The Gold & Silver Morning Smackdown Is Back

Tyler Durden's picture

Despite NATO's warnings of Russian escalation in Ukraine, 8amET was a far bigger catalyst for precious metals this morning as the once ubiquitous morning meltdown is back. With gold relatively flat and Treasury yields down 10bps after a 60 point S&P surge, maybe this is catch-down but the heavy-volume plunge in Gold and Silver is notable in that USDJPY appeared to jerk higher at the same time.


Gold and silver appear to be dumping back to the same flush levels as copper and oil on the week


Heavy volumes flushing through futures...


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bullionbaron's picture

Why no mention of the smackups the last 3 days in a row?

Latitude25's picture

Because it was a steady upward grind the last few days and not an all at once event like this morning.

Took Red Pill's picture

Stay the course, stackers. They can't keep it down much longer.

power steering's picture

Buy MOAR you need to average in those $1800 buys

kliguy38's picture

If you have figured it out then all they really are doing is giving you a gift here......NO complaints from me....ehhehehee I'll take it and even lower

actionjacksonbrownie's picture

Well then you should REALLY like what they have in store for you in the coming weeks - a triple dip back to $1200, then look out below as support cracks and we crash. Likely in unison with a general market crash.

AnonymousCitizen's picture

I'm confused.

Do we BTFD? Or avoid CTFK?

SilverIsKing's picture

The old triple dip. Hadn't thought of THAT one.

philipat's picture

They are just reminding you not to get any funny ideas about making money in PM's because the Fiat scheme must continue. They are all-in and will not give up until the system collapses and they have larger priorities than PM manipulation. It is, embarassingly obvious to all but a Bankster?

If you are asking yourself, "Why fight the Fed?", that is exactly what they want you to think. And it is a good question to consider. IMHO, physical PM holdings outside the Banking system should be a small, but now overweight position, as insurance for when this Ponzi goes more "Tits up than Dolly Parton swimming backstroke".

fockewulf190's picture

I´m damn near 100% phyzz and will be buying as much as I can, for as long as it´s available to buy with pieces of paper fiat.  If the PTB want to smash gold down to $300 bucks, and silver to $10 or less, I´m all for it.  Any existing stock will literally disappear from the face of the Earth, and the miners will all collapse into oblivian.  Then watch what happens.

philipat's picture

I wish I had the income to survive during the drop to $300, but I don't. And it WILL go way down before the next exponential leg up as the Banksters attempt to extract every last drop of blood from the organism before allowing it to turn around and make them money to the upside. I don't live in the US so, IMHO, Real Estate in parts of Asia is still a very good holding. But, yes, all hard assets, none of the paper Ponzi trash!!!

MalteseFalcon's picture

New article title: "Gold Smacked Down to Lower Portion of Trading Range"

Oracle 911's picture

I bet the Chinese, the Russian, the other BRICS and their associates are buying this smackdown while they pledge some of their US treasuries as collateral. And they will demand the delivery, it will cause several things:

-wreck the COMEX, the main manipulation tool;

-revalue the gold (open door for the gold becked currency);

-somebody else will be the bag-holder;

-wreck the US$.

The irony in this? The USSA provided them with weapons which allow them win the WWIII, which is already on.

bwh1214's picture

I had a few co-workers that are interested in the gold and silver market ask me how the end of the silver fix would effect the price.  I said I wasn't sure but I was pretty sure the price would be down on the day of the transition.  I just didn't think people would be allowed to make the connection that the fix was adding to the downward manipulated thus they'd hit silver hard today.  I certainly don't know for sure that there is manipulation, but this adds yet another issue to the something smells fishy pile.  I'll be buying this weekend.


Barring my theory is there anything in the news that would have caused such a massive pullback today?

philipat's picture

The Chinese and Russians are already selling Treasuries and not buying more in preference for buying physical Gold. They SEE it, but most investors in the US don't. Yet.

But also they won't destroy the COMEX, YET, because it is providing them with a cheap source of physical Gold. When they are ready, in due course, and have accumulated enough Gold, they will then stand for delivery on thousands of contracts on COMEX and crush it. They will then set the price of Gold. And it will NOT be $1300/Oz....

Oracle 911's picture

When the COMEX run out of phyz, then they will destroy it.

And the price will be around 3-5 British thermal units for OZ in gas or crude. This is what I mean:

Not necessarily in kWh, but they still peg the gold to energy .

bwh1214's picture

What a crock.  Mr. Victor Efimov spouts the same BS that every central controller does.  He talks about his superior way of connecting the money supply to production (energy).  It is not possible to tie a currency to something with a supply as variable, uncertain, and unstable as energy, this will cause it to be abandoned. No matter how good a plan is to maintain money supply it will always be abused by the government if they are given the opportunity, tying the currency to something like energy would afford more than the necessary opportunity.  It reminds me of the French tying their currency to land, might convince some people in a paper, but would never work in reality.  I am amazed any ZHer would post such non-sense. 

This article is just another Russian spouting how he can make the motherland prosperous from the top down with no mention to freedom, individual and property rights, and sound money. 

Oracle 911's picture

Sorry dude, you are wrong.

There is the problem, you need energy like for everything. Period. The end of story.

In previous eras it was mostly energy taken from biosphere firewood, grain etc measured in gold and silver.

Now we are using mainly heat energy generated mainly from gas, crude, uranium etc.

What you probably don't know there are rumors about Gold Rubel. Each 5 Rubel coin will contain 4 gram gold.

So they may say: We will sell 3-4 cubic meter of natural gas (roughly 3-5 BTU) for 1 oz gold only in Rubel. And it will be a honest deal either you can't deny the gold in the coins and gas/crude oil in pipes.

BTW I suspect the Russians will kill the fractional reserve system.

Oracle 911's picture

For the down-voter: Oh It seems like I found a thoughtless hater and Russian basher.

bwh1214's picture

I guess I shouldn’t argue with someone who comes out with a gem like “There is the problem, you need energy like for everything.”

I guess dude like I’m just wrong. 

Ok back to reality.  Energy is not a good monetary base as I said its means of production; storage and growth are too unstable.  It also isn’t fungible, energy from crude oil has different costs, benefits and risks than does energy from Uranium, natural gas or solar.  All electrical energy is the same but can’t be stored economically. 

You could say land (including subsea land) is much more vital than is energy considering 99.9% of our energy comes from the land, not to mention all of the other resources it offers.  But due to it not being fungible it did not serve well as a monetary base and failed under the French. 

Not to mention pretty much all the oil and natural gas produced each year is consumed, and obviously all of the energy from solar wind and nuclear is consumed barring what is stored in batteries (very little).  That also shows a flaw in using energy.  The more consumed a substance is, the less value it has as a monetary base.  That is why gold is better money than silver and silver is better than copper, and also why gold is better than Platinum or Palladium.

Lets also consider that a contracting money supply causes a contacting economy, and there is a good chance, if there is any truth to peak oil, that we will have to deal with contracting energy in the near future.  We don’t want a contracting money supply to add to the fundamental problem of less energy.  That’s not to say that the Russian’s wouldn’t be the first to try an energy based currency it would just fail miserably like some of their other brilliant ideas (communism).  I hope they do try it and convince the Chinese as well (fat chance) it will leave the door wide open for us to rise from the debt based monetary ashes. 

I would agree that energy is arguably the most important resource for an advanced society, but that doesn’t mean it is good as a monetary base no matter what your little Ruski comrade says.  Read some Von Mises and you’ll be right as rain.

Now if you are right, and there is a gold rubel then they might have something, but I have my doubts if like you dude have the inside track on that development.

PS The russians won't have to kill the debt based fractional reserve system, that will destroy itself.

Oracle 911's picture

Dude (LOL) of course energy is bad base for monetary system, I know that and I'm against measuring everything in electrical kWh for various technical reasons mostly mentioned by you. But I just wanted direct you where to look. And what if the Russians say: "From now we will sell energy carriers like oil, natural gas and coal based on their energy content measured in BTU for gold (in our Rubbles). And for every 3-5 BTU (I'm just guessing but it may be its tenfold or rather hundredfold) we will take 1OZ of gold (measured in Rubbles)."

It will accomplish several things:

-easier measure of the ROI of gold and silver;

-easier measure of the EROI of the energy carriers and sources;

-minimize the energy usage and especially the wasting of energy (good bye American way of life);


Footnote: kWh's and BTU's can be directly converted into Joules (or into each other) and it will be temporally like the disconnection from the gold standard (about 40+ years, because the gold standard is coming back). Putin and his advisers knows these materials and using them, of course he have better informations then us about his and other countries.

BTW most of the people using Marxism and communism as synonyms, they are not. Marxism is fascism in disguise (terror of "elites"), while communism is society organized around common interests of people while keeping some rights for the private ownership (of course even this system can be hijacked by fascists). And without commons you can't define the private and can't determine the boundary between them. So the question is: Where are the boundaries or where should be?


About the pyramid scheme aka fractional reserve system: the current system will implode, it is inevitable of course. But what stops the bankers (better term is usurers) for starting another game? Nothing except the gulags or prisons where they have to work hard. So the Russians will ban it and put them into the gulag system for 20-30 years.

bwh1214's picture

I have no problem with him bashing banks which I see as fraud in our current system, but his free market bashing is the same old soviet BS. I think some ZHers are getting a little to cozy with the Russians due to RT. Just because the new Russian system is not as clearly horrible as the Soviet one does not mean they have a good system by any means. Americans need to re-embrace their roots and own national values of freedom, free markets, sound money and private property promoting hard work, not supplant them with new Russian ideals.

Keyser's picture

Links to support your claim, please... 

Burticus's picture

Though it's not the popular view, 'brownie may be right.  For example, Martin Armstrong's computer model (Global Market Watch) is signaling weekly and monthly bearishness.

It's all about the "inteventionals" these days, since the bankster cartel can put the electron/paper price anywhere they want.  The only limiting factor is physical offtake by the Chinques, Injuns & Ruskies.

The only thing I agonize over is whether to convert more cybercurrency to silver now, or later when I might be able to get even more ounces for the same FeRNs.

oak's picture

look at the bottom panel, it indicates that au price would be lower soon, then go higher later.

btw paper au is trading like currency. better keep physical au.

Bendromeda Strain's picture

How else do you think Bloomberg gets away calling silver a $5T market? These smackdowns generate spendy paper metal. Until they don't.

magnumpk's picture

Indeed.  I've noticed that since I've switched from paper to accumulating physical, I've actually come enjoy the takedowns.  I almost bought yesterday but got too busy.  So today it is.  Win.

MeMongo's picture

Negativity just kind of makes a guy feel good!

SoilMyselfRotten's picture

Smackups, thats funny. When the price spends 2 hrs inching up and then gets slapped back in 1 flash, thats not a smackup. Guess we know they aren't going away quietly.

Frank N. Beans's picture

There was a smackup yesterday to $1320, as pointed out by ZH, but then got smacked down so fast it was over before you knew it. 


bullionbaron's picture

Why is my comment getting manipulated with all these smackdown votes?

Bossman1967's picture

The smack up was actual buying the smack down is rediculous allways at 9 am and 6 pm wtf. When are people gonna do something to stop the manipulation accross all markets I dont get it

Bendromeda Strain's picture

Watch the printing presses if you want to see the real smack in the system.

CHX's picture

Yes, smackdowns are mostly either before or after Europeen/US open/close. I guess to stop out the maximum possible folks either up, or mostly down, since they have a perfect overview of the book... 

bentaxle's picture

Was beginning to think tptb may no longer be worried. Reassuring.

HamFistedIdiot's picture

Keeping PMs down is a matter of national security. A rise in PM prices causes the sheep to doubt that Rothschild debt instruments are real money. Nothing is more important to TPTB than this. The entire planet must be enslaved to this ponzi. What pisses me off is that these private CB corporations print whatever amounts they need to slam down PM prices, and the public, including us stackers, are left to pay the tab.

Here's an excellent video, All Wars Are Bankers' Wars.

A quote from the video can be found here:

Founded in 1791, by the end of its twenty year charter the First Bank of the United States had almost ruined the nation's economy, while enriching the bankers. Congress refused to renew the charter and signaled their intention to go back to a state issued value based currency on which the people paid no interest at all to any banker. This resulted in a threat from Nathan Mayer Rothschild against the US Government, "Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war." Congress still refused to renew the charter for the First Bank of the United States, whereupon Nathan Mayer Rothschild railed, "Teach those impudent Americans a lesson! Bring them back to colonial status!"

Harry Dong's picture

Quote has not been verified. But does make perfect sense.

Burticus's picture

“You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.” - Andrew Jackson

fonzannoon's picture

it's no longer a smackdown, today is the first day silver is free to trade unmanipulated, we are finally witnessing a free market at work.

MeMongo's picture

Sure fonzie hang onto that!

power steering's picture

Back to $50 next week......................arrggghh

HamFistedIdiot's picture

This could be part of the continued psyop: "You thought market fixing was bad, just wait till you see real price discovery. Here comes $10 silver." The US Gov through its agent JPM still controls the market through future paper contracts. The fraud doesn't require a London Fix to continue.

Latitude25's picture

Am I the only one who apprecieates your humor?

agstacks's picture

Nope, fonz is one of my favorite posters.

SilverIsMoney's picture

The CME is running the new fix... new boss is same as the old boss. If you think this is a free market you're high.

quasimodo's picture

It's a free market all right. Free to continue all the shenanigans unabated. Good to see now we have true price discovery, gives me hope that metals will finally be where they should


Greenskeeper_Carl's picture

Haha plus 1. Looks like most don't get the sarc. Personally, I was expecting this. "See, look, it isn't manipulated downwards, the fix ended today, and the price dropped, there wasn't any manipulation"

jmcadg's picture

The new silver fix is in!

SilverIsKing's picture

They fixed the fix? Great news.

agstacks's picture

But, but, but, Bix Wier said the silver fix was over and we were going to the moon?