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$550 Million Gold Futures Notional Dumped After Close - Back Below $1100
Minutes after the cash equity close, gold prices tumbled, having leaked lower all afternoon, breaking back below $1100. Overnight flash crash lows were $1080.
Futures show around 5000 lots dumped...
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Fucking Goldbugz splattered all over the grill of the US Stock Market Machine.
LOL!
People who collect money in the bank are "savers."
People who save through gold, "horde"
The paper price is whatever they want it to be. Fuck em. Keep on stackin!
Only those with debt are 'spenders' .... it's called a NARRATIVE.
Anything traded 'on paper' is part of it.
This is awesome, for 2 reasons: I get to buy more at lower prices, and the western banking cabal desperation is plastered all over every commodity chart everyday.
lmao.
what if an anti statist operative were helping we the people with these weekly sales so we could stack as much as possible before china corners the marked and puts the us dollar out of business permanently? to this john galt i say thank you sir.
This shit is so cheap its offensive.
I need to BUY MOAR!
On an aside, every ounce I buy I short the EUR, so fuck you Mario Draghi you piece of shit. Fuck Janet Yellen too. Watch me give you all the finger, and get rich while you lot are having to hide on some uninhabited island because the entire world is MAF at you.
China and Russia are just as fucked as the USA and Europe. Cheer whichever side you please, they're all going down.
One problem - im running out of fuckin money and 2 - im losing my mind.
.
Time to get baked.
Gold is meant for spending, not saving.
FX broker Tickmill alerted it's clients today that in a total capitulation move, gold could go as low as 1000 USD/oz.
If you look at the 32 year seasonal charts of gold, then the low is made on the 1st week of August so we still have 2 weeks to go.
I knew I picked the wrong week to pay off my student loans......
This is all so amazing to behold. Such manipulation against economic laws of supply and demand have never before been sprung to such an insanely tight degree. I wouldn't get angry, gents... trust in the laws of nature. When this thing finally springs back into the usurers' faces, it's going to be an even more amazing spectacle to behold.
Correct.
The only reason people complain about gold prices falling gold prices ...let alone the entire Metals Complex collapsing...is because THEYRE OUT OF PHYSICAL CASH.
Follow the debt marks...Detroit, Puerto Rico...there's always another shoe to drop there.
No "Flux Capacitor" that I have seen yet.
There is of course ISIS...
never gonna happen
hmmmm,
In Soviet Russia price fixing was common and the result was shortages of some items and gluts of others as the central planners could never forsee the events that would determine the future demand.
If the gold price was artificially fixed low, then how come there is still gold for sale in every jewellery shop in the world? If the gold price was fixed artificially high then there would be massive over production of gold and it would be piling up all over the place.
But the evidence just isn't there.
This is just order book shenannigans.
These half billion dollar paper gold contract dumps have nothing to do with gold trinkets in jewlery shops. They are jamming the bullion price down so that it doesn't compete (equate) with the dollar on any realistic scale. When (not if) that happens, the whole fiat charade becomes exposed to the imbeciles who think that Federal Reserve notes are actually things with intrinsic value.
That's the short and sweet answer, but of course nothing has intrinsic value, because value is always subjective. We say gold has intrinsic value becuause we always go back to it, and we should never really have abandoned it. We always value paper too, but not as money, it's much better for making books or for wiping your ass.
A strange thing to me is that after recent years of the apparent manipulation we have no solid evidence on what's actually going on. We have some general knowledge as a result of logical deduction, but not detailed and reliable enough. I wonder why we can't find privy persons somewhere on forums posting anonymous comments like Another or FOA back in 90's. Secrecy over this must be tremendous and deterring enough to prevent the insiders from whistle-blowing.
However, it may well be that those manipulating gold don't know much more than we know and are just pursuing relatively simple goals - to smash the sentiment at all costs and/or being blackmailed by China - while improvising and risking a failure in these hectic transition times. I would certainly not exclude such a possibility.
As regards your questions, Occident, the fact is the western people have no interest in owning bullion. Their interest may be significantly ignited in bad times but we have to admit there is no natural spontaneous affinity to gold among the western population (in contrast to the easterners). If it were there would be no a gold ring to grab anywhere. That's concerning because it means history must be repeated in order to refresh what had been forgotten.
Surely you know FOFOA.
http://fofoa.blogspot.com/
Of course I know him but he does not provide first-hand testimonies. His thoughts, though often brilliant, are based on assumptions and deduction.
Two reasons:
1. Because there is a semblance of order about an exchange and people are happy to go along with it and believe in it. In the Soviet Union there was no such mechanism for price discovery, in fact, the real price discovery happened in the very exchanges that are today corrupted.
2. Price is an expression of value and value is subjective. There is a mass psychology to international markets, but so as long as physical gold is moving then everything appears normal, dealers have sustainable business models, miners make adjustments to improve efficiency and survive, some miners go bust.
So long as 1 and 2 hold the condition can last, but mass psychology can change very quickly. The price is real because the physical metal changes hands, dealers of gold are probably happy enough to sell gold for now, but only so long as there is a credible supply chain and stocks can be replenished. Selling at these prices only lasts so long as the clearing house is trusted. The clearing house is a highly geared relative to the stock of gold available for sale, this can't really go one indefinitely. Of course the people running the clearing house know about 1 and 2, they are much more sophisticated than some guy at the Soviet Bureau of Prices.
Bach - You may be right, but I'm not sure. The gold paper market creates a Matrix-like reality that could be perpetuated indefinitely, the supply-demand fundamentals of physical gold be damned. Moreover, I get the sense there are many smart market participants out there who are aware of the paper-physical contradiction but really, really prefer eating a big, juicy steak in the Matrix to eating hydrogenated mush in the real world.
You don't collect money in the bank you are, in effect investing, in a giant hedge fund under the illusion of a "savings" account. Once you give the bank money it is theirs.
DEPOSIT = Non-interest bearing loan to said 'bank'
They'll be happy to loan it back to you at 12% apr
Exactly. I had this argument with another online "financial advisor" who brought up the fact that deposits are a "liability for banks as stated on their balance sheet in the financial statements". I told him that those are the rules but in practice they will not be honored when capital starts to flee.
Literally 2 months later Cyprus was bailed in. After that he ate crow and never brought it up again.
Depositing money is giving it to the bank for them to use as they see fit. If it vaporizes, oh well.....
A bank is a 'safe' place to put your money like a hooker is a 'safe' place to put Johnny without a condom. Feels good, but...
It only really made sense when you needed a massive fault to stop a bloke with a six shooter taking it. Now it's all digital what's the fucking point.
the cognitive dissonance on the board is beyond belief. Like some sort of glue sniffing cult. Back your truck up, or more likely after these recent dumps, back up your 1980 toyota and stack.
You loved it at 1900; bought moar at 1500, couldn't go lower than 1300 (*becuase of production, remember?); so you must just love it down here. Have you seen what the stock market has done in the same time? Turns out Buffet was right and you were wrong. Who would have figured that one out?
Admit it to yourself and all of those gold hucksers out there. You lost tons (i haven't lost any because i haven 't sold it for paper... another moron statement).
SM
Yeah, well, you know, thats just like, your opinion man.
Ya, guys like you ignore reality and look at the notional dumped in a matter of minutes, at market close, and think it's normal, right? You'd sell all your equities in minutes, wouldn't you, so that you could get the best price?
Cognitive dissonance is a label you're giving anyone who dare look at reality. And everyone with their head in the sand buying equities is rational, right? Crony capitalists like Buffet have moral integrity and are honest businessmen, right?
Buffet is a crony insider and well connected, his WF bailout proof. They are always right, until one day when the system collapses. Most see a collapse or revaluation coming, as China and Russia are not going to sit back and watch an EBT country dictate resource allocation and the currency of commodity transactions.
When the USD does collapse and China asserts itself, Buffet will come out screaming that we all need to do our patriotic duty and defend this great country as wars will ensue.
Would like to know, will you be endorsing and sending your kids to fight for Buffet?
the cognitive dissonance on the board is beyond belief. Like some sort of glue sniffing cult. Back your truck up, or more likely after these recent dumps, back up your 1980 toyota and stack.
You loved it at 1900; bought moar at 1500, couldn't go lower than 1300 (*becuase of production, remember?); so you must just love it down here. Have you seen what the stock market has done in the same time? Turns out Buffet was right and you were wrong. Who would have figured that one out?
Admit it to yourself and all of those gold hucksers out there. You lost tons (i haven't lost any because i haven 't sold it for paper... another moron statement).
SM
Can't wait for the first ignorant reflexive "back up the truck" comment from a true believer.
Beep beep beep beep
only the weak-minded are getting out - good riddance to them - so you are saying that you fell for the bankster's tricks ?
I don't think for long. But why don't they trade automotive future unit contracts and then dump them on the market, so I can buy a car for $2,800.00? Why always pick on precious metal? Hmm... I think I know why...
Must have been tied to IBMs earnings report.
Long IBM... long GOLD
Makes sense
Probably the same bank that just ponied up a cool $50 million to "Jump the QUEUE" and take JULY DELIVERY on 3.5 MILLION OZ of COMEX Silver...
Obviously the recession is over and interest rates are about to go up!
hahahahahahahahaha
You're half right. Unfortunately the half that's right (interest rates up) is going to make the half that's wrong (recession is over) more wrong.
you guys both spelled 'depression' wrong....
On it's way to ZERO. It has to happen this way instead of the more honest way of rising where it should be.
fixed it: ALL PAPER On it's way to ZERO.
http://finance.yahoo.com/news/clinton-propose-increasing-capital-gains-1...
Take away all incentive to get out of bed in the morning. Good idea, Hillary.
So this is what a depression looks like
this is what the end looks like
No, based on past experience the end looks like war. This is what the prelude to war looks like.
As a recovering Goldbug with about 10% of my networth tied up in Physical Gold I realize I need to write it off for the next 2-3 years and focus on the rest of my portfolio.
a 12 step progam will help fellow goldbugz. First, admit you are powerless. The shit just be calling your name. My favorite addiction was loading up on coins when transiting through Dubai in Duty Free. It was safer than sex with a cheap Ukrainian hooker is the only saving grace.
STFU, you never seen a a physical bar in your life
Reminds you of the old days at Kitco, eh?
so, if you are not a goldbug, then you are in control ?
Many of those Ukranian hookers are hot as shit! I've seen them in Bahrain, and that's a tough call.
I hear ya. Only seen the Ukranian on the web, but still.
Yeah, precious metals. No different from any investment, from your jock strap to your wife, imo. It's easy to become over-enamored and, then, left naked when the tide of hope rolls out. Other people standing around in the same position really doesn't help much.
I get in and out of metals like any other trade.
I have a weird suspicion that alot of these guys are looking at precious metals as a way to leap forward after financial Armageddon, which is nuts in far too many ways to mention. Sounds like you've had an epiphany about that.
I see 10% as perfect. If it blows up one magnitude, great, you kept what you earned.
Gold and silver are not going to become lottery tickets anytime soon, imo. If ever again.
Confidence in Government is as high as the fucked up dumb ass american public can take it.,.
Someone big is in trouble. Same as 2008.
The timing of the sales is pretty interesting, though.
My Dad bought a load of gold in 2008 when it plunged to $785/oz. he did very well on that trade.
It helped make up the losses he took on that stupid rental he bought; the tenant demolished the placed costing tons of money before he could re-rent it or sell it ... plus .. the costs and dangers of evicting that dirtbag.
Ah, platinum down almost $150/oz on the 60-day.
I am gonna Neeeeep Neeeeeep Neeeeeeeeeeeep back a truck all up over that. Beats holding the S&P500 at a CAPE10 P/E of 27.
Prudent investing 101 - Sell (PM's) at lowest possible price in thinnest possible market and buying (stawks) without regard to price.
And they still call these things "markets". LOL
"Someone" is getting desperate"er",
Once in a lifetime buying opportunity.
Honestly I think there's going to be a bigger opportunity not far down the road. Much as I hate to see AU go lower, my gut tells me we're going to see a dip that'll scare the shit out of even the strongest hands before the moonshot.
If we break $900, though, I plan on a pretty large buy if there's any actually for sale at that price.
Problem is premiums won't fall as fast, IMO.
Not only that, but supply will be a concern at that point as well. Yes it might go to $900....means nothing if ya cant find it for sale!...
But I think its time for a few more 1/10 Eagles...the Pringles of Gold Pieces...
If you believe the gold and silver prices are being manipulated -- and I think that is obvious to all but the most obtuse observer -- then it is a certainty that as the price of PMs continue to fall, the risk of being unable to buy them due to shortages is increasing (and not in a linear fashion). For that reason, I will continue to patiently and methodically dollar cost average my silver and gold purchases all the way down. The relatively-meager potential additional reward of waiting for the perfect buy-in price is not worth the risk of being shut out, compared to the inevitable gains that will be realized in gold and, especially, silver when the paper-game finally ends.
+1. Thats the rub. The price, to get it in your hand, has hardly moved. I still say, $20 CDN silver and $1000 CDN gold, is as low as it gets.
Possible Game Plan
Gold price dumps far lower than it currently is ($650-$750), Citi and JPM make a killing on their derivatives books,
all producing junior miners are bankrupted, those majors that are left buy all their reserves at pennies on the dollar.
End result - JPM & Citi make a klling, majors still left have gone some way to establishing monopoly power in the
private (ex. Russia, China, etc.) gold mining space.
I appreciate this suggestion is firmly within the realms of 'conspiracy theory' but given that the people running
the shows these days are utterly ruthless I don't really put anything much as beyond them anymore.
not only mining. same scenario goes for oil industry, shipping, actually almost every other sector ... pump pump pump than dump>> minor companies & developers collapse , good ones being bought by majors (who were bailed out for 0%) and game goes on and on . Of course, we will be waiting on the bottom of cycles :-)
As the price goes down demand will increase dramatically. People won't sell their scrap and supply drops hard and fast. This will put a huge floor under physical, so huge it may sieze the market.
The truth is that the general public will not buy precious metals at a discount. They buy when precious metals are headed up. They are afraid of missing the train.
Tuco
Somebody hates these cans!
We had to destroy the market to save it
Time to back up the rugged vehicle with the heavy duty suspension & extended cab. Notice I did NOT say truck...
Time to buy more Bitcoins.
I will buy gold when it is below $500 an ounce.
"I will buy gold when it is below $500 an ounce."
Why throw 'money' away at $500, when you know gold is headed to $250...? Probably by the end of the year, and will bottom for the next decade at around $200 or so.
Hey - I'm just trying to help...
/sarc = off
$550 million. That's a lot of paper gold put out there on the market. Too bad there isn't any physical.
:)
Oh no!!!!! Gold down below $1100! Ahhhhh. Eeeeek! Whoaaaaa!
There, got it out of my system. phew!
Who gives a truck???? I haven't been accumulating all these years to sell it mid-2015.
Wake me in 2025
I'm going to have to buy more even though I just bought two weeks ago. Oh well!
:)
Cool...Keep flogging the PM's with the wacky ass paper plays.
The phiz buyers just keep hitting the buy more button.
Thanks for the discount fiat fuck-heads!
Anyone who tries to catch this falling knife is a fool who enjoys losing their money.
These retards can't even understand what diversification means. They are completely hopeless.
After thinking about your post a bit, I decided you're right.
I'm gonna buy this top on the S&P first thing in the morning.
/sarc
And yet your reasoning comes from an extremely flawed assumption. You mistakenly assume they are not diversified... I watched the first Internet bubble burst. I moved a lot of my holdings to bonds a few months before. Especially my 401K at the time. Result: 5% gain vs 50% loss.
When this bubble (I should say bubbles pl.) pop, it is going to be far, far worse.
Standard Disclaimer: Run this through your thinking for a moment. Can a stock hit zero in value? (History is littered with failed companies) can gold hit zero in value? (Search your history books, and get back to me...)
Several years ago - the theory on ZH when the prices were riding high - was that there would be severe PM deflation, but that would be OK. Supposedly no one would be able to actually get PM's, even though spot was to collapse to $600-$900 To be followed by severe inflation and a decided air of superiority and smugness all around..
It all feels a biut different when it's actually happpening... but that was the "script."
reprise:
This small event (in the broader scheme of things) is a perfect litmus test for those who own gold.
Those who really understand the fundamentals (e.g. thousand of years of value; good collateral; all fiat dies, etc.), and are paying attention, recognize this as a clear sign that the system is accelerating towards a climactic crisis, and are either sitting tight or accumulating more real assets.
Those who are frightened and/or bewildered and/or angry don't yet grasp the fundamentals, or "invested" for the wrong reasons to begin with.
Oh, and by the way, during the 2008 crisis, gold dropped from $1100/oz to $800 before ascending to $1900. Take a look (click on the 10 year chart):
http://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
Finally gold is still close to an all-time high when priced in JPY
Tinky. Agree with your assessment and focus on 2008 as there were a number of crisis events that pushed capital into the USD and as a result, gold was hammered. I drafted a long comment in the lead ZH article so I won't repeat it here but what we need is for gold/PMs to capitulate with panic selling from weak hands/players, panic selling from greedy shorts, panic messages being delivered by the media, and as many negative comments as possible through all channels to ensure the "gold is dead" message is loud, clear, and final. I don't believe we're there yet as I think they will attempt to drive the price below $1k and then down to $800 as really crush not just this market but potentially, the entire industry.
What really bothers me in this process is the ability for Fed proxies (i.e., Citi, JPM, etc.) to manipulate this market in a can't lose scenario. That is, endless selling of notional paper, backed by the Fed, to drive the paper price down as far as possible. Even if large physical demand occurs that creates a default at the COMEX, the proxies can simply settle in USDs per contracts. So endless selling continues, driving the price lower, to settle at lower future prices, with no intent on every delivering, and no real enforcement (from the CBO, SEC, government, etc.) ever planned.
Of course eventually down the road, when the price of gold has been obliterated with no real production remaining, any uptick in physical demand will be met with huge price swings as TPTB attempt to defeat gold and the physical parties attempt to acquire large gold holdings but can't as it's all accounted for (and production not being able to ramp up quickly with increasing demand given the capital investment cycle).
Whatever your opinion on gold, it would appear that something is not right as these types of large sell orders/dumps are not being undertaken by individuals or small investors. These are coordinated attacts from very large players that are either operating under the orders of TPTB or rouge traders/whales that are manipulating a market that nobody really wants to police. It would be interesting to see what type of activity occured in the put option markets on the indexs or senior miners prior to this activity as if it was unusual, then clearly someone was in the know!
Yes, it's impossible, of course, to anticipate precisely how this will unfold. But, while it is understandable how the apparent power of the conjuring of "money" out of thin air, coupled with highly leveraged futures manipulation, might be deeply disconcerting, I invariably find myself returning to these basic facts:
– Gold has retained value through many tremendously volatile periods over thousands of years, and is etched into the human psyche as the safe haven asset.
– Central banks and Sovereigns increasingly behave as if gold's importance is increasing, rather than waning (the recent smashing of paper prices is a reflection of this, as well). The increasing dissonance between this and its current, narrow, "market" value is both fascinating, and instructive (see this chart: http://inflation.us/wp-content/uploads/2015/07/centralbankassetsgold1.jp... ).
– We are in the final stage of the biggest credit/debt bubble in the history of mankind, and when in bursts in earnest, there will be an almost incomprehensible loss of confidence in paper and electronic representations of money. This can only lead to a panic, and mad scramble for real assets and good collateral.
Though I didn't buy anywhere near the top, the value of my gold holdings has decreased significantly in Dollar terms. And yet, I am, today, right now, much more comfortable with my position than if I held stocks worth twice the amount.
This is so Awsome ... Erection .
Oboy! Gold back down to $35.00 an ounce! Dum dee dum, dee la la la, dum dee dum...
Pull up the willy's and put her in 4 wheel drive.
Fuck these guys that think they are savng the world. There will jobs losses in northern Ontario, Quebec, Minnesota, Nevada and the whole State of Sonora, Mexico. All of Peru, Chile and Columbia will feel the bite and there won't be a "Mining Analyst" left anywhere in the world of Finance.
All in the name of preserving Fiat Currencies.
Indians are happy, though.
Just called three local coin shops and there is NO shortage of physical bullion today. Maples, eagles, krugs, bars, come and get em.
True I can walk down to my friendly local coin dealer and pay hime $17.20(USD) for a Maple. Thats only about 20% over spot. I can get as many as I like.
A couple of billion here, half a billion there, and pretty soon it's a large amount of money.
expiry date next tuesday. watch monday
Rick Rule has discussed the difference between Demand Destruction and Supply Destruction.
Junk silver premiums rising:
http://katchum.blogspot.be/2015/07/junk-silver-premium-42.html
Chinese investor" "Damn- I need to raise cash to make my margin call on my stock account- Can I sell my Gold in London to cover the marker?"
Broker: "No, no, no - You don't want to do that - London will pay you too much for your Gold. What we'll do is wait until the NY spot market closes, and then we'll sell your gold on Globex at the exact moment that all liquidity goes soft on the CME Continous Contract - That guarantees us the absolutely worst execution price possible..."
Chinese Investor: "You are brilliant! Why didn't I think of that? And here I've been trying to make money in these markets - losing it is SOOOOO much easier..."
Are the big banks pushing the price down so they can finally exit their short positions and go long? It would be a good idea to keep a close eye on the bank position reports in the coming months.
Believing in God is an act of faith. Believing gold is going up is sheer stupidity.
if they have trillions in fake futures this could go on for a while.
The only way it will go up is on actions from the BRICS, even if the market falls, they will still be shorting this shit out of it.
I am trying to follow what happend. Why does a Gold Future Notional effect the price of gold at all? Isn't it just a bet that gold will be a certin price at a certin time? Did a party purchase all 550 million gold future notional notes?
Gold follows the dollar. If rates rise such that the dollar gets stronger, gold prices will plummet.
This yo-yo market smells fishy. It seems that some party is able to manipulate the price up or down by $25-50 dollars whenever they want to..it doesn't matter whether the gold price starts at $1100 or $1400 an oz. Now that is scary...
The disconect between physical and paper continues and it will take months for he fallout.. It is those that are in both markets that have to cover ans stay in business are the ones that are fueling the physical market's fall and there will be a 6 month to a year for the real reality to set in... I'm buying.
My bet is the Chinese and Russians will use this as another buying opportunity.