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Gold Spikes To 3-Month Highs

Tyler Durden's picture




 

It appears the same 'contagion' that is driving copper prices higher is also impacting gold and silver this morning. As we have noted previously, the CCFD unwind drives synthetic short (hedge) covering and inevitably rolls down the curve to drive spot strength (as the paper gold market tail wags the 'physical' market's dog). Gold is at 3 month highs and silver getting close.

 

One wonders if the following disclosures from Bank of America early this morning had something to do with the move: 

  • Strongest weekly buying of Gold in more than two years
  • Large specs increased their Gold and Silver longs at the strongest pace in two years 

Charted:

 

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Mon, 06/30/2014 - 14:08 | 4910408 Bastiat
Bastiat's picture

While the USD takes a stiff left jab to the snout.

Mon, 06/30/2014 - 14:20 | 4910495 Say What Again
Say What Again's picture

Is this the "excuse" for the ramp up in SP500 & RUT today? </sarc>

  -or-

What IS the excuse for ramping up equities today?

Mon, 06/30/2014 - 14:23 | 4910518 JRobby
JRobby's picture

The market is open.

Mon, 06/30/2014 - 15:19 | 4910841 Soul Glow
Soul Glow's picture

Qingdao, bitchez

Mon, 06/30/2014 - 20:14 | 4912112 Jack Napier
Jack Napier's picture

The bottom was in. You didn't hear it here first. Gold at any price is still a better deal then holding the debt based reserve notes we are auto-invested in as participating members of society.

Mon, 06/30/2014 - 14:24 | 4910520 gh0atrider
gh0atrider's picture

V is giving a date of July 15th and Lagarde is giving cryptic references to July 20th.  Things are heating up fast!

 

http://www.youtube.com/watch?v=V8otCSAJ4ok

Mon, 06/30/2014 - 15:34 | 4910891 DoChenRollingBearing
DoChenRollingBearing's picture

$629

+ $6 (https://ounce.me/)

 

EDIT: now $632, on a run as well.

Mon, 06/30/2014 - 15:32 | 4910915 TeethVillage88s
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Nice, never saw that program before. Too bad we only have 1/2 hour of the conversation.

Mon, 06/30/2014 - 16:45 | 4911239 gh0atrider
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gh0atrider just subscribed.  It's only $5 a month and great guests everyone here will recognize plus a few new ones.

Mon, 06/30/2014 - 14:27 | 4910536 Australian Economist
Australian Economist's picture

Short week, so Monday is the new Tuesday

Mon, 06/30/2014 - 14:33 | 4910569 dracos_ghost
dracos_ghost's picture

42.

What IS the excuse for ramping up equities today?

Mon, 06/30/2014 - 14:10 | 4910426 DoChenRollingBearing
DoChenRollingBearing's picture

Even mainstream money managers say 5% of net wealth could be held in gold.  IMO, that could be up to 20% if you are prepared for the volatility and if you are extra-worried about the financial system.

Think longer term...

Mon, 06/30/2014 - 14:16 | 4910452 lordylord
lordylord's picture

5%?  20%?

Only one question needs to be asked to oneself when buying gold.  "Do you trust your government?"

Only one question needs to be asked to the other party when buying gold.  "Do you still accept dollars?"

Mon, 06/30/2014 - 14:51 | 4910664 Harbanger
Harbanger's picture

I take it to mean 20% of what would otherwise be your cash savings in a bank account.  I have small change in the market.  I have about 80% of my savings in pms.  Every circumstance is different, most people have little savings, IMHO you should have some cash at hand to ride out the initial shock and bank runs.

Mon, 06/30/2014 - 16:04 | 4911073 ChiangMai
ChiangMai's picture

 

How about, for liquid net worths of $1M and more (less than that, obviously adjust accordingly; for example, income-producing real estate likely not feasible) currently held in US "dollars" and dollar-denominated instruments, after all feasible emergency prepping is complete:

• 25% gold & silver bullion (bars and/or coins)

• 25% income-producing real estate

• 25% barter items (9 mm ammo, cigarettes, alcohol...  ;-) )

• 25% cash *

* all in nickels ;-) :

Current melt value 4.96¢  , were at 6.8¢ when Kyle Bass bought 20 million of them ; i.e. fireproof, heavy and thus hard to steal, and can't go below 5¢ each in money value.

 

Mon, 06/30/2014 - 20:17 | 4912141 Jack Napier
Jack Napier's picture

I like the way you think ChiangMai. Probably because it closely resembles my own ideas, which are not my own, but are still well and good.

Just don't forget the food supply and water purification, and a few benjamins for diversification (:

Mon, 06/30/2014 - 14:15 | 4910468 Fuh Querada
Fuh Querada's picture

5% is noise. I agree with 20%, the question is what the other 80% is supposed to be.

Mon, 06/30/2014 - 14:17 | 4910482 ZeroPower
ZeroPower's picture

Very subjective, my preference however: income properties, land, fine art.

Mon, 06/30/2014 - 14:21 | 4910504 Fuh Querada
Fuh Querada's picture

I was interested in fine art too, until I googled "Beltracchi"

Mon, 06/30/2014 - 14:29 | 4910545 ParkAveFlasher
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I would say invest in any income-bringing enterprise dealing in food, sex, shelter, or death.  There is a reason why in the ghetto, it's all about pimps, playaz, hustlaz, and the Repo Man.

Mon, 06/30/2014 - 14:33 | 4910565 NoDebt
NoDebt's picture

"It's jsut you and your tattered libido against the bank and the mortician forever, man, and it wouldn't be luck if you could get out of life alive."

Wed, 07/02/2014 - 02:57 | 4910883 Lore
Lore's picture

@ZeroPower: I hope your fine art is VERY FINE.  A friend who made his fortune running a west coast wildlife art gallery and retired this summer confided to me that the market is "Very slow."  Boomers inflated the supply of colour reproductions for 20 years, and millennials aren't picking up slack.  They don't WANT heirlooms.  Antique stores are falling like autumn leaves.  I think it's sad, because family roots are stored in those old keepsakes.

Mon, 06/30/2014 - 15:07 | 4910771 toothpicker
toothpicker's picture

Silver

Mon, 06/30/2014 - 14:34 | 4910574 Harbanger
Harbanger's picture

DoChen.  I'm going to be buying pm's again.  I was thinking of buying some palladium,  Any thoughts about it?

Mon, 06/30/2014 - 15:02 | 4910736 DoChenRollingBearing
DoChenRollingBearing's picture

I like palladium!  But, I would only recommend a small holding (illiquid, and who knows Pd?).  It is only 2% of my PM holdings.  Pd would do great if they find a way to use it (vs Pt) in diesel engine catalysts.

Mon, 06/30/2014 - 15:16 | 4910828 Harbanger
Harbanger's picture

My attraction to it besides it's rarity, is that Russia has large stockpiles of it that I think it will use in the future as a way of backing their currency.

Mon, 06/30/2014 - 20:21 | 4912150 Jack Napier
Jack Napier's picture

PGMs don't have the resale-ability that gold and silver do, because they aren't engrained in the human subconscious like gold and silver are. I'm bullish on all metals, PGMs especially in the near-term for supply chain disruption, but silver is your best bet for most undervalued. Gold is your best bet for bribing any unwanted "visitors".

Tue, 07/01/2014 - 06:47 | 4913181 goldsansstandard
goldsansstandard's picture

The big advantage of gold over any other element or commodity is that it it's stock is eighty times larger than the flow .

The idiots on WS ,taught that gold was not money, tried oil in 2008 as money. all the storage room in the world was filled after a few months, and the value plummeted as the hoarding demand died, along with consumer demand.

Mon, 06/30/2014 - 15:33 | 4910917 fencejumper
fencejumper's picture

I bought most btwn $310 - $500, but have paid as high as $950 when a friend was forced to sell some. I am retired and when I need cash beyond income I do NOT sell my gold, consequently I am now at about 70% - and very comfortable with it.

Mon, 06/30/2014 - 16:28 | 4911183 hairball48
hairball48's picture

I'm pretty poor compared to 98% of ZHer's. I have a few grand in a credit union and a couple thousand in checking for month to month bill paying. The rest is 100% in gold and sliver.

Fuck a bunch of fiat, I'm stackin' bitchez :)

Mon, 06/30/2014 - 14:11 | 4910438 Seasmoke
Seasmoke's picture

On its way to $2000 USD

Mon, 06/30/2014 - 14:12 | 4910446 Bastiat
Bastiat's picture

. . . and beyond

Mon, 06/30/2014 - 14:11 | 4910441 AccreditedEYE
AccreditedEYE's picture

While Ag's get monkey hammered

Mon, 06/30/2014 - 14:13 | 4910450 Bastiat
Bastiat's picture

+.58% does not equal "monkey hammered"  though I'll agree it's being sat on.

Mon, 06/30/2014 - 14:16 | 4910471 AccreditedEYE
AccreditedEYE's picture

Collective, yes but if you were long soybeans into this morning you got your face ripped off.

Mon, 06/30/2014 - 15:22 | 4910856 Soul Glow
Soul Glow's picture

Damn.  Good thing the only long position I have is beans in my kitchen.

Mon, 06/30/2014 - 15:52 | 4911011 DoChenRollingBearing
DoChenRollingBearing's picture

What about bullets in the closet?

Mon, 06/30/2014 - 14:12 | 4910449 Fuh Querada
Fuh Querada's picture

Gold is a slam-dunk sell. Going to $800.

Mon, 06/30/2014 - 14:14 | 4910458 Bastiat
Bastiat's picture

Are you all-in short?

Mon, 06/30/2014 - 14:17 | 4910476 Fuh Querada
Fuh Querada's picture

it was sarcasm, I was hoping people would recognize the Goddam Sux quote.
edit : I just downvoted myself.

Mon, 06/30/2014 - 14:29 | 4910546 Bastiat
Bastiat's picture

Heh

Mon, 06/30/2014 - 14:31 | 4910557 ParkAveFlasher
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One of these days, Tyler will have a translation plugin, for the sarc-impaired and the ironically-challenged. 

Mon, 06/30/2014 - 15:04 | 4910745 DoChenRollingBearing
DoChenRollingBearing's picture

Sign me up.  My BS and Sarcasm Meter has never worked.

Mon, 06/30/2014 - 15:22 | 4910850 quasimodo
quasimodo's picture

I think bringing back capcha back is a good start. It might keep an algo or two at bay.

Mon, 06/30/2014 - 14:30 | 4910461 cowdiddly
cowdiddly's picture

And. Finally this one is confirmed by the gold shares  leading the move up. Some up 3X the gold price move. Looks like its going to be a nice ride. But, you still have to watch out short term, the commercials shorted the crap out of it last week to try and contain the move. They seem to be relying more and more on this type of BS which tells me the London scumbags are getting low on the  actual shiny; All under the watchful eye of our glorious regulators who do absolutely nothing.  Place your bets gentlemen.

Mon, 06/30/2014 - 14:15 | 4910464 NoDebt
NoDebt's picture

Step right up, son, and take a swing at gold, hitting 3 month highs and looking for a moon shot.  Everyone's a winner.  Up until they hammer your ass right back down into the dirt.

Mon, 06/30/2014 - 14:44 | 4910630 Osmium
Osmium's picture

Lately, it seems more like they are hammering dirt into my ass.

Mon, 06/30/2014 - 14:24 | 4910522 Bay of Pigs
Bay of Pigs's picture

The mania phase for gold and silver is going to be something to behold when it finally arrives.

GOLD bitchez....

Mon, 06/30/2014 - 14:26 | 4910533 alexcojones
alexcojones's picture

If Gold is a Relic,

And Most Relics are Priceless,

Why wouldn't a Wise person own such a relic?

Mon, 06/30/2014 - 14:49 | 4910656 Seasmoke
Seasmoke's picture

Tradition ???

Mon, 06/30/2014 - 14:38 | 4910594 Infinite QE
Infinite QE's picture

Gold is still undervalued by about $10K/ounce.

Mon, 06/30/2014 - 14:42 | 4910618 stateside
stateside's picture

Gold spiked as soon as this news broke.  Retaliation is next up.

 

Three missing Israeli teens have been found dead in an open field north of Hebron in the West Bank, Israel's Channel Two and Channel Ten report, citing sources in the Israeli military.

The three teens, Eyal Yifrach, 19, Gilad Shaar, 16, and Naftali Frenkel, 16, disappeared June 12 or June 13 from the Gush Etzion settlement in the West Bank, the military said.

Mon, 06/30/2014 - 14:44 | 4910629 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Right out of the ole yid's playbook....never let a crisis goto waste.

Mon, 06/30/2014 - 15:22 | 4910858 Otrader
Otrader's picture

Any kids missing from the other side in past years? \sarc

Mon, 06/30/2014 - 15:05 | 4910760 bonin006
bonin006's picture

How can this be happening? Didn't Goldman explain how the unwind would lower gold prices?

Mon, 06/30/2014 - 15:11 | 4910793 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Gold is rigged and this article is shill. Frankly, all articles on gold are shill IMHO. If gold was not rigged where would it likely be today? How can people invest this way? It's a crap shoot or a mugs games IMHO. I would not buy gold or invest in it, ever.

Mon, 06/30/2014 - 15:18 | 4910842 highly debtful
highly debtful's picture

Tell you what. I'l take the gold, you take all the rest. If your definition of a bad investment is: every investment that is rigged, I'd start investing exclusively in farm land and knowing how to bake bread for the unwashed masses.

O, and one more thing: gold is rigged indeed; if it wouldn't be, it'd be way up right now. 

Mon, 06/30/2014 - 15:23 | 4910860 greatbeard
greatbeard's picture

>> I would not buy gold or invest in it, ever.

That begs the question, why read and comment on gold articles then?

Mon, 06/30/2014 - 15:36 | 4910930 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

To attempt to learn and educate myself on current affairs with respect to the economy, that's why. Moreover, I commented so that I could see the feedback in terms of what I was thinking. My

question has been answered by the responses. Frankly, what should I read in terms of books on gold markets today? Does anyone have any good references for books on gold markets?

?

Mon, 06/30/2014 - 16:32 | 4911196 Bay of Pigs
Mon, 06/30/2014 - 15:23 | 4910863 quasimodo
quasimodo's picture

I think you accidently got redirected from marketwatch. Please, hit the back button a few times.

Mon, 06/30/2014 - 19:26 | 4911946 Grouchy Marx
Grouchy Marx's picture

You are correct, the gold market (pricing) is rigged. Join the party; every market is rigged except the flea market. Just know that the value of your fiat currency and equity markets is even more rigged than gold. But here's the key: gold prices are manipulated low, and everything else right now is manipulated high.

Where would you rather be when price discovery arrives, which it will? 

Mon, 06/30/2014 - 15:12 | 4910806 fuu
fuu's picture

Five long years bitches.

Mon, 06/30/2014 - 15:29 | 4910892 thamnosma
thamnosma's picture

The global financial criminal class has the ability to drop the price big time at any time...still, I am buoyed by the action over the last month.   Something is bubbling.

Mon, 06/30/2014 - 15:39 | 4910941 armageddon addahere
armageddon addahere's picture

That gold chart looks like a cup and handle breakout.

Mon, 06/30/2014 - 15:43 | 4910958 bardot63
bardot63's picture

ONE MORE JP MORGAN EXEC DIES MYSTERIOUSLY (BANKRUPTCY ATTORNEY IN OHIO)

A Northwest Side bicyclist was struck and killed while taking a ride in Miami County yesterday.

Joseph A. Giampapa, 56, was biking north on Troy-Sidney Road near Loy Road in Piqua just after 11 a.m. when a minivan struck him from behind, Miami County Deputy Todd Tennant said.

Giampapa was pronounced dead at the scene. The minivan driver, Thomas G. Davis, 78, was at fault, Tennant said, but charges haven’t been filed.

Giampapa was taking part in a 200-kilometer ride from Springfield to Quincy to Troy and back, but he was by himself when he was hit. He was wearing his helmet and safety gear required as part of the ride, Tennant said.

Mon, 06/30/2014 - 15:53 | 4911014 Nue
Nue's picture

I advise everyone with Gold to sell.... so I can buy it on the cheap.

Mon, 06/30/2014 - 18:36 | 4911711 Calculus99
Calculus99's picture

I always love it when you Americans go on about buying ammo as a commodity/safegaurd/insurance policy etc.

Just wish I could partake, the only ammo I've got is .77 airgun pellets.

Mon, 06/30/2014 - 19:21 | 4911925 Bemused Observer
Bemused Observer's picture

Amazing how many people aren't paying attention...I get my gold second-hand, and pay next to nothing, but the reason I can is because a lot of people just don't seem to know it even HAS value these days!

This weekend I got a small cardboard box filled with religious medals. There were at least 30 of them. I did a quick scan and saw most were sterling, but there were some gold ones. Now, I couldn't make out the marks on those, but I knew the others were silver, so I asked the guy what he wanted for the box. He takes a quick look, and goes "Gimme two bucks?" He didn't even poke his finger around. Then he says "They're all real, you know."
So I pay him, and when I get home I take a better look, and 4 of them are 14k. Almost 50 grams of 14k gold, along with God knows how much silver. He KNEW they were real, but didn't even give them a look over, and gave them to me for 2 bucks...What is that even a PRICE of these days? A disposable Bic lighter costs more...

The current melt value of 50 grams of 14k is over a thousand dollars. The silver is a few bucks more on top of that. Now that's not what I'd get for selling it as scrap, but for what I paid I don't have to get anywhere near that to be a very happy camper, do I? And I'm not selling now because I see it going up, who knows what that little haul may ultimately be worth?

This happens a LOT. And this year it is just getting almost too easy. When gold was high, people were all 'eagle-eye', though even then some just didn't seem to care, but it was a short-lived phenomenon. It's like people have been conditioned to feel disdain for the stuff. I've had people haggle with me like Arab merchants over the price for a set of bedsheets, then let me toss in the box of 'costume jewelry' for another 5 bucks without even looking through it, or just doing a quick scan.

I just want it to last through sale season. Then it can spike over winter if it wants to, but let me enjoy the next few months...

Mon, 06/30/2014 - 21:23 | 4912368 Spungo
Spungo's picture

Pretty much all of my gold and silver miners have been sold because they hit the upper bolinger band (at an excellent profit I might add). Right now I'm hoping gold crashes again. Miners would crash with it, I can buy them again for the second or third time then hopefully get another quick 10-20% :D

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