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Deja Vu - Someone Tell The Gold-Manipulating-Machines The Market's Shut

Tyler Durden's picture




 

Just 3 months ago, as Americans celebrated Memorial Day, the spot price of gold jerked $20 higher (then plunged) as gold futures closed. Today, as Americans celebrate Labor Day, the liquidity-less market for spot gold just dropped $6, ripped back and settled lower in the space of a few minutes (with bids and offers fully crossed for a few minutes) as someone clearly forgot to tell the machines that the market is closed...

Makes perfect sense...

 

as bids and offers crossed...

 

*  *  *

Unrigged markets for all... because nothing says "Sell Gold into an illiquid market" like NATO preparing to launch an offensive against Russia who 'everyone' now cliams is fully invading Ukraine...

*  *  *

Charts: Bloomberg

 

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Mon, 09/01/2014 - 13:41 | 5168115 kowalli
kowalli's picture

you should buy bonds

Mon, 09/01/2014 - 14:16 | 5168256 RiverRoad
RiverRoad's picture

What happens when the central banksters take a collective dump into an illiquid market??

Mon, 09/01/2014 - 17:19 | 5168846 Pool Shark
Pool Shark's picture

 

 

And, that's why you should always turn off your computer before leaving work for a 3-day weekend...

 

 

Tue, 09/02/2014 - 07:47 | 5170436 kliguy38
kliguy38's picture

I guess they feel patriotic and want to give a discount for physcial in honor of Labor Day

Mon, 09/01/2014 - 16:13 | 5168647 ILLILLILLI
ILLILLILLI's picture

>> you should buy bonds

 

Bonds...James Bonds

Mon, 09/01/2014 - 13:45 | 5168132 vyeung
vyeung's picture

They forgot to do the unplug! Suck a farking joke.

Mon, 09/01/2014 - 13:48 | 5168150 Soul Glow
Soul Glow's picture

An algo went into the market, sold, and then a bullion bank issued a buy order.

There have been big moves this summer on the buy side.  Getting reADY TO KILL THE DOLLAR, BANKSTERS?

Mon, 09/01/2014 - 13:49 | 5168152 trader1
Mon, 09/01/2014 - 13:57 | 5168182 orez65
orez65's picture

"Go(L)d is dead"

Seriously, I try to understand the mentality of people like you.

Thousands of years of history have shown that Gold is not dead.

Gold is money.

Is it a gap in your education that prevents you from comprehending or ideology?

Good luck to you, you are going to need it.

Mon, 09/01/2014 - 15:18 | 5168484 School Prophet
School Prophet's picture

I think by GO(L)D he wanted to imply GOD.
Like in Nietzsche book - "God is dead"

Mon, 09/01/2014 - 15:33 | 5168533 fockewulf190
fockewulf190's picture

No.  He ment GO(LONG)DOLLAR is dead.

Mon, 09/01/2014 - 18:43 | 5169158 ClassicCommodity
ClassicCommodity's picture

Gold may not be dead, but it sure as hell is having a long ass nap / sleep.

 

The bastard may not awake within our puny human lifetimes.

Mon, 09/01/2014 - 19:30 | 5169269 Squid-puppets a...
Squid-puppets a-go-go's picture

Lol whereas 'Paper never sleeps'

Mon, 09/01/2014 - 20:29 | 5169431 Jungle Jim
Jungle Jim's picture

That is not dead which can eternal lie.
And with strange aeons even fiat may die. 

-- from The Benbernankricon

Tue, 09/02/2014 - 01:18 | 5170137 trader1
trader1's picture

i guess the meta-humor was lost on at least 25 people...

Mon, 09/01/2014 - 13:49 | 5168158 Rodders75
Rodders75's picture

Good luck to them on the fighting Russia bit. Signed: A Hitler, N Bonaparte.

Mon, 09/01/2014 - 14:01 | 5168194 Uber Vandal
Uber Vandal's picture

And Charles XII of Sweden

 

Mon, 09/01/2014 - 14:42 | 5168363 ParkAveFlasher
ParkAveFlasher's picture

Yeah, but we have President Camacho, who is AWESOME.

Mon, 09/01/2014 - 15:45 | 5168574 Haole
Haole's picture

Idiocracy has gone from a satirical comedy to a documented reality in pretty short order...

Mon, 09/01/2014 - 16:22 | 5168684 ParkAveFlasher
ParkAveFlasher's picture

Idiocracy is a documentary in the same sense that Ayn Rand was a historical allegorist rather than a dystopian fiction writer.  You have to veil the truth in ten yards of fabric.  I've been reading the Oz books by Frank Baum.  They are beyond anything that I've read or heard about them.  At the same time, comprehensible to a child.

Tue, 09/02/2014 - 00:01 | 5170016 DeusHedge
DeusHedge's picture

What, when people have been dumbed down below a munchkin bag boy and the financial analysts and political planners still continue with their brainwashing haji *** out of paranoia... yea.

Tue, 09/02/2014 - 00:07 | 5170028 DeusHedge
DeusHedge's picture

ready for the invasion of the black eyed monsters from the muddy lagoon.

Mon, 09/01/2014 - 13:52 | 5168164 Bighorn_100b
Bighorn_100b's picture

Get ready for the mother of all deflationary periods in history. IMO.

Mon, 09/01/2014 - 14:05 | 5168203 Bighorn_100b
Bighorn_100b's picture

Debt loads are burdensome and the majority you Americans do not have enough savings to pay for a mere $1,000 emergency. People of the world have sold their freedom, their vote (if they had one) and their soul (again - if they had one) to a huge federal free-lunch monolithic monster. Because deflation de funds government tax receipts, the free lunch will sink. Your 401K and other pension plans along with stocks, most bonds, real estate, commodities and collectables will sink as more and more become unemployed. The multiplier effect causes the economy to sink as businesses see sales sink and quickly lay off workers. Next year sales sink again and they lay off more and so on and so on. The multiplier snowball effect becomes an unstoppable vicious cycle of sinking. Per Robert Prechter - Bullish - Only the U.S. Dollar - Short the rest! Get cash or short term government t-bills to be ultra safe this should be your deflation investments strategy for the Greater Depression.

Robert Prechter's monthly ELLIOT WAVE FINACIAL FORECAST said: "BOTTOM LINE - The world-wide credit crisis is returning to the front burner. In Europe, it is full throttle ahead and spreading. In the U.S., a top in a key index of leveraged loans indicates that all but the highest-grade instruments should start to retreat. Short-term U.S. treasury notes remain the safest place for investments. The uptrend in gold and silver appears exhausted. The next major move in each precious metal will be down. The U.S. Dollar Index is at the forefront of a significant rise, which, based on sentiment measures, should come as a surprise to just about everyone."

There are few deflation investments in a secular bear market cycle when waves of selling of securities, other assets and collectable items will take place. Remember: "Cash is King" in a deflationary depression.

Your best deflation investments are the ones returning your principle not necessarily having a return on that principle.

Deflation investments for safety are short term (90 day) credit instruments like T-bills or money market funds that only buy T-bills. Some 2 year or less CD's at solid banks - EWI has list.

Mon, 09/01/2014 - 14:17 | 5168251 cpnscarlet
cpnscarlet's picture

There was enough Elliot wave analysis during H2 2013 that showed PMs were supposed to start their "just have to be" (Bo P) march to 2000+ during all of 2014.

E-W, french curve, stochastic meters, Or Ouija Board - ALL BS in a market manipulated by central banks with LARGE printing presses and BLIND regulators. The only reason ANY tech analysis has been right since 2011 is because it was predicting the direction the oligarchs had already determined.

The previous post pretends to be prescient when it is only fatuous.

Mon, 09/01/2014 - 16:27 | 5168651 Haole
Haole's picture

Funny because guys like Bo P and Armstrong are among the few who are actually making "prescient" and somewhat accurate calls and taking the most flak as being charlatans on sites like Turd's and Silver Doctors, etc..  Armstrong was calling for sub-$1400 gold in 2011 and everyone was calling him a shill, disinfo agent and a wacko. 

Three years of these anti-koolaid koolaid dispensers bellowing for people to "keep stacking" and "BTFD" all the way down, they are the charlatans if anyone but ideology means more to some people than real capital destruction and loss of purchasing power apparently.  I hope you people never meet your heroes.   How much has Turk made in GoldMoney storage fees over the last 3 years on, what has been shorter term, radically depreciating assets in terms of gold and silver against other "assets". 

Now is the time to buy rocks if one is so inclined, not at any time during the last three years.  This could likely be TFD people have been waiting to take advantage of but where's the fervor and excitement?  I see a lot of dejection, confusion and disillusionment.  Human psychology is fascinating...

Seems much of the demography of all things precious are subject to their own crippling, percieved biases and aren't as open-minded as they claim and/or would like to be to be.  Ideology is a terrible financial strategy.

I'm shocked, what a surprise  /s.

BTC, BTChez

 

 

Mon, 09/01/2014 - 16:30 | 5168697 ParkAveFlasher
ParkAveFlasher's picture

Before "BO P" or whatever, Jim Sinclair pimped some other guy's service, who had "made every market turn call" since the invention of ink. 

Mon, 09/01/2014 - 16:41 | 5168703 Haole
Haole's picture

I'm not blowing the guy's horn or claiming he's some kind of oracle.  Only that there have been some people making better calls than not and being completely shat on by others' failed perceptions manifested in ideology and obstinately self-reinforced belief structures.  Shorter term anyway, as in the last three years.

Mon, 09/01/2014 - 14:29 | 5168304 jaxville
jaxville's picture

  "Cash is King" is from an era when cash could be exchanged for gold at a fixed rate.  "Only gold is money and nothing else."   You are deluding yourself to think that any paper you hold will maintain its value over time in such an environment. With current levels of debt,  deflation will wipe out many institutions that rely upon continued servicing of debt to hide their insolvency. 

 

  The following round of bailouts might very well be helicopters dropping $100 fed notes.  What will that do for the value of your cash?

 

  BTW  Prechter has been calling for gold to crash since it hit $400.  Sounds like he really gets it. (sarc)

 

 

Mon, 09/01/2014 - 15:08 | 5168446 Bighorn_100b
Bighorn_100b's picture

I like my popcorn with Frank's red hot sauce sprinkled on top.

Don't know about you, but I am the poster child for doing everything the hard way. I read Zero Hedge because it follows my beliefs. Wrong or right I make my own decisions. Having said that, I don't have any children that I know of, so I have no child support or alimony to pay for. Lucky me!

What will happen to the price of gold or silver? I'm not in the 1% to know the answer. All I can do is my best.

Mon, 09/01/2014 - 14:17 | 5168255 jaxville
jaxville's picture

  Bighorn_     .... If you are correct about that then gold will appreciate in value substantially.  Deflation in a credit based money system means most financials will become insolvent as debts are no longer serviced.  You can kiss your assets goodbye if they are held by any financial institution.  You will really wish you had bought those gold eagles and hid them somewhere away from any bank, broker or insurance company.

 

  That wad of cash you may have been precient enough to stash .... better buy something of value with it and fast because the financial authorities will make its devaluation their highest priority in order that debt can still be serviced.  Already the CFR is exploring ways for central banks to get cash directly into the hands of consumers without creating even more debt.

 

  Most people don't understand the relationship between gold and a defationary economy.  Consider the effect of liquidity drying up on the financial sector.  Not a single financial institution will be safe.  Gold prices might even go down in that environment but good luck finding some.

Mon, 09/01/2014 - 14:36 | 5168329 Bighorn_100b
Bighorn_100b's picture

I'm holding 2014 Silver Eagles. Waiting to buy more at a lower price. Stocking up on ammo, the .308 and .45 type. Not cheap to say the least. 401K plan is all in short term Treasury's. Girlfriend is almost all in cash.
I don't know if holding physical at today's prices will help or hurt me. Time will tell.

I have Zero debt period. Condo paid off, check. No credit cards, check. Truck paid off, check. Cash and Silver in my gun safe, check. Invested in gold miners, check. Not much else to do except drink beer and watch the fireworks. Maybe shoot my pistol, rifle and shotgun for giggles.:)

Mon, 09/01/2014 - 15:15 | 5168473 jaxville
jaxville's picture

  Sounds as though you have your bases covered.  I think that staying out of debt and reducing exposure to the financial sector are the most important things.  Too many are expecting inflation to make the excessive debt they carry magically disappear.

 

  I've pretty much loaded up on silver, a well stocked pantry, ammo and even a few cases of liquor for trade or distraction.  I hold some gold shares but most of my savings are in the form of gold specie.  It has worked quite well for the last fifteen years or so.  Most importantly, I never loose sleep over the modest amount of wealth I hold. 

 

  Finally.... I am a deflationist and I did enjoy Prechter's book but he just does not get the importance of being out of paper in such an environment.  Many of the examples we see of rising prices are more the result of shortages caused by political reasons (we used to refer to them as market factors)  rather than excessive piles of cash.  The central banks of the world are doing their best to inflate their respective currencies but the paper they create remains directly proportionate to levels of debt.  As long as levels of debt are well in excess of the cash they create, deflation remains a foregone conclusion.  At least until they call in the helicopters.

Mon, 09/01/2014 - 15:18 | 5168482 Rubbish
Rubbish's picture

You seriously need to buy a boat and go cruising. Nothing like a boating accident disposing of precious metals, spare ammo and weapons.

 

When the hydrants go dry because there is no power for the pumps and your block is a raging inferno, you will have comfort knowing there is a place to recoup.

Mon, 09/01/2014 - 15:56 | 5168608 jaxville
jaxville's picture

  I can't afford a boat because I squandered all my money on gold.  Actually what little I had left over after the wine, women and song.

Mon, 09/01/2014 - 15:37 | 5168548 Imminent Collapse
Imminent Collapse's picture

Grow food, stock up on toilet paper, get solar electricity, get a water purifier, get to know your neighbors. You are not prepared.

Mon, 09/01/2014 - 15:49 | 5168588 Bighorn_100b
Bighorn_100b's picture

I work at Costco Wholesale so If the big earthquake hits California, I hope I'm on the job! :)

Mon, 09/01/2014 - 17:04 | 5168801 WhackoWarner
WhackoWarner's picture

Great ideas but if you have unreliable sun; which I do:  I have Power Inverters and battery banks fully charged.  Won't last forever but WTF.

I have looked into energy independence for years.  For the average scraping by family they are out of reach.  Generators are fuel dependent.

Solar panels are coming down in price but to set up a whole home still will run many thousands.  (my case study is maybe 15K)...wind power on a small scale is still expensive and unreliable.

But I do have oil lamps everywhere and lots of kerosene/lamp oil.  Let there be light at least.

Mon, 09/01/2014 - 23:55 | 5170004 TheRedScourge
TheRedScourge's picture

You can always increase your efficiency by supplementing the panels with some cheap mirrors on adjustable mounts, like a modern high density solar energy plant.

Mon, 09/01/2014 - 17:48 | 5168964 withglee
withglee's picture

On March 10th someone advised the way to play gold was invest in juniors. So for grins I set up a paper portfolio of 13 juniors.

Results:

7 down. Biggest loser TK down 47%

6 up. Biggest winner  TXG up 45%

Overall portfolio down 4.6%

 

Go figure!

Tue, 09/02/2014 - 06:07 | 5170340 WOAR
WOAR's picture

Sounds like you should look into building a potato cannon.

http://www.youtube.com/watch?v=Zdv-fVSd2Kg&index=16&list=PLCF6sHOtPGUbih...

You could have more fun with that than I could.

You might also want to read up on the Polish resistance, and maybe look up some Forgotten Weapons related to that...

Mon, 09/01/2014 - 13:52 | 5168165 Karlus
Karlus's picture

Un-story

 

One of the first things you program into program trading platforms (algo) is a holiday calendar.

Something else is going on here other than "forgot to unplug"

Mon, 09/01/2014 - 14:10 | 5168227 the6thBook
the6thBook's picture

Something you or I would add... not so much for people who think its a "Profit-Earnings Ratio"

Mon, 09/01/2014 - 13:52 | 5168166 Cognitive Dissonance
Cognitive Dissonance's picture

There are no holidays for the machines.

Mon, 09/01/2014 - 14:00 | 5168191 orez65
orez65's picture

"There are no holidays for the machines."

It's not the machines, it's the "carbon units".

Garbage into the machine produces garbage out of the machine.

Mon, 09/01/2014 - 14:13 | 5168210 gimli
gimli's picture

HFT's get a bad rap ..... I personally know it was the one-armed man who did it.

Mon, 09/01/2014 - 14:20 | 5168275 thunderchief
thunderchief's picture

These people must really despise gold.
The Embarrassment of this would eat any honest person alive.

Mon, 09/01/2014 - 15:23 | 5168503 Johnny_is_alrea...
Johnny_is_already_taken's picture

They dispise gold because it would mean their DISTRUCTION

Gold is the only drop of freedmon mankind still has

 

There is no other asset you can buy that the gov can't tax, rob, destroy you away

sure sure, platinum, indium, aluminium etc ... but gold is the more liquid of them all

 

 

 

Mon, 09/01/2014 - 14:41 | 5168359 toros
toros's picture

This is really funny stuff.  Machine vs machine and the humans just watch.  Everything in micro seconds, it has to be faked to give fill up a day.

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

Mon, 09/01/2014 - 15:19 | 5168488 Johnny_is_alrea...
Johnny_is_already_taken's picture

The manipulation is obvious ... but

... as long as I go to Vienna and I ask for a bag of gold philharmonik coins and they readily present them over the counter

there is no sign that its going to end soon.

 

 

Mon, 09/01/2014 - 15:25 | 5168509 orangegeek
orangegeek's picture

just some left over market flatulents

 

ONWARD!!!

Mon, 09/01/2014 - 15:33 | 5168528 SilverIsMoney
SilverIsMoney's picture

Soooo obvious, just keep stacking...

Mon, 09/01/2014 - 16:25 | 5168688 Dragon HAwk
Dragon HAwk's picture

the nice thing about Gold is it's international nature, no matter which country you are in they recognize it, and will trade you for it.. try that with  paper currency in a different country, they look at and wonder if it is real but they have no way to tell...

Mon, 09/01/2014 - 16:40 | 5168718 quasimodo
quasimodo's picture

What is up with comments getting deleted here as of late? I made a sarcastic comment earlier on this thread about gold being a barbaric relic, and poof.........gone. 

You would think I was jew bashing or something worse. Very odd.

Mon, 09/01/2014 - 17:06 | 5168804 RhoneGSM
RhoneGSM's picture

post it again

Mon, 09/01/2014 - 16:57 | 5168783 coast
coast's picture

Gold and Silver, or other presious metals are the best to invest in.  It depends on what you want tho.  I would have invested in the stock market awhile back to make a quick buck, I knew they would not stop riggingit until elections come this November.  But I dont like being nervous all the time in the ponzi scheme. I dont have much but the little I have is in silver. I dont have to check the market everyday, I dont have to worry etc.  If ya wanna make a quick buck, then get a job.  For long term, precious metals are the only way.  Oil might be another long term investment but not sure. If the bitches were not selling paper gold and manipulating the prices, gold would be at 3000 dollars probably.  You just have to wait it out because they cant do this forever.  In fact, their time is coming to an end.  Not sure about bitcoin, but I do like the fact people are looking for other things besides the fricking dollar.

Mon, 09/01/2014 - 17:09 | 5168815 WhackoWarner
WhackoWarner's picture

Foreign Central Banks never sleep.  Besides they get trading rewards.

Mon, 09/01/2014 - 17:15 | 5168839 coast
coast's picture

Sorry, going to add to my own post...You know what I also find important?   Find spirituality in our lives.  If you are atheist, then at least look at the trees, oceans etc and the universe and how great it is.  If you believe in God, then talk to Him.  I have no clue whether Jesus Christ lived and what He did, I wasnt there.  But I chose Jesus as my conduit into the universe and creativity, along with love, and compassion...And for God's sake, or any sake, quit using spirituality as religion and stop killing people!!!  Hell will be full of lawyers, politicians and evangelists...This is why the other side is called heaven, we wont have any of them. :-)

Mon, 09/01/2014 - 17:17 | 5168841 HUGE_Gamma
HUGE_Gamma's picture

down $4.. ohh the humanity! bring out the deer in the headlights meme!!

 

maybe a better explanation is that a large order came through a thin market

Tue, 09/02/2014 - 11:51 | 5171336 firestarter_916
firestarter_916's picture

Its down way more than $4.  Ditch your source.

Mon, 09/01/2014 - 18:20 | 5169082 cart00ner
cart00ner's picture

Gold - canned food - shotguns...

Mon, 09/01/2014 - 19:29 | 5169260 fibonacci's claus
fibonacci's claus's picture

if you want to know the real price of gold just ask your computer.  if you want to know the weather, just ask your computer.  if you want to know what freedom is look into that camera, you know the ones at all the intersections and in all the stores and even the ones in the schools now, look up into that camera and ask a computer, "what's freedom?"  and then ask "what's the price of gold?"

Mon, 09/01/2014 - 19:43 | 5169309 datapanik
datapanik's picture

Welcome, Shanghai Gold Exchange.

Mon, 09/01/2014 - 19:46 | 5169319 Last of the Mid...
Last of the Middle Class's picture

it's just noise.

Tue, 09/02/2014 - 11:49 | 5171327 firestarter_916
firestarter_916's picture

When I looked a spot prices about 90 minutes before the market open this morning it was down over $27. I wish I didn't listen to my gold dealer because he's talked me out of AE coins and out of palladium completely, when it was $550/oz.  He really seems honest and legit but I should stop getting ideas from people other than myself.  Listening more to my own instict over the so called "experts" keeps me from making good money.

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