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Gold & Silver Join Bonds In Turmoil
With bond yields spiking and the dollar dumping, one might think precious metals would be bid but that bizarro, anti-status quo reality will not do and so, gold and silver (and crude oil) are tumbling faster than Sepp Blatter's reputation and the price of tickets to the "Russia" 2018 World Cup.
Gold & Silver dropped early on inflation forecasts suggesting a possible end to Q€ at some point in the future... but suddenly dump in last few minutes.
As Crude keeps dropping post DOE data.
And bonds and stocks have decoupled:
The good news is that with just two Indians down (out of a billion) for spoofing gold (here and here), the CME will have no problem finding yet another Indian scapegoat manipulating gold in their parents' basement in no time.
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I'm not buying silver. Soon they will be giving it away.
Sure..
Of all the things not important to life on this planet, silver is at the top of that list
Da Monkey is Here!
Everybody, GRAB YOUR HAMMERS!!!!
Wherever they put the price...im a buyer till theres none left.
Fuck Them.
RIPS
NOSTRADAMUS: Century 8, Quatrain 28
The copies of gold & silver inflated,
which after the theft were thrown into the lake
at the discovery that all is exhausted & dissipated by debt.
All scrips and bonds will be wiped out.
http://www.nostradamusquatrains.com/Century8/Quatrain28.htm
That's pretty cool, how the hell did you pull that from memory?
Yes the VIII,28 ..
....
....
Au decouvert estaincts tous&troublez,
Au marbre escripts,perscripts ,interjettez
Nostradamus liked to encrypt with intended puns or rethoric codes so the above is more in the sense of
The discovery(of the gold overdraft /gold indebtedness)will turn (all the players)tired & upset/disturbed,
Smashed will currencies,paper money be,(You,The People..)you' ll complain/appeal the decision (of money destruction by governments).
Others quatrains are even more clear about gold ..
and other geopolitical events.
We easily can make a book only with the current fi.crisis and gold role.
N is in the heart of the concept of time in the Time.
My personnal edition is dated from 1668.
When silver is under $15.50, I buy, when above I hold.
Ahh, I’ll just buy the dip, but I know there will be a bigger one if they ever raise rates. Get ready for a roller coaster in all assets.
I'll buy it only when they pay me to take their silver.
Yea I just contradicted myself. It's just life.
This very well may be the final capitulation we are all looking for for a final bottom.....
It's..it's...it's hammer time!
Let's dance MC Hammer style!
Strange markets indeed....nothing I learned in College is working today....economics means nothing today..as well as the word Market..
And the world college.
algos just fixing gold visavis yields. nothing to see here
Yeah, Theory has become the bad idea of the week. Learned the basic's back in the late 70's and nothing follows those rules anymore. That is the reason I got completely out of the casino. I'm just not greedy enough to play when the game is so rigged......
absolutely, the fed story i got in economics was a fraction of the story.
Major University and the professor was clearly a commie. giddy over the depression discussion. Had all the cowboys and girls looking around at each other.
That university no longer exists btw. it has changed exponentially over the years.
as they push the envelope. People are waking up though.
Means they either think it is too late for us to correct it or they will take whatever progress they can get. Its a generational thing.
Good thing we have ZHU, though most lessons are as frustrating as zen koans. What is the sound of a CB wanking?
Someone please let me know when they have to mine and refine bonds. Paper promises aren't worth the paper they're printed on, on a long enough timeline.
As long as miners continue to accept electrons or colored paper in exchange for their tangible, rare, and unemcumbered product, these shenanigans will continue.
And as long as my PM dealer continues to accept electronic and paper, I will continue to exchange it for that same tangible, rare, and unemcumbered product.
Gold to $900 looks very possible. Nobody wants the stuff. Some inflation hedge.
hmmmm... how many times have I heard that call?
Another feeble attempt to attach Gold to inflation. Buy Gold because Bankers are criminals and will steal your savings by account theft, or one better, savings conversion to worthless equity.
Ah, the "moving the goal post" fallacy. As soon as gold fails miserably as an inflation hedge, we say it's now used as insurance and to protect ourselves from bankers. When that fails, it will start to gain the same mystical properties as bigfoot. Gold will become a shapshifter that's worth 5k in an alternate universe.
the price of gold has nothing to do with inflation
Maybe that same bigfoot in said alternate universe will give me 5.5% on a 10 year.
By invoking the Ah, the "moving the goal post" fallacy.......doesn't make you appear any less retarded than you have previously demonstrated. Gold goes to $5000, or gold goes to $50 - don't much matter, its real value - what it garners in exchange - is constant. The only question is, which world would you prefer to live in. Its really that simple, but, you havent figured that out yet because you look strictly through a nominal lens.....and then laugh at loud, point fingers, whatever, when gold slides. i understand your failure to get this, but, what I don't understand is where your position lines up with the market. I guess we should all get long to the SPY just because you think gold is a relic? Seriously, you bitch slap gold and those that hold it, but offer unintelligent recommendations in exchange. WTF. Is this a hobby? Or your fulltime job?
"As soon as gold fails miserably as an inflation hedge,"
But it has kept up with inflation. Compare what a silver dime bought you in 1964 with what a silver dime buys you today. Do the same with gold. You must be one of those willfully ignorant types.
But you say gold is worthless. That must be why FDR confiscated it and made it a crime to own it. Right?
Now time for a your mama joke: Your mama so dumb she handed in all her gold to FDR.
An ounce of gold bought about 250 pounds of beef or bacon from 1800-1850. Will buy about the same today. Ignore the price in funny money and look at the historical value vs commodities.
It depends on the commodity you compare it to. It keeps up with some, not with others. Because they all run on supply and demand. Demand for gold is low, despite what ZH says. Demand for bacon is relatively stable, but lower right now due to drought and other conditions. It's pointless to compare gold to commodities that are in their own cycles.
Who is this nobody you speak of? Is he selling his gold for $900/oz? I will take all he has!!!!
/sarc off
Get a clue devo. Please quote the source of your "some inflation hedge" comment. It is insurance.......not a hedge. Do you have insurance on your car? your home? What's that costing annually? What's the return on that "investment" Einstein? Idiot.
You're the idiot holding gold and succumbing to the fear mongering and bad arguments.
I'll hand my grandkids gold and silver. You'll hand them air and say you've won.
Off topic, I'm not so sure about the "You'll hand them air" part. You see, the .00001% want every single molecule on this planet, and seeing as our grandchildren will inherit the Carbon Tax, CO2 has 2 Oxygens for each Carbon, and seeing as CO2 is the last stage of the Oxygen Cycle, when the Oxygen Tax is fully implemented, our grandchildren may not really have much left beyond their memories.
Try an experiment...Go out and try to find gold to buy for 900 an ounce, or even the current stated price. I'll wait here for you to get back with your haul...
You can't. That's the thing, when you find it, you'll pay premiums. You'll often have to wait for delivery (of physical) I haven't seen one commercial source that sells gold at the current price.
Non-commercial sources? Well, that's where I get mine, and yes, you CAN find private sellers who just want to get rid of it, but most who HAVE any decent amounts aren't interested in selling. Still, there ARE lots of others who practically give it away, which is great for me!
The only people that seem uninterested in gold are the common folk like us...with a few exceptions, like me. The bigger players SAY they hate gold, but they are buying, and in large amounts, so wtf?
When it comes to gold, as usual, the masses are the last to catch on. They will continue to sell off their gold, believing it to be an 'archaic relic', while the smart money quietly buys it up.
$1145 has been my floor for the last year now.
$900 is a good price level target. Though the lows hit during the 2008 crisis would also be a target, around $700. If gold returns to $700, that would indicate the path is finally clear to get a new bull market going. Not one month after hitting $700 of course. But in the the following 12-24 months.
GG
Yea lets drive this bitch way under the cost of mere production. And you theorize this can go on for how long? Defenition of whiplash. Sitting at a stop sign and getting rear ended by a Mack truck at 90mph. Me thinks you are on the wrong side of the bet....and history.
You are right about the cost of production. You see, during the mining boom of LAST decade, the price of oil, equipment, and labor skyrocketed as coal, iron ore, copper and other extractive industries competed with PM mining. Now the price of oil has fallen, there's TONS of labor available, equipment is cheaper to lease, and royalty regimes are more forgiving.
Pro-Tip: you are bullish on gold and silver it appears and have views about the cost of production that are tied to LAST decade. Here's the problem, it's now THIS decade.
GG
Except oil is going back up, regulations are tougher (more expensive to comply), taxes are higher, and all business expences are higher. Mines are more depleated and it's harder to get the material. Not to metion US vaults are nearly empty on top of all that and ALL hedge fund and investors have about 1% or less of gold allocated to thier portfolio. Other that that you are spot on.
Thumbing me down won't make your argument sound or gold go up. If you hold gold, you live in fantasy land. Reality is CBs want all money circulating in the economy, not held up in gold sitting at the bottom of a lake. And because Americans were asleep at the wheel, we let it happen. They will win, and you will lose. Arguing with DEVO is not going to change reality. Gold to 900 or lower. Just on a technical basis, that it can't stay above 1200 tells you a lower low is coming.
CBs want all money circulating in the economy
You mean like sweep accounts?
But didn't you forget to talk about the other side of "circulating" money: the risk of losing it. You think that's still negligible or at least acceptable?
Also from a technical standpoint, why hasn't the surging US Dollar (as that's what the oil price drop is really about) pushed the gold price to $900 already?
I think there is a pair trade that has been in effect since last fall. It's a long dollar, short gold and oil trade and the dollar drop today can't be helped so that trade is adding shorts on the oil and gold side to keep up appearances. However, once the dollar drops back to 93, they will be fucked becuase they had to add long aggressively at that point three weeks ago to stop the dollar from falling any further.
I smell deflation Keep printing
CORRECTION :
PAPER Gold and PAPER Silver prices are dropping today.
Prices for ASE's today have hardly budged.
I'd rather have gold and silver than a bunch of money in a Casino before it goes bankrupt and dissolves.
Carry trade money going home. Paper trade speculation showing its face, not to be confused with supply-demand.
As hard as it is for even the most educated Keynesian to understand, everything declines in price during a deflationary collapse... everything. So it should be no surprise to those that truly undrstand the effects of deflation that every asset class will feel the crush of the deflationary vortex that now surrounds the global economy...
Gold
http://www.globaldeflationnews.com/gold-elliott-wave-update-for-week-end...
S&P 500
http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-w...
10YR UST
http://www.globaldeflationnews.com/10-year-u-s-treasury-index-yieldellio...
The question I suppose is what assets bounce back the fastest and in what order? I have always thought it was Gold/Silver, than Stocks/equities, than Real-estate.
Jittery unhinged markets. Just what you'd expect before a BIG event.
At 30,000 tons and increasing,,, China thanks the Merikan Central Bank for the cheap gold that will eventually destroy the dollar.
I'll wager $100 that you are very new to the weak dollar thesis, the foreign accumulation of gold thesis, and the end of the dollar standard thesis. I'll wager further you are unaware that these ideas have been around for decades. The question you have ask yourself: WHY did these ideas work between 2000 and 2010, and why are they not working now?
GG
You would lose, kind sir.
I have been around for 66 years and have watched the fiat freaks destroy just about everything worthwhile. I watched in awe when Nixon took us off the gold standard and we defaulted. I see a world awash in debt that now is considered money.
I have been here long enough to see what was and what is and to determine which is/was better and sure don't need any help from the paper pushers.
I'm sorry to inform everyone still hiding in their Pacific Island foxholes, but the war has long been over in gold and silver. Yes, there WAS a time when accumulating the metals was the right thing to do and there WAS a time when the US Dollar was headed for multi-year weakness. Hello, foxhole denizens. Those times are over.
It could take another 10 years before the next bull market in gold and silver (which ended years ago) starts back up again.
If you are hanging about in your life, waiting for that to happen it would be no different than waiting for a miracle. Yes, a miracle *could* occur. But it's never proven wise to waste your life waiting for it.
Do yourself a favor, people. It's 2015. Move on.
GG
"Do yourself a favor, people. It's 2015. Move on. "
To what GG?
A piece of paper debauched daily. Legal Tender so those with access can purchase real goods with fake paper?
How'bout you tell us what we should move on to... and what the hell does 2015 have to do with it?
Ha Ha you think people buy gold and silver just to make a quick buck. That's so funny. I love people like you stupid and ignorant.
I'm buying PMs until they're all gone. Guess I'm just stupid.
Comments such as yours can be found on gold and silver chatboards in any year going back 20 years. You do realize that global gold production DID finally increase towards the latter part of last decade, right? And you do realize that all the claims about silver made by Sprott were dependent on overwhelming demand by investors, even as he promoted the idea that mining scarcity would drive the price?
A thought experiment: you said "I'm buying PMs until they're all gone." Uuhm. No you're not. The PM market is suffering a huge, multi-year hangover of supply and weak demand. Russia and China are buying gold and it's STILL NOT ENOUGH.
GG
Another dancing-around-the-elephant exercise?
How about you tell us about the increase in paper gold production, and it's limits.
A primary bear market has been signaled on June 3rd for US bonds, as explained here:
http://www.dowtheoryinvestment.com/2015/06/dow-theory-special-issue-us-b...
Now the odds favor further downside for US debt and the USD (as the EUR is in a primary bull market)
Gold and silver, in spite of all the noise, have not changed trends (even secondary ones remain unchanged).