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

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


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


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


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


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


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


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


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...


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.

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