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Gold Tumbles Most In 6 Weeks As USD Surges

Tyler Durden's picture




 

It appears JPY weakness (or generalized USD strength) is mirroring the demise of precious metals (and oil) this morning. Gold's 1.7% drop is the biggest in 6 weeks and drops the yellow metal to near 3-month lows. Treasury yields are up 5-8bps at the long-end. Troublingly, for the carry bulls, equity futures are not playing along with the JPY weakness.

 

Gold and JPY inseparable...

 

S&P fuitures bumped back up to VWAP but are not following through with JPY carry...

 

Charts: Bloomberg

 

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Tue, 09/02/2014 - 10:37 | 5170975 LawsofPhysics
LawsofPhysics's picture

Yes, because there is no inflation and everything is "fixed".

/s

same as it ever was...

Tue, 09/02/2014 - 10:39 | 5170983 nope-1004
nope-1004's picture

Controlled until revaluation.  Desperate central bankers MUST control the only true barometer of USD.  Irony here is that the corruption and malfeasance in USD is astronomical, so too must be the manipulation of gold.

 

Tue, 09/02/2014 - 10:45 | 5171018 Divided States ...
Divided States of America's picture

Tyler, I suggest you stop posting these useless correlations, we get it. Basically its either a gold smackdown, a stocks going up OR both.

I hope EKM's call this time is more prescient in terms of time.

Oh look, Dow is green now...big fuckin surprise.

Tue, 09/02/2014 - 11:13 | 5171136 Took Red Pill
Took Red Pill's picture

I, for one, like to hear when there are significant drops in PM's and the reasons why. If you don't, then you do not have to read it.

Tue, 09/02/2014 - 11:50 | 5171270 Gringo Viejo
Gringo Viejo's picture

P.A.P.E.R.

The paper beatdowns will continue until the dollar is supplanted as the world's reserve currency.

It's a matter of time.

Nothing more.

Tue, 09/02/2014 - 13:55 | 5171787 JuliaS
JuliaS's picture

In 3rd world countries where it is physically hard to access PM's or even USD we can talk about posted vs. street value of a commodity. In Brazil and Venezuela for instance, the bank will quote you a USD exchange rate, but you will not be able to buy more than $20-50 USD at a time, if anything at all. On the black market you have access to sensible amounts of dollars, but they'll cost you 5-10x more, which is the price people are willing to pay to fight near hyper-inflation.

In the US there is no shortage of physical, unless you're dealing in tons. The talk of paper is silly.

I offer any person who claims "it's only paper" to buy mine at Summer 2011 prices. You see, if they did, I'd go to any of the half a dozen bullion dealers in town and buy the gold right back at those silly paper prices. None of them have had any shortage since Fall of 2008 and even then the interruption was temporary, as producers had quickly picked up the slack in response to demand. There was never any shortage of 1kilo bars. Just coins. All they had to do was cut big chunks into smaller chunks and presto!

For a consumer there is no shortage of anything except the actual currency. People don't have any money. Everyone's broke. There is no shortage of gold or silver available to consumers. I make custom jewlery and there is no shortage of metal, period. Even when the bullion sellers had problems I mentioned, none of my raw metal suppliers did. Why? Same reason. People are broke. Consumers are broke. The banks may be printing billions and trillions. To them it paper vs. physical might mean something. To you and I it means nothing. The measely amount a person can buy with his paycheque is always available.

Silver? You want it real cheap? Do what I do - scout second hand stores for sliverware. You can get .995 purity sterling for a tiniest fraction of "paper" price. You can get a trojan ounce for a dollar easily! A propane/oxygen torch, a $10 ceramic crucible and a mold allow you to mint your own goddamn silver bars. Add a PVC pipe with ball bearings connected to a drill and you've got your own tumbler. The things coming out will be as polished as ones you get from a PM retailer.

I'll say it again - there is no shortage of metal. There is shortage of dollars people can spend on things. Paper talk is bullshit.

Tue, 09/02/2014 - 12:30 | 5171513 SAT 800
SAT 800's picture

Timing often tells more about "reasons why", then coherent analysis. today, for instance, as soon as Hong Kong closed, (not a player on the team), London slamed down Silver, followed up seamlessly, (by agreement, otherwise; "seams" would show), by the whores in New York. Manipulation is the "why". Sadly.

Tue, 09/02/2014 - 10:49 | 5171038 actionjacksonbrownie
actionjacksonbrownie's picture

The problem is, gold and silver are not in short supply. As long as you and I can buy almost unlimited quantities of the PM's with a click of a mouse, then there is little reason for "rare" metals to rise. When the coin dealers begin to run out of supply, and start raising mark-ups to unseen levels, then we may begin to see a rally.

 

Until then, just forget about any rally on political or financial malfeance - it ain't gonna happen "folks"

Tue, 09/02/2014 - 11:02 | 5171073 nope-1004
nope-1004's picture

Supply has nothing to do with it.  You've taken 4,000 years of real money and turned it into industrial metal, claiming "supply" is the only way in which the fiat price of it should be valued.  You are doing what most who rely on USD do - try to ignore how gold and silver have been 4,000 years of money and the only accurate and fair medium of exchange which can't be duplicated, printed, or violated at will.  The reason why we are off the gold standard since 1971 is because gold held the printing, corruption, and MIC financing in check, which is not how bankers wish to operate today.

If you are correct, why are central banks buying gold?  Seems a little stupid of them... no?  Why don't central banks buy zinc, titanium, copper, or bronze?

 

Tue, 09/02/2014 - 11:03 | 5171096 juggalo1
juggalo1's picture

Because those are not as valuable.  Central banks do buy platinum and other actual precious metals.

Tue, 09/02/2014 - 11:15 | 5171142 LawsofPhysics
LawsofPhysics's picture

Silver and platinum have numerous applications in industry.  Who give a fuck about useless paper-pushers at central banks?

Tue, 09/02/2014 - 11:26 | 5171197 A Nanny Moose
A Nanny Moose's picture

Bingo. We found out over the weekend exactly what CB's are doing in just about every market known to man.

Tue, 09/02/2014 - 11:28 | 5171207 actionjacksonbrownie
actionjacksonbrownie's picture

"why are central banks buying gold?"

 

Very few central banks are buying gold. And the ones that are buying, are not buying in quantities that are causing any shortness of supply. (by design???)

 

The entire world is run on fiat. The money printers have no desire to see a rising Gold price. Therefore, they will suppress the price, until physical supply is such that orders from Joe Bloe cannot be filled by the coin dealer on the corner.

 

Some of you are expecting the speculators in the markets to drive the price of Gold higher during these times of turmoil, but just ask the Bond vigilates how they made out fighting the money printers a decade or more ago - they got annihilated. Don't expect anyone to risk fighting the red shield again. Until mines start closing, or demand for physical greatly excedes available supply, the paper price will dictated by the banksters.

Tue, 09/02/2014 - 11:52 | 5171337 nope-1004
nope-1004's picture

Then there should be no problem sending Germany her gold back.  Except......uhhhh..... lots of supply...... uhhhhh ..... central banks don't want gold..... Bundesbank is....  not a central bank?  lmao

 

Tue, 09/02/2014 - 12:52 | 5171613 fockewulf190
fockewulf190's picture

Post of the day.

Tue, 09/02/2014 - 14:20 | 5172100 actionjacksonbrownie
actionjacksonbrownie's picture

I don't recall stating that Central Banks don't want Gold, or that the Bundesbank isn't a Central Bank. Do you have a reading comprehension disability?

 

Germany demanding their Gold back is a political move. U.S. saying FU is also a politcal move. Neither stance has had any effect on the Spot price of PM's. Perhaps you haven't noticed how quiet Bundesbank has been since the fed told them to pound salt?

 

You are forgetting the Golden rule. And right now, "they" have the Gold, and there are not enough buyers to overwhelm their supply. Therefore, "they" control price. Until Gold/Silver become scarce, price will be set by the sellers, not the buyers.

Tue, 09/02/2014 - 14:47 | 5172252 shitco.in
shitco.in's picture

What about the private entities to whom they owe gold but won't deliver.  This surely must be a political move too, right? 

Tue, 09/02/2014 - 12:31 | 5171522 Abitdodgie
Abitdodgie's picture

" nope" you have a very good point , but if nobody wants to buy the gold then it's not worth shit , central banks buy gold because it belongs to the gods, and guess who think they are a little above themselves . If it was that inportant to them then I am sure 1 trillion dollers would buy the lot up and then it's value would be zero because only they would have it and we the pee ons would find somthing else to trade and fuck there gold for control.

Tue, 09/02/2014 - 14:10 | 5171909 JuliaS
JuliaS's picture

I look at Platinum as an example of precious metal / industrial commodity.

Few people know that in tzar Russia they used to make buckets out of platinum. Yep. Regular buckets for carrying water in from the well. It was just a rust resistant metal - exotic, but in not too special. It was heavy. Aluminum made much bigger impact when it was first refined. It was instantly worth more than gold until a better chemical method was derived, producing it in abundance.

What made platinum valuable all of the sudden at the end of the 20th century? Industrial process and microelectronics had a litte to do with it, but the dominant factor was... the clean air legislation in the US that demanded use of catalytic converters in all cars! All of the sudden, the not very cost efficient heat-resistant metal became "a thing". It's limited supply was quickly chewed up by the carmakers. It rose in price, even surpassing gold and became a precious metal. NASA has always had use for highly conductive and heat-resisant materials also. Space was a growth industry until few years ago when they ran out of money.

Today, the demand for autos is down. The demand for high quality space stuff is also down as Russia does it for cheap with copper and plasticine instead of gold and titanium.

When the industrial demand dropped, we saw platinum slide to almost half of gold value as oppose to being worth twice as much few short years ago.

Economy affects both, industrial and investment use of metals. Gold is predominantly money. Silver currently is about half and half when it comes to acting as investment / raw material. Platinum? I quit tracking it in 2008. I don't even know the current supply deman stats. All I know is that gold makes a much better barometer of the economic condition.

Gold/silver ratios? All bull - spread by people like Mike Maloney, tyring to find a niche. In reality, nobody knows what's going on. The times are irrational and the metals are behaving irrationally.

The great benefit of gold ownership is that it offers privacy. Banks claim many different things, yet if you superimpose all the news of transactions - purchases, sales and vault relocations - nothing adds up. Just like gold in individual possession - what banks and governments hold is truly unknown. Those who have it, pretend they don't. Those who hold nothing, pretend they have lots. What is really going on? That nobody knows and price movements are a total mystery to people like you and I.

Tue, 09/02/2014 - 11:25 | 5171188 quadratic_equation
quadratic_equation's picture

You're right, it's my thought as well.  I can still go online and buy at spot plus the usual premium wait a couple of weeks and I have my gold.  So until the dealers show no stocks, the manipulation will continue and might even drop the price below mining rate.

http://www.comparegoldandsilverprices.com/compare-gold-coin-prices/

Tue, 09/02/2014 - 13:04 | 5171672 Bemused Observer
Bemused Observer's picture

It's really a question of scale. Folks like you are making relatively tiny purchases...it is the BIG consumers that will see the pinch first. So yes, you can still buy your coins and bars, but when Germany wants its tons, or big industry needs to reorder the tons it needs, it is where the squeeze starts to show.

Tue, 09/02/2014 - 12:13 | 5171447 Badabing
Badabing's picture

"The problem is, gold and silver are not in short supply."

tell that to Germany who wants the gold that the NY Fed dont have!

Tue, 09/02/2014 - 13:01 | 5171647 Bemused Observer
Bemused Observer's picture

You may not see the squeeze just yet, as there IS still availability. But these shoved-down prices have made mining unprofitable, and industry CONSUMES these metals. How many tons of the stuff is used in electronics, medicine, etc?
Mines are closing, and it takes time and money to get 'em back up and running. Not at THESE prices though. So, the amount in circulation WILL start to dry up at some point...where is hard to say. But the math, and the physics, are clear. There WILL be supply issues if prices stay low. Which will fix those low prices once and for all.

Tue, 09/02/2014 - 10:54 | 5171060 Kirk2NCC1701
Kirk2NCC1701's picture

So what's the 'problem'?   Think of it as "subsidized buying".  Just back up the truck and BTFD.

Unless of course, you're hurting financially and need it much higher.  If that's the case, blame yourself for being a "one trick pony", instead of diversifying your investments.

Tue, 09/02/2014 - 11:12 | 5171132 Huckleberry
Huckleberry's picture

+1000

I ain't in no hurry for an collapse. We are already over the cliff, just waiting to hit the bottom. You're dead from 5000 foot or 50,000 foot drop. Just a bit more messier...

Tue, 09/02/2014 - 11:15 | 5171145 Took Red Pill
Took Red Pill's picture

Blue light special! Stock up while it's cheap!

Tue, 09/02/2014 - 10:41 | 5170991 Capitalist
Capitalist's picture

If there was inflation then 10yr yields across the world would be at record highs. But it's the exact opposite.

Debt deflation is here.

Tue, 09/02/2014 - 10:47 | 5171024 Tabarnaque
Tabarnaque's picture

Maybe there is debt deflation fear for the banksters. But everytime I go shopping I can swear you that prices are going only one way: up, up and up! And by much more that the rigged CPI number they feed the sheeple.

Tue, 09/02/2014 - 11:17 | 5171147 LawsofPhysics
LawsofPhysics's picture

"Debt deflation is here."  -- perhaps, but it's completely fucking irrelevant as well.  Fuck the central bankers.

Tue, 09/02/2014 - 11:39 | 5171279 quadratic_equation
quadratic_equation's picture

There's deflation because of high unemployment or better known as more people not working.  How can anyone spend when they have none to spend?  How can people borrow when they have no jobs nor collateral?

Yes, indeed I read this morning that the production jumped to all time high but it's mostly in food and beverage also in construction but as you can observe there's inflation on all these because people can't survive without them and they're not included in government estimate of inflation.

Tue, 09/02/2014 - 11:52 | 5171346 TVP
TVP's picture

Maybe banks will start accepting EBT cards as collateral...

Tue, 09/02/2014 - 10:49 | 5171034 Sudden Debt
Sudden Debt's picture

Everything today will depend on Detroit for the US and what the courts decided what will happen to it's finances.

Gold is just a diversion for it I think.

Tue, 09/02/2014 - 11:02 | 5171090 Al Huxley
Al Huxley's picture

I don't know - Detroit's a tiny drop in the bucket, I doubt anyone gives a fuck.

Tue, 09/02/2014 - 12:30 | 5171516 SAT 800
SAT 800's picture

Good buying opportunity if you're dealing with a quick response entity.

Tue, 09/02/2014 - 10:37 | 5170976 90's Child
90's Child's picture

Poor mans gold down -.27

BTFD

Tue, 09/02/2014 - 10:38 | 5170977 Maplehood
Tue, 09/02/2014 - 10:44 | 5171015 juicemoney
juicemoney's picture

Given the data and news as of late this is THE contrarian indicator.

 

BTFD while you still can.

Tue, 09/02/2014 - 11:00 | 5171075 Kirk2NCC1701
Kirk2NCC1701's picture

Keep your eye on the bullion SPREAD.  It's already up, from 3-5% 6 months ago, to 10% now.

The Spread is the "Canary in the coalmine", the Early Warning Radar.  Tick, tock ZHers.

Tue, 09/02/2014 - 11:02 | 5171094 Al Huxley
Al Huxley's picture

Which spread are you talking about?

Tue, 09/02/2014 - 10:38 | 5170979 pazmaker
pazmaker's picture

King Dollar! for how long????

Tue, 09/02/2014 - 11:01 | 5171085 Ignatius
Ignatius's picture

I've been thinking about this question for some time.

I'm thinking that, perhaps,  alliances trump gold.  As long as the alliances hold, gold will be held down.  It was the NATO allliance that decimated Libya and stole their gold outright.  The PTB have an invaluable money creation enterprise and as long as the alliances hold they can continue the manipulations.  My 2 cents.

Tue, 09/02/2014 - 11:40 | 5171285 TVP
TVP's picture

It's true, the key to propping up this fiat fiasco involves infinite destruction of smaller, weaker nations, in order to either plunder their resources (Oil in Iraq, opium in Afghanistan), or force them to abide by dollar hegemony and use FRN's, thereby avoiding inflation at home (Libya planned to create a gold-standard currency, and now the BRICS nations may be planning to do the same).  

Until a viable alternative to the dollar arises, and people feel they can use it without being bombed to bits by NATO, the military-industrial complex will continue to save the day, for the banksters that is.    

Tue, 09/02/2014 - 10:39 | 5170980 Godisanhftbot
Godisanhftbot's picture

 howzthatgoldwoikenout4yasodomite?

Tue, 09/02/2014 - 10:44 | 5171014 Charles Nelson ...
Charles Nelson Reilly's picture

you have the wrong website, let me redirect you - http://www.xxlmag.com/

 

Tue, 09/02/2014 - 13:49 | 5171920 messymerry
messymerry's picture

Better to be a sodomite than an assomite.  What rock was it you said you lived under???

Tue, 09/02/2014 - 10:43 | 5170996 bescobar
bescobar's picture

Still holding my breath!

Tue, 09/02/2014 - 10:43 | 5171000 Hulk
Hulk's picture

So much excitement over worthless paper, in both cases !!!

Tue, 09/02/2014 - 10:43 | 5171004 ...out of space
...out of space's picture

silver under 18,60 will start move real fast

Tue, 09/02/2014 - 10:45 | 5171019 Monty Burns
Monty Burns's picture

If we were to go on what's been said here for a number of years we'd by now have had a dollar and stock market crash and gold would be at 2000.  I believed that too but am now beginning to think that normal rules and outcomes no longer operate.

Tue, 09/02/2014 - 10:47 | 5171031 Seasmoke
Seasmoke's picture

Then that would only be because of Manipulation and Fraud. 

Tue, 09/02/2014 - 11:49 | 5171324 TVP
TVP's picture

Normal rules still operate - reality will ultimately win, as it always does...everyone just underestimated the degree to which manipulation could be carried out, and the length of time it takes for reality to prevail under such circumstances.  

The dollar and stock market will continue to "rally" (it's all an illusion, markets rally due to devaluation, while fiat rallies due to other fiats collapsing) until every last investor on Earth has been forced into USD-denominated assets.  

Then, when we least expect it....boom.  Yellen will raise interest rates, right when it will cause maximum destruction, just like Roy Young in 1929.

Tue, 09/02/2014 - 12:03 | 5171390 tmosley
tmosley's picture

Reminds me of people capitulating on the internet bubble and buying just before it popped.

Tue, 09/02/2014 - 12:54 | 5171620 Bemused Observer
Bemused Observer's picture

Keep in mind, there's a reason these events take out so many people. And your comment is an excellent example of the thinking that always prevails right BEFORE the event happens.

NO ONE ever actually expects the thing to happen at the time it happens...even the doomsayers get caught by surprise when it happens (although they are better prepared..)

Tue, 09/02/2014 - 10:47 | 5171022 Latitude25
Latitude25's picture

Time to back up the truck

Tue, 09/02/2014 - 10:47 | 5171025 goldhedge
goldhedge's picture

STOP THIS FUCKING MADNESS ALREADY

Tue, 09/02/2014 - 10:47 | 5171027 directaction
directaction's picture

Cash is king!  

Tue, 09/02/2014 - 10:59 | 5171080 Taffy Lewis
Taffy Lewis's picture

I'm sitting on cash and already have some PMs as an insurance policy, but after lurking here on ZH for several years, I think my best "investment" of extra money is to pay off the mortgage asap; at least I'll "make some money" on the interest savings... I believe that it's amoral to be in stocks and I'm very comfortable with that decision (my wife isn't for sure).

Tue, 09/02/2014 - 11:18 | 5171156 greatbeard
greatbeard's picture

>> pay off the mortgage asap;

I've been in that situation twice now and by far, each time, in hindsight, the smart move was to pay off my mortgage. I've gone from paying on a mortgage, to being free and clear in a place , to holding a mortgage on a place plus having a free and clear place.  No question, no other investment I'd have made would have worked out as well.  I've gotten my ass kicked on gold and silver in the last few years but my debt free, mortgage free, first mortgage income situation has made it possible to hang tough as long as I need to.

Tue, 09/02/2014 - 11:48 | 5171313 Taffy Lewis
Taffy Lewis's picture

Thanks a lot for your comment; you're exactly in the situation that I want to be... A good friend is moving to another country and he would sell me his house & 22 acres outside of town for a great deal but I'm carrying too much debt on my first house to be able to swing it. The ideal situation would have been to have the current house - in town - free and use that rent to make the monthly payment on the farm. I'm about 3 years short (in Kansas, prices hardly fluctuate at all).

Tue, 09/02/2014 - 12:07 | 5171412 greatbeard
greatbeard's picture

No problem, I'm glad you appreciate it.  I generally do the wrong thing at the wrong time, but this wasn't one of those situations. And you can bet all the advice I received was to not do what I did.  Of course if I could pick stocks/metals/etc in hind sight I might have done better, but I can't.

Interesting about the 22 acres.  I ended up early retired on a five acre hobby farm just out of town.  I'm just squeaking by financially but loving every  moment of it.  Retired at 55, I'm 59 now.  It's a life I never imaged I'd end up with.  I was set up to be middle class American retired suburbanite, living "the life".  Things change and you roll with it.  I wouldn't change my simple life in the country for my old life any way, shape or form.  I went from upper middle call suburbs, making my life full time on the water, to living on a hobby farm, raising fruits and vegetables, canning, making bread, living the country life.  I'd have never imagined it.  I love hiking the the trails with my dogs.  Right now I'm looking to get a couple of horses and do some trail riding.  Five years ago I'd have never imagined me owning a horse.  Shit happens and you make lemonade if you get a change.  Good luck with whatever decision you  make.

 

Tue, 09/02/2014 - 12:48 | 5171601 Bemused Observer
Bemused Observer's picture

You are smart. As long as we are in this fiat system, you do have to deal with the currency du jour. So paying off that mortgage is the smart move for your fiat dollars.
Do try to hold onto your metals though, and add to them if possible. But you show smarts in understanding your need to deal with current reality in finances. Some PM fans might tell you to use your extra cash to buy more, considering the mortgage to be of less importance than stacking, but I agree with your approach. We have to function effectively in the current system while preparing for its demise. And saving that interest will be a big help. It will also free up monthly money which you can use to stack if you wish.

Tue, 09/02/2014 - 12:52 | 5171615 greatbeard
greatbeard's picture

>> hold onto your metals

My metals aren't going anywhere.  I'm not a buyer or a seller.  I long ago went all in with everything except enough cash to live my "meager" existence as long as I cast a shadow on this earth.  I could live in relative splendor if I liquidated but living in splendor is not my objective.  This is personal.

 

 

Tue, 09/02/2014 - 14:07 | 5172033 messymerry
messymerry's picture

Good for you greatbeard.  IMHO, of all the indicators of success, money is the least interesting.  There are three big chains that bind us.  Gold, silk, and steel.  i.e. wealth, fame, and power.  If one succumbs to any of these, then they will always be having to protect their ego.  They will never have peace.  There's no shortage of douchebags with huge lengths of these chains around their necks. 

GET AWAY FROM THE CITIES!!!  Find a nice small community and shelter in place.  After the initial frenzy of liquidation (some months), it might be possible to makee some moves. 

Pranayamas,  ;-D

Tue, 09/02/2014 - 14:01 | 5171830 Harbanger
Harbanger's picture

"We have to function effectively in the current system while preparing for its demise. And saving that interest will be a big help. It will also free up monthly money which you can use to stack if you wish."

I understand being debt free, but you're playing by the rules of a different system, a gold standard maybe, but we don't have that now.  therefore,  1. mortgage interest is tax deductible so you are only paying off the pricipal. 2. Interest is at all time lows. 3. Fiat was made to be inflated away.  So why would a person pay for a house/farm in cash when he can keep 1/2 the cash and mortgage the other 1/2.  He can make monthly payments and still have cash to invest in whatever wants.  The other way he's mortgage free but broke in terms of cash.  If the RE market drops he has a cushion, if other markets drop he's not too broke invest in them.

Tue, 09/02/2014 - 11:34 | 5171241 walküre
walküre's picture

Stocks would give me nightmares but cash makes me nervous as well.

I'm eating organic, so why would I trust any synthetic values as a store of my earnings?

It can be duplicated and manipulated at will. That is what most people don't understand and why they still eat plastic despite the warnings and research.

Tue, 09/02/2014 - 10:47 | 5171028 laomei
laomei's picture

well, seeing as russia is being pushed into war and everyone else is wanting war, of course gold is falling.  what's that? war = gold falls?  Why yes, yes that's exactly what.  big wars fucked with the gold standard virtually every single time.  war means go to fiat cus that's the only damn way to pay for them.  then you plunder the fuck out of the loser in terms of hard currency to pay the debts and go back to gold standard leaving the losers even more fucked than before.

 

also, during war, gold and all that shit... hah, that gets plundered like first fucking thing.  and in a major war in this era, you're talking nukes, at which point, gold is fucking pointless, it's dead weight.  if you survive the blast and the radiation, you'll value dentures more than gold so you can have teeth to perhaps eat the last bits of edible food remaining.

 

so given that history, what does it mean when it's all fiat to start with?  it means you can be on the "winning" side and still gold is fucking pointless nukes or not.  gold and shit like it only makes sense when markets are "normal" and they have not been "normal" now for a long fucking time.  the markets are so bloated and manipulated at this point that a crash simply cannot be allowed to happen, and if a crash will not be allowed, then what's the fucking point of gold?

Tue, 09/02/2014 - 10:57 | 5171068 vyeung
vyeung's picture

what you have written is complete garbage. When there are wars all the mofo countries only accept payment in PM. Go do a simple search. No mofo country is going to believe in another farkers fiat period. You've ZERO understanding of financial history as well as how the global financial system operates.

Tue, 09/02/2014 - 11:38 | 5171271 debtor of last ...
debtor of last resort's picture

PM's are insurance against failure of the system. Growth is over due to peak cheap fossiles. Of course they manipulate over and over, it won't last in the end. Before 2020 is my take.

Tue, 09/02/2014 - 10:48 | 5171030 youngman
youngman's picture

With all the news I have been reading in the world about the crap that is going on with the paper monies....I would be a PM buyer...you cant trust the Euro now..and the Yuan...the YEN..and of course the dollar...all are bieng played and are under pressure fro economics....but yet I am wrong bigtime..the PMs are diving...go figure..

Tue, 09/02/2014 - 10:48 | 5171032 Magnum
Magnum's picture

Cue the KingWorldNews sheeple --

"Time to back up the truck"

"Bargain of the year"

"It's all due to manipulaaaation"

zzzzzzzz

Tue, 09/02/2014 - 10:56 | 5171069 Latitude25
Latitude25's picture

Yeah you're right and 3 billion Asians are wrong.

Tue, 09/02/2014 - 11:04 | 5171099 Magnum
Magnum's picture

I was in China (Hong Kong, Shanghai, Beijing) several weeks this summer.  Admitedly the first time, I was expecting to see all kinds of gold shops like in Bangkok.  Nothing of the sort, AT ALL.  Did not see one gold shop in mainland.  Hong Kong there were two next to each other, that I saw.  Perhaps there are more.  

I have one client, a lady who dresses nice and owns a company, age probably 40.  I asked her about gold, does she buy it?  She says older people, the older generation, yeah they bought gold.  Today, nobody buys it.  

Back to your KWN podcasts you go, and buy more gold if you will, but we won't see Eric Sprott predictions, ever.

Tue, 09/02/2014 - 11:08 | 5171110 Latitude25
Latitude25's picture

Now that's the third time you've given us your bullshit story in the last year.  This basically means you know nothing about Asia.

Tue, 09/02/2014 - 11:16 | 5171141 Magnum
Magnum's picture

Troll, I am infrequently on ZH and you remember previous posts?  Get a life!

I just returned from China and got over jetlag within the last two weeks.  I know that I was in China, saw no gold shops after spending many days strolling the streets of Shanghai and Beijing, and my client told me that the new generation doesn't buy gold.  Kill the messenger why don't you.  

I forgot one bit, while in Shanghai I walked into a "mall" strictly for gold merchants.  Four levels, maybe more.  Apparently the main customes are bride and groom.  The entire place was empty except for the merchants.  It was right next to the ancient town.  

What else is there to "know" about Asia?  Please tell.  I grew up in Asia and half my family is ASIAN.

Tue, 09/02/2014 - 11:20 | 5171166 Latitude25
Latitude25's picture

Yeah the last 2 times you posted this you had "just returned from Asia".  You're a predictable idiot.

Tue, 09/02/2014 - 11:28 | 5171211 FieldingMellish
FieldingMellish's picture

Reminds me of the stories from the the 2004 tsunami. After the shaking, the old people ran for the hills because experience had taught them what was coming. The young went to look at the tide running out and gather the stranded fish. Guess who "won".

Tue, 09/02/2014 - 11:30 | 5171227 Magnum
Magnum's picture

I spent most of July and part of August in China.  I am returning again this month.  You are not adding ANYTHING to the discussion either.

Tue, 09/02/2014 - 11:36 | 5171262 walküre
walküre's picture

Did you talk to anyone related to the PBOC?

Tue, 09/02/2014 - 11:46 | 5171305 Magnum
Magnum's picture

Obviously that is a big unknown, and largest potential driver of gold prices.  So just take a look at the price of gold today to draw some conclusions about PBOC purchases.

Regarding individual demand among average Chinese people, no.  No dice.  I saw no gold shops, my client said people don't buy, and I walked into a multi-level gold mall which was empty.  

The Apple stores were packed, as expected.  Say what you want about that...

Tue, 09/02/2014 - 12:21 | 5171478 Wild Theories
Wild Theories's picture

There are plenty of people who actually do research and study the flow of PMs, goods, money etc.

and they involve shit like math and hard data.

 

All you've got is "I'm a fucking commoner walking down the street, so yeah I've got full confidence I know what national governments and central banks are doing or not doing, just from my little stroll"

Average peasants in China ain't buying gold, so? what does that prove?

average western citizen believes recovery is real, Russia is evil, and there is no bubble in the stock market either

Wed, 09/03/2014 - 00:28 | 5174394 TeethVillage88s
TeethVillage88s's picture

No one will see this but...

If you have paid apartment rents in China or Asia... maybe it would be like you... You draw a lot of money in whatever currency... then hide a lot of money in transport ...and you had to walk it down to currency exchange shops ...and to the land lord.

Maybe you want to buy gold, the you draw cash to beat exchange rates... then carry cash in taxi(looking over your shoulder) ... till you seal the next deal for gold,

Things are different in Asia.

Tue, 09/02/2014 - 12:35 | 5171536 Bemused Observer
Bemused Observer's picture

So you're stacking I-phones then?

Tue, 09/02/2014 - 11:46 | 5171299 vyeung
vyeung's picture

Incorrect, the major buyers are institutions. You are referring to retail. Retail are always the last to the game, just like equities. Make no mistake, people with large net worth and are clued in are buying BIG TIME. I'm on the ground and you will not see it simply walking around. Your day trips will tell you ZIP.

Tue, 09/02/2014 - 11:49 | 5171320 Magnum
Magnum's picture

In Thailand there are gold shops everywhere and so many people own gold.  The same in India, I think.  I was surprised in China, to find zero retail support and even my client who said retail gold buying is a thing of past generations.

Tue, 09/02/2014 - 12:09 | 5171420 vyeung
vyeung's picture

They tend to do it slightly different in China and Hong Kong. Hong Kong is not pro-gold per say. You are right that it is viewed by the older generation as a preferred way to save, as the younger people view it as un-cool. But non-retail with good capital to allocate and know the deal are buying. They have these dealers either in high rises or look real bland with not much happening but are bullion buying houses. You have the Jewelers like Chow Sang Sang that mainly sell to mainland customers on visa visit, but that has dies down due to the availability within the mainland. Thailand is different in that Gold is seen as wealth and they have a legacy of owning it like India.

China is pro gold and young and old appreciate its store of value.

I believe the key will be when the Eastern exchanges take hold (end of Sept). I don't think it will rising alot this year but it will be much harder for the COMEX and LBMA to dictate a fake price for essentially a paper claim as the Eastern exchanges are physically delivery exchanges.

Tue, 09/02/2014 - 10:58 | 5171072 Charles Nelson ...
Charles Nelson Reilly's picture

this is like the 50th time you've repeated this post.  We get it, you don't like the KWN people and are smarter then them.  Now shut the fuck up and go back to the drawing board to come up with something new.

Tue, 09/02/2014 - 11:00 | 5171081 Magnum
Magnum's picture

Still smarting after KWN convinced you to backup the truck at $1640.

Tue, 09/02/2014 - 12:27 | 5171508 Bemused Observer
Bemused Observer's picture

1640? Who the hell pays the official price for gold these days? With gold being held in such contempt by so many, no one should have to pay full price for the stuff.
I haven't paid more than a buck or two for the 14 and 18 karat jewelry I've been hoarding...paid 50 cents for an 18 karat Civil War era belt buckle, I'll get bracelets and necklaces for a dollar, etc. Stuff adds up fast if you keep picking it up when you can.

And you know who I buy all my gold from? Folks just like you, who put it out at yard sales without even examining it, because gold is just so icky...

Tue, 09/02/2014 - 10:48 | 5171033 Ewtman
Ewtman's picture
"Gold Tumbles Most In 6 Weeks As USD Surges"

 

 

No surprise here...

Gold

http://www.globaldeflationnews.com/gold-elliott-wave-update-for-july-2014/

 

Dollar

http://www.globaldeflationnews.com/u-s-dollar-indexelliott-wave-historic...

 

Bond yields have also started rising

10 Yr Treasury

http://www.globaldeflationnews.com/10-yr-treasury-index-yieldelliott-wav...

 

 

 

Tue, 09/02/2014 - 10:49 | 5171036 JRobby
JRobby's picture

Kabuki at an unimagined scale.

Where is my white makeup? I need to go down to the bank.

Tue, 09/02/2014 - 10:50 | 5171040 Kaiser Sousa
Kaiser Sousa's picture

how silly...
do they really believe that this type of blatant bullshit in the phony paper markets will deter the enlightened and encourage them to sell real money for worthless paper script?????

NO GONNA HAPPEN MOTHER FUCKERS.....
DEATH TO THE MONEYCHANGERS....

"hello, APMEX...."

Tue, 09/02/2014 - 10:55 | 5171065 Oldballplayer
Oldballplayer's picture

Phoney paper market?

The price of the gold bullion in my safe just dropped a shitload.

How is that paper?  This paper argument is bullshit.  The paper drives the metal.  If I needed to convert, it would be horrible.

 

Tue, 09/02/2014 - 11:09 | 5171111 Al Huxley
Al Huxley's picture

If you need to convert you should re-evaluate your strategy, the reason you hold physical metal and the amount of your total assets that it represents.  The 'catastrophic currency event' that would be a reason for converting clearly hasn't happened and isn't even visibly on the horizon (unless this USD move is the ultimate pump in the world's biggest pump-and-dump ponzi scheme).  Think like a family with multi-generation-wealth, not a day-trader.

Tue, 09/02/2014 - 11:10 | 5171112 Kaiser Sousa
Kaiser Sousa's picture

"This paper argument is bullshit...."

really????
dude, is a Federal Reserve NOTE money????
if u think so, then weep on...
if u know not then what has dropped in VALUE...
PHYSICAL GOLD OR SILVER in your safe or the debt coupon dollar price the manufacturers of debt based currency want you to believe is its REAL price based on the fundamentals???

this aint for the weak minded or weak willed...
proceed according to your beliefs and convictions....

Tue, 09/02/2014 - 12:19 | 5171471 Bemused Observer
Bemused Observer's picture

Dollars? Who cares about dollars? Gold isn't to help you get more dollars, it is to protect you FROM dollars.
If you want to gamble, buy paper gold. But keep the physical metal in your safe, and stop tormenting yourself by calculating your day-to-day loss in dollars.
Gold is patient, much more patient than your economy. So it is an 'investment' for patient people.

If there was some 'thing' that you valued, and wanted to buy more of, would lower prices of that thing make you mad? Or would you see it as a golden opportunity (pun intended) to get more?

If you REALLY valued it, the answer would be to get more, of course. But if you were really just hoping to turn it around for a quick profit, then you weren't really valuing that thing in the first place.

Tue, 09/02/2014 - 15:40 | 5172506 CHX
CHX's picture

Second that. Add to stack on the pull-backs, and DO NOT value your dollar losses, value the size of your stack. Gold is money, if you have more your truly richer (in gold terms), and once a critical mass does the same (and I think this is already on the way in the physical market), then it's a matter of time that this will also be the case in fiat terms. Russia and eastern CBs are buying, Chinese and Indians are buying and the miners sell close or below cost of production. Half the planet is buying, how barbaric. Downside is limited IMO in both time and extent. 

Tue, 09/02/2014 - 10:51 | 5171046 JPMorgan
JPMorgan's picture

Got to love this artificial deflation we have real asset prices. 

How low can it go?

Tue, 09/02/2014 - 11:20 | 5171161 CHX
CHX's picture

The bullion banks have to get net long (if they not already are) - maybe this is in progress, or else price will trade down until all paper PM contracts are cash settled (LBMA/COMEX system break for all to see) and then the PMs are re-valued (much higher). In short, the paper price could potentially fall VERY LOW, for a very short period of time in the latter scenario, but I doubt one could find much metal to buy. Time will tell...  

Tue, 09/02/2014 - 10:52 | 5171047 q99x2
q99x2's picture

Jesus is coming. BTFD bitchez.

Tue, 09/02/2014 - 10:52 | 5171053 fredquimby
fredquimby's picture

Gold is "falling" because everyone just got paid, bought the shit out of it these last coupla days, so now it goes down.

I would prob have bought some too, but this month I spent it all on Maris Otter Pale Ale Malt and Whitbread 1099 yeast.

Man can't live on gold alone :)

Tue, 09/02/2014 - 10:52 | 5171054 vyeung
vyeung's picture

It will keep going up and then it will just drop like a stone. Prediction by Jim Willie. Makes sense, as when you liquidate US based assets you change into USD, then you get the fark out of the USD into something that is not the biggest worthless fiat in history. I done that a few weeks ago, so imagine when someone like the Russian's, China etc start to unload. Of course the USD will show a fake head in demand. I feel sorry for the people that think the USD is rising due to other reasons.

Tue, 09/02/2014 - 10:54 | 5171059 Oldballplayer
Oldballplayer's picture

Where is money going to go?

The Yuan?  The Ruble?  The Yen?

The dollar is the cleanest dirty shirt.

Gold drops until the dollar is the last guy standing.

Tue, 09/02/2014 - 11:01 | 5171084 vyeung
vyeung's picture

for you maybe, but Russia, China and the big boyz obviously have a much different opinion to your understanding.

What you write is totally incorrect. The USD is backed by DEBT (treasuries), all the creditor nations know this but they will not completely diversify away their treasuries for the simple reason that under a stressed scenario, assets residing in the Western world can be had for a bargain. But make no mistake, they are liquidating as we speak.

Tue, 09/02/2014 - 11:05 | 5171103 Godisanhftbot
Godisanhftbot's picture

 gold is just shiny junk

Tue, 09/02/2014 - 12:07 | 5171410 1stepcloser
1stepcloser's picture

FRNs aren't even shiny nor considered junk...discuss among yourselves....

Tue, 09/02/2014 - 14:22 | 5172111 messymerry
messymerry's picture

...and greenbacks are just toilet paper.

Tue, 09/02/2014 - 10:56 | 5171063 Kina
Kina's picture

Yeh record global debt, insolvency, bankruptcy, money printing, wars, geopolitical turmoil, risk of major war, tripple dip recessions, continued dilution of US confetti.......means humanities most immutable asset throughout all history, gets dumped.

Tue, 09/02/2014 - 10:56 | 5171066 Godisanhftbot
Godisanhftbot's picture

gold is the new bitcon

Tue, 09/02/2014 - 10:57 | 5171070 Jano
Jano's picture

Let me see it again in 3 weeks ( Chinese Au x-change opens on 21.sep.).

Tue, 09/02/2014 - 11:07 | 5171105 vyeung
vyeung's picture

yes, they will have the last harah soon as they start to loose pricing power as the pricing starts shifting east. Good opportunities for buyers like me though. I'm not complaining and I don't have any kind of time window like months for the PM to move. You don't buy PM if you are on a shoe string budget, you buy it to preserve your wealth. Right now the COMEX and LBMA is doing all it can. This has been going on for decades and with the dollar decline, so this migration will create opportunities. But not everyone will see it like that. But who cares becoz at the end of the day you make $$$ not by doing what everyone else thinks you ought to be doing. hahaha.

Tue, 09/02/2014 - 11:02 | 5171089 Consuelo
Consuelo's picture

There is no fear.   It isn't that fear doesn't exist, it is simply that is hasn't visited us yet.   Even more so, the cup of 'confidence' is yet filled.

Tue, 09/02/2014 - 11:05 | 5171097 Godisanhftbot
Godisanhftbot's picture

 rumor there are hacked pics of Maria Barts 50lb pair.

 

i forgot she even existed once she moved off cnbs

Tue, 09/02/2014 - 12:11 | 5171433 Bemused Observer
Bemused Observer's picture

It must be hard to see the 50lb pair, what with all the Wall Street financier fingerprints all over 'em.

Tue, 09/02/2014 - 14:26 | 5172127 messymerry
messymerry's picture

Man killed by asphyxiation in early morning beast attack. 

Tue, 09/02/2014 - 11:05 | 5171104 buzzsaw99
buzzsaw99's picture

I'll stick with you baby for a thousand years
Nothing's gonna touch you in these golden years, gold
Golden years, gold whop whop whop...

Tue, 09/02/2014 - 11:06 | 5171106 Quinvarius
Quinvarius's picture

The volume for the last few trading days, on netdania, has been as high as, but more sustained over more days, than the very bottom in 2013.  It is being overtraded to a degree beyond any bottom yet achieved.  Maybe it means nothing.  But there are correlations you can see on netdania between abnormal price moves and periods of what looks like over trading.

Tue, 09/02/2014 - 11:10 | 5171109 CHX
CHX's picture

The daily gold chart shows some significant pick-up in volume over the last few days. Is this the moment the large shorts (commericials, bullion banks) make their next play on the large specs? Something's afoot. Always so re-assuring to have free and transparent markets. BTFD.

Tue, 09/02/2014 - 11:09 | 5171113 Magnum
Magnum's picture

USD hasn't "surged" much, it remails for the most part, where it's been the last year relative to Euro, Aus$, Yen...

Tue, 09/02/2014 - 11:18 | 5171159 Bunghole
Bunghole's picture

Either you are a dumb motherfucker or a bad troll.  

USD/JPY at 105 today when it's been between 101-102 for the last year.

 

Tue, 09/02/2014 - 11:28 | 5171213 Magnum
Magnum's picture

Just a world traveler who watches currency rates.  

You need to look at the price of gold in Yen: MINUS Y1300 today.  

The fall in gold today is not due to relative rise in the dollar!

Gold is DOWN in Euro 17.08.  DOWN in Aus$15.  Down CH19.47.

Gold is DOWN everywhere dumbass get over it.

 

Tue, 09/02/2014 - 12:59 | 5171643 MansaMusa
MansaMusa's picture

@Magnum:  you quoted all paper currencies dumb tard!  Go buy more S&P 500, you sound dumb enough to do it

Tue, 09/02/2014 - 11:09 | 5171115 MansaMusa
MansaMusa's picture

I was going to buy a few more oz of silver but now that gold has been manipulated again (post Monday smackdown) its time to STACK GOLD bitchezz!!!

By October when the Fed stops QE, then we'll see who has the last laugh.  Unless the false flag attack comes first

Tue, 09/02/2014 - 11:09 | 5171117 Consuelo
Consuelo's picture

Speaking of 'fear'...

When I was a budding teenager, there was a show called 'Kung Fu', starring David Carradine. Lame as the 'action' scenes would be considered today, it was nonetheless 'new and exciting' for its time.   Interestingly enough, I did enjoy - and learn, from much of the philoshophical wisdom expressed by the characters and through the storylines.   In any event, there was an episode wherein Carradine is speaking to a man who claimed he 'had no fear'.   Carradine responds with the line:

"A man has no fear, until fear visits him..."

That always stuck with me.

Tue, 09/02/2014 - 12:18 | 5171469 Prince Eugene o...
Prince Eugene of Savoy's picture

Teleplay By Robert Schlitt http://www.kungfu-guide.com/23tong.html

Tue, 09/02/2014 - 11:10 | 5171118 Lawn.Dart
Lawn.Dart's picture

Rigging gold is like seeing how many time you can twist a pack of ketchup before it explodes.

Tue, 09/02/2014 - 12:58 | 5171637 MansaMusa
MansaMusa's picture

@Lawn.Dart: buhahaha, exactly!  And the Fed is down to squeezing the last of their ketchup packets.  Time for a fals flag attack and war!  Stack HIGH!

Tue, 09/02/2014 - 11:11 | 5171119 lunaticfringe
lunaticfringe's picture

When I read the ZH piece on Central Banks buying the S&P this weekend, I turned into a gaper. At this point, I have no fucking clue how long this charade can last.

I think the deflation is here finally. I've been saying it for 6 years. All commodities are down unless it begins with a "C" or "S"

Tue, 09/02/2014 - 11:12 | 5171123 SilverRaven
SilverRaven's picture

The key is to watch the poor cousin. Silver has been trending down since 2011. Price was way too close to the break out line so it had to be hammered down a bit harder. Don't be surprised to see it get smashed down to close to $5 again before the financial system finally collapses. And then the pressure cooker will finally explode and we will witness gold and silver do the accounting for this worthless fiat currency we've all been brain washed into thinking is actually of any value.

With all the theatrics I've been witnessing of late I still think they can drag this rotting corpse down the road another 3 years.

So still plenty of time to learn, prepare and accumulate everyone.

Stay calm......

Tue, 09/02/2014 - 11:31 | 5171231 The Shodge
The Shodge's picture

I am in up to my neck. Time will tell if you can bury the gold with me. Hope you're right.

Tue, 09/02/2014 - 12:36 | 5171540 MansaMusa
MansaMusa's picture

it won't be long brotha, October will tell it all.  Central banks will start war instead of be caught with their pants down!  Stack on gold/silver/PMs,  bitcheZZZ!

Tue, 09/02/2014 - 12:45 | 5171594 bluskyes
bluskyes's picture

The important question is: Will you be able to aquire any physical at $5.00 ?

Tue, 09/02/2014 - 14:04 | 5172020 actionjacksonbrownie
actionjacksonbrownie's picture

Speaking from past experience (Spring 2001), if Silver goes to $5/oz., you will be able to buy it for $4/oz. on eBay, and even less on Kijiji/Craigslist and there will be almost unlimited supply - people hate a "loser"

Tue, 09/02/2014 - 11:11 | 5171126 givenoquarter
givenoquarter's picture

I should think we are all beyond being shocked at the disconnect between reality, as described by our perception of real life events taking place around us, vs. Reality as described by the Markets and Fed, government, etc.

I do not see any other option other than to hold tightly to physical and wait this out. Countries are not snatching up gold just to see it be devalued and worthless in the long run. While the US might be playing whatever games it can in the interest of trying to keep its head above water, the fundamental issues are all still at play.

What should we do? Trust in the worth of FRNs? There is no safe place to stack wealth other than physical holdings that can be liquidated at true value at some point in the future. I do not give a flying fuck whether or not I missed out on earning a few extra buck in the markets. To be distracted by that circus at this point in time is a fool's game. Some will gloat over the great play they made, that is fine. Good for you. I have had my time inthe sun with investments as well. Now, it is all too unstable like some big, global game of Jenga. Some fucktard is bound to pull out hte last stick and the whole thing will come crashing down sooner or later. 

Guns, ammo, art, silver, gold, land, cars, wealth producing business ownership - that is what I am betting on and this bullshit will not shake my commitment to them.

Personal choices remain, but the current environment sure seems to continue to reduce sane options...

 

 

 

Tue, 09/02/2014 - 11:14 | 5171134 lemarche
lemarche's picture

Most of the drop happened in 2/3min: 12:22CET; 14:20 CET; and 16:15 CET.

Welcome to the price-smashing market, where selling all your size at market seems to be the smartest thing to do to get best execution... erh, I meant, manipulation...

Tue, 09/02/2014 - 11:26 | 5171194 Godisanhftbot
Godisanhftbot's picture

 the only manipulation is the manipulated gold bugiots

Tue, 09/02/2014 - 11:17 | 5171149 Fix It Again Timmy
Fix It Again Timmy's picture

All finance, all trade ultimately rely on a financial bedrock and for 5,000 years, gold has served as that bedrock; I don't see that changing and if the younger generation is not interested in buying gold, that certainly cannot displace one atom in gold's 5,000 year old track record...Gold, it simply works and does what it is supposed to do - maintain your purchasing power and act as a reliable storehouse for your accumulated wealth.  What more could you ask of it?...

Tue, 09/02/2014 - 11:23 | 5171180 vyeung
vyeung's picture

all you need to do is ask ay Argentinian, Ecuadorian, Iraqi etc. Well said. But to clarify, Bretton woods was not a true gold standard as it included the USD as the reserve asset. It was a gold exchange standard and the failing came about due to the Fiat portion of system (contrary to popular propaganda).

Tue, 09/02/2014 - 11:21 | 5171168 Balvan
Balvan's picture

Gold is dead, get out while you still can, it'll be $600-$800 by 2016

Tue, 09/02/2014 - 11:26 | 5171195 CHX
CHX's picture

IF gold goes sub 700, then the current pricing mechanism will break as they do not have enough metals, and miners would go bust in droves. So that would not last this long, it will be a very quick event, should it occur. Time will tell.

Tue, 09/02/2014 - 12:03 | 5171389 Bemused Observer
Bemused Observer's picture

Yes, and this is something the gold-belittlers never talk about. Gold isn't just a pretty metal, it has industrial use. Especially in electronics. At some point, supply is going to get squeezed, and with mines closing because of persistent low prices, there won't be as much coming out of the ground. So, what we have is pretty much what we're gonna have, for the immediate future anyway. (When a mine goes out of commission, I don't think it is so easy to just start it up again...stuff deteriorates.)

When big business starts screaming for more supply, it isn't going to be as easy to manipulate prices anymore. Supply and demand are going to reassert their authority over managed pricing.

Tue, 09/02/2014 - 11:26 | 5171200 vyeung
vyeung's picture

Tell that to people who have a real nest egg to protect and I'm sure they will shoot you on the spot. $600-$800 right, they better do it this month becoz by the end of the month, these fake gold/silver contracts will have little to no say in the future pricing.

Tue, 09/02/2014 - 11:48 | 5171322 Quaderratic Probing
Quaderratic Probing's picture

1 month. Contracts always end at the end of the month, 36 month contracts are still there and in a month new one month and new 36 month contracts will be created.

 

 

 

Tue, 09/02/2014 - 12:37 | 5171548 vyeung
vyeung's picture

NO ONE COMPETES WITH THEM NOW ON PRICE DISCOVERY (although they just rig it in London and US. Well documented). THE Eastern exchanges are physical exchanges and their prices will reflect actual deliverable metals price at the end of Sept. Shanghai, Singapore, South Korea, Thailand etc Not all will pop into full spin at the end of Sept but the liquid markets Shanghai and Singapore are coming online at the end of Sept.

Who's going to care about COMEX/LBMA prices when there's nothing to delivery as they have a 100:1 claim on an ounce.

Thu, 09/04/2014 - 04:45 | 5178829 Quaderratic Probing
Quaderratic Probing's picture

Are you going to give them your gold for more dollars?

Tue, 09/02/2014 - 11:21 | 5171171 Keltner Channel Surf
Keltner Channel Surf's picture

As  gold bug Ted has found,

markets can often astound

“Au’s price is absurd!

It’s less than incurred

to get the shit out of the ground!”

Tue, 09/02/2014 - 11:22 | 5171175 CHX
CHX's picture

Europe's about to close... time for a reversal to butcher some shorts abroad?

Tue, 09/02/2014 - 11:26 | 5171190 oak
oak's picture

the pm miner stocks are overvalued. all charts of $cdnx, gdx and gdxj look berish.

Tue, 09/02/2014 - 11:31 | 5171226 Al Huxley
Al Huxley's picture

What usually happens next to stocks with 'berish' looking charts?

Tue, 09/02/2014 - 11:26 | 5171192 CRYBABY
CRYBABY's picture

12 mths ago practically every single post on here was a guy telling you that the FED wouldn't taper...fast fwd to current mkt and all those guys are now telling you that the FED won't raise rates....FACT..the FED have tapered..and get used to the mkt pricing in a FED that will be using IOER as a prelude to FF increases...with data like we have been getting over the summer, rate rises are coming and the mkt will price accordingly and indeed is starting to price them slowly. 10Y ylds are a massive buy @ 2.40% and there is no way gold futures can do well with USD getting a massive hard-on. You may get the odd squeeze/ positional wash-out due to congestion....but don't fight these current trends.

You can argue all you want about the "validity" of the data, and the value of owning physical gold (which i do)....but if you are a trader, shorting stock markets, buying gold and shorting the $ has made you sweet fcuk all and prob cost you a truckload of dough in terms of missed opportunities if nothing else.

Tue, 09/02/2014 - 11:28 | 5171214 vyeung
vyeung's picture

They haven't tapered. They are just monetizing through the back door. Only a fool would believe they could taper. Just becoz its not obvious and presented in your face, does not mean they are not doing it. ECB has been monetizing through the back door for quite some time and no one is the wiser.

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