billion (that's right) prize to who ever can get 100% of the games correct in the March Madness basketball tournament. So we have the "wonderment" part of the equation and as for the "fear" part, well let's just say the government has this well covered with the NSA. Yes indeed, fear and wonderment is a very powerful combination to keep the sheeppie in order.

No doubt we can expect more "fear" on the gold front as TPTB attempt to keep control of a market they appear to be losing control of week by week. 

Tue, 01/21/2014 - 21:52 | 4354055 americanspirit
americanspirit's picture

The German Central Bank is demanding "its" gold back. No. The gold the Bundsbank wants back is the German people gold, and they now know it has been looted by the USA. The NSA spying on Der Grosse Frau is nothing compared to this. Count on it.

Tue, 01/21/2014 - 22:18 | 4354144 Greenskeeper_Carl
Greenskeeper_Carl's picture

It wasn't the 'USA' that looted their gold. And even if that gold made its way back to the German people, it would never belong to the 'German people' anyway. Anymore than the alleged gold held at Fort Knox or by the fed belongs to any countries people. It is a cabal of central bankers' gold, always has been

Tue, 01/21/2014 - 21:53 | 4354058 Little Boomer
Little Boomer's picture

But......I wasn't done buying.

Tue, 01/21/2014 - 22:00 | 4354084 DoChenRollingBearing
DoChenRollingBearing's picture

You still have time, but I would get get to work buying!

Tue, 01/21/2014 - 22:01 | 4354093 Greenskeeper_Carl
Greenskeeper_Carl's picture

Sounds nice and all, but ill believe it when I see it

Tue, 01/21/2014 - 22:04 | 4354103 new game
new game's picture

can not argue a word you say mark. manipulators have one upped the law, or lack of law, they have fiat creation and ram down our throats policy ability.  just not seeing that changing anytime soon. 

think there are many better opportunities elswhere without all the frustration that goes with something this manipulated. like listening to msm-needless pain to oneself.

if you can say, as an insider, that the plate is going to shift on this or that policy change, then i'm interested in a gold trade, otherwise, frustration ahead...

Tue, 01/21/2014 - 22:09 | 4354110 fonzannoon
fonzannoon's picture

Gold better be up huge this year because ZH went all in.

Tue, 01/21/2014 - 23:09 | 4354275 DoChenRollingBearing
DoChenRollingBearing's picture

Hey, if it is not up huge, then we get the chance to buy some more.  If gold does goes up HUGE, that is certainly OK with me: as I have mine, Jack!

Tue, 01/21/2014 - 23:13 | 4354288 fijisailor
fijisailor's picture

Gold up huge means there is renewed faith in paper rehypothecation schemes.  I prefer a paper price crash.

Wed, 01/22/2014 - 04:53 | 4354759 debtor of last ...
debtor of last resort's picture

ZH exposes the inevitable. It's not like "extraordinary events in the pm markets this year !!". And you know that.

Tue, 01/21/2014 - 22:10 | 4354122 devo
devo's picture

"The expected never happens; it is the unexpected always."
-- John Maynard Keynes

Wed, 01/22/2014 - 00:14 | 4354424 DoChenRollingBearing
DoChenRollingBearing's picture

Excellent find, devo.  Practically a definition of the Black Swan.

Wed, 01/22/2014 - 08:18 | 4354884 headhunt
headhunt's picture

Funny that a 'state planner' would believe the 'unexpected' could happen.

You would think he would just pass a law against  the unexpected.

Wed, 01/22/2014 - 14:14 | 4355968 devo
devo's picture

He probably wrote that in his early days as a trader. He was also a fan of Hayek then.

Tue, 01/21/2014 - 22:11 | 4354125 new game
new game's picture

some serious skin in the game?

Tue, 01/21/2014 - 22:13 | 4354132 ms8172
ms8172's picture

I've got 14 Gold Eagles.... so hope so

Wed, 01/22/2014 - 00:49 | 4354490 JohnnyBriefcase
JohnnyBriefcase's picture

Rule number one of fight club, dude.

Wed, 01/22/2014 - 02:27 | 4354637 RafterManFMJ
RafterManFMJ's picture

Well, now you'd better pick up a pair of Desert Eagles...

Wed, 01/22/2014 - 16:51 | 4356583 Lukacko
Lukacko's picture

Nah, all he needs is a canoe.

Tue, 01/21/2014 - 22:24 | 4354168 max2205
max2205's picture

What are they going to do....sue us...fuck them

Tue, 01/21/2014 - 23:14 | 4354285 dufferin
dufferin's picture

If any hold by central bank... then it's not property of the people.


Wed, 01/22/2014 - 00:20 | 4354437 gwar5
gwar5's picture

I assumed all those new private PM vaults being built all around the world are just for show.


Wed, 01/22/2014 - 00:31 | 4354455 Peter Pan
Peter Pan's picture

John Brown is a traitorous wanker of the nth degree as far as the Brits are concerned. His ill conceived sale of British gold for an average price of around $275 per oz has resulted in a loss of well over $10 billion to the British people.

As for private vaults, these investors should understand that their vaults are private but their location is known to government, so good luck if government decides to become nasty.


Wed, 01/22/2014 - 02:20 | 4354628 Tapeworm
Tapeworm's picture

John Brown's body lies amouldering in the grave.

 You mean Gordon Brown.

Wed, 01/22/2014 - 02:43 | 4354651 Peter Pan
Peter Pan's picture

Thanks for that. LOL.

That asshole had the audacity to threaten the Icelanders over $5 billion lousy dollars when he himself has lost over $12 billion by selling the gold. If you consider how much more has been lost when gold hit $1800 plus per ounce, the man should be whipped on a daily basis, particularly as he ignored treasury advice.

Wed, 01/22/2014 - 01:39 | 4354555 q99x2
q99x2's picture

Look Americans, the globalists bankers stole all your country's gold, they are taking your property, they've made criminals out of you, they have built up an Federal agency known as the DHS and armed it with billions of rounds of hollow points, armored tanks, 50 caliber machine guns--to kill you wit, and so on, taken your jobs and shipped them overseas, denied you healthcare, at what point do you build and army and fight for the land you were born in?


Calling all US military personel: Please help, Kant M'Fers.

Wed, 01/22/2014 - 06:45 | 4354832 Moe Howard
Moe Howard's picture

Spot on brother.

Wed, 01/22/2014 - 08:12 | 4354882 headhunt
headhunt's picture

DHS has 50cal's?

Wed, 01/22/2014 - 08:23 | 4354889 22winmag
22winmag's picture

When you say military personnel, you mean veterans too, correct?

Wed, 01/22/2014 - 02:22 | 4354631 dunce
dunce's picture

There have been frauds  in gold dealers as long as there been gold dealers. it was thought that by putting it in regulated banks that the fraud could be controlled and indeed that appears to be the case. The banks have had a virtual monopoly on gold fraud for ages.

Wed, 01/22/2014 - 02:42 | 4354650 luckylongshot
luckylongshot's picture

If all the markets are manipulated, then we do not live in a free market system. So both the core societal concepts of capitalism and even democracy are ideals rather than reality. In the west it seems we are living as modern slaves under a Rothschild/Rockefeller tyranny, rather than as members of a free society. So what can we do about it?

Wed, 01/22/2014 - 06:38 | 4354828 Moe Howard
Moe Howard's picture

Stop participating is the first step after waking up.

Make yourself your own Central Bank, food and energy producer. Stockpiling is not the answer.

Make yourself self-sufficient. Generate power. Grow food. Learn to produce a real product that can be traded for those things you cannot produce.

Seek out the Mennonites and others who have removed themselves from the system. Learn from them.

Wed, 01/22/2014 - 03:20 | 4354687 q99x2
q99x2's picture

The people that sold the US Gold Reserves have this to say on Bloomberg:

"Goldman’s Outlook

Bullion will fall to $1,050 in the next 12 months as the U.S. central bank reduces monetary stimulus, Goldman Sachs analysts wrote in a Jan. 12 report. Gold may end 2014 at $1,000 an ounce, ABN forecast Jan. 10."

"Morgan Stanley - Gold will extend declines this year as gains in equity markets reduce the need for haven assets and increased regulation hurts risk appetite, according to Morgan Stanley, which lowered its bullion forecasts.

The 2014 target was cut 12 percent to $1,160 an ounce and the prediction for 2015 reduced 13 percent to $1,138, analysts Peter Richardson and Joel Crane wrote in a report today. Gold remains under pressure as the global recovery gains traction, increasing the risk of higher interest rates."

Wed, 01/22/2014 - 05:02 | 4354769 akak
akak's picture


Gold remains under pressure as the global recovery gains traction ...

Propaganda alert!

"Global recovery", LOL!

That one phrase tells me all I need to know about the veracity and relevance of Goldman's outlook, whcih is to say, none and none.

Wed, 01/22/2014 - 06:34 | 4354823 Moe Howard
Moe Howard's picture

The "green shoots" of recovery have been sighted by the PTB and the MSM since 2008.

There is not, and will not be a "recovery" for the masses.

Every action, short and long term, taken by the FedGov has been to destroy the economy, not recover it.

Wed, 01/22/2014 - 11:52 | 4355404 gonetogalt
gonetogalt's picture

All this means to me is that gold claims in Guyana won't be getting more expensive for a while...moar for me!!!

Wed, 01/22/2014 - 04:58 | 4354764 kurt
kurt's picture

Gordon Brown like my asshole and what comes out (of it).

Wed, 01/22/2014 - 06:32 | 4354821 Moe Howard
Moe Howard's picture

The crime family known as the Federal Government needs to be put on trial. They must answer for their crimes against the Constitution, the Republic, and the People of the Various States.

I suspect we need to form Committees of Public Safety ala the French Revolution [Comité de salut public] as part of a Rein of Terror [la Terreur] for those banksters, corporate and political terrorists who have seized control of our Republic. They must be put on public trial.

Voting it seems will not do it, as they can counterfeit any amount of phony unbacked Federal Reserve Notes [called "dollars" when they are nothing of the sort] in digital form to purchase any election [or public official] they desire.

The corruption is out in the open, you, a natural born citizen, cannot withdraw any large sum of money from the banks without being interrogated and investigated, yet the same banks are laundering drug money in the billions, and when caught, pay a minimal fine without a single individual being charged with a criminal offense. It seems only the natural born citizen is required to follow the thousands of laws and regulations, the elite and illegal alien invaders are free to violate any law they please without penalty or charge. The natural born citizen must carry identification and produce it on demand by the most petty of officials, but third world invaders are exempt from even identifying themselves. The abuses by those who have usurped the legitimate government of the Republic are legion, too numerous to list.

It seems we will have to pull the parasites, dual nationals, corporate traitors and gangsters out by the roots from our nation if we are to save it.

Wed, 01/22/2014 - 08:52 | 4354911 Quinvarius
Quinvarius's picture

They are still trying to enforce the rule of the maximums in the futures market and making sure no farmer, miner, or commodity creator can possibly make a profit...except oil drillers of course.

Wed, 01/22/2014 - 07:04 | 4354845 Sufiy
Sufiy's picture

Jim Rickards: "The Fed Is Insolvent And Wants Gold To Rise Orderly" 

Jim Rickards discusses QE and FED 4 Trillion balance Sheet and its implications for the economy, US dollar and Gold. FED is insolvent if they mark to market their assets now. If economy is not so strong as they want us to believe FED will be tapering into the weakness with coming recession in 2014 as the result of it. It is possible that in this case FED will have to play down the Taper or ever increase QE again.   Today's action in the market is very interesting: Gold was Smashed-down from the all-important levels $1250 - $1270 after which Shorts will be burned, but Gold Stocks are not biting into this new attack and are holding well to the upside so far. It is the very important sign of the strength of the Gold market break out to the upside.

Wed, 01/22/2014 - 07:31 | 4354856 ltsgt1
ltsgt1's picture

I think it began to unravel much earlier than January 16, 2013. It started sometimes in June of 2011 when we had to kill Gaddafi for his gold.

Chavez announced to repatriate 160 tons of gold from The UK and the US sometimes in June, 2011. Two months later, 143.8 tons of Lybia's gold disappeared and likely were on its way to Venezuela. Chavez announced triumphantly in January, 2012 that he had gotten all of Venezuela's gold back on her soil.

I wonder if Obama was thinking about repaying Germany with Syrians' gold.

Wed, 01/22/2014 - 08:05 | 4354874 headhunt
headhunt's picture

'kill Gaddafi for his gold'?

Gaddafi was in the way of zeros utopian socialist/sharia law agenda - plan and simple.

Wed, 01/22/2014 - 09:05 | 4354920 ltsgt1
ltsgt1's picture

I shall say "killing Gaddafi for wanting gold back dinar". Merely a year prior to the invasion, the UK and the US released the Lockerbie bomber to appease Gaddafi in exchange for BP oil contract. They thought Gaddafi was a dummy whom would allow the oil contract to be settled in dollar or pound. However, Gaddafi might be crazy but he was crazy like a fox. They had to get rid of him once they realized he was serious about the dinar.

Gaddafi wasn't the only one worrying about the survivability of the dollar and euro at that time. The Chinese started to import substantial tonnage of gold around that time. Finishing him off a little earlier for his gold was probably a matter of convenience when Chavez demanded repatriation.

Wed, 01/22/2014 - 08:04 | 4354872 kragsquest
kragsquest's picture


Wed, 01/22/2014 - 08:42 | 4354906 Quinvarius
Quinvarius's picture

Paul Volcker is either an idiot or a liar.  The higher gold price is the only thing that saved the dollar.  It went to the correct price to back the dollar and there was no need to speculate in it any more.  And I am pretty sure that he made sure that happened, and happened quickly, before the system imploded.

Wed, 01/22/2014 - 09:09 | 4354923 AdvancingTime
AdvancingTime's picture

Call me a skeptic but I contend that the illusion of value should not be held to close. The value of a building changes when a tenant goes bankrupt. The value of a currency when everyone starts to sell it and even the value of gold when a government confiscates it and makes it illegal to sell and own can be difficult to determine. And most of all tell me the value of a promise on paper or implied, remember if you own gold that is represented by a certificate, you own a piece of paper. The post below delves into how values of a commodity can change and shift.

Wed, 01/22/2014 - 09:14 | 4354936 Racer
Racer's picture

Ah Gordon Brown, who could forget, the man that said 'an end to Boom and Bust' just before the Greater Depression and who sold UK's gold at the lows

Wed, 01/22/2014 - 10:27 | 4355152 esum
esum's picture

eh lets recall the teutons lost 2 world wars and owed lots of reparations.. but doubt that is involved... just a simple matter that both the fed and jpm have the same gold on the books as theirs... that's the rub.. if a bank holds your assets long enough... of course it becomes their property...didnt you know that..not really but they do lend out/use for tthier own account 10x the amount... china wanted gold to pay iran for its oil... but now with the help of obumbler they dont need it... however if the price of gold is suppressed it slows the chinese from creating a gold based renmnbi, and maybe the wise men see china disposing of large quantities of gold to prevent financial collapse... ask the davos crowd... they know. 

Wed, 01/22/2014 - 10:54 | 4355247 Papasmurf
Papasmurf's picture

"It was probably a mistake to allow gold to rise so high."
– Paul Volcker

Idiiot!  It was a mistake to print this much fiat currency.

Wed, 01/22/2014 - 11:24 | 4355323 Pumpkin
Pumpkin's picture

This BS about there not being any gold is just that, BS.  They have the gold.  The reason they are not giving it up is simple.  Unless the gold is contained by the central banks, then it will eventually compete with their fiat.  The problem for the bankers is not that Germany wants its gold back, it is why does Germany want its gold back?  It took many centuries and a couple of world wars for the bankers to contain that gold.  They will not just hand it over.  Not is one year or twenty.  It will take a series of assanations to get the gold released IMO.

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