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Gold Breaks Below $1250 - Worst Week In 8 Months
It would seem this week's technical breaks in the precious metals was the perfect testing ground for junior Barclays traders to wet their whistle with "sudden bursts of sell orders." Gold - once again - has seen a sudden heavy volume purge in futures ($1.7 billion notional worth in 5 minutes) that has pressed spot prices back under $1,250 and heading towards it worst week in 8 months...
Nothing odd here at all...
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Meltdowwwwwn!
Just saying.
I'm surprised there are still any reserves left to dump on the market in bulk.
it's not like they actually give you paper... it's digital now
When will goldbugz realize that the game is up? Gold has been trading in this range for years now, and the chart is clearly indicating that the ride is over. Equities on the other hand are making new all-time highs day after day, month after month. Just think, the average retail investor with no clue about the markets is watching his bank account explode as he simply funnels money into equities - what could be easier? Some are even getting rich with leverage! If I were a goldbug I would be very jealous of equity investors, having to watch my savings dwindle while equities soar.
This is likely to be the liquidation phase of an imploding Chinese financial market. Bullish for equities given electronic trading times? Yes. Bearish for PMs short-run. Needs time to transmit to the real economy. Give it time.
Bitcoin is back over $600 today! Go Bitcoin!!
https://btc-e.com/
I know gh0at. Like I said.. I bought into BTC last week after having hated it for months. Waves from the Chinese economic situation will hit BTC ahead of gold/silver (which are still in a liquidation phase in the financial markets).
Within a few months I see a gold/silver uptick starting again as the transmission hits the real economy. Churning profits in Bitcoin or now, will channel back into PMs when I see this last bear leg bottom out.
gh0atrider believes Bitcoin should have a long-term uptrend with lots of volatility. Gold and Silver will be worth what the cartel says it's worth until it explodes all at once.
Everything is about timing, my friend. Gold/Silver they have a psychological perception that bitcoin doesn't. Especially outside the US.
If you went into a shop in rural China, or India and offered them a gold coin, or an encrypted string of numbers, which do you think they would accept?
Gold and bitcoin are two similar assets with some differing properties. Timing trades in both will be crucial. I still think all of the cryptocurrencies face enormous political resistance. When I see mainstream politicians and banks fully embracing it I will change my tune, but we both know that won't happen for some time, if ever.
The Reserve Bank of India estimates paper to gold leverage at the LBMA is 92:1.
This price is a digital fiction and can be set pretty well anywhere to keep sentiment down.
But the metal to supply the market both from mines and central bank leasing will dry up.
The metal is real - the LBMA and NY markets are a fiction with a fast approaching expiry date.
Yup. I have researched gold/silver extensively, platinum a little (thanks to your earlier link), and Palladium. I have also studied Bitcoin these past two weeks.
Obviously being an economist I know all about the basics of equities and bonds. All about QE. I'm studying monetary policy in depth right now also.
Equities will be a good trade again at some point in the future. Market entry right now is foolish. The same applies to bonds.
PMs will dip one last time. Bitcoin is rallying. Good buy in point. Ride the wave, cash out back into more PMs.
Obviously I am not selling the PMs I have accumulated to date (starting Dec '13).
you can see the frontrunning in the Vol.
S&P over 1900 and gold Under 1300 we all know its fake paper games!
Have to agree with you. As long as the status quo exists, crypto currencies will either be coopted or destroyed. The current hegemon will not tolerate a competeing currency. I would love to jump into Bitcoin, but frankly I suspect that the TLAs have already compromisied it.
Hahaha what a laugh. The status quo? They are completely powerless against Bitcoin.
The status quo people are NOT powerless.
9/11 was the largest psyop in history and still to this day no world leaders apart from Ahmadinejad will tell the truth about it. Mossad flew drones into and then demolished those buildings from WTC 7 along with cooperation from elements within the CIA. Anyone who waches WTC 7 fall down in 7 seconds and still accepts the official story is a brainwashed zombie or an agent of the state.
Mossad did 7/7 aswell along with MI6 to push the UK into war, the bombs were planted beneath the tubes ffs! The list goes on...Sandy Hook/Boston Bombings/Batman shootings...ALL fake psyops run by the CIA to pass gun control law on the US citizens.
Finally, the most recent Psyop is the LIMITED HANGOUT SNOWDEN/GREENWALD FAKE LEAK. Snowden admits to being a CIA stooge on national television and reinforces 9/11 rubbish. REAL JOURNALISTS WITH REAL INFO IN THE US AND RUSSIA LIKE MICHAEL HASTINGS INVESTIGATING CIA HEAD JOHN BRENNAN OR ANNA POLITKOVSKAYA ...
GET KILLED...
Sure, the status-quo can go and whack some people. Set off a few bombs. Blame some other people. Weather warfare and invade some new countries.
But they are ultimately powerless against what people do and say online, what code projects happen, how many people choose to adopt and use new crypto-currencies. At the end of the day, they are just another group of criminal thugs. Powerless against time, powerless against the people and powerless against death.
Christ, you really are a goat. They can kill people and start wars with impunity, but they lose because they .... can't control what we do online? Like jack off watching porn? Yeah, we win allright.
Fucking idiot.
IMO, I don't believe it is nessary for banks or governments to embrace crypto-currency. Only for widespread adoption of the publc. Remember Napster? The music industry never embraced that and they did kill it. What took its place? BitTorrent, peer to peer networking dramatically altered the music industry.
P.S. If you are going to "go off" dissing Crypto-Currency, please provide some credible argurments and even better, credentials. If you don't know what peer to peer networking is or the TCP/IP stack, you should really keep your opinions to yourself. -just saying, there is room for intelligent discourse/debate ...
"If you are going to "go off" dissing Crypto-Currency,..."
Yeah right buddy. Governments have a great track record of leaving people alone, especially when it threatens their power and control (/s). You are living in a dream world if you think Bitcoin will be left alone when it has the potential to destroy central banking. There is a world of difference between gold and bitcoin. You actually have to break down someones door to get their gold. Bitcoin is a little easier to "get to".
For your education pleasure:
http://en.wikipedia.org/wiki/Pretty_Good_Privacy
http://en.wikipedia.org/wiki/BitTorrent
http://en.wikipedia.org/wiki/AMPRNet
http://www.theverge.com/2014/2/18/5422606/communist-romania-dubbed-vhs-t... VHS vs. Communism: How Chuck Norris and Sylvester Stallone infiltrated Communist Romania
Live in ignorance and fear or educate yourself, the choice is yours...
double post...
I'll take crypto-currencies seriously when we start seeing some get asset-backed. I mean come on, Bitcoin/Litecoin ratios... conversion rate from unicorns to leprechauns?
TCP/IP is a wonderful subject that can keep you in awe your whole life long. One engineer put it very well that he was a life-long student of TCP/IP. The possibilities with P2P and blockchain technologies are amazing and endless.
I wouldn't pay even 1 US cent for a 'virtual' coin. I don't trust anything which I can't hold in my own two hands. People laugh at me because I still post letters instead of using email, I only pay with cash and I only keep hard copies of my important documents. But I just don't trust purely electronic items - what's preventing them from simply vanishing into thin air?
Math.
the power of "math"????
The rabbit wants his hole back, chupacabra. I've worshiped at the feet of many idols, but math is a bridge too far.
There are a few reasons why Bitcoin can and will hold value over the short-term horizon. There is definitely a stigma regarding physical/non-physical.
Like I said. My bitcoin horizon is short-term for now. It's a risk for many reasons. Political, electronic, and techological. It also has some good qualities though. It is an easily accessible hub of speculators, day traders, solves the double-spending problem, reduces transaction costs. It has momentum right now, no doubt.
Stocks might rally into next year. Bonds will rally indefinitely until there is a sov. debt crisis.
What if?.... your bitcoins were never really there? :o think about that man.
"Officer, I'd like to report a theft. My bitcoins are missing."
"What's a bitcoin? "
Do you think there are going to be any LEAs and officers who have not heard of Bitcoin when it breaks five, six and seven figures?
What if?.... The governments couldn't afford to repay their IOUs (paper money)? ;)
Asset values, monetary system adoption and so on is all a function of confidence and enforcement. So much relies on what people actually believe. Not what they know.
There may or may not be a stigma regarding physical/non-physical. Probably irrelevant.
Bitcoins can be programmed into existance. We already have a wide variety of buttcoins to choose from.
For precious metals you need a star to explode first.
I feel the same way about girlfriends
The only time million dollar boner can come out to play, when AG/AU is smacked down during options expiration, with phony paper gold, leveraged at over 100:1!
Maybe he can purchase some of his favorite Lululemon yoga tights with Shitcoin...
Maybe intelligent people will be purchasing all goods and services all over planet Earth using Bitcoin? By the time ZH's realize that they will have missed the boat and people will laugh at them when they say they were fighting the Fed years ago.
Dude totally, and they can like grow food and plant some trees. mayby we can teach the trees to transmit bitcoin transaction for us to someday....
Yes. Perhaps there will someday be a way of merging blockchain type technology within DNA? And perhaps have pollen spread and distribute the blockchain?
You see, if you actually think you don't have to be dumb.
Agree with most of what you say, but there is a desire for anonymous transactions. People want a way to move/pay money without relying on the government to have their hand in everything. SAR reports for 10k+ when 10k is hardly anything anymore. Bitcoin is what is in for now, I see darkcoin coming though. Maybe it is just the latest fad but in an ever increasing pool of cryptocurrencies that aren't really taking off like expected, darkcoin is doing well. People really do want anonymity more than another cryptocoin.
http://www.wired.com/2014/05/darkcoin-is-booming/
What is interesting is no one knows how big the market is for "crypto currencies."
I'll put five bucks in the machine if I can still get my coffee and bagel in the time it takes to put the five bucks in then walk across the street to Dunkin Donuts to get the real thing.
In theory this could all be done tax free actually.
Take a look a Snowden. Think the Goverment(s) really are on top of this thing? If it only costs me a hundred bucks to build and install the ATM...charge the retailer 5 bucks a month...you'll see a customer explosion.
gh0atrider likes the Darkcoin concept but for the moment the documentation and peer-review seems to be lacking. gh0atrider has still installed the QT client though.
MDB...
You're one of the few on this board that gets it. Gold and silver are in a long term downtrend and those charts look awful. PM holders have gotten crushed and I was one of them until fall of 2012. When gold failed to break 1800 for the upteenth time I knew we were in trouble. I held on until 1580 and dumped my gold, my silver (somewhere around 32 bucks an ounce) and nervously held in cash. After being out of PM's and the GDX/TGLDX/GDXJ, I can see how powerful the urge to "keep stacking" is and at the same time ignore what the broader market is telling you. Its a cult. It really is. And once you have 50 to 100 thousand dollars tied up in coins and bars you fall in love with it. The equity market will continue this uptrend, for at least 2 more years. S&P 2500 by end of 2015 (at least). Why fight this enormous monster? Look at that S&P chart vs gold. That bull has a head on it and will destroy the shorts and PM owners. We arent at maniac stage yet. This first half was great for the market. Slow steady growth building in all kinds of support. Equities are the only game in town for awhile and if Silver breaks down under 18.50 it could get real painful real quick.
GSR > 66, BTC/Ag > 31.5,
and my personal favorite:
Pt/Ag > 77.
And, yes, I still have some Pt from when it was below parity with gold. Averaging in and out is a simple, if not easy strategy.
I don't know of anyone who buys gold who doesn't also buy equities in higher ratios. We don't sweat shit like this nor do we sweat (as much) when markets fall.
Logged in just so I could upvote this.
As long as Joe the plumber doesn't get it, the few of us that do will keep getting screwed. Chances are good though that the banksters will pull the old switcheroo one of these days, and then it will be our turn.
Very good point. The truth won't ever matter if no one else believes it. Dumb money will never even be in the fucking game. They do as their told. No one rocks the boat and the cruize continues.
Get off my lawn!
MDB, this is going to be a circuitous route. Gold and silver will get smashed some more. Chinese consumers may even try to sell some of theirs to help with their building slump ala 2008. But Japan is going to implode, that money, now feeding our stock market will jump out. Gold and Silver will be the benficiaries. Just wait, the game is only in the 4th ining.
eom
There's not enough paper on earth for that, it's all just adding 0's on computer screens now.
maybe sound stupid,
but monthly silver chart
RSI just make a nice triangle and it is on lower support.
in june maybe strong sell off just to clean the longs out and then start to go up.
but never mine coz my oz still got 31,1035g of silver
Palladium still within a few dollars of it's all-time high. Go figure.
Probable supply shock on the back of NATO/Russian sanctions. Might be linked to anticipation in futures. Hard to say without access to good information.
Platinum also has supply issues. Civil unrest in S. African mining sectors.
I stay in South Africa- the new problem here for the paper markets is coming from the miners, they are demanding transparency in how the platinum is priced! (Could be a game changer) or not. But the 18 week strike at platinum mines must be making some people sweat. Wouldnt like to be short!
Question: Who is platinum into the market under these conditions?
Yeah. A lot of the miners seem to be really bent over by the disconnect between financial markets, monetary markets and the real economy.
My guess is that similar issues will (and can) arise in gold and silver mines, but since platinum supply is a lot more scarce, and less diversified the supply will feel the pinch first.
It's a SALE! In the overall scheme (yes, a market scheme in the literal sense of the word, by evil schemers/scammers), I think this is a buy. Who cares if it drops further...it's real money worldwide and when dollar confidence fails, this real money will show it's metal.
Secede or Die
I think now by the time gold would 'pay off' it will no longer matter anyway....like in the real world a stick of beef jerky will be more valuable than a bag of gold. Just sayin.
IIRC, Armstrong has long been forecasting gold must correct down to 1000-ish before it can once again renew it's long-term bullish trend to higher highs.
Either gold is not an inflation hedge or there is no inflation. Take your pick.
Or someone else just got their vault space filled with IOUs.
Paul volker said it himself. It was a mistake not to control the gold price in the 80's. They aren't making that mistake this time.
yes, but this go around it will be like a boomerang that takes their fucking heads off. Countries like China & Russia will have a lot more say in what gold will do in the upcoming years. They were third world shitholes in the late 70's & early 80's.
So, you don't think the same psychpaths running London and NY aren't also running Moscow and Beijing?
No, those are Russian and Chinese psychopaths.
Just look at the Biderburg attendees.
In the Great Game, the first 30 years of a new power, thay play things pretty straight.
Timing.
Well put, Charles Nelson Reilly. And I think this is what Putin meant when he said "secure their gold reserves" as in "add to their gold reserves". And once more, the banksters will control the gold price until they have cut off their nose in order to spite their face. Another analogy in my mind would be to explode the back of their collective head in order to hold back sneezing in Church of the Holy Dollar. Nothing will remain intact but a goo-backed face, hand still raised in an eternal nose pinch.
"Abyss" my ass, the only "abyss" that can be stared into is from the C-suite window on the top floor. Now come to poppa, it's the sudden stop that gets you.
Yes, now about that oil "market"...
What about it?
And that is probably why the global economy won't recover. Do they really think knocking down the asset that 80% of the world uses as a savings vehicle was a good idea? Ultimately, they are just wasting time and wealth. After gold moves, the economy will be on solid asset footing again. Then we can have a real recovery.
IMO, there will never be a recovery, only a paradigm shift. Chris Martenson made a good video a couple of years ago: "The Crash Course"
That all you got? A B&W world of two (false) choices?
Unless you're being sarcastic, in which case you're quite funny.
I strongly suspect that Capitalist knows that inflation exists.
Where?
Aside from the obvious cost push inflation related to oil....
Right, because you only need a shovel + a pair of hands to dig out and process 1oz of Au. In the current deflationary labor market it doesn't cost more than $150...
/idiot
Talk about a non sequitur....
The discussion is about inflation and the lack there of...
And when the Chinese RE bubble pops it will be even more obvious...
Gold is not strictly an inflation hedge, its a hedge against financial collapse. Rolling TBills make a better inflation hedge... unless the currency collapses.
either the democrats are bad or the republicans are bad, take your pick
must retake either/or class
No, they are both bad, but one is demonstrably worse...
The lesser of two evils thingie...
see: accomplice theory of liability
See: gerrymandering....
see: http://blackboxvoting.org/
no political party or philosophy has the monopoly on voting system corruption
It takes both our parties to:
screw up our constitution
screw up our land
screw up our water
screw up our energy
screw up our foreign relations
go to war on lies (especially when they're obvious)
ignore and fail to prosecute war crimes
ignore and fail to prosecute financial crimes
plow our country into unrecoverable debt
create a system that actually steals wealth from its people
create a tax and legal system that now blatantly favors the ultra rich & powerful
No real argument from me...
The roots of it lay in Santa Clara v. Southern Pacific...
Unrigged.
I thought they caught that guy from Barclays who was doing all the gold rigging, and now it's an honest market again.
Where there is one cockroach...
... and you kill it, then you don't have a roach problem, right?
There's never ONE roach.
It's the system which instititionalizes this manipulation, by allowing naked shorting, paper contracts influencing physical price, no position limits, no transparency, etc.
And they DON'T want to change that.
Don't you think the intrepid financial media would tell us if there was widespread manipulation in the gold market?
REALLY? A GLOBAL price manipulation scheme, they march out ONE GUY (or should I say lamb?) and you really thought it was fixed?
Are you serious? Or being sarcastic?
Manipulation... or Deflation.
Which gold coins are your favourite?
67 canadian 20 dollar
2011 Panda. Cute little fuckers.
The American Gold and Silver Eagles, current version. The Buffalo Heads are beautiful too. Dignified. One of the last fine items this country still manufactures. Of course they are from earlier designs. The new coins are inferior, worldwide. China's are the ugliest.
The ones with the crappy chocolate inside that Santa used to bring me.
Those were investment grade.
U.S. Liberty Head Double Eagles
1892 vintage US $20 gold coin (I'm the 4th generation owner of it now). Heavy enough it would hurt if you dropped it on your toe. I recall it being like 1.6 oz or so when I threw it on my digital postal scale a while back.
In 1892 it was worth, obviously, $20. Now in gold weight alone it's worth about $2,000.
Just a little reminder what inflation can do- even a little bit- over time.
How much was trans-atlantic passage then?
Limiting ourselves to second class gives about $23 or 1.15 oz of Au for a one way ticket...
You can fly one way on coach for about .375 oz
The relative value of the MOE means nothing....
There are countless other examples like the above....
Convert the price of a gallon of gas in the 60s for example...
How is your Kodak stock these days?
Whats the matter, you can't handle facts?
BTW, never owned Kodak...
Your argument is serpentine as I just showed.
Hardly....
You clearly have a hard time differentiating between an Asset, a MOE and a Consumable Good/Service...
Kruggerands
Yeah, something about the durability of crown gold...
Five nine maples
Give you one guess. 4 9's pure, minted in a country that doesn't have serious beef with anyone. Should spend real well when I need it.
Must be all those Chinese and Russians selli.... uh, hmm, on second thoughts they are probably the ones that are grabbing all that thrown away gold gifts!
Well put.
Bitcoin is doing fine.
Wait till someone actually orders real metal, clowns...
The first time somebody tries to take delivery, they will recieve a nailgun with instructions on how to use it in the mail.
full metal jacket
just my luck... i thought it would turn after yesterday...
How does one really "price" anything when real price discovery is not allowed?
Oh well, it's getting cheaper to store/save some of my purchasing power, so thanks for that.
I'm seeing $1180 by OPEX LoP.
If you can actually get phyz then is the question.
The last hurrah for COMEX, and the LMBA IMO.
COMEX is cash settlement or if you prefer shares GLD....
Wake up....
This is what all the goldbugs get for fucking with the BOE on twitter.
Why?
Gold bugs aren't looking to make a buck. They're looking to make an ounce.
Watch out.
Give them an ounce and they'll ask for a pound (sterling).
Shit if I knew this would be the result, I'd fuck with them more often. I like getting moar for my fiat.
Fucking criminal, but there isn't a damn thing we can do about it.
They dug themselves a nice gold debt hole. They are trying to dig themselves out of by going deeper. I say throw them another shovel. Let them dig. I'm not complaining about free stuff.
yes there is -
1. buy it on sale
2. wait
3. Sell at a loss when your wife insists that the kids need some groceries.
That just means someone else is buying low.
4. If you have to sell gold for groceries to feed your children, you shouldn't own gold in the first place.
...and you should start a garden
The kid can forage in the garden. I'll eat my beans and rice.
BTFD, Bitchez!
My rules for trading gold are:
That giant smackdown filled both 1&2 and both especiallies.
We really do need that long-promised dump of general stocks...
and it burns burns burns, that ring of farr....
I have schiffradio on in the background. I am just waiting for a profanity laced tirade followed by a single gunshot at this point.
LOL !!!
I'm sure a lot of us feel the same way.
No surprise it breaks down as stocks break out to more effortless new highs. Market participants (I won't call them investors) have learned that the Fed calls all the shots, and they understand what the Fed wants with gold.
Nothing changes until the Fed loses control. And when and how the hell is that finally gonna happen?
The whole gold manipulation thing is a lot easier to deal with if you short the miners. Of course, it feels a little bit like beating up the special needs kid at school and taking his lunch money...
So? A libertartian should be all over that trade....
I really wonder how they can play these games endlessly, in a time of economic chaos, without ever having to produce any gold.
Why are these paper markets allowed ANY role in setting the price for the real metal at all????
Answer: because the governments are complicit.
by cheating
They can do it because they own the governments. And they have directed governments to create laws that allow them to replace defaulted IOUs in the form of Gold Contracts with other IOUs in the form of Federal Reserve Digits. And of course they can manufacture those digits endlessly for the occasion.
So long as those laws exist - or more accurately - so long as they can keep people in that rigged market - there doesn't have to be any actual metal at alln metals trading. All non-deliveries will be met with freshly created digits that one is compelled with legal force to accept.
Of course, if you can go to another market where you might actually get what you buy...then their market turns into a ghost town.
This is what capital controls are for, to keep you from getting to that other market.
At some point we'll see some other "credit event"...or a crisis of doubt in the area of collateral acceptability again. Or someone will be unable to roll over a debt.
And then ALL the roaches will want physical metal again. Remember last time...2007-8?
Paper Markets rule everything. Billions of paper contracts produced and later canceled out everyday.
Paper rules, well except for scissors.
in other news, I took a nice dump this morning. Not a fake one like these cocksuckers at the BIS do to gold every other day.
this shit is so phony and whack...
100 of trillions counterfeited into existence out of nothingness and Silver is $18 an change???
Gold under $1300???
keep stackin....
DEATH TO THE MONEYCHANGERS..
Keep selling you paper panicked people! Sell that paper gold!
Are we there yet? No? Well then keep stacking, packing and racking.
And PTL that you can BTFD. Next topic?
So, we are either on the cusp of the most non-inflationary, real, economic growth in the annals of economics or stock prices are massively over-valued vis-a-vis the forward earnings "reality." Right? So whcih one is it?
...depends if you have access to the newly-printed free money or not. Looks like Real Economic Growth to them...but looks like a goddamn depression to me and my neighbours down here in peasant-land...
gee Ollie, it couldn't be cuz the Austrians demand audit of their (former) gold held in London, could it?
Since Jim Rickards suggested buying Gold in "The death of money" just six weeks ago the price has fallen $100 Oz LOL