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Last Night's Gold Slam So Furious It Halted The Market Not Once But Twice, And The Funniest "Explanation" Yet
Yesterday, just before the Chinese market opened, precious metals but mostly gold, flash crashed in milliseconds with a violent urgency never before seen. We documented the unprecedented event last night, but for those who missed it, the following chart from Nanex clearly lays out just how sudden the "out of nowhere" selling was, which led to not one but two 20-second halts in the gold futures market spaced out precisely 30 seconds apart as a result of a Velocity Logic (or lack thereof) event.
For those following the gold market, last night's event was not surprising: after all just on this website we have documented at least three occasions when furious algorithmic gold selling broke the gold futures market for at least 10 seconds, to wit:
- September 12, 2013: Vicious Gold Slamdown Breaks Gold Market For 20 Seconds
- October 11, 2013: "Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again
- and January 6, 2014: Gold Flash Crashes, Halts Trading As "Velocity Logic" Circuit Breakers Triggered
What was most notable about the last "velocity logic" gold slamming event is that, as we predicted in January 2014, it was due to a stray and premeditated algo. The CME confirmed just that one month ago when it charged the futures trader whose trading software broke the market and led to that particular violent crash:
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. (Failure to Supervise).
However, what was most critical and what the CME did not disclose was the identity of the Mirus customers whose gold selling led to "unusually large and atypical trading activity" and more importantly, what was the motivation behind a massive sell order whose only intention was to take out the entire bid stack in less than a second. Incidentally, the "penalty" was $200,000.
Also note how none of the market breaking events ever take place when there is a surge in buying of gold. Strange that...
Fast forward 18 months when we got not one but two Velocity Logic events in a row.
And now the mainstream media attention turns, as it always does in the post-mortem, to identifying who the seller was even if the same mainstream media was utterly incapable of suggesting that previous such selling events were due to HFT algos on full tilt.
For the record, we did offer some suggestions what may have caused the violent selling which was not catalyzed by any particular news of headline: "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."
Naturally, we won't know for sure until the CME once again explains who violated exchange rules with last night's massive orders.
As we also noted previously, while the actual selling reason was irrelevant, the target was clear: to breach the $1080 gold price which also happens to be the multi-decade channel support level.
At this point it is safe to wager that this support level will be taken out in short notice (even as the PBOC continues to add physical, of which for the record it allegedly purchased over 600 tons just in June when the price of gold dropped 3%) and soon thereafter there will be a spate of defaults and frenzied merger activity among gold miners around the globe who are forced to mothball money-losing operations until no new physical gold is mined except by the most price-efficient miners.
Still, there are many who do want to know the reason for the gold crash, which just like in January 2014 had a clear algorithmic liquidation component to it. Which means that until the CME opines on precisely who and what caused the latest gold market break, we won't know with any certainty.
That doesn't mean that some won't try to "explain" it.
The less amusing explanation was that the market was disappointed by the PBOC announcement that it "only" increased its gold by 57% in one month. Of course, the fact that the PBOC had been lying about its official gold holdings until May never crossed anyone's mind because clearly it did not add 600 tons of gold in one month. Accordingly this was interpreted as bearish for the market which had been expecting far more official gold holdings, even as few assumed that if the PBOC was lying until Friday it may well continue to lie and simply park its gold with other related entities.
Furthermore, that explanation kinda, sorta forgets that the PBOC announcement took place on Friday, well before US futures markets were open, and if anyone was truly in a hurry to liquidate following the PBOC "shocker" they could have just sold either on the CME or the ICE, or even via the US-traded GLD ETF. That none of this happened confirms that PBOC had nothing to do with the underlying selling motivation.
But the funniest "explanation" we have heard yet, comes from Reuters. It is as follows:
"We do see a lot of people in China selling gold to get fast cash to go back into the equity market," said a Singapore-based trader.
So... threatened by arrest if they sell stocks, habitual Chinese gamblers, farmers and elderly stock traders are now liquidating their gold to get "fast cash to go back into the equity market", a market which even the most lobotomized permabulls now admit has been manipulated by China in the past month beyond anything seen in history just to preserve a clearly popping bubble.
* * *
In retrospect we don't know what is worse: that someone actually believes this, or that this may, in fact, be true.
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total farce
Janet has been pretty qualitatively uneasy lately...
Best explanation yet....years of reading insane explanations makes one wonder if truth is still truth. Yes, Truth remains truth. Sooner or later, the charade will end....I just hope it is during my lifetime. The manipulations have continued far longer than I thought were possible 5 years ago.
BW
Gotta love efficient, free, non-manipulated, regulated derivatives markets!
it just tells you how desperate they are at this stage....its gonna blow up on um
Stackers both know and don't care.
Shanghai Gold Exchange saw 61.8 tonnes of gold bar withdrawals from their vaults week of July 10, 2015.
http://jessescrossroadscafe.blogspot.ca/2015/07/shanghai-gold-exchange-sees-618-tonnes.html
More than 9,000 tonnes of SGE gold bar vault withdrawals since 2009.
"the drunkards have fallen asleep"
-Vivaldi
" Citigroup, which as we showed earlier this month has now captured the precious metals market via derivatives"
That would be my guess
So... threatened by arrest if they sell stocks, habitual Chinese gamblers, farmers and elderly stock traders are now liquidating their gold to get "fast cash to go back into the equity market", a market which even the most lobotomized permabulls now admit has been manipulated by China in the past month beyond anything seen in history just to preserve a clearly popping bubble.
Why would this be so ridiculous?
http://www.zerohedge.com/news/2015-07-10/chinas-margin-debt-easily-highe...
zh linked article the other day that Chinese have been dumping property to meet calls, why wouldn't they also dump gold?
"zh linked article the other day that Chinese have been dumping property to meet calls, why wouldn't they also dump gold?"
Yeah, why wouldn't they dump all their gold in the exact same milisecond?
F CITI and their paper..
Just keep on stacking.
When i sell mega tons, I want the world to know so the vultures pick my bones.
Just the way I like it.
I’m dying here… :-D
Just to point out that the Citi "Precious Metals" derivatives position disclosed by OCC EXCLUDES Gold so represents ALL OTHER PM's. Gold, for the first time, and without explanation (But clearly an attempt to obfuscate Gold derivatives positions) was lumped in with Forex holdings. The good news is that this must, then, represent an official acknowledgement that indeed Gold is money??....
I'm backing up the truck. This can't go on for ever. I compare prices at this site and DCA every two weeks. This week I'm tripling down: http://buybullion.com/search/all-silver-products?quantity=20
That's not even what reuters article suggested, the article is about overall selling.
Gold's 4 percent slide in a matter of minutes on Monday came after a record 3.3 million lots of the metal, or about 33 tonnes, were traded on a key Shanghai physical contract, as top consumer China appears to be increasingly shunning bullion.
The selling came as investors have been finding less and less reason to hold gold as a safe haven, with the dollar strengthening ahead of what is expected to be the first increase in U.S. interest rates for nearly a decade.
http://in.reuters.com/article/2015/07/20/markets-precious-china-idINKCN0...
Le Café Américain
…The dumping at market of very large amounts of paper assets into quiet market hours has been well documented in many places. It is a well worn market manipulating strategy abused by some very large trading desks, often playing with other people's money. Citi privately called it their 'Dr. Evil Strategy.'…
Why is this so hard to velieve. It’s almost as simple as typing on one’s keyboard just one key over and calling your communication “encrypted”. Eufgr>
Eh, an ounce of gold isn't really that impressive. I'd say the fair market price that most average people would pay for an ounce of gold is in the 150-300$/oz range. Most couldn't even afford it there. Hell I bet gold could go to 30$/oz and people still wouldn't buy it for lack of funds and lack of interest.
what do you think it costs to digi it up?
one broke miner lying next to a hole in the ground.
actually he isn't lying anymore but thanks to the syndicate..
he is still broke.
The Fed and LBMA needs to be put up against RICO.. along with JPM, GS, HSBC, RBS, Barclays and the rest of the crooks.
5 bucks
more like $1100
no.. $1222.0007 .. I stayed at a Holiday Inn Express last night.
Depends on the price of diesel fuel.
Anywhere between $900 to $1,300, based on host rock type and depth.
Spot the Canadian, eh.
Ps. Your understanding is not really impressive...not positively any way.
The rideneverends:
When you say "people still wouldn't buy it" you seem to be talking about the millions of sheep who will never have a clue. I don't think thats who we are talking about. 6000 plus years of history is going to change just because a bunch of International Bankers want to artificially manipulate the price down? I dont think so.
H Kissinger said in the 60's I paraphrase, "he who controlls the price of gold controls the world." Lots more people around now and theres lots more financial carnage that is about to happen. Look at Eters pyramid. Thats been around a while too.
http://www.kitco.com/ind/Taylor/2014-07-21-Monetary-Velocity-John-Exter-...
Agreed, I hope I live to see it as well. The mature people are not well liked in America today.
Would be nice if we knew who specifically was responsible for this slam.
Nanex could figure it out in 5 minutes if CME provided them the names that goes with the data they already have. Of course, the financial sociopaths would never allow that to happen.
Whoever it was profited from it.
I repeat, the same will happen with bonds and stawks one Sunday night. Just before the market opens in China "someone" will sell into the respective futures. Everyone will be frozen out and dead. This is how the end will start. This Gold slamming is the example.
The psychopaths have an unlimited arsenal of electrons at their disposal in the pursuit of a CASH-LESS, ASSET-LESS, DEBT-ENSLAVED SOCIETY. Their program is supported by slamming real money and real assets in defense of the confetti instruments intended to replace them. "Service Economy" is a glib rationalization (psychopathic jargon is always glib) to obscure the fact that real supply and demand have no place in a pathological environment, where the goal is TOTAL CONTROL. (I worked for psychopaths once, in an organization that had marvelous potential if only management had been permitted to make rational decisions and act. Instead, the firm was ruined.) Psychopaths who get power manipulate and destroy. It's their nature that makes them evil. Free markets are their antithesis.
"Ye shall know them by their fruits [works]." Matt 7:16
"Stupid, cud-chewing electorate..." Edgar J. Steele
a lifetime of too many periods.
Haircuts will come to those who own the fiat. They are throwing trillions at protecting the dollar. Dollar collapse, will it happen in my lifetime? I don't know, I do know that my grandkids or my great grandkids will thank me for the precious that I will leave them.
Get ready for sub $1000 gold by end of Summer. Those always bullish on Gold will cry manipulation, but like all commodities gold goes up and down. Now its down time and it will be time to buy when Gold catches its long term uptrend at around $850 to $900. Always amused by the hard headed gold bull who thinks it should go up every year. I will know when we are at an emotional bottom in Gold when ZH and all the Gold PermaBulls can finally watch a $30 down day without claiming manipulation. And for all you people who will want to down vote me, you can see I have been bearish gold since $1700. Out!
"...total farce..."
No chance, Waylon. It's 100% real, just like pro wrestling.
Watching gold is just like cheering for the Team American wrestling team in the ring. They keep losing to the evil characters with the impossbile moves, but they're the good guys so you keep rooting for them. Their archrivals are Team X, consisting of The Russian X-Terminator and Jihadi-X (was Jihadi Bob but changed it for the 'Team-X' theme).
The matches are always super-close and Team American is always just about to win, but Team-X always snatches victory from the jaws of defeat by cheating, eye-gouging or double-teaming when the ref is looking the other way. But the fans keep coming out every week rooting for them because Team American just HAS to win next time - they're better than Team-X and they're the GOOD guys. This week, they'll be victorious!
Team Gold got sucker-punched last night when the ref wasn't looking, but they'll win next week - they just have to. You'll see...
Oh thank GOD. For a few decades there, I thought pro-wrestling AND the Fed were complete farces. At least we have one thing we can count on.
I feel like a kid with a Toys R Us gift card that can't decide.... Maples at $1147......ok....Buffalos around $15 ish...okay.....Maybe a monster box.....YOU GUYS...I Can't decide. Also...I will buy this fucker all the way to the bottom. Keep it going you fucks. As said in another thread....My conficence in metals keeps getting stronger and stronger. I know some people here hate gold bugs. Should I have sold at $1900...of course. Should I have put all that money in several rental properties in 2006...sure. You do what you do. Do I care...No. I just think the payday is closer than we all think. I will keep stacking friends.
Fuck the haters. Paid shills and kool-aid guzzlers the lot of them.
Just keep stacking.
Took delivery of 8 x 250g PAMPS today.
Just beautiful.
God Bless you.
Next time go for 1Kg bars.. they are better toners/excersise.
I hear you. Thus far I predominantly have 1kg bars...and a handful of TT bars. I wanted some smaller denomination for higher reps.
And where do you get this inexhaustible supply of worthless money to keep buying gold when you are so under water? You must have spent a lot of time and effort in the "system".
Gold is headed below $800, why not just wait a while?
a $1200 oz coin in hand is worth....how much of not being able to get any at 800, 700, 600...it goes that low and where's that demand going again? will delivery be real, by that point?
imho, not below $950.00. you can thank me later.
Hey Meremo, your paper-wipes are calling.
..stack more little AG.. much more tradeable.
oh.. and gold ain't going much lower.. although the PTB can try driving it down..
it ain't going much below the price of production.... end of story...
what is happening is about the miners/producers-someone/somebodies are tring to "corner" the output
Totally agree. My hypothesis is that a USD revaluation is coming along with China buying gold, which pisses the FED off:
1- Can't revalue the dead USD with gold at $1500 and oil at $110.
2- China and others are clearly buying. Smashing price is payback and an attempt to curb demand, as childish as it is.
3- When said "revaluation" takes place, miners will be in no position to increase production. The upside swing will be enormous to those who manipulated price/production.
Nice dream, nope. Hard to believe that any government, central bank or persons holding a printing press would relinquish it for any reason other than the threat of severe violence or death.
I almost upped you, but then realized there is no other reason other than actual severe cases of death that will loosen that poiwer's grip.
..that can be arranged.
Just sprayed 15 y Glen Livet across the lounge room...
Gosh, I am so sorry.. please keep the good stuff inside.
It helps when you button your lips when you read these threads.
Owning all the mines allows a certain., er 'flexibility" in the amount you actually may claim to hold
This just made my freakin morning.
The explanations I have read elsewhere interpreted the Chinese gold increase taking place over several years not just one month. ZH is the only place I have read the claim that the increase is over one month
It is not a claim: it is what the PBOC itself reported (although it took two attempts for the central bank to goal seek the "correct" number):
From Friday:
And Sunday night :
And, for the record, we said this is merely the latest lie out of China, but one which gets it closer to SDR approval by the IMF.
if those two tables were the fact, china would need to purchse more au. no?
This is another "Buy-Physical-and-Hold" sign.
De-marketing 101...exactly how a PHD without any real world experience would do it. Hedge accordingly.
It would be fantastic if someone could show us where it is stated that gold is required for consideration into the SDR basket. We know of the functional bond market, floated currency and currency reserve requirements but I don't see gold mentioned in any of these discussions.
Thanks. So it seems like the authors on SA with the bearish gold articles have some other agenda other than warning retail investors about the danger of further price drops. They were beginning to convince me ZH had it wrong.
I think further price drops are probable. I am waiting, not buying, not selling. Time to hold and drift down.
This kind of activity happened before the 2008 crash. Commodities went into the toilet, then bomeranged up like a bat out of hell. There is manipulation. There is also real selling of things you can get cash for to shore up your shortcomings.
One number I am watching is for it to drop to the $1,000 zone. That would be proportional to the prior drop when it went up above 1,000, then back down to just below 700. If it drifts lower without a bomerang at that point, I will watch for it to retrace all the way back to below 700, and look for a bomerang there.
Is there much rationality behind this strategy? Not really, just some guesses based a little bit on history. But there will be deflation. Cash will be king for now.
This kind of activity happened before the 2008 crash.
This is exactly it. All of the macro data is screaming that 2008-level event or worse is/has taken place in the past quarter. If you look at early consumer data coming out for Q2 it's pretty clear China and Europe's economies imploded. The manipulation is just trying to smooth out the appearance.
In '08 the gold and commodity crash lead the banking crisis by about a month. I'd say it's time to get the popcorn ready again.
Platinum's in the 1000$ zone. Cheaper than gold, if you can find it.
5332.. I bet that is understated by about 5K.
Ask Larry Summers or Alan Greenspan about the reserves.. don't ask helicopter Ben,, he just lies to Congress.
Is that a crime?
Matha Stewart did time in the pen for fibbing to a freaking FBI dweeb.
Can you imagine the assholes that voted to convict based on that? Where was jury nullification?
My explanation is that in fact we approaching fast the point of out of physical gold and now a lot of unseen yet, crazy speculation moves started and will continue to appear to exploit the gullibility for the purpose of keeping the price low still for some period. And when there will be no more gold to be dumped by panicked wussies then it will sky rocket on a second. Now it is a batle of the nerves and guts.
Get ready to redeem your clown-bucks enmasse.
"It's a deal. It's a steal. It's the sale of the fucking century."
tmoseley was the first one I saw predict that the paper price would go to zero as gold becomes more and more irredeemable (in large quantities at least). But the price of actually getting some of the shiny to hold in your hands will do just the opposite...get physical or be left holding paper.
These 2 posts were also quite early:
PM trade settlement by cash is legal. IF rules are amended/interpreted to fix/limit the "premium" increment [e.g.20%], then knowlege of this would cause the physical-versus-paper prices to diverge...and the paper prices will trend toward zero, as buyers understand that the amount of [fiat] premium to settle makes the risk/reward unattractive to play in paper.
Long holders of paper face a limited gain compared to holding physical, as the fiat settlement value can go far below "spot" physical. Paper trends toward zero...and any JPMorgue shorts are neutralized/sterilized...mooting any short-squeeze. The bid price for paper collapses.
Do I hear JPMorgue laughter? Probably not, as they are masterful game-makers and and are content to smile.
This makes sense if you think about Gresham's law, "bad money chases away good money". If paper gold has insufficient real gold backing then as more people arrive at this conclusion they trade their paper gold.
Follow the yellow brick road.
When Dorothy is captured by the Wicked Witch of the West, she tries to steal the shoes. She finally gets one by tricking Dorothy into tripping over an invisible iron bar. Dorothy then melts the Witch with a bucket of water and recovers the shoe. In the final chapters of the book, Glinda explains that the shoes can transport the wearer anywhere they wish. If the Silver Shoes have any other powers they are never outlined in the books, however the Witch of the West was obsessed with obtaining them, as they would give her much greater power than any other thing she possessed, suggesting the shoes hold immense magic. After saying goodbye to her friends, Dorothy knocks her heels together three times, and commands the Shoes to carry her home. When Dorothy opens her eyes, she has arrived in Kansas. She finds that the shoes are gone, having fallen off during her flight and landing somewhere in theDeadly Desert. Though they are mentioned several times in sequels, they never appear again in the original series.
https://www.youtube.com/watch?v=NZR64EF3OpA
If the Silver Shoes have any other powers...
It's pretty funny that with the simultaneous slam down of all precious metals, (with perhaps silver the least), and the spot price relative to frns at this moment @14.70, 90% junk silver bags are going for nearly 21.frn per ounce, (14.90frn per "dollar" face equivalent =.715oz), on decent on line trading houses. Good luck finding anything to buy at the current "slump" from any place in the "open market".
just noticing...
I mentioned in another post that apmex was out of stock for a lot of silver that was available Friday. The price may be coming down, but what physical can you buy right now for low markup?
No Idea is a synonym of clueless
ZH is the only place I have read the claim...
Precisely why this is my first go to place for information too. Market watch reports today that gold’s slump is here to stay. I think one man’s idea of a slump is another man’s idea of an opportunity.
Still, if gold is such an irrelevant nuisance to economic well-being, tell me again, why did Nixon close the window?
When a currency goes hyperinflationary, it seems gold will always buy bread...sure takes a lot less of it than Zimbabwe dollars...
maybe this time IS different for gold.
Orwell's line: "picture a boot stomping on a human face forever" implies a "different" someday in the dystopian future...
Maybe the fuckers have finally figured out a way to permanently keep gold Knee-capped, "forever"...maybe a little algorithm told 'em how to do it...
Dead men tell no tales...and neither does paper gold tell tales against broken markets/economies
Define forever?
Gold's 'forever' is probably just a touch longer in duration than the current 'markets'.
I will gladly swap my gold out for the unicorn farts known as "Chinese Equities".
Most people don't know that Unicorn Farts ® cannot be bottled in normal containers and need special Hopium Jars ® which can only be purchased through central planning distributors.
And don't forget to wrap it up all safe like in your handy Spiderman Towels. ®
"We do see a lot of people in China selling gold to get fast cash to go back into the equity market," said a Singapore-based trader."
More like the Chinese Gov saying "Thanks Benoit" for making millions of over leveraged and panicking Chinese stock traders panic sell gold to them on the cheap and providing more capital to help the Chinese muppets EXIT their margin calls and thusly the Unicorn Fart market.
Translation: BIS helps PBOC acquire more Gold while trying to support their stock market.
http://research.perthmint.com.au/2015/07/20/dissection-of-a-gold-price-smash/
Selling smash was NY
Well, of course, THAT'S what I'm doing...selling gold and buying stawks.
Something tells me that this lunacy doesn't have all that farther to run.....I mean we GOTTA be on the home stretch at this point......right?
Brother...just keep stacking.
I guess it really is true, debt is now the official currency of the new normal.
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." - Albert Einstein
Most definitely, absolutely, certainly 100% correct...for now.
Fashion is so fickle.
Style on the other hand...it's eternal. Gold has style.
Since you went to the trouble of labeling the 1-5 primary waves, we can now expect a violent countertrend A wave at any moment, correct?
Its funny how everyone is ignoring it today...they are just saying gold is down..but not the flash crash of why.....strange......
not really strange.
The MSM bankster owned propagandists don't want the people to really understand that this carnage was the result of one single HFT seller who took out the bid stack in 54 microseconds with a 2.7 billion dollar market order at the most illiquid time of the trading week.
They just want you to believe that gold is a rotten investment and all your money belongs on wall street for the bankster thieves to steal.
YEAH! what he said!
I spent my early years investing in the various funds managers etc. etc. it all looked good on paper. The charts were impressive and the private consultation rooms were impressive...but I ALWAYS got back less than I put in. No matter what...
Then I started buying phyzzz...
Sure I paid some fees...but only once, and not that much...and I still have every micron.
Perhaps I'll sell it one day. Perhaps my wife will sell it when I'm fertiliser. Perhaps it will be my boy?
I don't care really.
My needs are few...but I'll be fucked if my time on this wonderous Earth will be wasted feeding a bankste, a politician or a bureaucrat. (Note: I live expat in a tax free haven and 'under the radar').
Most financial "advice" boils down to capital misallocation, ponzi, and milking the cattle regularly by fees and commissions. In my experience, most FAs are human filth, hardly different than drug traffickers. Why the hell would a trafficker want to help his junkies get clean and stand on their own two feet, when he can keep 'em all hooked? The dynamic is no different in Athens. Why would banksters want the Greek people to prosper? Why should they permit Russian-speaking people of East Ukraine to pursue their own destiny? One does not simply opt out of organized crime.
a.) Somebody's valuts are empty and they need cheap replacement to deliver.
b.) FED dollar fluffing
c.) Economic warfare - Lower collateral value and force global margin calls
d.) Whale farts and Blythe queefs
That warranted a coffee snort!! "The dollar is getting a little limp, where the hell is that bitch fluffer...You know, what's her name? Yeller or some such"
Love it!
http://www.pennenergy.com/articles/pennenergy/2015/07/seven-oil-gas-prod...
Court records show that Milagro reports that it has $1 million to $10 million in assets, and up to $1 billion in liabilities.
What what a coincidence...similar ratios for GLD physical to paper.
of course no one here recalls my comments about gold's direction!!!!
Not true! I've printed out all your posts and keep them in my hope chest, darling.
Then, somebody in the congregation yelled out, "The Piccolo players a motherfucker!"
Wouldn't have anything to do with that platinum cored meteor?
Wall-e is busily digging for a rich seem as we speak.
and its still REAL MONEY just like Silver....
i and many others will not b moved.
"i and many others will not b moved."
Smart money would be moved to buy phys.
A new level of fraud reached by the tribe!
I wonder if China is now going to put new rules for the gold market
I understand they are working on a new gold market . . . it's nice to think about the Comex getting arbed to death.
Why care? I think it was normal. Gold is old relict from very ancient times. Better to invest housing
Am I the only one that could possibly believe that the 80% of the chinese mom and pop retail investors are selling gold to keep enough money to continue playing in the casino? Cancelling cable is the best decision I've made, but watching beijing news, all I see is middle aged to elderly chinese sitting in cubicles watching stock screens and it is the same exact interaction I see in a casino.
Shanghai Baccarat.
"Nanex - in a place we've never seen before......watch out! watch out! watch out!....R....K....O.....Outta No where!!"
Yep... 2008 all over again. Aug and Sep should be "interesting" to say the least.
Of course it was the Chinese Investors.Anyone with any sense, as Reuters clearly understands, will call every China man with gold who needs to sell fast to cover his stock leverage and tweet and text and Weibo and QQ like crazy and until they are all set and then sell all at once at 9:30am on Sunday morning in China.
You really have to hand to the Chinese.
The Organization is awesome
Isn't it Reuters
It's like that old cliche: if everyone in China jumped off a chair at the same time it would create a tidal wave that would swamp the world.
Here in Thailand gold stores are full every day. The paper price is not the real price, not even close to what Thai people pay.
nothing to see here.....move along
Ummm...Thai stack.
The difference between paper price and "real" price = vendor profit.
"The difference between paper price and "real" price = vendor profit."
In some countries, you pay VAT when you purchase gold and other precious metals.
The Power that Be are not at all comfortable with citizens desire to own some physical gold. This is a sign of people's lack of faith in the completely fake financialized economy that the west is in thrall to. Given the debt ridden nature of both public and private balance sheets, gold is the only logical place for a % of a person's assets.
The dollar is as good as gold. It's transmonetary!
When people are faced with margin calls they will raise cash any way they can and as gold is highly liquid it is a go to. This happens all the time. So the explanation is plausable. However, it is more obvious they wanted to run the stops, the greedy bastards. Hope they get a 50 million dollar fine this time!! That might discourage them.
The speed of the dump indicates a single seller. So person, not people.
Gold prices have been manipulated by the US FED using uncovered shorts to prevent a run on the US dollar. From Paul Craig Roberts- “The Fed’s gold manipulation operation involves exerting forceful downward pressure on the price of gold by selling a massive amount of Comex gold futures, which are dropped like bombs either on the Comex floor during NY trading hours or via the Globex system”. See: The Hows and Whys of Gold Price Manipulation by Paul Craig Roberts and Dave Kranzler. January 17, 2014; Link: www.paulcraigroberts.org/2014/01/17/hows-whys-gold-price-manipulation/
combined FLASH CRASHES on three different Precious Metals markets. And these just happen simultaneously - to take the metals below price levels of long-term support. NAHHHH - nothing suspicious there.
Meanwhile silver CANNOT BE BOUGHT from the US Mint. It is completely sold out. Regular investors cannot even lay their hands on a silver coin at a reasonable price. Demand is high, supply is nonexistent. And Silver prices are crashing downwards.
And you wonder WHY people think these paper markets for PM's are BULLSH*T ?????
"Meanwhile silver CANNOT BE BOUGHT from the US Mint."
What is the percentage of silver sold annually by US Mint to the total annual silver supply? For now, Texas Precious Metals and APMEX have plenty of silver, at ~30% premium though. Also, there are silver Canadian Maples, silver Australian Kangaroos, silver Austrian Philharmonics, etc. Simply put, shortage of US Mint silver coins does not indicate shortage of silver (at least not yet) on the market.
I was curious and looked it up. The US Mint produced 44 million oz of silver coins in 2014. World silver supply last year (incluing recycled) was 1,060 million oz, mine supply was 877 million oz. So the US Mint used 4% of the annual world silver supply.
The "shortage" is in their production of coinage, not in the supply of silver.
Citi is now short nearly 60 billion dollars of precious metals which they obviously don't own and cannot deliver.
Sooner or later, that means 60 billion dollars of buying is coming to the markets as short covering.
As to MSM coverage of this event, ZH has done an outstanding job whereas the MSM is typical bankster propaganda bullshit for the donkeys.
Speaking of typical bankster propaganda bullshit...
http://finance.yahoo.com/news/commodity-rout-heads-toward-13-091803685.html
Raw materials are losing favor with investors as the dollar gains amid signals from Federal Reserve Chair Janet Yellen that the central bank may raise rates this year on the back of an improving U.S. economy. Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities.
And don't forget....you can't EAT gold.
But you can wipe your ass with fiat.
you earned one upvote on this note:
And don't forget....you can't EAT gold.
But you can wipe your ass with fiat.
however the paper quality must fit.
Have they got aloe vera in. My missus insists on it...
They just pay out in cash. The Euro banks were doing that a few years ago.
Could it be:
After China stock crash, they became frightened of an economic collapse (like US central banks in 2008) and were worried about their currency so they understated their gold holdings and started doing the same central bank sponsored manipulations of Gold that the west has been doing for years.
Just a thought.
Chinese selling paper gold to put into stocks? In 10 seconds? Mwahaha....
I'm buying. Must be stupid.
The average AISC is at $920 per ounce now and it's almost impossible to lower it much more than that, if gold goes to 1000 many mines will be unprofitable. Also US Mint numbers give record gold sales. So demand is really up while supply is down. This cannot keep going any longer.
Half of all gold mines in the world could close and it wouldn't affect the gold supply that much. Mines add 2% a year to the existing gold stock in the world today.
Look what happened with iron ore this year. a LARGE percentage of iron ore mines are operating at a loss. And yet iron ore is a commodity with (almost) 100% of production consumed by industry, and not just stockpiled the way gold is. Only 12% of annual production of gold is used by industry. The rest is just horded in vaults.
How many shale oil wells or oil sand production are profitable at $50/bbl? Does that mean the price won't drop below that level?
Just becasue SOME gold mines aren't profitable, doesn't mean the price of gold can't drop below that level.
I don't care about the stock of gold, as that gold just sits in vaults. i look at demand and supply and majority of supply is still mining and then recycling. Mining is going down and nobody recycles at these prices. ETF supply is not as high as in 2013. Demand is going up as premiums are rising at bullion dealers and SGE demand is going higher. US Mint sales are up.
Since the price has been going down (almost) continuously for the past 3 years, that means DEMAND going DOWN, not up. To believe otherwise means you are in denial.
But you can believe whatever you want if that's what makes you (and the gold dealers) happy.
demand going down as a ratio of additional supply, that's just paper
Correct - mining costs are completely irrelevant to the gold price.
The markets have just given us a "gift horse". Buy on the dip!
They way they're going, I'm waiting until they will PAY me to cart off the "yellow devil metal" from their vaults....Doing all the WRONG things is often a sign of panic and desperation...
Don't be silly, they are shorting paper. It helps them and thier associates to buy the stuff very cheap and boost thier Bonds and Equity worthless markes
I dont see gold re-tracing its top for another 12 years+
unless the world falls apart then maybe 4 years.
My guess is it will be a lot longer than 12 years. It's been 40 years since the last major spike in gold and silver, and that peak was entirely due to manipulation.
You in Greece yet? I know you said you were going...