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Gold, Precious Metals Flash Crash Following $2.7 Billion Notional Dump

Tyler Durden's picture




 

The last time gold plummeted by just over $30 per ounce (dragging down silver and bitcoin with it) and resulted in a crash so furious it led to a "Velocity Logic" market halt for 10 seconds, was on January 6, 2014. Many said this was just perfectly normal selling, although we explicitly said (and showed) that it was a clear case of an HFT algo gone wild (following an order to do just that and slam all sell stops) when someone manipulated the market and repriced gold substantially lower.

Precisely one month ago, some 18 months after the incident, the Comex admitted as much, when it blamed the collapse on "unusually large and atypical trading activity by several of the Firm’s customers and caused the mass entry of order messages by Zenfire, which resulted in a disruptive and rapid price movement in the February 2014 Gold Futures market and prompted a Velocity Logic event." Curiously despite the "errant" order, gold did not rebound because the entire purpose of the selling slam was to reset the prevailing price far lower. This is what the Comex said in Disciplinary action 14-9807-BC:

Pursuant to an offer of settlement Mirus Futures LLC (“Mirus” or the “Firm”) presented at a hearing on June 16, 2015, in which Mirus neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“BCC”) found that it had jurisdiction over Mirus pursuant to Exchange Rule 418 and that on January 6, 2014, Mirus failed to adequately monitor the operation of its trading platform (Zenfire), and connectivity of its trading system (Zenfire) with Globex. This failure resulted in unusually large and atypical trading activity by several of the Firm’s customers and caused the mass entry of order messages by Zenfire, which resulted in a disruptive and rapid price movement in the February 2014 Gold Futures market and prompted a Velocity Logic event.

 

The Panel found that as a result, Mirus violated Rules 432.Q. (Conduct Detrimental to the Exchange) and 432.W.

We bring this up because moments ago, just before 9:30pm Eastern time or right as China opened for trading, gold (as well as platinum, silver, and virtually all precious metals) flashed crashed when "someone" sold $2.7 billion notional in gold, resulting in a 4.2% or about $50 to just over $1,086/oz, the lowest level since March 2010.

Gold:

 

Silver:

 

Platinum:

 

Once again, as in February 2014 and on various prior cases, the fact that someone meant to take out the entire bid stack reveals that this was not a normal order and price discovery was the last thing on the seller's mind, but an intentional HFT-induced slam with one purpose: force the sell stops.

So what caused it?

The answer is probably irrelevant: it could be another HFT-orchestrated smash a la February 2014, or it could be the BIS' gold and FX trading desk under Benoit Gilson, or it could be just a massive Chinese commodity financing deal unwind as we schematically showed last March...

... or it could be simply Citigroup, which as we showed earlier this month has now captured the precious metals market via derivatives.

 

Whatever the reason, gold just had its biggest flash crash in nearly two years, as a targeted stop hunt launched by the dumping of $2.7 billion notional in product, accelerates the capitulation of the momentum buyers (and in this case sellers) pushing gold to a level not seen almost since 2009.

The price appears to have rebounded after the initial shock, up about $20 from the intraday low of $1,086 but we expect that to be retested shortly, and for gold to plunge further into triple digits, at which point gold miners will simply cease to produce the metal whose all-in production cost is in the $1100 and higher range, when it will also become clear that only derivatives and "paper" are the marginal "price" setters.

But perhaps the biggest irony of the night is that moments before the flash crash, the PBOC revised its shocking Friday announcement revealing its gold holdings had increased by 57%. As Bloomberg said:

  • CHINA PBOC REVISES GOLD RESERVES TO 53.32M FINE TROY OUNCES

Previously, this was said to be 53.31 million ounces or 10,000 ounces lower, confirming China is literally just making up gold inventory "numbers" as it goes along, and clearly buying ever more physical while the price of paper precious metals conveniently plunges ever lower.

Before:

 

And now:

One thing is certain: the PBOC will be quite grateful to whoever (or whatever) was the catalyst for the latest and greatest gold flash crash as well.

 

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Sun, 07/19/2015 - 22:32 | 6331015 JustObserving
JustObserving's picture

"someone" sold $2.7 billion notional in gold, resulting in a 4.2% crash in gold, which tumbled to the lowest level since March 2010.

Must be trying to get the best price for his/her gold.  

Sun, 07/19/2015 - 22:35 | 6331020 Captain Debtcrash
Captain Debtcrash's picture

Something doesn't feel right about this, that's for sure, late at night and managing to push gold below technical resistance.  I'll keep backing up the truck, because I know at some point bonds will no longer be the prefered safe haven.

Sun, 07/19/2015 - 22:40 | 6331036 JustObserving
JustObserving's picture

US bonds will crash - not sure when:

Fed says inflation in USA was 0.8% in 2014.  Chapwood Index says it was 9.7%.  So what are the consequences?

Let's use a Zero Coupon Bond Calculator to see the effect of fake inflation on a $1000 bond  for 30 years:

A zero coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity

With Fed's 0.8% fake inflation, Zero Coupon Bond Value = $787.38

With Chapwood inflation of 9.7%, Zero Coupon Bond Value = $62.20

So with Fed's inflation assumption, you can borrow $787.38 for 30 years and pay $212.62 as interest

With Chapwood inflation, you borrow $62.20 for 30 years and pay $937.80 as interest

With Chapwood Index, if you borrow $787.38 for 30 years, you pay $11,871 as interest.  Or 55.83 times  that with the Fed's inflation  adjustment.

http://www.chapwoodindex.com/

Sun, 07/19/2015 - 22:42 | 6331053 remain calm
remain calm's picture

It is my belief that the CB are going to try and lower the price of gold to 900, so they can shake the weak hands to help replenish their vaults. Also, remember the Chinese investors are getting margin calls. They can not sell stocks because that is illegal, so they are selling what they can and that is gold.

My recommendation is to not sell any of your physical gold and hedge your account with an equal amout of the DGLD (3x Reverse ETF), and when gold hits 900 sell it and you will not have lost a penny of your net worth and then you have only upside on your physical.

Sun, 07/19/2015 - 22:48 | 6331075 Publicus
Publicus's picture

China won't save you goldtards, see my previous comments as to why.

Sun, 07/19/2015 - 22:55 | 6331102 Philo Beddoe
Philo Beddoe's picture

Who gives a fuck what you think? YEah, I am going to waste my time reviewing your previous posts. 

Sun, 07/19/2015 - 23:03 | 6331136 Bunghole
Bunghole's picture

The little girl's anger in her post tells me she bough at the peak and sold well below to pay the cable teevee bill and HELOC that came due.

 

Sun, 07/19/2015 - 23:13 | 6331171 lickspitler
lickspitler's picture

Watching all the stackers  screaming Troll to the Gold bears is just a joy to watch.

Can't lose if you don't sell right.

 

 

Sun, 07/19/2015 - 23:21 | 6331200 Philo Beddoe
Philo Beddoe's picture

Ever heard of something callled conviction? If that is too difficult to grasp...imagine planning 10 years out.  Of course, I am concerned about the price movement...but that does not mean I have lost my conviction. 

That, and you come off like a cunt, IMO. 

Sun, 07/19/2015 - 23:53 | 6331291 Keyser
Keyser's picture

Never mind Clint, some folks have an investment strategy with a timeline as long as their dicks... 

Mon, 07/20/2015 - 00:05 | 6331326 Four chan
Four chan's picture

im trying to have a stack that weighs as much as i do, and i'm 20 lbs overweight. 

Mon, 07/20/2015 - 00:25 | 6331377 macholatte
macholatte's picture

"someone" sold $2.7 billion notional in gold,

 

The NSA knows how many pimples are on your ass but a $2.7B transaction is a mystery.

"They" know. They just ain't talkin.

 

 


Mon, 07/20/2015 - 00:34 | 6331389 wee-weed up
wee-weed up's picture

TPTB laugh now...

We'll laugh later.

Mon, 07/20/2015 - 02:51 | 6331572 Keyser
Keyser's picture

No coorelation between China's revised gold holdings and this smackdown, no, none at all... Now move along, nothing to see here... 

As for the king's whore, stop peddling your ignorant blog on ZH... Have you no class? 

Mon, 07/20/2015 - 05:57 | 6331721 negative rates
negative rates's picture

A chinese whale found a heart of tunstun and, SOLD his tungstun before the others could relize the same fate.

Mon, 07/20/2015 - 06:28 | 6331752 VinceFostersGhost
VinceFostersGhost's picture

 

 

Rosebud said this would happen.

 

It's like welfare for China.

Mon, 07/20/2015 - 07:48 | 6331871 chubbar
chubbar's picture

Well, if they drive the price down to sub 1,000 and 10 for silver then hit the reset button, they can then hit everyone for windfall taxes. Regardless, deflation means the gov't goes out of business sooner, not later. They haven't reported the deficit since march and it appears that the reason why is because they are in technical default on the limits. They are trying to whipsaw folks out of their position, WHATEVER it is. Stocks will crash if deflation takes hold to any extent, that will start the ball rolling. At this point they have so many "balls" in the air (bonds, stocks, housing, gold, silver, etc) that for them to keep control of all of them will be a miracle. Just one of them going against their plan will bring the whole house of cards down around their heads. Of course it all could be "the plan" and they want everything to be as far out of whack as possible so that the reset collapses all values while gold/silver are at their lows resulting iin a lack of liquidity for the little guy to get into the stuff while those cashed up get the buy of a lifetime. Whatever the game, it's clear from the derivatives book of Citibank that precious metals are being manipulated and HUGH bets are being placed. Who the fuck thinks that multi-trillion dollars in derivatives bets over the span of a few months is the normal course of affairs? You have to be a dumb fuck to sit here and not question that fact and how it plays into the pricing action!

Mon, 07/20/2015 - 00:41 | 6331398 Mr. Magoo
Mr. Magoo's picture

At this point, who cares!! this whole system is going down the shitter at least there will be plenty of TP to wipe my ass with when its over

Mon, 07/20/2015 - 00:55 | 6331422 Al Gophilia
Al Gophilia's picture

Obviously, they've fixed the Euro and the US debt. Hi Ho Dollar!

Mon, 07/20/2015 - 02:34 | 6331547 bunnyswanson
bunnyswanson's picture

The Grande Design: The Hidden Plan  -  G. Edward Griffin 1968 - US Foreign Policy -

Over 1 hour

https://www.youtube.com/watch?v=h9P_2HqWRhU

 

Mon, 07/20/2015 - 04:07 | 6331629 Tall Tom
Tall Tom's picture

Thanks. I am enjoying it.

Mon, 07/20/2015 - 06:30 | 6331755 VinceFostersGhost
VinceFostersGhost's picture

 

 

I'll take it....thanks a lot.

Tue, 07/21/2015 - 18:55 | 6339189 TeethVillage88s
TeethVillage88s's picture

macholatte, what you said could fill a booklet on what is wrong with the USA/Canada/UK/EU.

Mon, 07/20/2015 - 01:05 | 6331440 Model T
Model T's picture

Nothing looks like it;s "headed" for anywhere. Today's price has no predictive value.

Mon, 07/20/2015 - 01:17 | 6331462 Philo Beddoe
Philo Beddoe's picture

Thanks, coach, for the sage wisdom.  You have a keen grasp for the obvious delivered as though it was recieved by Moses behind the burning bush.  That, and what you wrote is horseshit. Pull up a weekly chart on the S&P. There is your predictive value. 

Mon, 07/20/2015 - 18:06 | 6334426 mkhs
mkhs's picture

Burning bush: now there is an interesting idea.

Mon, 07/20/2015 - 01:54 | 6331503 hibou-Owl
hibou-Owl's picture

I agree Silver chart looks very soft, my target sub 10 USD

Mon, 07/20/2015 - 06:31 | 6331757 VinceFostersGhost
VinceFostersGhost's picture

 

 

If you're not buying it now.....you never will.

 

See you later.

Mon, 07/20/2015 - 09:59 | 6332208 CPL
CPL's picture

PM's are going to zero along with every fiat currency. That was mathematically guaranteed in the ponzi offered as an economy.

BitCoin however is being steady, stable, boring, holding steady and organically growing with adoption in the economic market being built in parallel to the debt run shit show.  Which is exactly what anyone should expect from currency or any trade material in general.  After it's passed the magic 5% population adoption threshold, governments can actually get back to being governments instead of poorly run collection agencies and thugs scrambling to act as middle men in every transaction.  Then things might start improving once all that poorly focused energy is re-channeled in the correct direction.

Mon, 07/20/2015 - 08:53 | 6332011 zerocash
zerocash's picture

You'd be literally worth your weight in gold!

Mon, 07/20/2015 - 00:45 | 6331403 cornflakesdisease
cornflakesdisease's picture

Hmm, lets see:  I buy gold for 20 to 25 years from now. 

 

Will the governments 2o years from now get wise, balance their budgets, and use sound fiscal judgement, or hit the burbon and full speed ahead?

 

I think I know that gold will buy 20 years from now, the same amount of chicken noodle soup it will today.

 

I'm sticking with gold.

Mon, 07/20/2015 - 01:18 | 6331464 umdesch4
umdesch4's picture

Interesting that you say this, only because I was just going to post the same thing. I might be considering some physical gold sales in 20-25 years (if I can still find where that bizarre boating accident happened), but "weak hands" is synonymous with "weak minds" at this point.

Mon, 07/20/2015 - 02:13 | 6331522 Rock On Roger
Rock On Roger's picture

The price of coffee is fairly stable when valued in gold.

 

http://pricedingold.com/coffee/

 

Sure I can't eat it but I betcha I could trade it.

Mon, 07/20/2015 - 07:12 | 6331808 nopalito
nopalito's picture

I understand what you are trying to say, but I don't think "fairly stable" is how to describe when a pound of coffee fluctuates between 25 and 70 mg of gold over the past 10 years.

Mon, 07/20/2015 - 00:03 | 6331314 FireBrander
FireBrander's picture

When the gold bull run died in 2011 at ~$1850, the three down waves from the top suggested an eventual sub $1000 price...most likely $900 being a real technical bottom....I've been savaged all the way...keep neg-en me fools.

Mon, 07/20/2015 - 01:04 | 6331438 daveO
daveO's picture

Right. 881/oz. is .615 of the total move(1850-275), but 1000 is a biggie. More QE, anyone?

Mon, 07/20/2015 - 01:26 | 6331474 CoolClo
CoolClo's picture

".....three down waves from the top suggested an eventual sub $1000 price."

Gold Previous Wave 4 support at 681.. ...GLD at 66

Mon, 07/20/2015 - 01:37 | 6331487 Squid-puppets a...
Squid-puppets a-go-go's picture

$900 bottom as a technical, eh?

So what you're effectively saying is that despite the trillions and trillions in credit and fiat expansion, gold is no more valuable in dollar terms today than in 1979?

technicals are goalseeked rubbish. in a anipulated environment they are meaningless

 

Mon, 07/20/2015 - 01:07 | 6331445 ebworthen
ebworthen's picture

Two profiles for pubi-cus?

Timothy Geithner?  Is that you?

Hank Paulson is too busy sipping vodka spiked Ensure...

Mon, 07/20/2015 - 01:31 | 6331480 Philo Beddoe
Philo Beddoe's picture

Hank Paulson, the guy with the milk moustache who does not drink milk. What is the mystery white fluid that surrounds his mouth? 

Mon, 07/20/2015 - 02:39 | 6331550 A Nanny Moose
A Nanny Moose's picture

Sell for what? Cash? interesting.

Mon, 07/20/2015 - 07:47 | 6331863 Took Red Pill
Took Red Pill's picture

Exactly! Many of you nay-sayers are looking at this the wrong way. You are comparing gold with US dollars. Dollars have no backing and are created out of thin air. Gold is REAL money and has been for thousands of years. When the price goes down, I get excited because I can buy more at a better price. At some point, after the dollar crashes and loses it's reserve currency status, I can trade gold & silver for things I need or whatever the currency of the day is. The dollars days are numbered and big changes are coming. Why do you think countries and central banks hold so much gold?

Sun, 07/19/2015 - 23:09 | 6331162 Publicus
Publicus's picture

So much anger.... how much did you lost on Gold so far when you could have made a bundle buying the NASDAQ thanks to the Fed?

Sun, 07/19/2015 - 23:13 | 6331175 Bunghole
Bunghole's picture

My father started stacking at $80.  I started stacking at $400.

Keep talking shit assmaggot.

You'll be cleaning my septic system before this is over.

Sun, 07/19/2015 - 23:23 | 6331204 lickspitler
lickspitler's picture

My father started stacking at $80.  I started stacking at $400.

 

My son will keep buying at $5

Sun, 07/19/2015 - 23:26 | 6331210 Publicus
Publicus's picture

Given that he has averaged in, his cost basis is prabably in the $800, so another 2-4 years he'll be crying.

Sun, 07/19/2015 - 23:55 | 6331294 Keyser
Keyser's picture

Why do so many morons adopt populist NICs when they join ZH...  

Mon, 07/20/2015 - 00:37 | 6331392 TheReplacement
TheReplacement's picture

Curiously, your question provides its own answer.

Mon, 07/20/2015 - 06:34 | 6331759 VinceFostersGhost
VinceFostersGhost's picture

 

 

 

 

So many bankers....so few nailguns.

Mon, 07/20/2015 - 20:17 | 6334952 StychoKiller
StychoKiller's picture

'Cause all the hawt monikers are already taken! :>D

Sun, 07/19/2015 - 23:33 | 6331238 erg
erg's picture

$5? Hey look everyone it's Mathman. His mouldering corpse reanimated for sport and amusement.

Mon, 07/20/2015 - 05:52 | 6331719 JonNadler
JonNadler's picture

it is Mathman!!!  $5 mathman, HA HA HA the same imbeciles keep coming back with different names but the same BS

Mon, 07/20/2015 - 06:36 | 6331761 VinceFostersGhost
VinceFostersGhost's picture

 

 

The silver just jumps into the boat.

 

For safety....please wear head protection.

Mon, 07/20/2015 - 06:48 | 6331774 negative rates
negative rates's picture

And if you like your BS, you can KEEP your BS!

Mon, 07/20/2015 - 07:41 | 6331853 Cloud9.5
Cloud9.5's picture

That may be but if it is, a day's wage will be fifty cents.

Sun, 07/19/2015 - 23:26 | 6331211 robertocarlos
robertocarlos's picture

Now this is a problem. You are coming across as one of the future one percenters.

Sun, 07/19/2015 - 23:17 | 6331176 Philo Beddoe
Philo Beddoe's picture

I bought most of my Gold with Euros and MXN, fuckhead.  So, far I am doing OK.  Pull up the charts, shithead.  

I did buy some with USD where I have been fucked, However, shit for brains, if I were to sell these and then buy EUROS/CAD/MXN....I would be relatively even.   

Sun, 07/19/2015 - 23:27 | 6331215 Publicus
Sun, 07/19/2015 - 23:33 | 6331237 Philo Beddoe
Philo Beddoe's picture

One year return in Euros is about 6 percent. 

http://www.24hgold.com/english/gold_silver_prices_charts.aspx?money=Eur

With no counter party risk, shithead. 

Mon, 07/20/2015 - 01:01 | 6331430 Model T
Model T's picture

A return in any currency involves a counterparty. It's amazing you don't understand this. Whoever is going to pay you back your Euros is the counterparty; and the risk is that they will declare force majeur; or bankruptcy, or some other thing; in general that you won't get your Euros. this is really fundamental. If you really don't understand this you should try to understand it.

Mon, 07/20/2015 - 01:06 | 6331442 Angry White Dude
Angry White Dude's picture

The ultimate counterparty is always the taxpayer. Or the printer (same/same).

Mon, 07/20/2015 - 01:11 | 6331450 Philo Beddoe
Philo Beddoe's picture

I have physical gold purchaed with Euros. Thus, I have no counter party risk.  Unless you are an economist this should be pretty fucking clear. 

Sun, 07/19/2015 - 23:06 | 6331149 Bumpo
Bumpo's picture

If you are going to shut down the Comex, better do it at the lowest price possible ...

Mon, 07/20/2015 - 00:19 | 6331362 slimycorporated...
slimycorporatedickhead's picture

Goldtard? really dude? come on

 

-slimy

Mon, 07/20/2015 - 01:54 | 6331499 TheRideNeverEnds
TheRideNeverEnds's picture

Some think its foolish to sell gold and silver here but when they are at 300 and 5 in a few years respectively selling here will have been a good move.   Just as buying the all time highs in NQ @ 4652 seems silly right now in a few years when its over twelve thousand you will wish you had. 

Mon, 07/20/2015 - 07:03 | 6331792 Bill of Rights
Bill of Rights's picture

See my current comment as to i don't give a flying fuck what you think. Besides what are your credentials? let see them. Or does mommy keep your credentials locked in your basement room?

Sun, 07/19/2015 - 23:36 | 6331245 Botox4U2
Botox4U2's picture

Yes it's margin calls. All commodities are exposed to the Chinese market crash, which will only keep feeding on itself. Interestingly I've heard rumors of a sudden increase in home listings in Vancouver/Richmond where 40% (YES) of all recent new condos built in say the last 5 years are EMPTY, believe it or not. FIRE SALES IN RICHMOND BC HOMES ARE BEGINNING. Google it. These are condos averaging 400,000.00 CAD in price and were bought largely for one reason.......an escape hatch if things go wrong in China. But, things ARE now going wrong in China but these greedy investors who inflated this Canadian real estate BUBBLE didn't expect that the Chinese Government would lock up their monies in cease trading orders for the largest shareholders and so they are caught, trapped by their leverage.  Did I say leverage is Evil?

Mon, 07/20/2015 - 00:06 | 6331327 FireBrander
FireBrander's picture

Nialed it to the FLOOR Botox!

Mon, 07/20/2015 - 00:24 | 6331371 FireBrander
FireBrander's picture

Uh, Oh!

"[China]Deals planned to recover illegal assets from abroad"

"More than half the known corrupt Chinese officials have transferred their illegal assets offshore and escaped to the US, Canada and Australia to avoid punishment, the Ministry of Public Security said."

"Once law enforcement officers in the US and Australia identify illegal funds, they will immediately initiate judicial procedures to freeze and confiscate those criminal proceeds in their countries."

>>>>China will share the confiscated funds with the US, Canada and Australia

Million dollar shacks about to be repriced back to reality?

http://usa.chinadaily.com.cn/us/2014-12/29/content_19196310.htm

 

 

Mon, 07/20/2015 - 01:26 | 6331475 Lore
Lore's picture

No mention of George Soros?

Mon, 07/20/2015 - 00:12 | 6331341 Bastiat
Bastiat's picture

A:  You don't know it's margin calls.  B:  The Chinese gov't will be glad to buy up any gold the people are selling.

Mon, 07/20/2015 - 01:23 | 6331471 umdesch4
umdesch4's picture

Thank you for saying this, 'cuz there are still people out there who haven't heard about it. Also, did you see the Globe and Mail article yesterday? This is awesome. Someone in the mainstream media actually used the words "abject fraud" to describe the Vancouver real estate market: http://www.theglobeandmail.com/report-on-business/rob-commentary/vancouv...

 

 

Mon, 07/20/2015 - 08:43 | 6331984 sessinpo
sessinpo's picture

remain calm    It is my belief that the CB are going to try and lower the price of gold to 900, so they can shake the weak hands to help replenish their vaults.

----

The problem with your theory is that CB can print what they need to buy gold at any price. They wouldn't need to worry about weaker hands. One would have beeen better off understanding that PMs were going to decline in the first place. Go ahead and hedge if you need to protect a wrong position.

Sun, 07/19/2015 - 22:44 | 6331055 nope-1004
nope-1004's picture

Must show deflation and a high USD before next round of currency debauchery by the Fed.  This time I think it will be a weekend or overnight reset/devaluation, but I could be wrong.  Would make sense though in light of every commodity unwinding.  Can't revalue the USD with oil at $110 and gold at $1500.

 

 

Sun, 07/19/2015 - 22:43 | 6331056 greenskeeper carl
greenskeeper carl's picture

to whoever slamed the price down, all I can say is thank you. I am 30 years old, and want to accumulate as much as I can. I know every single paper promise you make will eventually return to its intrinsic value of 'zero', and I welcome any opportunity like this. keep it up

Sun, 07/19/2015 - 22:47 | 6331071 Philo Beddoe
Philo Beddoe's picture

There were people just as smart as you saying the same thing when silver went below $25.  I am in my 40s but this is definitely a cause for concern, 

Sun, 07/19/2015 - 23:00 | 6331121 Not My Real Name
Not My Real Name's picture

My convictions are stronger than ever. My faith in gold and silver are as rock solid today as they ever have been. Now is not the time to waver, or consider folding like a cheap suit. 

This bullshit war between fiat currency and real money ain't for sissies. Yes, it's been a long hard slog -- and our side has taken a beating for the past few years -- but rest assured, we're going to emerge victorious in the end.

Keep stacking!

Sun, 07/19/2015 - 23:28 | 6331212 nope-1004
nope-1004's picture

Totally agree.  I have never felt better about gold and silver either, and based on my entry points I've lost a bit of fiat doing so.  But what many don't seem to grasp is that the yardstick used to measure all commodities is a terribly debauched US dollar.  It is held up by military might and economic force, sanctioning other nations choosing national freedom and trading in other currencies other than the USD.

Saddam Hussein tried it and was invaded.  This time though we have a whole new level to it.  Russia, China, the BRICS nations, AIIB, on and on.  This is desperation by the USgovvy trolls, who MUST hammer gold and silver as it is blatantly obvious that the end of the USD reign nears.

I would not consider, for a fraction of a second, to ever trade back into USD and ride that derailed trainwreck.

They control the measuring stick used to measure gold and silver, they don't control gold and silver!  Using price as the argument is the only argument a troll has, because the real thing cannot be printed on a whim.

Now I need to sit back and watch all the trolls work their logic over which asset is better to hold during this unprecedented time of .gov collapse.

:-)

 

Mon, 07/20/2015 - 01:19 | 6331467 Shaznardickleze...
Shaznardickleze the Doon's picture

Well put. Most American's have a hard time judging value without the $ measuring stick. They also haven't experienced or observed shocking poverty on a personal level for a long enough time frame to ask honest and frank questions that caused the poverty.

There are so many moving parts in the $ reserve currency paradigm, the FED and the US military are reaching the point of capitulation/bargaining/retreat behavior.

The financial nuclear option is simply peg fiat to gold and its game over for all fiats that don't respond in kind.

 

Mon, 07/20/2015 - 03:19 | 6331594 explosivo
explosivo's picture

Precisely. Price movements don't change the reality of the situation. It only makes it easier for poor bastards like me to get an another ounce of silver. 

Mon, 07/20/2015 - 04:09 | 6331631 Ghordius
Ghordius's picture

"Saddam Hussein tried it and was invaded". well, Saddam Hussein wanted to sell oil in EUR, instead of USD. I'm sure you see the €vil of such a thing

Sun, 07/19/2015 - 23:02 | 6331131 DeadFred
DeadFred's picture

It will go lower because the prices are below all relevant supports. Keep the faith though it won't be long until the Ponzi dies.

Mon, 07/20/2015 - 00:05 | 6331325 Deathrips
Deathrips's picture

Whats the value of a promise that cant be delivered on...watch premiums rise.

 

Worthless promises going to 0....all of em.

 

Physical.

 

RIPS

Mon, 07/20/2015 - 00:13 | 6331343 Bastiat
Bastiat's picture

Yep, the game dies when deliveries fail.

Mon, 07/20/2015 - 00:13 | 6331346 FireBrander
FireBrander's picture

"30 years ago" was 1985....the 70's gold bull run was cold in the ground...and didn't regain the high for 28 YEARS!...that's a long time to wait to BE WRONG!

Don't fight the FED! Go with it, profit, SPEND IT and enjoy life...don't spend your life sitting on gold waiting for everything to go to shit...

PS> If/when you're eventually right and everything goes to shit...they will outlaw gold, imprison you and confiscate your gold...look through history...plenty of precedent.

Mon, 07/20/2015 - 01:31 | 6331472 Shaznardickleze...
Shaznardickleze the Doon's picture

All the reasons you're wrong in one simple statement: The Obama FED has created more debt, entitlement debt through healthcare and printed more cash than any period in the history of the United States government.

You don't fight the FED, you position yourself according to their actions to profit. Otherwise you're a bag holding ponzi who's american dream was nice, but woke to a nightmare.

"Don't fight the FED! Go with it, profit, SPEND IT and enjoy life...don't spend your life sitting on gold waiting for everything to go to shit..."

This has to be the most utterly obsurd status quo normalcy biased statement I've read all year.

PS: "If/when you're eventually right and everything goes to shit...they will outlaw gold, imprison you and confiscate your gold...look through history...plenty of precedent." this doesn't mean you win, this means you lose even worse.

You're attitude in this matter is a prime example why everyone hates America. You know you're a dick and embrace it, even rub everyones nose in it for not being an arrogant son of a bitch as well as you are. Amazing and congratulations on being a coward. This is how it must have been to know someone in the revolutionary war that supported and quartered the British.

Mon, 07/20/2015 - 00:55 | 6331423 Model T
Model T's picture

What's a cause for concern ? And how did it get to be "definite" ? You mean you have an opinion ? What are you talking about ?

Sun, 07/19/2015 - 22:58 | 6331112 automaton
automaton's picture

Premiums have shot up negating the monkey-hammering as a result.  I'll check in at the local shop tomorrow, but anything I purchase there will be negated by the 9.5% tax anyway.  We're all going to get fisted one way or another.

Sun, 07/19/2015 - 23:02 | 6331133 Philo Beddoe
Philo Beddoe's picture

Check out Mexican bullion coins. Super low mintages. If you are lucky you can buy a current dated libertad and cross your fingers that they will not produce jack shit. Some of their coins from just a few years ago carry a hefty preimium for just that reason. Everybody and their dog buys US coins. 

Mon, 07/20/2015 - 00:08 | 6331331 lordkoos
lordkoos's picture

I like those libertads myself.  But I bought mine at $1500.

Mon, 07/20/2015 - 00:21 | 6331369 Philo Beddoe
Philo Beddoe's picture

What year? The 2013s are about 1450 right now.  They got some decent fractional shit as well. Based on nothing but a hunch....I can see their mintages plummeting in the future.  They had this fucking awesome kilo gold coin a couple of years ago to mark the Bicentinial. 2  are in the museum and the other 198 are long gone.  All held by the rich and connected.  If you can find one it would probably set you back 75.000 USD. However, the people who bought originally have no need to sell. 

 

Mon, 07/20/2015 - 07:57 | 6331890 Ignorance is bliss
Ignorance is bliss's picture

I have some of the old 1.2 ounce Libertads. Premiums on those are very low.

Sun, 07/19/2015 - 23:21 | 6331147 remain calm
remain calm's picture

Don't get fisted. In 2-10 years the gold bet will be the best of all time. Don't let them scare you out of your physical. Buy DGLD in a way to totally hedge your physical, so when the tide changes you will be ready. Don't sell your insurance policy on your wealth, if you do, they will slam you and take away all your hard work over the years. So out smart the fuckers, sleep easy and when the hurricaine hits you will be protected.

Sun, 07/19/2015 - 23:20 | 6331199 delacroix
delacroix's picture

NO SALES TAX AT PROVIDENT.  50 OUNCES FOR $810 FIVE MINUTES AGO.  DELAYED DELIVERY

Mon, 07/20/2015 - 00:00 | 6331309 mademesmile
mademesmile's picture

Thanks for tip. Just placed delayed order for 20 silver ounces

Mon, 07/20/2015 - 01:13 | 6331455 Model T
Model T's picture

Why do Locals and Market Makers do Stop Hunts ? to be the buyers at the newly created lower prices. This is a bullish signal.

Sun, 07/19/2015 - 23:30 | 6331229 tarsubil
tarsubil's picture

Just as they had to close the window, they will have to close the exchange. These seem like desperate measures.

Sun, 07/19/2015 - 22:48 | 6331072 Four chan
Four chan's picture

sovereign is on sale, resplendent without counter party risk.

Sun, 07/19/2015 - 23:48 | 6331276 QQQBall
QQQBall's picture

Just Observing. It is actually a simple a NPV calculation. Take the interets payment at say 3% and a Year 30 reversion ($1,000) at the inflation rate. In truth, the discount rate should be the inflation rate plus the risk free yield of say 2%-3%, That would be the minimum required yield to buy the bond.  

Sun, 07/19/2015 - 22:38 | 6331041 Squid-puppets a...
Squid-puppets a-go-go's picture

china may well have BEEN the catalytic HFT dumper. Itll take delivery in 3 months time, k ta thx.

Sun, 07/19/2015 - 22:44 | 6331062 Squid-puppets a...
Squid-puppets a-go-go's picture

akshully, the seller is more likely someone who expectd China to announce gold at like 5000 tonnes or whatever, and they swallowed fridays bullshit about them only having 1600 or whatever

Mon, 07/20/2015 - 00:09 | 6331335 Luc X. Ifer
Luc X. Ifer's picture

Deception is the strongest weapon. What China did - any doubt?! was an act of brilliant deception. They want to continue to buy at the lowest possible so as the gold grew very significantly during the Greek dra(ch)ma they had to do a move to bring it down to continue buying at low, so yeah douches - they weren't stupid to declare openly the real volume they own, that would have been the game closing move and a direct declaration of war. They will play the game till there will be no more real gold to be bought low trough manipulation, that is the smart strategy and i'm not the only one saying it.

Sun, 07/19/2015 - 22:40 | 6331049 Id fight Gandhi
Id fight Gandhi's picture

I love gold, but it gets hard to back up the truck when the last 4 years have been body slam losses.

 

The manipulation has to stop.

 

 

Sun, 07/19/2015 - 22:46 | 6331067 JLO
JLO's picture

whats bad is when you see it is time to back up the truck. it could be too late.

Sun, 07/19/2015 - 22:50 | 6331078 MrSteve
MrSteve's picture

Ignore the paper price, it is fiction. An ounce today is an ounce in two years, what will it buy then? in ten years?

Sun, 07/19/2015 - 23:43 | 6331261 GRDguy
GRDguy's picture

Absolutely. I love my "pet rocks" that I've had for over ten years.  Physical gold/silver is a completed exchange, whereas anything on paper is a deferred exchange, and I'm not even Greek, or Zimbabwean, nor a Cypriot. For long-term, I have no "faith" in paper promises, nor in the people who make those promises. They hate me because they cannot re-hypothecate my funds nor can they pilfer them without physical confrontation. I've slept well these last ten years, no matter what the daily price.

Sun, 07/19/2015 - 23:58 | 6331304 zorba THE GREEK
zorba THE GREEK's picture

tomorrow, I buy another monster box...keeps on this petty pace.

Mon, 07/20/2015 - 01:29 | 6331478 fiftybagger
fiftybagger's picture

You are aware that the Mint has suspended sales and that the premium is now 25%?

Mon, 07/20/2015 - 00:08 | 6331332 XenoFrog
XenoFrog's picture

It never fails. Whenever I buy more silver, the price is immediately monkey-hammered lower.

 

Every time.

Mon, 07/20/2015 - 02:00 | 6331508 Wile-E-Coyote
Wile-E-Coyote's picture

Yeah I know tragic isn't it. Never mind just keep stacking.

Mon, 07/20/2015 - 00:40 | 6331397 PermaBug
PermaBug's picture

Every time the price of PM's dip I think I'd like to buy some, but then I read here that premiums have increased more than the price has fallen, and there's no real PM's available to be bought anyway, so I have never managed to buy any.

Somehow my bad luck in this regard feels lucky, crazy huh?!

I guess I'm doomed to watching the paper price keep falling, and I'll never be able to buy any real stuff.

I was going to buy some mining stocks instead, as they seem to be available still (remarkably!) but then I read that now they will all stop producing gold, with prices under $1100. Hard to see how a mining company can make any money if they have a huge amount of fixed costs but have stopped production. Hmmm, I better think that one over too.

Guess I'm stuck holding these crappy US dollars, even though I'm not American, and they just keep going up against my home currency. My poor dollar has fallen 30% in the last 2 years against the mighty buck. What a disaster. Well, not quite a disaster as now I can switch into 30% more of my home currency. Wow, lucky again I guess!

Sometimes it's better to be lucky than smart.

Mon, 07/20/2015 - 01:08 | 6331447 Model T
Model T's picture

Surely you realize that it is not "late at night" in Hong Kong ?

Mon, 07/20/2015 - 01:41 | 6331490 Philo Beddoe
Philo Beddoe's picture

Arguing with you is like playing twister with a pogo stick. No shit, Dick Tracy....we can all do a google time search for the current time in Hong Kong. How fucking old are you? 80? 

By the way, stop calling him Shirley, Grandpa. 

Mon, 07/20/2015 - 02:01 | 6331511 Wile-E-Coyote
Wile-E-Coyote's picture

Haaa haa very good, made me laugh.

Mon, 07/20/2015 - 02:14 | 6331523 Farqued Up
Farqued Up's picture

Phuck off, Philo, respect your elders, if you are lucky you may make it there.

Mon, 07/20/2015 - 02:37 | 6331548 Philo Beddoe
Philo Beddoe's picture

Making it to 80 or 90 with somebody needing to wipe my ass. No thanks. Take away my luick an give it to my kid. 

So, fuck you, Farqued Up, the job of every animal is to ensure the well being of the next generation.  Fucking idiots like you think they are immortal.  

Mon, 07/20/2015 - 06:00 | 6331723 Tall Tom
Tall Tom's picture

And that is why my generation did such a good job of ensuring the well being of the Xers and Millenials...

 

(Excuse me, now. After writing that, for some reason, I now have the urge to violently heave, regurgitate all contents of my intestinal tract and Liver, and pay some due homage to the Porceilan Throne. Time to vomit up that bile. May that picturesque description give you the same urge.)

Sun, 07/19/2015 - 22:37 | 6331040 dimwitted economist
dimwitted economist's picture

Nothing to see here Folks... move along. move along.. (And Buy Stock NOW!)

Sun, 07/19/2015 - 22:52 | 6331088 Midas
Midas's picture

Thanks for the journalism leg-work Tylers.  Where would I get my news if I didn't have Zero-Hedge?

Sun, 07/19/2015 - 22:58 | 6331114 Philo Beddoe
Philo Beddoe's picture

Aside from the Y-Anus love articles, the Tylers post some pretty awesome shit. 

Mon, 07/20/2015 - 00:21 | 6331370 worbsid
Mon, 07/20/2015 - 20:52 | 6335073 Midas
Midas's picture

Thx.

Sun, 07/19/2015 - 22:39 | 6331045 OldPhart
OldPhart's picture

Had looked at the Gold Price and came to Zero Hedge to call attention to it...naturallyZero Hedge was on top of it.

Sun, 07/19/2015 - 22:46 | 6331069 silver_stacker
silver_stacker's picture

I put my money on Citigroup...acting as an agent for the Fed and U.S. government. They can play their games and smash the paper price all they want. But the reality is in the physical market, gold and silver are in short supply - especially silver. The same thing will happen as in 2008, you won't be able to obtain metal at any price. And as more mines begin to close this will increase the shortages going forward. This will make the value of PM even greater on the next upturn when TPTB loose control of their manipulations and the COMEX is exposed as a complete rigged fraud.

Sun, 07/19/2015 - 23:08 | 6331160 Diablo
Diablo's picture

LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL 

TO DA MOON. GOLD 10,000. PETER SCHIFF. MIKE MALONEY. MAX KEISER. DOLLAR COLLAPSING. END OF FIAT. HYPERINFLATION. 

WHAT A JOKE.

 

EAT SHIT GOLDTURDS

(OH YEAH, I'LL POST THE SAME THING WHEN GOLD GOES TO 800)

KEEP STACKIN!!!!!

Sun, 07/19/2015 - 23:15 | 6331179 astitchintime
astitchintime's picture

Dude, you need to get a life, seriously.

Sun, 07/19/2015 - 23:41 | 6331257 Diablo
Diablo's picture

drugstore.com is having a sale on vaseline right now. maybe all the goldturds should stock up for the buttfucking theyre getting. you know, to ease the pain a bit

.

Sun, 07/19/2015 - 23:45 | 6331268 Philo Beddoe
Philo Beddoe's picture

I used some KY jelly with your wife. She said...I honestly did not think dicks were that big. I told her my dick was average size. 

Sun, 07/19/2015 - 23:50 | 6331283 Meat Hammer
Meat Hammer's picture

Grow up, kid.

Mon, 07/20/2015 - 04:23 | 6331646 Tall Tom
Tall Tom's picture

Strong long term support at $1000.

 

Armstrong is wrong about the amount.

 

But it will see $1000 by November. and Silver will see $10.

 

Oil will see $20.

 

The S&P 500 will collapse to 666. The DJIA may visit 5000

 

And your economy DIES as you starve Diablo.

 

And he who laughs last laughs best.

 

And I will be laughing and rejoicing as all of this is brought down upon your head Diablo.

 

You will end up being one of the Hundred of Millions, if not Billions, of LOSERS.

 

And WHEN that happens, Diablo....Well I want you to remember this post. And you will remember it, picturing me laughing...at you.

Sun, 07/19/2015 - 23:17 | 6331185 lickspitler
lickspitler's picture

I wish I wasn't banned from TF metals they'd all be going off like a frog in a sock.

Sun, 07/19/2015 - 23:27 | 6331217 Philo Beddoe
Philo Beddoe's picture

Your post is a tad redundant. Did you know you could have used bold and come off like a bigger asshole. 

Sun, 07/19/2015 - 23:35 | 6331244 Diablo
Diablo's picture

KEEP STACKIN FUCKTARDS! TO DA MOON!!!!


Sun, 07/19/2015 - 23:42 | 6331263 Philo Beddoe
Philo Beddoe's picture

Nice use of bold. If you really wanna come off like a jack ass...which I know you do....add some italics and a few Bernanke quotes. 

Sun, 07/19/2015 - 23:54 | 6331292 Meat Hammer
Meat Hammer's picture

You're an imbecile. None of us buys gold as an investment, only as a hedge against inflation and a protection from the history of fiat. And how do you know that many of us didn't make a killing in the stock market, ALSO?! You know what diversification is, right, smart guy?

Now wash up for supper. Mommy's calling you.

Sun, 07/19/2015 - 23:34 | 6331239 Hulk
Hulk's picture

Its Master Bates !!! Canned Ham buried in the backyard Bitchez !!

Mon, 07/20/2015 - 01:57 | 6331505 RockyRacoon
RockyRacoon's picture

I miss that guy....  Not.

Mon, 07/20/2015 - 02:22 | 6331535 dogbreath
dogbreath's picture

wrong turn down memory lane,     cheers

Mon, 07/20/2015 - 02:19 | 6331532 Farqued Up
Farqued Up's picture

Considering the body of your post, you worship worthless fiat printing, LOL is cheaper than dogshit.

Mon, 07/20/2015 - 01:20 | 6331469 Model T
Model T's picture

You won't even remember this by this Christmas.

Mon, 07/20/2015 - 02:05 | 6331516 Gypsy Ramono
Gypsy Ramono's picture

This is just an opportunity to buy more physical G & S. Happy days! There is nothing better than the feel of gold except for a V8 and pussy! Fuck that is so fuckin deep I should be a philosopher. 

Mon, 07/20/2015 - 05:00 | 6331670 holgerdanske
holgerdanske's picture

We have seen this all before. In 2008, we had three about month long incidents, where gold dropped between 9 and 17% within about a month https://www.bullionvault.com/gold-price-chart.do.

This is just a slam down that looks ugly close up. However it will just be a hiccough on the chart on a longer spell.

Now is the time where your conviction and deep seated logic will have to steer the course. Close your eyes and hold tight.

There is nothing they would like more than for you to sell your gold.

Mon, 07/20/2015 - 05:39 | 6331700 JuliaS
JuliaS's picture

Just like with the financial market crash - there is no destruction of value. Assets are merely transferred from one group to another.

Someone sold gold. Someone else bought gold. I wish I knew who each party was.

Perhaps the terms of the Greek surrender demanded a full depletion of their vaults and the drop is merely a shockwave associated with their assets, all of the sudden, hitting an open market.

Unfortunately, when it comes to gold, it is private. Nobody knows who has what. Who has paper, who has tungsten or who has a hole in the ground with a liar at one end.

Gold does funny things, because it moves under the radar and despite us wanting to believe that owning PM's is a counter-establishment act, keep in mind that it is the establishment and the banks who own most of it. You buying a bullion won't rock the boat, even a million of you with your puny salaries can't tilt the needle one radian. Meanwhile those who own everything can choose the sneeze and the whole effing Titanic will capsize.

They can print money and they can use that money to buy everything, including gold. When they take an entire country (Greece) hostage, they can shift heaven and earth. Plunder it for all it's worth without lifting a finger and their actions, sure as hell, will cause price movements.

Too bad we aren't allowed to know who buys and who sells.

You and I buy gold to stay under the radar. Well, guess what. So do the banks. You do it an Oz at a time and they deal in tons. Sometimes it's a bluff, sometimes it's paper, sometimes it's tungsten, sometimes it's the real thing, but you'll never know. All you see is the ticker moving up and down for no apparent reason with justifications never presented.

Sun, 07/19/2015 - 22:32 | 6331018 ted41776
ted41776's picture

DOOM!

Sun, 07/19/2015 - 22:33 | 6331019 litemine
litemine's picture

But Premiums held the price up.......If you know where you can get Physical Metal.

Sun, 07/19/2015 - 22:51 | 6331085 Doug Eberhardt
Doug Eberhardt's picture

Premiums have moved up on some products, but not all. My suppliers will raise their premiums on sharp drops because they simply paid the mints more for the metal and have to protect themselves. Monday we may see more premium increases, but there are still rounds (silver) and bars (gold and silver) that can be purchased for much lower premiums than Eagles and Maples. 

I am one of the few who sell gold and have been calling for lower prices. Wrote this in April but was bearish before that: Don’t Buy Gold Now, Wait Until It’s Under $1,000 http://buygoldandsilversafely.com/gold/dont-buy-gold-now-wait-until-its-...

Sun, 07/19/2015 - 23:06 | 6331150 kliguy38
kliguy38's picture

blah blah blah.....you're so FOS......if you WAIT to buy bullion under 900 then GOOD luck .......I'll be buying all the way down......and I won't be selling 

Mon, 07/20/2015 - 04:50 | 6331665 Doug Eberhardt
Doug Eberhardt's picture

kliguy, My clients aren't complaining that I have been recommending to hold off on purchases of gold and silver and are able to cost average in to an allocation at lower prices. And that makes me FOS? Hahaha! But maybe the only gold dealer in the U.S. who is calling for lower prices knows something you don't and you should listen to him instead of replying with such intelligent rebuttals as "blah blah blah."

 

All my articles, which I write 5 days a week, refute your "FOS." 

Do NOT follow this link or you will be banned from the site!