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Gold Slammed As 'Panic-Seller' Dumps $520 Million In Futures

Tyler Durden's picture


You can't make this up. An initial dump in gold happened when Europe was getting going late last night but as the US wakes up and markets get active, someone (panic-seller) decided it was an entirely optimal time to sell $520 million notional gold futures - sending the price of the precious metal down $7. Intriguingly, though the notional size was large, the actual move is not as large as we have become used to with the ubiquitous Slamdowns (and it's a Tuesday). At the same time, USDJPY was ramped... because we must maintain the appearance that stock markets are operating normally despite civil wars, coups, global growth slowdowns, and de-dollarization growing.



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Tue, 05/20/2014 - 08:33 | 4776776 Haus-Targaryen
Haus-Targaryen's picture

How is it paper and bullion have yet to seperate?

Tue, 05/20/2014 - 08:35 | 4776786 LawsofPhysics
LawsofPhysics's picture

How much bullion do people physically exchange for real goods, services, or commodities?

Tue, 05/20/2014 - 08:36 | 4776796 Manthong
Manthong's picture

.. the “market” is not rigged... nope.. not a bit.. what’s a lousy $ .5 Trillion between friends?

Tue, 05/20/2014 - 08:41 | 4776823 CH1
CH1's picture

Selling at the worst time of day in large amounts - a guaranteed way to get the worst price.

Tue, 05/20/2014 - 08:45 | 4776846 Lionhearted
Lionhearted's picture

Unless you shorted twice the amount and you are trying to get out of it.

Tue, 05/20/2014 - 09:02 | 4776934 kliguy38
kliguy38's picture

hehehehehe...........too funny

Tue, 05/20/2014 - 09:04 | 4776947 Xibalba
Xibalba's picture

Yellen speaking today or something?  

Tue, 05/20/2014 - 09:13 | 4777000 eclectic syncretist
eclectic syncretist's picture

With China holding over 1 trillion dollars worth of US treasuries it would have cost them 0.05% (1/20 of one percent) of their holdings to buy this dip.  That's the real reason this is just pissing in the wind by the manipulators, whom the clock is running down on ever more rapidly now.

Tue, 05/20/2014 - 10:08 | 4777287 AllThatGlitters
AllThatGlitters's picture

What dip?  How much will it cost to buy what has now become a big rip?

Live Gold:

Glad I slept in today.

Tue, 05/20/2014 - 09:25 | 4777050 OC Sure
OC Sure's picture

That is not supposed to be pointed out until after the whact.

Tue, 05/20/2014 - 09:50 | 4777186 Manthong
Manthong's picture

oops.. I meant billion..

but whats the diff?  it's just CB digital fiat.

Tue, 05/20/2014 - 12:20 | 4777820 disabledvet
disabledvet's picture

"Liquidity shortfall." Panic buying of treasuries continues apace.

Gold has no counterparty...but still costs billions in dolares to get out of the ground.

Silver is even worse from what I'm told.

Tue, 05/20/2014 - 10:09 | 4777280 strannick
strannick's picture

As a gold/silver stacker, that these banks would spend a half billion dollars so to give me a $7 discount, I can only say I'm touched. Thank you.

Tue, 05/20/2014 - 09:03 | 4776938 Tabarnaque
Tabarnaque's picture

Pathetic really. They only managed to shave about $5 off the price of gold… This is the real story today. Their dirty rig is coming to an end soon as the new iron curtain between the West and the East divides the BRICS from the fascist Anglo-American banking cartel. The cartel is bankrupt financially and morally. The BRICS will take the lead in the New World Order. .

Stay the course and keep stacking. I just sold my motorbike to buy more physical gold. It’s my way to say: F__K you to the banksters.

Tue, 05/20/2014 - 09:09 | 4776974 lakecity55
lakecity55's picture

Agree. It seems the last few whack-downs have not been as severe as a year ago...

Tue, 05/20/2014 - 09:15 | 4777008 free_lunch
free_lunch's picture

I just sold my motorbike to buy more physical gold.

Don't stop living!!

This game can go on for decades, prepare and follow up, but don't forget to enjoy life in the meantime. Otherwise there is no reason to secure it..

Tue, 05/20/2014 - 09:38 | 4777117 outamyeffinway
outamyeffinway's picture

Right. So when silver doubles, sell half the position and buy the bike back and have some AG left over. Well lived!

Tue, 05/20/2014 - 10:46 | 4777458 Tabarnaque
Tabarnaque's picture

That's exactly what I am thinking. And I don't give it more than 6 months before we see some major fireworks with the PM's.

The bike was getting old too and there is a new one that I really want to put my hands on. So all together I think that I made the right move. Plus I love the feeling of taking delivery of a few more real gold coins because I know that it pisses off the fascists banksters. It's my way to fight against them.


Tue, 05/20/2014 - 10:50 | 4777468 dark pools of soros
dark pools of soros's picture

So that means $80 for all you mindless stackers that kept buying into the $40's saying $200 was a sure thing

Tue, 05/20/2014 - 10:52 | 4777480 Tabarnaque
Tabarnaque's picture


This game isn't going to go on for decades. The USD doesn't have more than 2 more years left as world reserve currency. The infrastructure and systems that the BRICS are developing should all be up and running within the next 24 months. That's how I see the time horizon on the death of the fascist US dollar. 2 years max. And the Ukraine mess and the idiotic US Pivot to Asia is only accelerating the demise of the USD. The other side of the planet has woken up and are rushing out of the USD. Modi's election in India will further accelerate the move away from the USD.

Tue, 05/20/2014 - 11:03 | 4777524 JRobby
JRobby's picture

"This game can go on for decades"


And will. The Sheeple have lost the will needed for all out revolution.

Tue, 05/20/2014 - 10:37 | 4777413 lunaticfringe
lunaticfringe's picture

OMG, I nearly had a heart attack. I can't imagine life without my bike. Selling it for 12 oz gold? Nyet. And I love gold.

Tue, 05/20/2014 - 09:12 | 4776993 Oracle 911
Oracle 911's picture

According Dr Jim Willie the Chinese bought the JPM, and told them keep the gold price down:

-which the JPM is doing, while buying the phys metal like crazy (unofficially about 1000 tons per month since 2012). So when the western vaults will be emptied (it will be in this or next moth) we will see the COMEX closure, gold, copper and oil backed currencies and the USA going bankrupt.

According Willies source the London banksters are forced hand over their gold and the Russians and Chinese each have about 20 000 tons of gold.

Tue, 05/20/2014 - 11:21 | 4777602 Pure Evil
Pure Evil's picture

That's just down right barbaric!


Of course I'm talking about the gold, whad ja think I was talking about.


Tue, 05/20/2014 - 09:23 | 4777039 Kirk2NCC1701
Kirk2NCC1701's picture

Think in terms of basic principles of CSI:  Motive, Means and Opportunity?  Who fits the bill best (from a range of Suspects)?

At this point I'd have to suspect the BOC, rather than the BOE or the Squid.  / IOW... Who did it?  The Chinese butler did it. /sarc

Keep stacking (BTFD!), packing and racking.  And stay out of debt, no matter how enticing that "Zero-down, 1% interest" offers may be.

Tue, 05/20/2014 - 16:49 | 4777369 SoilMyselfRotten
SoilMyselfRotten's picture

Selling at the worst price. Talk about Fed-douchery duty

Tue, 05/20/2014 - 20:15 | 4779380 StychoKiller
StychoKiller's picture

The only way it could be more obvious is if Yellen showed up with some coopuns in her hot little hands!

Tue, 05/20/2014 - 08:42 | 4776832 Arius
Arius's picture

interesting article on How Long this thing can last???

Tue, 05/20/2014 - 08:52 | 4776870 eddiebe
eddiebe's picture

What am I missing? All I see is the same question repeated.

Tue, 05/20/2014 - 09:00 | 4776927 insanelysane
insanelysane's picture

It can go on a long time.  We haven't gotten to our North Korean phase yet.

Tue, 05/20/2014 - 08:44 | 4776845 Greenskeeper_Carl
Greenskeeper_Carl's picture

Makes sense. Panic sell your gold, cuz who needs gold with all the conflict in the world. Plus, they can use that money to BTFD in the Thai market.

Tue, 05/20/2014 - 09:31 | 4777088 ziggy59
ziggy59's picture

.5 billion...

Tue, 05/20/2014 - 10:57 | 4777504 Slave
Slave's picture

I REALLY want to know who downvoted your

Tue, 05/20/2014 - 09:48 | 4777182 CPL
CPL's picture

IMF printed a pile of money a couple of weeks ago...pardon, 'borrowed' money.

Tue, 05/20/2014 - 12:10 | 4777782 Seb
Seb's picture

500 Millions is not equal to 0.5 Trillion. It is 0.5 Billion (0.0005 Trillion).

Tue, 05/20/2014 - 08:37 | 4776797 Stackers
Stackers's picture

Must keep gold under $1,300

Must keep gold under $1,300

Must keep gold under $1,300

Tue, 05/20/2014 - 08:37 | 4776802 Latina Lover
Latina Lover's picture

Manipulated markets are part and parcel of the USSA crony capitalist, aka Fascist System.

Tue, 05/20/2014 - 09:03 | 4776936 Cacete de Ouro
Cacete de Ouro's picture

if only Bart Chilton was here 

Tue, 05/20/2014 - 20:17 | 4779389 StychoKiller
StychoKiller's picture

Hmm, Bart Simpson could do just as well!

Tue, 05/20/2014 - 08:40 | 4776803 CH1
CH1's picture

How much bullion do people physically exchange for real goods, services, or commodities?

THAT is the problem, LoP. People don't USE their metals. Looking at it on a shelf is nice, of course, but they never actually use it in commerce. If we want to bypass and/or take down the cartel, THAT is how to do it.

Tue, 05/20/2014 - 08:43 | 4776840 LawsofPhysics
LawsofPhysics's picture

Yep.  Full faith and credit.  So long as the paper is accepted, people still have faith.  Unfortunately, as history shows time and time again, faith can be lost very very quickly.

Tue, 05/20/2014 - 09:00 | 4776925 cowdiddly
cowdiddly's picture

I dont know about you guys, I guess you have not tried. You would probably not believe how many ounces I have acquired by offering 10 discount if paid in AU/AG selling stuff. I also bought a used car for my daughter last year with coin.

I offered a  smaller John Deere tractor last year for 4 ounces. Did not last a week. Damn shoulda said 5.

Where I live its good money but you can't offer it to the idiot at a Burger King.

Tue, 05/20/2014 - 09:05 | 4776951 Xibalba
Xibalba's picture

They'll try and tax that type of stuff soon

Tue, 05/20/2014 - 09:09 | 4776970 LawsofPhysics
LawsofPhysics's picture

Good luck with that.  "What transaction"?

Tue, 05/20/2014 - 10:04 | 4777251 BrosephStiglitz
BrosephStiglitz's picture

Right.  There is no electronic account of a barter transaction occurring.  Even on a balance sheet it should be tax neutral as it is a physical asset swap, rather than any form of income.  It wouldn't even show up on a cash-flow, or income statement.

It's probably no coincidence that so much gold/silver is finding its way out of the US and into other parts of the world.  Power brokers must be absolutely furious about stacking behavior. 

Tue, 05/20/2014 - 10:40 | 4777435 Oracle of Kypseli
Oracle of Kypseli's picture

Be careful there as bartering is against the law because is considered tax evasion. In a small scale it can go unnoticed or can be creatively penciled out. But the larger the transaction the most difficult it is to hide.

You can't hide getting a tractor for 1000 bushels of corn. 

Tue, 05/20/2014 - 10:59 | 4777499 BrosephStiglitz
BrosephStiglitz's picture

Actually we're both right:

So barter trades are treated as cash.  Trades for new goods should incur sales tax.  Trades for second hand goods should not (due to double taxation). Trades using goods which have appreciated in value (like silver, and take note here folks) incur capital gains tax.

It is quite difficult for tax authorities to pin down I suppose, but I am pretty sure if they catch people doing barter and evading taxes they will do everything short of crucifying you in public to make an example of you.

Personally I am a big fan of barter as a successful negotiator can do very well for themselves by adding value through asymmetric deals. 

Tue, 05/20/2014 - 12:03 | 4777540 cowdiddly
cowdiddly's picture

Wrong, batering is not against the law. Non tax compliance is. There is a tax form for barter transactions. You better stay at Burger King. Things like capital gains, MACRS depreciation, residual value, like kind exchanges are probably more than you will be able to understand after a stupid statement like that.

Its just a simple asset exchange and does not even move to the other side of the balance sheet, it"s simply moving up in liquidity from property, plant, equipment to cash and cash equivelents.

I would refer you to about 4 articles up. "The decline in small business skills=decline in basic skills", Read it.

Tue, 05/20/2014 - 09:17 | 4776984 cowdiddly
cowdiddly's picture

Oh you still pay excise taxes on things like a car its just you have to convert the value to a currency value at the tax office. In western states people know what it is. Heck in Utah you can pay your taxes in gold if you prefer.

Tue, 05/20/2014 - 09:11 | 4776986 lakecity55
lakecity55's picture

Same here, amigo. Try using it at gun  shows or such. I got a discount from a dealer on some gear by offering Ag rounds.

Tue, 05/20/2014 - 10:26 | 4777371 StandardDeviant
StandardDeviant's picture

"Ag rounds"?  You mean, silver bullets?  Damn, you live in a tough neighbourhood.

Tue, 05/20/2014 - 09:35 | 4777105 Au Shucks
Au Shucks's picture

What you say sounds right from a common sense perspective, but Gresham's law tells us differently.  Nobody, given the choice, would part with real money, real wealth for use in everyday transactions if they can accomplish the same goal using valueless fiat paper.  Once bad money is in play, it will be used until there is a hyperinflation (loss of confidence) and it can no longer be used reliably at a known and predictable exchange rate.

no, right now is the time for accumulating real money using fake money (how does that sentence resonate with your commmon sence?  yet, that is exactly the bizzaro-world we now find ourselves living within) and awaiting the inevitable loss of confidence that will ensue.  If you seek to do something yourself to "be the change you want to see", simply stop selling your time and expertise for bad money.  If somebody wants to hire you, or buy something you produce or possess, require that they do so in real money.  Of course, given the average American's complete and utter lack of awareness about gold/silver OR about fiat currency OR about history OR... well, about pretty much anything of real importance, your options will be very limited. 


Tue, 05/20/2014 - 10:19 | 4777339 CH1
CH1's picture

Nobody, given the choice, would part with real money, real wealth for use in everyday transactions if they can accomplish the same goal using valueless fiat paper.

Ah, but they CAN"T accomplish the same with paper and debit cards!

Those things strengthen the slave system. By using PMs (which you get back too, by the way), you not only conduct commerce, but you chip away at the system that enslaves you. That's a much better bargain for any thinking person.

Tue, 05/20/2014 - 11:28 | 4777630 Crash Overide
Crash Overide's picture

"How much bullion do people physically exchange for real goods, services, or commodities?"


The real coins will start to make the rounds soon enough as more and more people wake up to what's been going on...

Tue, 05/20/2014 - 08:43 | 4776814 Quintus
Quintus's picture

Because, for the moment at least, there are 'Entities' shoveling gold out of their vaults as fast as they can to meet physical supply at these artificially low prices.

How much have they got left?  When will they realise that the physical demand is not going away and just give up?

Not long now.....

A week before the collapse of the original London Gold Pool price suppression system, the US Treasury secretary was still publicly vowing to defend the system 'Down to the Last bar of gold'.  They didn't of course and gold went from the fixed price of $35 to $800+ very quickly.

History rhymes...

Tue, 05/20/2014 - 08:51 | 4776864 OC Sure
OC Sure's picture

Nine years is "very quickly" relative to one thousand but there is a lot a person can do in nine years.

Tue, 05/20/2014 - 09:10 | 4776956 Quintus
Quintus's picture

There are indeed many things a person can do in 9 years - but most of them won't produce a 2,300% return.

If my $1,300oz gold is worth $30,000 in 9 years I'd be happy.  Clearly that's not good enough for a paperbug like yourself though.

Take any year between the 1968 gold Pool and the 1980 peak.  You'll find a percentage return that a rational investor would not want to miss out on.  There's no modern-day Paul volker around with the capability to end the price ramp this time either.


Tue, 05/20/2014 - 11:05 | 4777058 BrosephStiglitz
BrosephStiglitz's picture

That assumes that the paper game continues for another 9 years.  It might well do so, but there is a chance of it going to ground before then.

If a new currency unit comes into play as the global reserve then gold may trade at discount in the short run.   But that assumes that faith and confidence in the new currency and the authorities will need to be maintained.

Tue, 05/20/2014 - 09:25 | 4777053 safe as milk
safe as milk's picture

did they go through all the venezuelan already? these guys are very resourceful.

Tue, 05/20/2014 - 09:27 | 4777068 Remnant_Army
Remnant_Army's picture

Friday, July 8th, 2011

"Tell My children to wake up now and see the turmoil in the world, where financial crises abound. Tell them that while people’s greed was partly responsible for plunging them into debt, that the banking crisis was deliberately planned by the One World Order.

Many reading this Message will smile and question this fact, but they should also know that unless they stand up and defend their rights, they will be forced to accept the mark of the beast to access their money.

New World Currency will be presented to an incredulous world

The New One World Currency, which will be presented to an incredulous community, is designed to control you. Then once that happens they will try to deprive you of food. Unless My children accept this reality now they will be defenceless when they are under the control of a New World Order, led by masonic forces. Prepare now, My children, because although The Warning will convert millions, including those loyal to the One World Order, it will not be enough to stop these evil slaves of Satan and the antichrist.

Without control of your money, you will find it hard to defend your right to property, food and health, the three things which they will be in charge of, if you do not start shouting your opposition now. Stop your leaders in their tracks. Don’t let them bully you. If enough of you are alert to this evil, monstrous plan, then you can warn others.

Plan your food supplies now Plan your food supplies now. Grow and buy seeds that will keep you alive. Buy silver coins or gold, so that you can buy what is necessary. Most importantly find locations where, as a group, you can meet to offer the Holy Sacrifice of the Mass. For in time, your churches will be burned to the ground."

Tue, 05/20/2014 - 09:34 | 4777069 BrosephStiglitz
BrosephStiglitz's picture

Silver looks set for a break-out in one direction or the other at some point in the next 4-5 weeks, based on the 1-year technical.  It looks like a wedge pattern is forming on the 1 and 2 year. 

Of course, in reality anything could happen. It could go sideways for another year.  Probing technical charts for patterns is like reading tea-leaves. 

Tue, 05/20/2014 - 10:03 | 4777257 Harry Dong
Harry Dong's picture

Check the five yr chart..something wicked this way comes.

Tue, 05/20/2014 - 10:20 | 4777282 BrosephStiglitz
BrosephStiglitz's picture

Yeah it's a tough call.  There is a clear down-trend on the 5-yr but I still maintain it could go either way.  It's already had over a 60% drop.  Without global stability (on par with the 1990s) coming into play at some point in the next 5 years, which I don't think anybody believes, I don't see it dropping too much further.  It is likely that a decent portion in the loss of industrial use is being offset by its necessity as a safe-haven.

Plus when you factor in loss of production from unprofitable mining operations, scrap recycling being expended and an increased propensity of people to hold it, rather than let it trade hands, I suspect reserves will be thinning. 

PS:  One other option for a dropping price is for full-blown deflation to become the norm.  But even in that environment you have to assume that confidence in fiat currencies remains in place, debt burdens bourne by financial institutions and individuals don't implode and that there are no tax grabs/asset grabs, or wars fought.

Tue, 05/20/2014 - 10:43 | 4777442 Rock On Roger
Rock On Roger's picture

That's part of the handle you're looking at on the five year chart.

Try a thirty-five year chart.


Stack On

Tue, 05/20/2014 - 08:45 | 4776848 Diablo
Diablo's picture

Stop asking questions...just keep buying because schiff, ZH, max keiser, sprott, and all the other monkeys keep telling you to. 

gold, bitchez.

buy silver, crash JP Morgan.


Tue, 05/20/2014 - 09:28 | 4777071 ZH Snob
ZH Snob's picture

It is nonsensical to think that silver will rise but gold will not or vice a versa.  They will rise together and  bring palladium and platinum along for the ride.

Tue, 05/20/2014 - 11:03 | 4777167 BrosephStiglitz
BrosephStiglitz's picture

Disagree.  It depends on the nature of the demand.  In the dollar were to collapse, I agree that all PMs would probably increase steeply in value and trade at a premium.

BUT if you look at the historical spot charts, you can clearly see differences in the price patterns:
- Platinum peaked in '07as a result of industrial demand linked to catalytic converters and demand in the auto industry.  Particularly (I would imagine) in China.

-Palladium, which I will admit I understand the least about of all of the PM's, has oddly barely dipped at all and may now be resuming a bull trend, (perhaps due to short-supply?)  I don't know why this is.  I don't know enough about the metal.

- Gold seems like the obvious choice and the ultimate beneficiary of any kind of currency, or financial risk-related market crash.  It will cause institutional investors to pile into it as a safe-haven.  If the crash is big enough, and the risks to the financial sector are significant, they won't just want ETFs, or mining stock they will want physical.

- Silver is what I am most bullish on.  It looks extremely undervalued from my perspective, and most subject to price manipulation.  Having read around the uses of silver industrially, I see significant industrial and diverse demand that looks set to grow. When you couple that with your average joe non-investor with almost no savings looking for a physical asset to maintain their wealth, I cannot think of a better liquid real asset.

The one thing which may uncouple silver from industrial demand is technological innovation.  Nobody can really foresee that.  But many of silver's current uses are in areas linked to sectors that are price inelastic: energy (solar), medical (anti-microbial agents) and so on which could be enormous growth areas in the future.  But of course the two main historical uses of silver in photography and jewelry may continue to decline if disposable income shrinks globally.

Tue, 05/20/2014 - 08:47 | 4776857 papaswamp
papaswamp's picture

Because when banksters want to pick up physical, they have a paper dump to drop the price. Banksters then purchase physical at a discount.

Tue, 05/20/2014 - 08:55 | 4776889 sessinpo
sessinpo's picture

Haus-Targaryen       How is it paper and bullion have yet to seperate?


I don't understand why others don't see that the futures market is a derivatives market. Most contracts to not expect delivery.

The futures market rotates around the cash market, not the other way around in most cases. Futures are nothing but a derivative of the cash price.

Tue, 05/20/2014 - 10:28 | 4777381 ParkAveFlasher
ParkAveFlasher's picture

+1000.  You can only calculate the value of a future / derivative as a function of cash price and how well it can be controlled, guided, slammed, capped, pumped, etc. intentionally.   

Tue, 05/20/2014 - 09:03 | 4776907 BIHM
BIHM's picture

How is it paper and bullion have yet to seperate?


Arbitrage keeps the pricing in line.  The idea is to keep gold in a perpetual state of 2 steps forward 2 steps back.  This allows affiliated buyers and sellers to control pricing without taking losses.  Look into the buyers and sellers of these anomoly movements and you will find that they are affiliated by entity (so that profit on side A offsets loss on side B) or by strategy (meaning they simply reverse who tekes profits/losses evenly so that it's a wash in the end).

Tue, 05/20/2014 - 09:23 | 4777034 ZH Snob
ZH Snob's picture

Nothing will change until it finally does.  At some point the music will stop, and if you haven't taken a seat yet no one will give you theirs.

Tue, 05/20/2014 - 08:36 | 4776781 LawsofPhysics
LawsofPhysics's picture

More "flight from safety"...

/s  Just say "thank you" and take delivery, if you can.

Tue, 05/20/2014 - 08:44 | 4776843 Winston Churchill
Winston Churchill's picture

Patience LoP.
These paper raids will get bigger before July , then its
game over.Delivery will be THE problem soon enough, but
not yet.i'm buying a little on the dips ,just in case,with a large pile of dry fiat hoping for blood in the streets.
If however ,we see $100 move up in one day, I'm all in.

Tue, 05/20/2014 - 10:28 | 4777386 ParkAveFlasher
ParkAveFlasher's picture

Watch those headfakes, WC. 

Tue, 05/20/2014 - 10:39 | 4777421 BrosephStiglitz
BrosephStiglitz's picture

I am positioned much the same, plus I have a handful of stocks outside the asset bubbles in areas that I see as growth (for logical, well-researched reasons.  Not just  because "the consumers MUST keep consuming", and in markets that appear to be undervalued (for various macroeconomic reasons.) 

The stocks are relatively minor holdings, however. 

Tue, 05/20/2014 - 08:46 | 4776853 lolmao500
lolmao500's picture

Gold is down cause Russia bought 1 million ounce in May.

Tue, 05/20/2014 - 08:35 | 4776783 TruthTalker
TruthTalker's picture

It'sso obvious how rigged it is - yet they do not realize they keep putting gold on sale - allowing people to buy more! Most gold owners won't part - even if they slam it down to $700 - the writing for the US dollar is on the proverbial wall and even a 1st grader can read it

Tue, 05/20/2014 - 08:37 | 4776793 CH1
CH1's picture

Most gold owners won't part - even if they slam it down to $700

Holders of phyz won't (me included), but the paper guys will.

Tue, 05/20/2014 - 08:53 | 4776876 Azannoth
Azannoth's picture

Like Hell I am gonna sell at 700$ if I bought at 1200$

Tue, 05/20/2014 - 09:32 | 4777041 BrosephStiglitz
BrosephStiglitz's picture

The only way people will actually sell their physical for a lower price is if they are squeezed by rising costs to the point of bankruptcy and are forced to liquidate just to stay afloat.

NB: there is normally a liquidation phrase prior to the onset of an economic crisis that pushes the price of PM commodities down.  Depending on the nature of the crisis, the PMs can then rebound.  It's a good buy-in point for someone who has eyes and ears on the ground at the crisis epicenter.


Tue, 05/20/2014 - 09:34 | 4777101 free_lunch
free_lunch's picture

No problem, they are working on it at warpspeed..

Tue, 05/20/2014 - 10:41 | 4776867 813kml
813kml's picture

Sorry guys, it's my fault.  I was playing online poker and accidentally clicked "Manipulate the Gold" instead of "Capitulate and Fold".

Tue, 05/20/2014 - 08:35 | 4776785 Solomon the KING
Solomon the KING's picture

thank you ZH

Tue, 05/20/2014 - 08:36 | 4776787 Bill of Rights
Bill of Rights's picture

"May the Farce be with you"

Tue, 05/20/2014 - 08:41 | 4776811 free_lunch
free_lunch's picture

“Lenin (the founder of the former communist Soviet Union) was certainly right.  There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.  The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”.


Many people do not realize that inflation is with us, and it is an extremely destructive hidden tax, especially on the poor of all nations of the world.  Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket.

Suppose, for example, the inflation rate is 3.5%.   If you have $30,000.00, in ten years it will only buy $20,550.00 worth of goods.  If the inflation rate is 5.5%, (which is closer to reality, as inflation is often underestimated by the government’s measurements), your $30,000.00 is worth only $16,650 in ten years.  This should be enough to scare anyone.  Let us explore what inflation is and why it is occurring:


Marc de Mesel, inflation the hidden tax explained:

Ben Bernanke admits to Ron Paul that INFLATION IS A TAX:

The CPI is no longer a tool to accurately measure inflation, but an instrument of propaganda the government uses to hide accelerating inflation from the public and financial markets.
Inflation Propaganda Exposed:

Those who control the money supply, control everything. Documentary:



It's a game of survival, the only way to survive is to compete your neighbor, your friends, your family, the world. Because as the amount of money grows, so does the amount of losers imminent to the system of money creation. More money supply = tougher competition = more losers.(*)
This means that QE is not creating jobs, but destroying them, bringing job competition to the next level. (more competition = lower wages)

So people who have to actually WORK for a living are attacked at two fronts: the money earned loses buying power due to inflation, and their wages are under pressure due to job destruction effects of QE. Because of this, the economy get's worse, since workers are also consumers(if they earn enough to do so.). Stock markets have nothing to do with this, the only reason they go up is because that's where the fresh QE money is pumped in by the banks buying up everything worth owning, with prices being no restriction to them since they can print money for free.. So gues who will own it all in the end..?


(*) When the money supply grows, so does debt and it's worst feature: un-payable interests(the money is created as a loan at interest, but the amount of money necessary to pay interest is not created, since you only get the amount of principal when you take a loan. The system ensures there is always more debt than there is money. So debt can never be re-payed. This design flaw ensures unemployment is imminent. Because money is always scarce, in fact the more money there is, the more scarce it becomes (because the owed interest grows with it, but is not created).

This effect multiplies as the money supply multiplies..

Therefore, even if John has a leaking roof and Joe is capable of fixing it. John cannot hire Joe, because he needs the medium (money) to make the transaction. Therefore money directly effects employment, it does not matter how skilled and eager Joe is to work, he won't get the job because the law enforces them to use the medium that is always scarce by design. The only reason the economic transaction between John and Joe can't take place, is because the medium they need to act is beyond their reach: money. This is an example how the economy is restrained by the monetary system / policy. Not because lack of demand(John), not because Joe is lazy or not skilled enough.

So prepare yourself for job competition going to the next level. Be prepared to compete the food out of your neighbors mouth, so you can survive. And try to find means to fight inflation of the money you already earned.. (something that is made very hard to do, since the usual flight path, gold & silver, seem to have been cut off)

Don't be fooled thinking it will change, it won't because only very few seem to be capable of understanding what I am explaining(count the upvotes). And a lot of the ones that do understand, think it's not their problem since the system mainly eliminates at the bottom. what they are neglecting to see is that if the process keeps going, sooner or later they will be the bottom, since the ones beneath them are being eliminated as the mechanics of the system travel up..

Just try to stay ahead of competition by constantly improving your skills, never stop learning new skills. It's your only ticket to survival..

But hey, this is just my view based on plain logic reasoning... I am sure there are lots of high payed economists who can prove me wrong with  complicated economic vodoo.. (**)

(**) It's like a scientist proving that gravity does not exists by using very complicated formulas, everybody know gravity exists, therefore everybody knows the formulas are wrong, but most of us do not know enough about science formulas to point out where the formulas go wrong. When we argue with them they slam us with their BS formulas, because they know we can't level with them, even when it's obvious it is just that: BS..

And God knows there is a whole army of economists out there spewing out more and more BS formulas, creating more fog.. We even see them on ZH every now and then. So in a way, everybody who engages in this BS talk with complicated formulas is complicit, no matter which policy they are preaching. Discussing these formulas gives them scientific legitimacy. By nature everything is explainable in simple wordings that nearly anyone can understand, so whenever people go out of their way to make things extra complicated, chances are they are just covering something up.

Tue, 05/20/2014 - 09:04 | 4776860 free_lunch
free_lunch's picture

Taxes are one of the two main sources of power. Taxes pay for the system that is used to enforce you to pay them, so they will keep going up untill the point you can't keep up anymore. at which point you will lose everything you got and starve.. (*)

Since the system is a reality from which there is no escape, skills are the only way to slow down, stall, or when you're really lucky reverse the process of losing everything..

You can hope for political change, but that will be in vain, the system is worldwide and extremely powerful. Even(or especially?) the most effected defend it with their lives.(*)

(*) To make the job of defending tax easy, a small part of the taxes is used for handing out to the masses who depend on it for survival. They will defend the system, as it is, with their life (since that is what is at stake for them) The millitary and other government forces are also seduced to defend it, since their wages come from it(for many poor the military is the only escape from poverty). While the larger part is used for spreading and enforcing the system..

Once you understand all this, you will understand that you have to focus your energy on making sure you posess the skills that will get you one of the few jobs left.. Which implies keep learning, because the skills needed change constantly..

Good luck! And don't be evil..

Tue, 05/20/2014 - 08:36 | 4776788 diogeneslaertius
diogeneslaertius's picture
Tue, 05/20/2014 - 08:36 | 4776792 freedom5000
freedom5000's picture

do they conterfet futures contracts?

Tue, 05/20/2014 - 08:36 | 4776794 Sudden Debt
Sudden Debt's picture



Tue, 05/20/2014 - 08:40 | 4776819 Haus-Targaryen
Haus-Targaryen's picture


Tue, 05/20/2014 - 08:44 | 4776844 Sudden Debt
Sudden Debt's picture

to too?

Tue, 05/20/2014 - 08:53 | 4776873 Eyeroller
Eyeroller's picture

two toos

Tue, 05/20/2014 - 09:15 | 4777017 Rubicon
Rubicon's picture

four? (or tootoo?)

Tue, 05/20/2014 - 09:00 | 4776917 BrosephStiglitz
BrosephStiglitz's picture

Oddly no slamdown on silver at all.  Normally these paper gold/silver dumps occur together.

Tue, 05/20/2014 - 09:30 | 4777079's picture

and palladium is completely de-coupled from both

Tue, 05/20/2014 - 11:07 | 4777539 BrosephStiglitz
BrosephStiglitz's picture

Ah, there it is.  The slamdown occurred a little while before the gold one, and they have both recoupled.

Tue, 05/20/2014 - 08:37 | 4776795 dirtyfiles
dirtyfiles's picture

this charts shows clearly "strategic thinking" not a accidents

Tue, 05/20/2014 - 08:45 | 4776849 Sudden Debt
Sudden Debt's picture

it's so idiotic that there simply needs to be a plan behind it to make sense

Tue, 05/20/2014 - 08:37 | 4776798 pachanguero
pachanguero's picture

I'm in Thailand, Pattaya and it's normal as any day.  in the a.m. I go to Bangkok I'lll see it up  close.

Tue, 05/20/2014 - 09:00 | 4776916 813kml
813kml's picture

Be careful, might not be safe to spend the night.

Tue, 05/20/2014 - 08:37 | 4776799 LawsofPhysics
LawsofPhysics's picture

The west bangs it down and the eastern markets bang it up.  Very easy trading here folks...

Tue, 05/20/2014 - 08:38 | 4776804 Devotional
Devotional's picture

This does not affect me anymore, I have learnt to become more patient wiht my gold buying. There is support at 1260 USD and 1280 USD, even with these smashes. Gold WILL go to 1400USD this year, there is support for it. Patience, so what if they dump it today?! In a way it builds confidence.

Tue, 05/20/2014 - 08:39 | 4776808 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

"...despite civil wars, coups, global growth slowdowns, and de-dollarization growing."

Don't forget the multiple earnings misses after hours yesterday and before the open today. 

Tue, 05/20/2014 - 08:40 | 4776813 Shrapnel
Shrapnel's picture

LOL, $520 million only got $7 off the price.

Tue, 05/20/2014 - 08:48 | 4776859 BBullionaire
BBullionaire's picture

and for how long? whats the half life on that?


Tue, 05/20/2014 - 09:19 | 4777028 Shrapnel
Shrapnel's picture


Tue, 05/20/2014 - 09:42 | 4777138 agstacks
agstacks's picture

Less than 1 hour.  Gold just spiked up to 1295 erasing all loses. (For now)

Tue, 05/20/2014 - 09:12 | 4776987 sessinpo
sessinpo's picture

And can we say that the person didn't buy those contracts in April and now sold at a profit. Maybe they are laughing.

Tue, 05/20/2014 - 08:41 | 4776815 devo
devo's picture

You've been Yellened

Tue, 05/20/2014 - 08:40 | 4776817 g'kar
g'kar's picture

"There's not a smidgeon of corruption"

Tue, 05/20/2014 - 08:41 | 4776824 UTICA CLUB XX PURE

Gold is down because I bought 10 bits last week.

It always drops just after I buy.

Its not that hard to figure out! 

Tue, 05/20/2014 - 08:45 | 4776850 CHX
CHX's picture

that's bcs they hedge, don't u no?

Tue, 05/20/2014 - 10:02 | 4777253 CHX
CHX's picture

ps. sorry, forgot: /sarc

Tue, 05/20/2014 - 08:41 | 4776826 Lionhearted
Lionhearted's picture

Yet another opportunity to buy the dip. I love how the fictional price of paper affects the REAL value of PM's. Thank you! BTW if I was selling $520 million worth of paper why would I dump it all at once and devalue that which I am selling WHILE I AM SELLING IT? Why would I not chose to trickle it out at the tops? Oh, Right I am shorting the market.

Tue, 05/20/2014 - 08:41 | 4776827 Theta_Burn
Theta_Burn's picture

Not to worry

Maintaining appearance, AND a buffer for the more sinister real life event that happens everytime we see this.

Ah.... thanks again...

Tue, 05/20/2014 - 08:42 | 4776828 lolmao500
lolmao500's picture

And news out of China says that Russia failed to finish the gas deal with China...

Tue, 05/20/2014 - 08:43 | 4776835 CHX
CHX's picture

Someone pls just make a 100 Million buy order of physical. Just one such little order will end the charade, everybody knows it. Act accordingly.

Tue, 05/20/2014 - 09:15 | 4777015 sessinpo
sessinpo's picture

CHX     Someone pls just make a 100 Million buy order of physical. Just one such little order will end the charade, everybody knows it. Act accordingly.


So let's take your point. Why isn't someone like Peter Schiff or some other person who not only has the assets to do so, but is bullish on PMs. Answer that question, and maybe you'll dig through most of the BS posted on ZH about gold. Never marry an investment, including PMs.

I say that with the disclaimer I hold a small portion of my assets in PMs. I also know historically, PMs go down in a deflationary period.

Tue, 05/20/2014 - 09:56 | 4777215 free_lunch
free_lunch's picture

The point is: gold can not be printed and it is getting harder and harder to get the reamining gold out of the earth. For that reason gold is scarce and therefore a good investment..... That was then...


But then we accepted that someone sells a paper promise to deliver gold, knowing only a tiny % will ask delivery. So now there are promises being traded instead of gold. Promises are easy to create, at no cost. Hence, i promise Jill it will rain tomorrow, while I promise janet the sun will shine.. Promises are worthless and can be created infinitely.

So this paper system has falsified the price of gold by creating the illusion there is an endless gold supply.. As long as the papermarket exists, they can set the price anyway they want.... This is now...

Tue, 05/20/2014 - 10:02 | 4777248 CHX
CHX's picture

...and the 100M order would change the price setting mechanism which is a scam. That's exactly the point, well said free_lunch.

Tue, 05/20/2014 - 10:12 | 4777309 free_lunch
free_lunch's picture

The (paper)gold market has turned into a casino, and we all know who is the real winner in a casino(owner)

Physical is a different game, there is a reason why the East buys physical instead of paper promises..

Tue, 05/20/2014 - 08:43 | 4776836 dobermangang
dobermangang's picture

Retailers are feeling pain.  Home Depot, Staples and Dick's Sporting Goods all had bad earnings.  The consumer is tapped out.

Tue, 05/20/2014 - 09:06 | 4776954 AdvancingTime
AdvancingTime's picture

A big shift is occurring in what consumers are buying. Recently we are witnessing a shift from general consumer goods to more purchases of autos and healthcare. The first quarter GDP just came out with a near flat increase of just .1% yet these two sectors have been outperforming the economy. 

If indeed online and auto sales are roaring up double digits at the same time healthcare spending has increased 4.2% it is only fair to assume small business and someone else is getting their ass kicked. Interestingly, this is all occurring as the government continues to pour out billions of dollars each month in student loans, many of these loans will never be repaid. This can be viewed as more proof we are on the wrong path, more on this subject in the article below.

Tue, 05/20/2014 - 08:43 | 4776839 AccreditedEYE
AccreditedEYE's picture

Between the BIS & Global CB Cabal and CNBS trying their best to mask sentiment the tentacles are all over this "market". CNBS has video of both Merrill Lynch AND UBS wealth mgmt folks (retail) saying to "buy 'em up, sky is clear + new highs by year end", but the CNBS "editors" decide to lead with another scary picture of nervous traders and an old story from last night of "be cautious of high beta".

This is the most managed Bull Run in history.

Tue, 05/20/2014 - 08:44 | 4776842 eddiebe
eddiebe's picture

Our problem is lack of organization.

Tue, 05/20/2014 - 12:59 | 4777948 bluskyes
bluskyes's picture

Our problem is too many organizations.

Tue, 05/20/2014 - 08:50 | 4776862 Azannoth
Azannoth's picture

THANKS! was looking for a good opportunity to get more PHYX

Tue, 05/20/2014 - 09:02 | 4776932 SirTaxedAlot
SirTaxedAlot's picture

Then you should wait till $800/oz

Tue, 05/20/2014 - 10:12 | 4777308 CHX
CHX's picture

<<< You risk waiting for a a VERY long time

<<< Gold hits 800 before it hits thru 1600 again


Which is it?

Tue, 05/20/2014 - 08:53 | 4776872 Jon Steed
Jon Steed's picture

stay on target...stay on target

Tue, 05/20/2014 - 09:09 | 4776971 astoriajoe
astoriajoe's picture

nice reference.

Tue, 05/20/2014 - 09:52 | 4777196 Jon Steed
Jon Steed's picture

Thanks. Looks like two people don't have a sense of ha ha.

Tue, 05/20/2014 - 10:06 | 4777273 CHX
CHX's picture

Focus on the G (gold) spot... hehehe

Tue, 05/20/2014 - 08:53 | 4776875 TexasDan40
TexasDan40's picture

someone was long in gold with futures.

someone either thinks gold will tank, or they needed the funds to invest in something rallying.

you can control more gold with futures contracts than with physical gold.

perhaps this is more of a currency play?

panic?  no, this was measured.


Tue, 05/20/2014 - 10:10 | 4777297 BeanusCountus
BeanusCountus's picture

Leaning towards someone needs to raise some capital.  But not because something is rallyinig.  Perhaps that change to no longer accept ETN's as collateral has something to do with this?

Tue, 05/20/2014 - 08:54 | 4776884 orangegeek
orangegeek's picture

Spot gold's close last night didn't look too healthy


Could be heading down to 1180 before this ends

Tue, 05/20/2014 - 09:45 | 4777163 FieldingMellish
FieldingMellish's picture

Still coiling.

Tue, 05/20/2014 - 09:00 | 4776924 UTICA CLUB XX PURE

Who's the Ahole down ticking everybody?

Tue, 05/20/2014 - 09:08 | 4776964 g'kar
g&#039;kar's picture

A bitter child

Tue, 05/20/2014 - 10:05 | 4777264 CHX
CHX's picture

Gold trolls, a common species these days.

Tue, 05/20/2014 - 10:24 | 4777358 BrosephStiglitz
BrosephStiglitz's picture

My money is on MDB, Ben Bernanke, or Jim Cramer.

Tue, 05/20/2014 - 09:03 | 4776937 SilverIsMoney
SilverIsMoney's picture


No one wants to break the Comex because they all know theyll just be Hunt Brothered... Whats the point in trying if you know youll lose?

Tue, 05/20/2014 - 09:58 | 4777231 CHX
CHX's picture

Try and hunt brother China or Russia... but I know, I know. It'll happen either way, the slow-at-first-and-then-all-of-a-sudden-way. When gold is freed (from the paper gold scam), it'll be smth to remember...

Tue, 05/20/2014 - 09:04 | 4776944 AdvancingTime
AdvancingTime's picture

This is more proof that the vaule of everything is constantly changing. Because of the uncertainty in today's market and the direction events might take the subject of "value and worth" continues to garner a fair amount of interest and remains relevant.

History is chucked full of  distorted markets, debts unpaid, promises unfilled, and bubbles. These "interesting times" play havoc with the value of things and what they are worth. Like some of the cruel games children play you don't want to find yourself without a chair or holding the "hot potato" when the game ends. Below is the full article sporting a minor facelift and update.

Tue, 05/20/2014 - 09:04 | 4776948 agstacks
agstacks's picture

Not to worry folks, just a few more months of this and we'll be "golden" come August 15th.


Tue, 05/20/2014 - 09:06 | 4776955 lakecity55
lakecity55's picture

Ah! A slight discount today. I must place an order for fizz!

Tue, 05/20/2014 - 09:07 | 4776959 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Every single retail earnings number is a miss this morning. Must be a green day for stocks. They couldn't even manipulate this shit--they need better accountants. 

Tue, 05/20/2014 - 09:08 | 4776963 astoriajoe
astoriajoe's picture

They should rehire that guy or gal who was working the desk in April '13. Whoever was working that week really knew what they were doing.

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