How Gold Performs During FOMC Weeks (Spoiler Alert: Not Good)

Tyler Durden's picture


What is more confidence-inspiring in the Fed's ability to manage the world and the continued dominance of the US Dollar as global reserve currency than a falling gold price... and when better to show that than FOMC meeting weeks... welcome to the centrally-planned world where the announcement of ongoing trillions in fiat dilution constantly crushes the price of undilutable money.


Source: Meridian Macro

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Wed, 03/19/2014 - 22:32 | 4570661 CashCowEquity
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Well fucking fuck fuck fuck....

Wed, 03/19/2014 - 22:38 | 4570691 Stuck on Zero
Stuck on Zero's picture

On queue.  Just a beautiful orchestration.


Wed, 03/19/2014 - 22:45 | 4570716 DoChenRollingBearing
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If you have enough gold, or nearly enough, just slowly buy more and chill.  It`s all OK.

If you do NOT have gold, this is a good time to start buying.  Physical only.

Wed, 03/19/2014 - 22:47 | 4570727 flacon
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"*cumulative total for week before and after 6 prior FOMC meetings is basically flat (-$6)"

So does this mean that next week is going to be an UP week? 

Thu, 03/20/2014 - 02:19 | 4571322 National Blessing
National Blessing's picture

Stay away from gold.  Cash is king.  Deflation, deflation, deflation.  Bitches.

Thu, 03/20/2014 - 02:51 | 4571367 techstrategy
techstrategy's picture

Physical cash and physical gold is the new optimal diversified portfolio...  But, deflation will be in financial assets with respect to real and productive assets...  Get out of floast scam stocks ASAP.  They will implode once forced deleveraging starts...

Wed, 03/19/2014 - 23:09 | 4570812 Jungle Jim
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DoChenRollingBearing said: "If you have enough gold, or nearly enough, just slowly buy more and chill.  It`s all OK."

How much is enough? Or even nearly enough?

Wed, 03/19/2014 - 23:37 | 4570947 DoChenRollingBearing
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Enough: 10 times annual current salary ($ value in both cases).  Nearly enough, at least 10 oz for each man, woman and child in your family.

The above would be about right.  Physical gold, backed with guns and 1000 + rounds of ammo for @ gun.

Have less than that?  Still need to buy, just like I do...

Thu, 03/20/2014 - 04:27 | 4571454 douglas
douglas's picture

The question is realy not ¨How much is enough?¨ but rather ¨How much do you want?¨ - the simple answe is: More!

Thu, 03/20/2014 - 08:45 | 4571762 TheGoldMyth
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DoChenRollingBearing, it is also a good time to start buying 'physical' houses instead of the mortgage variety.

Central banks do it tough taking those out of circulation the way they do with gold to create an artificial scarcity.


Thu, 03/20/2014 - 17:56 | 4574537 strannick
strannick's picture

They do. By keeping inventory vacant and not srlling. And by having the FED by their MBS through QE. These keep housing off the market, which keeps banks investment artificially high, instead of letting the market determine the low prices that should exist.

Wed, 03/19/2014 - 22:36 | 4570675 LetThemEatRand
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So long as commodity markets are traded in futures and leverage of paper gold, nothing will change.  The U.S. military owned and operated by the bankers and oligarchs who own the Fed and MIC see to it that nothing will change.  

Wed, 03/19/2014 - 23:08 | 4570805 RaceToTheBottom
RaceToTheBottom's picture

When is that physical only exchange planned for Singapore coming up?

Thu, 03/20/2014 - 01:55 | 4571288 techstrategy
techstrategy's picture

The COMEX/futures are easy to abuse because they can use unlimited leverage to take the other side.  The right way to end the manipulation is to sell all bubble stox (I call them float scams) like AMZN, FB, TSLA, CMG, LNKD, etc and buy the GLD.  While everyone here likes to bash the GLD, there is a legal limit to the short position they can take.  The entire market cap is $35B and it is mainly in strong long hands now.  AMZN is at least $100B overvalued and has a market cap of $175B.  Using only AMZN, those tired of the games could call the bluff, selling a bubble stock that will lose 80% of its value in the future for claims on GLD.  More to the point, there are trillions of $ of potential float scams to sell.  For a TINY fraction of that amount, we can get true price discovery because they cannot go more than 100% short...  

This is how we get to price discovery and rapidly...

Thu, 03/20/2014 - 05:18 | 4571494 new game
new game's picture

i get the feel the market is going to find the right reason to sell.

everything will go down(except food and water), just a matter of how much.

pick your poison...flight to cash......

everything is leveraged to far-debt has approached 3x gdp in too many places.

Thu, 03/20/2014 - 10:16 | 4572108 Rubbish
Rubbish's picture

I don't think anyone can be right about what is going to happen. I will be right 50% of the time as I hold both FRN's & PM's mostly Gold in physical form equally.


NO DEBT is key to sleep well and a nine always by my side.

Thu, 03/20/2014 - 11:02 | 4572321 TheGoldMyth
TheGoldMyth's picture

"No debt is the key"

Thu, 03/20/2014 - 08:53 | 4571783 Agstacker
Agstacker's picture

Banning the trading of all commodity futures...sounds good to me :)

Wed, 03/19/2014 - 22:35 | 4570679 TeamDepends
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How Gold Performs After COMEX Collapse (Spoiler Alert:  SWEET!)

Wed, 03/19/2014 - 22:43 | 4570706 LetThemEatRand
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There is a reason that the U.S. spent more than the world combined on its military the last few decades.  And it ain't terrorists.  And there's a reason we all feel it is different this time.   Imagine having a ponzi scheme where if you're caught, you can aggressively and definitively blow up the police who catch you.

Wed, 03/19/2014 - 22:37 | 4570688 blindman
blindman's picture

it is almost like the money system / financial system
is designed to devalue and make irrelevant
the underlying everything.

Wed, 03/19/2014 - 22:56 | 4570755 DavidPierre
DavidPierre's picture
Collapse and Systemic Failure at All Levels Coming to U.S. -Dmitry Orlov


Orlov lived through the financial collapse of the Soviet Union in the early 1990’s, and he thinks the U.S. is on the same trajectory. 

Orlov contends, “The trajectory is defined by this sort of incompetent militarism where more and more money results in bigger and bigger military fiascos around the world and less and less of actual foreign policy that can be pursued or articulated.  

There are massive levels of corruption.  The amount of money that is being stolen by the U.S. Government and its various appropriations processes is now in the trillions of dollars a year.

Wed, 03/19/2014 - 23:19 | 4570845 blindman
blindman's picture

check this, at least the judicial system is
still working?
illegal immigrant sues rescuers that saved his life from flood
go figure. what a mess

Wed, 03/19/2014 - 23:39 | 4570953 blindman
blindman's picture

john mccain should see your link to the d.orlov interview.

Thu, 03/20/2014 - 00:01 | 4571024 blindman
blindman's picture
OMFG!! The only Budget 2014 facts you need to know
Posted on March 19, 2014 by maxkeiser

Thu, 03/20/2014 - 07:58 | 4571656 blindman
blindman's picture

or it is a slow motion gold robbery. imagine
the banksters loitering about seemingly distracted
by a thousand other things but really manipulating
the prices of everything they stock for future use.
pawn shops and "we buy gold" on every park and main st..
even the barber and cobbler have "we buy gold signs
out front. hmmm...

Wed, 03/19/2014 - 22:38 | 4570693 royal
royal's picture

M-O-O-N...that spells manipulation. :)

Wed, 03/19/2014 - 22:38 | 4570695 Seize Mars
Seize Mars's picture

How Gold performs after a year of the grid being knocked out:

...better than expected!?

Wed, 03/19/2014 - 22:42 | 4570707 fonzannoon
fonzannoon's picture

I actually thought gold was worthless in a grid knockout scenario. we are back to caveman days.

Wed, 03/19/2014 - 22:52 | 4570746 FieldingMellish
FieldingMellish's picture

Gold... so attractive even a caveman would trade for it.

Wed, 03/19/2014 - 22:46 | 4570725 tickhound
tickhound's picture

This is more credible than the chinese gold for cash liquidation theory. Particularly since the gold price hasn't increased correspondent to their multi year buying spree.

Wed, 03/19/2014 - 22:47 | 4570729 fonzannoon
fonzannoon's picture

so this theory is more credible than the theory floated 15 mins ago?

Wed, 03/19/2014 - 22:52 | 4570744 tickhound
tickhound's picture

Assuming u mean the dash for trash article... if u mean THAT 15 minutes ago then yes.

And by credible I mean way more freaking likely.

Wed, 03/19/2014 - 22:50 | 4570735 DisArray
DisArray's picture

I could have used this article 3 days ago :(

Wed, 03/19/2014 - 23:22 | 4570859 blindman
blindman's picture

you are teaching yourself patience
and developing intestinal fortitude.
be happy

Thu, 03/20/2014 - 07:31 | 4571622 N2OJoe
N2OJoe's picture

Haha same here, DisArray.

Wed, 03/19/2014 - 22:50 | 4570738 RichardParker
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So basicly, wothless paper money (that is being diluted further) that is still accepted for purchase of gold now buys even more gold immediately after a FOMC meeting?

Wed, 03/19/2014 - 22:55 | 4570757 fonzannoon
fonzannoon's picture

well when you put it like that....well yes...that's correct.

Wed, 03/19/2014 - 23:33 | 4570922 Al Huxley
Al Huxley's picture

...assuming you're on the FED's friends list getting the free cash they're printing up.  For everybody else - tough shit, costs you more to fill your car and feed your family, your take home goes down, and there's no inflation.

Thu, 03/20/2014 - 01:47 | 4571281 techstrategy
techstrategy's picture

Better yet, worthless float scam stocks which are trading scams layered upon Bernanke Bus (AMZN's PE is no longer #NA, but it is still over 600) can and should be converted into gold.  As I said below, if all those on this board who are tired of the Fed/TBTF bank games simply sold float scams (AMZN, FB, TSLA, LNKD, CRM, CMG, etc) and used it to buy GLD, we could end the games.  GLD is not paper gold.  They CANNOT short an unlimited amount like futures.  The market cap is $35B compared to $170B in Scamazon and trillions in total float scams.  The gold manipulators are "all in" but we can call them for a few percent of the float scam $ or 20$ of AMZNopoly money.  Actually, a lot less than that in reality because most of the remaining GLD holders are strong longs.  It is the quickest path to ending the games and a VERY good use for converting bubble stocks to real assets (or accelerating the trajectory for those of us holding physical gold to finally see price discovery)...

Thu, 03/20/2014 - 06:12 | 4571535 TheGoldMyth
TheGoldMyth's picture

closest to being 'spot on' i have seen on ZH

Back in the old days, when the Gold Myth (GM) was born, the ditribution of this metal was diverse in the gold club of ancient times..

Now that this is not so, the main demand comes from central banks who print money to buy more as you point out so that the vast quantities that need to purchased in a depressed economy come mainly from the central banks. Once they purchase, the gold is technically out of circulation which helps to maintain scarcity to keep the price artificially higher.

It is a difficult job to maintain scarcity, so the central banks (That control governments through debt slavery) in the case of China ask for some help to maintain this scarcity from people with some spare cash to help in the task of buying gold. Hence, the Chinese government is asked by its controllers to issue the comand to buy gold amongst the people........ so that the central bank can use its fiat cash to buy other strategic assets whilst maintaining the prestige and illusion of gold scarcity in the minds of those affected by the 'gold bug virus' (GBV) Or generic 'Gold Fever...(GF)

It is an old disease that helps consolidate the dellusional self worth of bankers and the elite.

The reality is that if central banks stop purchasing this metal, the current gold price would fall like a few thousand tons of Lead. There would be gold on the streets.

The reality is that central banks shuffle this metal back and forth to each other as it still has some value for psychological purposes.

The reality is that whilst central banks print money, the real value fo anything you like is not quantifyable.

There is no such thing as a true measure/value of gold, whilst central banks print debt.

Gold is a symbol of being able to print debt in todays world of modern money mechanics.

Yardah yardah...rant rant... I will get my rant perfectly formulated one day. In the meantime, my basic logic seems irrefutable to me.

Central banks have, or are close to turning gold into Lead. Not exactly what they were hoping to achieve. :-)


Thu, 03/20/2014 - 07:18 | 4571603 SoilMyselfRotten
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India sure bucks your premise as they have done all they can to discourage their people from buying gold.

Thu, 03/20/2014 - 08:33 | 4571712 TheGoldMyth
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SoilMyselfRotten..Try Again....The same happens with bricks and mortar. The banks create scarcity (During default/poor economic conditions) by taking the bricks and mortar out of circulation. Obviously it is cheaper to store houses people cannot afford anymore in a vault full of paper certificates.
The same with gold. although it is easier to hide the fact that the gold does not exist in the case of paper certificates for gold
When you get yourself a loan, and all the gold can live with it in the hope they do not print more debt that would debase your bricks and mortar/gold.......

Thu, 03/20/2014 - 08:37 | 4571735 TheGoldMyth
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India is a case of EXTREME Gold Fever. Especially vanity that overtakes the desire to eat and care for ones personal health. Poor people there will rather go without than miss an opprtunity to pretend they live in a different caste through the act of purchasing a gold trinket or more. My theory includes pathological obscesion than transcends reason and and empty stomach.

Thu, 03/20/2014 - 10:02 | 4572041 SoilMyselfRotten
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Gold is money, period. Many believe their fiat will be worth far less one day due to printing to oblivion by the CBs. You say fever, i say insurance.

Thu, 03/20/2014 - 10:06 | 4572060 TheGoldMyth
TheGoldMyth's picture

Bricks and mortar used to be money in many countries also.
You say gold, i say solar panels.

Thu, 03/20/2014 - 10:15 | 4572076 TheGoldMyth
TheGoldMyth's picture

Or you could invest in Antelopes. They are now rare due to scarcity as well. But like gold, trading small amounts of Antelope invites all kinds of fees and charges, unless you can buy a herd and not be taxed/fees/charges/rules that central banks and corporations are able to avoid. They don't get the same fees and problems during exchanges in Antelope transactions. You need to be a central bank or corporation first. Is my guess.

I have owned gold before and it is a headache. I got my money back due to a rise in the gold price at the time.

Unless you have lots of 'chilll-out drugs.

Thu, 03/20/2014 - 10:17 | 4572119 TheGoldMyth
TheGoldMyth's picture

The bullion dealer took a percentage to buy it back.

Thu, 03/20/2014 - 10:22 | 4572138 SoilMyselfRotten
SoilMyselfRotten's picture

Antelopes haven't been used as a medium of exchange for thousands of years nor will they in the future. Gold always has been and will in the future. Not buying the tulip/gold premise.

Thu, 03/20/2014 - 10:42 | 4572220 TheGoldMyth
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It turns out there is a "tulip/gold" standard.

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