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Gold Drops To 6-Week Lows, Back Under $1,300

Tyler Durden's picture




 

Gold prices are down 6.6% from the post-Crimea referendum highs mid-March (but remain up 9% in 2014). For the 3rd day in a row, precious metals have come under sudden selling pressure and this morning's has pushed Silver comfortably back below $20 and gold now back under $1,300. Notably copper prices are also fading on the heels of Chinese weakness overnight.

 

3rd day in a row of monkey-hammering...

 

Clearly there is a "war" premium supposedly coming out of PMs but we suspect this pressure is also coming from Chinese financing deals as we noted previously

 

Copper is also falling today...

 

Charts: Bloomberg

 

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Wed, 03/26/2014 - 15:22 | 4595040 Obama_4_Dictator
Obama_4_Dictator's picture

But....but....but.....the golden cross!!!!

Wed, 03/26/2014 - 15:23 | 4595053 Sleepless Knight
Sleepless Knight's picture

Plated tungsten

Wed, 03/26/2014 - 15:27 | 4595077 Skateboarder
Skateboarder's picture

Silver under 20. BUY BUY BUY!

Wed, 03/26/2014 - 15:30 | 4595102 ParkAveFlasher
ParkAveFlasher's picture

Gonna have to talk to the wifey about those earmarked tax refund dollars.

Wed, 03/26/2014 - 15:43 | 4595182 Jonas Parker
Jonas Parker's picture

WAHOO! BTFD!

Wed, 03/26/2014 - 16:00 | 4595296 BKbroiler
BKbroiler's picture

WAHOO! BTFD!

Fuck that.  I'm sorry for you folks that missed the wave but it's over.  You should have been paying attention to this site four years ago, I thankfully got out at $1650.  The printing press wins.
Wed, 03/26/2014 - 16:03 | 4595315 aVileRat
aVileRat's picture

Yup

No forward inflation expectations, mean no inflation hedges, which means no gold marginal buy in PAPER market.

lol for those who were long Citigroup.

 

Wed, 03/26/2014 - 16:27 | 4595473 outamyeffinway
outamyeffinway's picture

Bitcoin's holding it's own. IRS hatin' and all.

Wed, 03/26/2014 - 20:17 | 4596515 BustainMovealota
BustainMovealota's picture

Yes,  more hate from IRS (and others) should offer a hint as to the significance and importance of the currency.

Wed, 03/26/2014 - 17:56 | 4595869 TaperProof
TaperProof's picture

its not the printing press thats winning... its the military backing up the paper thats coming out of it.   ... and now, finally, our ability to continue to bomb the dollars value higher is finally being challenged and may no longer be a viable option.

Wed, 03/26/2014 - 19:53 | 4596428 MeelionDollerBogus
MeelionDollerBogus's picture

The winning printing press also wins for gold in fiat prices before the paper collapses for everyone, the invalidation of the currency.
Glad you were out at 1650? I guess you won't be around when gold hits 3000.

Wed, 03/26/2014 - 17:30 | 4595754 Panafrican Funk...
Panafrican Funktron Robot's picture

Standard opex week behavior.  Still seeing a pretty big disconnect between the reported registered stocks still outstanding, and what should have happened based on the delivery notices net of stops. 

Wed, 03/26/2014 - 15:51 | 4595228 RafterManFMJ
RafterManFMJ's picture

RafterMan wil make his first prediction on Au and Ag (as an aside auto spell replaces Au with AU - apparently more 'murikans have use for Astronomical Units than gold) and here it is:

Both get crushed, desperately, in the final week of March and the first week of April.

Then is the time to back up the truck; mining shares also tank. On 10 April China releases it's gold holdings and it comes in above Germany but below the US. Although a low-ball lie, the number provides an un-ignorable slap to the consciousness of the 'merikan booberati, and the PM fuse is lit.

That's my theory, dry powder building, ready to jump on a price smash. Be long, be strong.

Wed, 03/26/2014 - 15:57 | 4595268 Spitzer
Spitzer's picture

Dream on

The Fed has godly powers

Wed, 03/26/2014 - 16:13 | 4595389 RafterManFMJ
RafterManFMJ's picture

Well, that's my point; they smash before the big reveal.

Wed, 03/26/2014 - 18:38 | 4596072 Hail Spode
Hail Spode's picture

Did you mean "god-like"?  Godly powers would be used for mercy and justice, not fraud and enslavement.

 

Wed, 03/26/2014 - 16:16 | 4595387 Lore
Lore's picture

It is interesting how, just in the last week, sleazebags come out of the woodwork to talk it down. Make a mental note of said sleazebags.

This last week of March is the slog: end of quarter window-dressing prior to Q2 run up.  April should be fun.

Wed, 03/26/2014 - 16:28 | 4595485 outamyeffinway
outamyeffinway's picture

It was an options expiry day. Wouldn't be surprised to see a pop up tonight but on the other hand, bulls are exhausted and fearful.

Wed, 03/26/2014 - 15:45 | 4595191 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Funny, when I first heard about the imminent "Golden Cross" it seemed obvious to me that if it is indeed the sort of indicator that would change behaviour of HFT bots, it would either never be allowed to happen or would quickly be cleansed from the tape with some rapid unexplained selling.

 

The same thing goes for these "hindenburg omens" and other "critical" support levels in US stock and bond markets.  Every time we are just about to breach or do breach, a mysterious force furiously sends things back onto the safe side of the line.  Every time for years now. 

There is either a significant conspiracy here or TA was and is a load of crap.

Wed, 03/26/2014 - 16:47 | 4595570 BigJim
BigJim's picture

 Excerpt from headline:  Gold Drops To 6-Week Lows, Back Under $1,300

ForWhomTheTollBuilds: ...or would quickly be cleansed from the tape with some rapid unexplained selling...

It's not 'unexplained'. We know the explanation; Ukraine's tonnage is suddenly available for rehypothecation. 

If Vlad has any sense he'll hoover it all up - and more - at the reduced price with his USD and wind up owning Ukraine's bullion.

I'm guessing he knows the difference between paper and phizz. 

Wed, 03/26/2014 - 19:46 | 4596412 MeelionDollerBogus
MeelionDollerBogus's picture

Real TA is lock-on:

flic.kr/p/kpoT2k slide 1 : regression (power) trend R2 = 0.98 USLV = silver3.92 / 2364.56
flic.kr/p/kppK2Z slide 2 : projections with & without ETF decay
flic.kr/p/kprn3f slide 3 : ETF decay on factor vs date

Fake TA which is what passes for technical analysis on every blog is garbage, as you have seen.

Wed, 03/26/2014 - 15:22 | 4595042 Overleveraged_a...
Overleveraged_and_Impatient's picture

I'm hoping it goes to $1,000 so I can unload my savings account on it and other PMs

Wed, 03/26/2014 - 15:24 | 4595059 Obama_4_Dictator
Obama_4_Dictator's picture

Really? I'm hoping for it to climb to 2k and then the dollar collapses, I don't need anymore time to prepare....fuck this

Wed, 03/26/2014 - 15:28 | 4595089 fonzannoon
fonzannoon's picture

agreed 100%. enough of the "I need more time to prepare" bullshit. 

looks more like this was just a manipulated dead cat bounce in a manipulated market. reality is a motherfucker.

Wed, 03/26/2014 - 15:36 | 4595131 Spitzer
Spitzer's picture

Total fucking motherfuker.

What the fuck do we do ?

Wed, 03/26/2014 - 15:56 | 4595257 Peachfuzz
Peachfuzz's picture

btfd bro, and when everyone runs to one side of the boat, run to the other. When someone like Sprott comes out with all the boys on kwn and says "gold 2k, golden cross, strong technicals, blah blah blah" sell some if you want, cause that's the intermediate top.
Bottom line for me - I was born under the reign of the usd. Therefore, everything I see is tainted through that lens. Thanks to zh and other sites, I can now choose to take those lenses off, and the world looks a lot different. Instead of pricing things in the usd, I try to price things in gold (good practice for my future dealings at bartertown). I've found some outstanding deals because of that. (I know I am still using the usd for a reference, but it's a start)
It's also helpful to me to remember that in a zirp environment, savers are punished. It's company policy. Apart from a barbarous relic, gold and silver are considered vehicles for saving (storing) wealth. It only makes sense to punish the pm's. They're not speculative vehicles, that's what the all revered Stalingrad & Poorski is for.

Wed, 03/26/2014 - 16:00 | 4595293 Spitzer
Spitzer's picture

Hahaha..

The world is a lot bigger then KWN. Goldman and Rubini were bearish on gold at the same time sprott was bullish. You are siding with Goldman ?

You really think people are piled onto the bullish side of gold ?

You are fuct

Wed, 03/26/2014 - 16:37 | 4595527 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"Instead of pricing things in the usd, I try to price things in gold (good practice for my future dealings at bartertown)."~

I had that very conversation with my PM dealer this last week. Here's my take: a Mercury dime will always buy a loaf of bread, (assuming wheat is available).

The problem I see here is between those stackers who are in it for the long haul and speculators. I'm not knocking the speculs but as a stacker, it is my desire that I am never forced into a position where I have to trade any Mercs for loaves. My end goal is for my children to inherit my stack and for them to take up where I stopped. I guess you could call me a transgenerational stacker.

Wed, 03/26/2014 - 16:04 | 4595324 ThirdWorldDude
ThirdWorldDude's picture

BTMFD! 

This ain't no 100m sprint, it's a fuckin' endurance test.

How much pain can you take for choosing the red pill?

Wed, 03/26/2014 - 15:38 | 4595143 Al Huxley
Al Huxley's picture

Gold!?  Manipulated?!  No way - everything else, maybe, but not gold, gold's not a market that can ever possibly be manipulated - well, unless it's been proven to be manipulated, in which case, sure, it's manipulated, but what are you going to do about it?  Prosecute the manipulators? - OH LOOK WHAT MILEY CYRUS IS UP TO!! 

Wed, 03/26/2014 - 15:56 | 4595260 James_Cole
James_Cole's picture

looks more like this was just a manipulated dead cat bounce in a manipulated market. 

Dead cat bounce? Somehow exactly correlated to the war chatter..

People should take heart that when the shit was hitting the fan people did move into gold, the second shittybank started talking about gold to a zillion it was time to sell though.

Wed, 03/26/2014 - 15:55 | 4595253 Overleveraged_a...
Overleveraged_and_Impatient's picture

Yes that is fine... after it goes to $1,000 so I can hop on the train right before it leaves.

Wed, 03/26/2014 - 15:24 | 4595044 One And Only
One And Only's picture

Bitcoin up since March 22.

Investors selling gold and buying bitcoin. The great rotation has begun.

Wed, 03/26/2014 - 15:25 | 4595067 unrulian
unrulian's picture

The one and Only Fornstar

Wed, 03/26/2014 - 17:49 | 4595830 FlyingDutchman
FlyingDutchman's picture

Fartstar

Wed, 03/26/2014 - 15:27 | 4595082 seek
seek's picture

"Investors selling gold and buying bitcoin."

I'm very pro-bitcoin and that statement is just full on delusional.

Tyler's interpretation is most likely correct -- gold usually drops initially in times of financial crisis as it's a known-good liquid investment that can be liquidated to free up cash for margin calls. With China imploding we're probably seeing those holding paper gold selling to cover.

When this happened in '08, it was followed shortly by big financial news breaking and gold launching higher in a matter of a few weeks.

Wed, 03/26/2014 - 15:37 | 4595141 Spitzer
Spitzer's picture

Hogwash

That only made sense when gold was up year after year. Not down for 3 years

Wed, 03/26/2014 - 15:40 | 4595158 seek
seek's picture

People who buy paper gold aren't long term investors. It makes perfect sense for them to park some short-term cash into paper AU for diversification. I'd be surprised if the sellers were in for 6 months, let alone 3 years.

Wed, 03/26/2014 - 15:45 | 4595193 Spitzer
Spitzer's picture

Have you ever heard of the LBMA market making members ? They fix the price of paper gold.

Simple as that.

Wed, 03/26/2014 - 15:54 | 4595244 markettime
markettime's picture

I was wondering if China isn't going to drop some gold to keep the ponzi going.....

Wed, 03/26/2014 - 15:34 | 4595124 silvermail
silvermail's picture

If I'm will be forced to make a choice to buy bitcoin or bullish  shit, I'll buy a bull shit without thinking.

Wed, 03/26/2014 - 15:39 | 4595150 One And Only
One And Only's picture

SIR! I will not infringe upon your liberties. You are free to buy anything you want! SIR!

Wed, 03/26/2014 - 16:14 | 4595398 Jameson18
Jameson18's picture

You could make money selling bullshit to farmers. You can't make a dime with bitcoin. Bitcoin is a get rich quick scheme for all the lazy kids under 35. They didn't build that.

 

//
Wed, 03/26/2014 - 16:15 | 4595399 Jameson18
Jameson18's picture

 

 

//
Wed, 03/26/2014 - 19:28 | 4596323 MeelionDollerBogus
MeelionDollerBogus's picture

Only for ponzi-bagholder-fools. BTC hit $6 recently and will do so again.  http://flic.kr/p/kyKgtF

Wed, 03/26/2014 - 15:24 | 4595056 gjp
gjp's picture

Think the ZH effect will work, bottom-ticking price of gold?  Nah, didn't think so.

Wed, 03/26/2014 - 15:49 | 4595219 Spitzer
Spitzer's picture

There is no sentiment indicators . There is no technical. There is no fundamentals. There is nothing.

Wed, 03/26/2014 - 15:24 | 4595057 Kaiser Sousa
Kaiser Sousa's picture

ah yes...it all makes perfect sense...

THANKS AGAIN YOU BANKER FUCKS FOR ALLOWING ME TO PUT THE PEDAL TO THE METAL AND STACKING MORE REAL MONEY AT THESE MANIPULATE PHONY PAPER PRICES....KEEP STACKIN YA'LL

and as death to the MoneyChangers...

Wed, 03/26/2014 - 15:36 | 4595136 ssp2s
ssp2s's picture

Does Russia benefit from lower gold prices?

Financial weaponry is one of the things where the US still is No. 1.

Wed, 03/26/2014 - 16:08 | 4595354 silvermail
silvermail's picture

It depends on how Russia would act. If they will buy silver at $ 2 billion and require physical delivery, then, price of gold via GSR, will explode above $ 2,000 an ounce.

Wed, 03/26/2014 - 19:31 | 4596332 MeelionDollerBogus
MeelionDollerBogus's picture

There is no "via GSR" as there is no GSR mechanism, gold vs silver ratio.
There is, however, a power-relationship.
Most recent curvature is ln(silver) = gold x 3 / 2635 + (19/12) http://flic.kr/p/f17z1s,
though recently I've seen that constant decline to 18.15/12 sticking to that basis of fractions.
Even longer-term there's a chart here: http://flic.kr/p/f5bHkJ

Wed, 03/26/2014 - 15:24 | 4595060 cro_maat
cro_maat's picture

Bullish on copper jacketed ammo!

Wed, 03/26/2014 - 15:26 | 4595073 Rubbish
Rubbish's picture

Plated and set it on auto

Wed, 03/26/2014 - 15:27 | 4595078 agstacks
agstacks's picture

They do have a fresh 33 tons to play with..

Wed, 03/26/2014 - 15:49 | 4595220 blabam
blabam's picture

What is that now? One week of China buying? 

Wed, 03/26/2014 - 15:28 | 4595088 ebworthen
ebworthen's picture

April options expiration day.

I always check in with the perpetually cogent analyses of Jesse:

http://jessescrossroadscafe.blogspot.com/

Wed, 03/26/2014 - 15:31 | 4595106 ParkAveFlasher
ParkAveFlasher's picture

ALWAYS +41

Wed, 03/26/2014 - 15:43 | 4595181 Spitzer
Spitzer's picture

This isn't your 2010 options exp selloff. This is 2013 smash downs all over again

Wed, 03/26/2014 - 15:46 | 4595198 fonzannoon
fonzannoon's picture

it sure as hell looks like it. which means that this whole phyz supply garbage and every other theory can be chucked out the window. the only glimmer of hope is this is some 2008 style knockdown before the market barfs....but i doubt it.

Wed, 03/26/2014 - 15:50 | 4595223 ParkAveFlasher
ParkAveFlasher's picture

I'll buy yours, Fonz. 

Wed, 03/26/2014 - 15:52 | 4595236 Spitzer
Spitzer's picture

Yeah. With mining companies doing so well, they have this market flush with physical. A thousand tons here, a thousand tons there , no problem.

I don't fucking know man...

Wed, 03/26/2014 - 15:57 | 4595274 fonzannoon
fonzannoon's picture

my phyz is not for sale. it will be my legacy. my heirs will look at it in awe and say "wow that was one stubborn fuck". they may substitute stupid for stubborn and just hope i can't hear them but i can hear it from 40 years away.

 

Wed, 03/26/2014 - 16:05 | 4595338 ParkAveFlasher
ParkAveFlasher's picture

I think this is the part in Fight Club where we first see Meatloaf's mantits.

Wed, 03/26/2014 - 16:11 | 4595380 fonzannoon
fonzannoon's picture

I was hoping we were closer to the part where we blow our brains out and all the buildings fall down around us.

Wed, 03/26/2014 - 16:26 | 4595467 Quus Ant
Quus Ant's picture

I think this is the part where the house lights come up and we realize it was all a fucking movie. 

 

Wed, 03/26/2014 - 16:16 | 4595407 Spitzer
Spitzer's picture

I know , I know ... 15 or 20 years from now, gold will be the end all. But I don't want to wait that long.

Wed, 03/26/2014 - 16:19 | 4595425 de3de8
de3de8's picture

You read my mind fonz

Wed, 03/26/2014 - 19:31 | 4596335 MeelionDollerBogus
MeelionDollerBogus's picture

no heirs here. Will be bartering my silver & gold for other needed items or services.

Wed, 03/26/2014 - 16:26 | 4595466 free_lunch
free_lunch's picture

Sorry to interrupt, but just take a look at the 5y chart when it was going op to 1800 it didn't go in a smooth straight line. It went up steady whith far greater corrections then the drop we are seeing now. If you can't handle this, you better stay away from investing.. http://www.bullionvault.com/gold-price-chart.do

Buying on this dip only means the gains will be much higher. With these give-away prices the east will buy as much as they can sucking the supply, when the inevitable market crash happens, we will see incredible prices because of the shortage these suppressed prices are creating now. (Supply and demand )

All you need is patience and confidence, but if you need the money short term then don't bother.

IMHO

Wed, 03/26/2014 - 17:04 | 4595634 Obama_4_Dictator
Obama_4_Dictator's picture

It's fucking bullshit....we will all be insolvent before it goes up....money is hard to come by these days, if you haven't noticed.  I've been buying since 2007, and I've got quite a bit of ozs.....money though, and monthly income is getting hard to come by.....fuck this shit

Wed, 03/26/2014 - 18:10 | 4595930 Agstacker
Agstacker's picture

The way I see it, as much as I would hate to I can always sell some of my stack for immediate cash.  It beats the living hell out of having a savings account at 0.025% interest!

Wed, 03/26/2014 - 15:32 | 4595113 fonzannoon
fonzannoon's picture

jesse and jim sinclair and jim rogers and his silver and schiff and jim willie and faber can all eat my ass.

Wed, 03/26/2014 - 15:39 | 4595152 cro_maat
cro_maat's picture

fonz - ROTFLMAO - I am hoping that all of the jims, jesse and peter are on a diet otherwise you need to be a fat ass! :)

Wed, 03/26/2014 - 15:44 | 4595186 ParkAveFlasher
ParkAveFlasher's picture

Junior miners made me plenty of money, until very very lately.

Wed, 03/26/2014 - 16:36 | 4595520 free_lunch
free_lunch's picture

Keep calm and look at the corrections last time gold made a 10y bull, don't let emotions trouble your thinking. The people who bought at 350$ and sold at 1700$ (or still own at 1300$) had to sit out far worse corrections as you can see on the 5y chart. Did you really expect it would go up in a straight line without corrections? Of course not, but that doesn't mean it will not go up in the long haul.

Just look at the chart and analyze the 10y bull run, corrections are normal! http://www.bullionvault.com/gold-price-chart.do

Wed, 03/26/2014 - 15:55 | 4595241 Kaiser Sousa
Kaiser Sousa's picture

exactly...i was itching to pull the trigger all week long, even last week seeing that the "LONDON FIX" has been on, but checked the expiry date and decided to wait...

Jesse's site is a daily read...

Wed, 03/26/2014 - 15:28 | 4595090 solgundy
solgundy's picture

gold is soooooooo over 'til 2015

Wed, 03/26/2014 - 15:30 | 4595096 Conax
Conax's picture

A funny old briar I used to play euchre with would get frustrated because my partner and I had a system of signals running and he could never catch us at it.  He was a great player, but always on the losing side.

He'd ask his brother, "Tommy, I know we're the best, how come we never win?"

Now I know how he felt.. Lulz!

Wed, 03/26/2014 - 15:30 | 4595097 buzzsaw99
buzzsaw99's picture

bitchez?

Wed, 03/26/2014 - 15:32 | 4595115 SheepDog-One
SheepDog-One's picture

Gun and ammo metals holding value nicely.

Wed, 03/26/2014 - 17:37 | 4595792 homiegot
homiegot's picture

The only metal that matters is lead and heavy metal.

Wed, 03/26/2014 - 15:32 | 4595116 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Funny, 1300 looks a lot better on the way up than on the way down. 

Wed, 03/26/2014 - 19:32 | 4596337 MeelionDollerBogus
MeelionDollerBogus's picture

only because the time difference between those 2 events has meant devalued dollars cause devalued purchasing-power of the wages which have stagnated the entire time. If only there'd been more chances to get at 1300  before that extra devaluation but it's better than being faced with 3000/oz and income being even lower.

Wed, 03/26/2014 - 15:34 | 4595121 infiniti
infiniti's picture

But ZH commenters told me the dollar would crash because RUB and CNY!!!!!!

Wed, 03/26/2014 - 18:48 | 4596131 MeelionDollerBogus
MeelionDollerBogus's picture

I set my clock by Jim Willie & John Williams - that way I can be precisely sure when it isn't.

Wed, 03/26/2014 - 15:34 | 4595122 GoldenDonuts
GoldenDonuts's picture

Options expiration day?

Wed, 03/26/2014 - 15:39 | 4595149 Spitzer
Spitzer's picture

For 3 days ?

Wed, 03/26/2014 - 15:36 | 4595130 Al Huxley
Al Huxley's picture

Oh, just barely under 1300 - really more like exactly 1300.  Tough luck if you held Comex 1300 puts, SOOO CLOSE to being in the money, yet somehow magically, not quite.  Oh well, not tomorrow, but after March Comex closes completely, maybe it will drop under 1300, then you can feel good about being right on the direction, even if you were wrong on the timing.  Wow, isn't it funny the way the price settles right on those round numbers at options expiry - like some kind of magic trick...

Wed, 03/26/2014 - 15:41 | 4595165 jmcadg
jmcadg's picture

My stack is fine, but I'm getting my arse handed to me on a plate with my paper speculation. Motherfuckers. That Golden Cross was a golden crock :(

Wed, 03/26/2014 - 18:43 | 4596102 MeelionDollerBogus
MeelionDollerBogus's picture

They always are.

Technical analysis can't be accomplished using moving averages, maybe using Fibonacci, can't be accomplished using head-and-shoulders or other "formation" patterns.

You need scatterplots & time-series equations.

In my case I haven't posted anything time-series recently but if you re-scale the 10-year gold chart log-scale on THE DATE axis as well as the price axis you can see a repeating pattern from 2008 replicated now.

I then apply a trend-curve scatterplot equation for gold-to-silver http://flic.kr/p/f17z1s and figure out from there what I want to do, like USLV, AGQ options (pre-split) or stacking bullion.

Wed, 03/26/2014 - 15:42 | 4595169 youngman
youngman's picture

Just the banks taking out the options contracts....they dont want anyone to ask for delivery....they dont have the gold...

Wed, 03/26/2014 - 15:45 | 4595188 Ignorance is bliss
Ignorance is bliss's picture

PMs are manipulated. So why hold them? Because green pieces of paper continue to lose their value over time. TPTB lie, steal, commit fraud to secure assets of value. They are securing their assets, I suggest you dump the illusion of a sound U.S. Monetary paradigm and look around. We are approaching a pivot point and they don't want the sheep in gold or silver.

Wed, 03/26/2014 - 16:07 | 4595351 seek
seek's picture

I agree, though I don't think they give a fuck about the sheep one way or the other.

<rant on>

Everything is the current system is manipulated. Everything. From the SP500 to gold to bitcoin, from oil to pork bellies. There's a fucking liquidity firehose blasting out $75B a month to banks that carry out their orders in exchange for the prosecution-free right to front run and fuck all of society over. The "system" as we know it collapsed in 2008, and what's left is an ever-growing zombie held together by bailing wire, duct tape and Fed liquidity. The people running the show don't have a clue, know what they're doing now not only won't fix it but is making the problems worse, but know like a great white shark if they stop swimming, they will die. So they keep doing it and keep covering it up. Every time a new set of data appears that they haven't contaminated with their manipulation, they jump on it with the firehose to make it look good.

This isn't a little game. It's the entire fucking world that's in on it, almost every central bank playing hot potato with their currencies lest someone get ahead by fucking up their system more than the other guy. The point of no return was in the rear view mirror more than a decade ago. They will keep doing this -- be it manipulating gold down, real estate up, whatever it takes -- until it can't be done any longer. If you're expecting a predictable return or even just stable asset prices, give up now, it's never going to happen.

One day, maybe next week, maybe in 2018, maybe by some miracle in 2050, we see what happens when you fuck with complex systems thinking you're in control. It'll be something innocuous initially, maybe it's copper, maybe it's T-bill purchases, we can't know -- will be off a little, and then the next day a little more, and then derivative effects kick in, and soon it's like September of 2008 where the wheels look like they're falling off. And then TPTB make their pronouncements, insurance is extended, whatever, but there's no one left to fucking manipulate, the markets aren't falling due to liquidating IRAs this time, because that money bought starving families ramen noodles three years before, and TPTB suddenly finds they're fighting among themselves, and there's no way out and every iPad loving consumer at this point is just fucking collateral damage as TPTB's century-long shitshow comes to an end. That is when our gold might be worth something again, and no sooner. Hopefully when the time comes the sky is filled with Gulfsteams leaving for better pastures like we saw as the Ukraine circled the drain, and that some merry pranksters found a way to dump a few tons of price-manipulated sugar into their tanks, and we end up with so many banker-filled jets at the bottom of the ocean that it looks like a school of sardines when you fly over.

</end rant>

Wed, 03/26/2014 - 15:52 | 4595234 royal
royal's picture

Options expiration smackdown...happens everytime....tomorrow the price will start to "magically" rise.

Wed, 03/26/2014 - 15:54 | 4595249 Spitzer
Spitzer's picture

Dog shit

In 2010-11, options exp selloffs would be one day.

Wed, 03/26/2014 - 15:58 | 4595280 TalkToLind
TalkToLind's picture

Food, bitchez!

Wed, 03/26/2014 - 21:11 | 4596729 homiegot
homiegot's picture

Booze. Guns. Ammo. Bunkers.

Wed, 03/26/2014 - 15:59 | 4595286 Okienomics
Okienomics's picture

I thought the chinese port storage double backflip financing scheme unwind was supposed to drive copper lower but somehow levitate gold upward due to the same dynamics working in reverse.  Damn, my M.A. in Economics is insufficient; looks like I'll need to trade in my stack to buy a PhD so I can understand this shit.

Wed, 03/26/2014 - 16:22 | 4595444 Bastiat
Bastiat's picture

It's easy really:  when China was running their paper gold house of cards the effect was to drive down the price of gold;  as it unfolds it will also drive down the price of gold.  The lesson is everything is bad for gold and worse for miners and everything is good for stocks.  You could get a Phd, like Bennie and Janet or much cheaper, some good dope.  Either way it will all be OK.  And BTFD.  

Wed, 03/26/2014 - 16:24 | 4595457 messymerry
messymerry's picture

21st century economics is nonsesne.  Piling it higher and Deeper (PhD) will not help you.  So sorry...

Finance is overbuilt.  Healthcare is overbuilt.  Education is overbuilt.  Government is insanely overbuilt!!!  This is only four of more bubbles than I can count.  The pot my dear ZH friends is boiling and the pressure is building at an ever increasing rate. We have exhausted virually all options except one. 

The best investment in last half of '14 or '15 will be tar, feathers, torches, and pitchforks.

Does anybody here know what "gird yourself" means?

;-D

Wed, 03/26/2014 - 16:03 | 4595312 FieldingMellish
FieldingMellish's picture

"None shall pass." - The Black Knight

Wed, 03/26/2014 - 16:07 | 4595319 Hongcha
Hongcha's picture

Bought USLV 45.27 today.  Tight stop.

Wed, 03/26/2014 - 16:12 | 4595386 Caracalla
Caracalla's picture

Bought a boatload of June $5 calls on ANV for pennies.  Given that ANV hit $6 recently and was near $40 a little over a year ago, I could make a huge score but have risked very little.  To whomever is knocking down the price of miners, thanks!

Wed, 03/26/2014 - 16:24 | 4595448 Hongcha
Hongcha's picture

Caracalla; gotta love the panic.  Garden-variety backtest, gentlemen.  If you are not confident, run stops.

Wed, 03/26/2014 - 18:34 | 4596038 MeelionDollerBogus
MeelionDollerBogus's picture

Getting more a.s.a.p. but other budgetary items take precedent.
It's a good time to get this one. I'm not even using a stop. I know where the long-term future of this is going provided it doesn't go insolvent, it being a paper trade, get Corzined, it being in the hands of Banksters before I can cash in.
A stop only means I actualize a cash loss. I don't need to do that. When I need cash for something more than USLV I get that other thing and no USLV.

flic.kr/p/kpoT2k slide 1 : regression (power) trend R2 = 0.98 USLV = silver3.92 / 2364.56
flic.kr/p/kppK2Z slide 2 : projections with & without ETF decay
flic.kr/p/kprn3f slide 3 : ETF decay on factor vs date

I will be unsurprised to see silver at 50 by the end of this year, 100 by the end of next year and shortly after probably 180 to 260, as gold moves to 3500 by then.

Wed, 03/26/2014 - 19:33 | 4596343 Obama_4_Dictator
Obama_4_Dictator's picture

What are you smoking....can I have some?

Fri, 03/28/2014 - 23:36 | 4604809 MeelionDollerBogus
MeelionDollerBogus's picture

smoking? I do math. I put up math charts. I do troll sometimes but this was a math post. What are you smoking? Are you saying the equations mismatch the data?

Go look at the gold 10 year chart.

Compress the price scale using the log function. If you've never seen this before you are beyond help.

Now do the same to the date axis. You haven't seen this before but it's the same concept.

Now look at the 2008 drop. Look at the 2011 drop. They can be overlaid. Find the equation mapping one to the other.

Map this from 2011 forward and look for errors in fit.

Map it beyond today by 3 years.

Ta-da.

Now fix it up with silver, http://flic.kr/p/f17z1s , then silver with USLV, http://flic.kr/p/kpoT2k and http://flic.kr/p/kppK2Z , and the outcome is obvious.

2 things can stop this for USLV. #1 paper currency can collapse. I'm prepared for that. #2 fiat prices can collapse for gold & silver because wages go up, savings go up in fiat, deflation happens for everything essential people need & so they now are not suffering as much, and all those things must happen together which means bond rates need to go in the area of 6% to 10% simultaneous to doing no harm, no defaults, no printing/QE of any sort, from all major economic nations on Earth. Guess what? That's not happening.

Wed, 03/26/2014 - 16:08 | 4595359 e_u_r_o
e_u_r_o's picture

I love it, probably buying silver soon

Wed, 03/26/2014 - 16:09 | 4595366 royal
royal's picture

Today is a great day to get long courtesy of the bullion banks.

Wed, 03/26/2014 - 16:10 | 4595374 IridiumRebel
IridiumRebel's picture

Just like any rape victim, after the third or so "go around" your ass or vag begin to hurt less...you settle in...just wait until the eyes roll over and the inevitable sigh of relief is exasperated. 

Wed, 03/26/2014 - 16:17 | 4595411 Spungo
Spungo's picture

I'm not really concerned about gold and its producers crashing right now since I'm already fully invested. I don't have cash available to buy more, and selling at the current price would be retarded. It'll probably crash a lot more before it starts going up as people panic sell to free up cash. We just had an article about rich Chinese people panic selling their real estate in Hong Kong and Singapore to free up cash.

Wed, 03/26/2014 - 16:25 | 4595460 Bastiat
Bastiat's picture

Those who come out with some cash . . . what do you think they will do with it? 

Wed, 03/26/2014 - 21:08 | 4596715 homiegot
homiegot's picture

Pay off debt.

Wed, 03/26/2014 - 16:18 | 4595416 kk1532003
kk1532003's picture

10 British Sovereigns headed my way...

 

ounce after ounce, year after year.....  last man standing

Wed, 03/26/2014 - 18:13 | 4595950 FlyingDutchman
FlyingDutchman's picture

I have some from the victorian age. Truly amazing, when you hold these you think this was, is and has been money.

Wed, 03/26/2014 - 16:46 | 4595565 bluskyes
bluskyes's picture

For most, gold is still a paper asset, traded on margin, and will continue to fluctuate accordingly.

Keep calm, and stack on.

Wed, 03/26/2014 - 17:35 | 4595775 22winmag
22winmag's picture

Sign me up for another O-Z.

Thu, 03/27/2014 - 07:28 | 4597781 El Hosel
El Hosel's picture

..... . Silver now down 9 daze in a row, testing very near the bottom of the range going way back.

http://finviz.com/futures_charts.ashx?t=SI&p=d1

Wed, 03/26/2014 - 18:13 | 4595946 1stepcloser
1stepcloser's picture

Beep.....Beep.....Beep......Beep.....Beep

Wed, 03/26/2014 - 18:26 | 4596007 MeelionDollerBogus
Wed, 03/26/2014 - 21:06 | 4596711 homiegot
homiegot's picture

I'm starting to see bag holders.

Fri, 03/28/2014 - 23:41 | 4604823 Yen Cross
Yen Cross's picture

    My origional cr250 looks good'

 Air pumper "red barrel"

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