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Gold “Capitulation” As Down 8% In July - Smart Money Buying Dip
Today’s AM LBMA Gold Price was USD 1,083.75, EUR 990.042 and GBP 699.89 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,101.65, EUR 1003.69 and GBP 705.91 per ounce.
Gold in USD - 1 Week
Gold fell $5.20 or 0.3% to $1,088.70 per ounce and silver was down 15 cents to $14.65 per ounce yesterday.
Today, gold in Singapore was hammered lower in another bout of concentrated selling and gold bullion in Zurich moved slightly lower.
This morning in European trading, silver for immediate delivery fell 1.3% to $14.57 an ounce. Spot platinum fell 0.5% percent to $977 an ounce, while palladium fell 0.16% percent to $619 an ounce.
Gold in EUR - 1 Week
Gold failed to maintain an early rise yesterday, slipping to a new multi-year low in New York trading hours before extending those losses overnight.
If gold ends down again today, it will have fallen in 9 out of ten sessions over the last couple of weeks.
Gold has fallen in all currencies this week. It is down 4.4% for the week and looks like it may have its biggest weekly drop since October. It has fallen for five weeks in a row, its longest such run of losses since late 2012.
On a monthly basis, gold is down 7.6% in dollar terms so far in July, their biggest monthly loss since June 2013.
Gold in GBP - 1 Week
Investors are dumping billions of dollars worth of gold, commodities and emerging market assets in a wave of "capitulation" selling, Bank of America Merrill Lynch said today as reported by Reuters.
Gold and copper prices have hit five and six year lows respectively this week. Funds flows data showed the biggest outflow from precious metals in four months and emerging market fund outflows reaching $10 billion over the last two weeks.
"Capitulation is beginning in emerging markets, resources and commodities," BAML analysts wrote. The receding threat of Greece crashing out of the euro has helped deflate safe-haven demand for gold, while the likelihood of a U.S. interest rate hike this year has spooked emerging markets.
Gold and silver are oversold on a host of indicators and due a bounce. Smart money is again accumulating on the dip and we have had a busy week - with some a small amount of concerned selling but more clients adding to allocations on the current price dip.
Capitulation tends to be a good time to allocate funds by dollar cost averaging into weakness.
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Bitches got to go to the beach... (But what is the divorce going to cost?)..
anyway this bear will end shortly in gld slv and the miners. just my take
Gold down 40% and the narrative never changes.
So glad all the gold buyers have been holding inexhaustible supplies of worthless dollars to trade for gold and silver. Which raises the question of why gold sellers keep taking worthless dollars for it.
This means the crash coalition doesn't have the courage of their convictions. Otherwise they would been all-in 5 years ago.
Farmland, much more valuable than gold in a collapse. When you take your gold to a farmer and ask to buy food, he's going to say, "Not interested. But if you want to work in the fields for the day, I'll feed you today."
'cause you can't buy Coppertone and Sushi with gold and when you go to trade it in at the beach, there are diamonds in that shop!
iT'S NOT GOLD and silver being sold to drive down global prices. The tonnage that's on market is not physical. It's paper gold and silver, paper claims, not physical.
When gold and silver prices are massively manipulated downward by blatantly and egregiously criminal practices... you blame those who maybe make the [short/medium term] "mistake" of assuming market forces will eventually prevail... and completely ignore the criminal predators who cause the dislocation.
On your second point I agree. While PMs are great way to save for "employed folks", the very best assets to hold are productive land, machinery, tools and supplies that you constantly operate to generate a never-ending flow of goods and goodies that other humans want and need (and will trade for). No doubt about that.
I love how gold haters imagine a Mad Max scenario where the public has to go from farmhouse to farmhouse to be fed. That has never been the way the economy works, and if it did the elderly would just all starve to death.
No, the current system of exchanging money rather than bartering is going to continue to be the scenario we will be working with. And in that scenario, gold has a function. Farmland is not as valuable as gold. I no one wants your farmland, or if its in an inconvenient location, you're screwed.
Oh, and I have been all-in, for more than 5 years.
The scenario you describe is the one proffered by the gold bugs.
your commentary is very fair. And if I lived in Huron South Dakota, I would certainly be both a land owner and a subsistance farmer. But, I live in the heart of Houston, where the nearest chunk of farmland is about 60 or 70 miles in some direction....now, if i could maintain my income AND live in Huron that would be awesome, but that's just not the way economics works. So...even if gold is a distant 5th choice (behind farming in Huron, Santa Barbara Ca, and Maui) then...I just have to settle for my 5th best option.
But, I live in the heart of Houston
LDSPrepper managed to do quite well farming in Houston... Mittleider gardening muh peeps!
Bring your gold to my ranch. I'll happily trade a beeve for a shiny.
"I'll happily trade a beeve for a shiny."
Did you just offer a little booty for some shiny? teeheehee.
"When you take your gold to a farmer and ask to buy food, he's going to say, "Not interested. But if you want to work in the fields for the day, I'll feed you today."
Yep that's what my grampa said happened in the 30's. Nobody would take gold. yep, that's how it was.
/sarc
gold is spelled 'gold' when it refers to the gold derivative market...it is the currency 'backed' by the metal. It is the promise of the bullion banks and other parties to deliver gold at some point. In truth is is just another fiat currency. It is good until it is not.
Everyone knows (or should know) 'gold' is not at all the same thing as GOLD.
It will be the metal that wins in the end as 'gold' goes down with the dollar and many other fiat currencies.
Unfortunately, the people who will need it the most when the SHTF are selling it right now.
Did Gold become more available? No.
Did demand for Gold delivery drop? No.
Can you actually buy real Gold at this lower price? No.
Then why does this ticker-tape calling itself "Gold" matter?
Dumping Gold? Bull Fucking shit. Dumping PAPER future contracts. Go ahead. Drive this bitch into the dirt. I am going to back the truck up soon. Its time to get physical.
Paper gold. What a fucking joke.
I have no idea what everyone is talking about when they say "crash" because I'm paying $1,146 for my gold eagles and $18.76 for my silver eagles. I see no crash from where I'm sitting.
BULLION at a preffered (buyer's price).. Just remember to divide it up in $240k lots to stay under the Frank-Dodd reporting requirements. I like the old stuff and it is still $100 more.
Paper price crashed, but premiums increased significantly for popular gubbermint-minted coins. Premiums for 100 ounce bars are still reasonably low, making them the best value right now.
Example from 2008: When papersilver price dipped to 10.50 FeRNs, I got Phils for f12.50, a premium of f2. Papersilver price then crashed to f9, but coin prices went to f16, a premium of f7.
Classification of any gold bug as "smart money" is a Joke.
Only the dumb money grabs the falling knife.
I expect that the gold bugs have no money left. I guess they are benefitting from the lower value as the cost of guarding the pile must be going down.
I love simpletons like Augustus who seem to think anyone who owns gold bought at $1800 and has no other assets.
I did, but it is 'slabbed'.. and looks real prrretttty.. MS67
I have no idea what you're talking about. I see no "crash" from where I'm sitting. Three weeks ago I paid $1,150.00 for my gold Eagle and $18.76 for silver Eagles. Today I paid $1,146.00 for a gold Eagle and $18.76 for 10 silver Eagles. Where is the crash? It seems the crash existed in the paper world where fairy tales and sweet lolipops exist for everyone. I'll be buying till the house burns down.
Do you ever read anything here or just talk out of your ass all the time? Explained just yesterday.
http://www.zerohedge.com/news/2015-07-23/hunt-mystery-gold-bear-raid-lea...
Didn't know you got the ZH head cheerleader position.
(gold good, dollar bad --- probably a good call for end events which could be a decade away. meanwhile, unless you are filthy rich, playing the game one way or another is all one can do - and that means buying AND selling).
What are you talking about? I didnt say anything about the USD. Maybe read the article which talks about the suppression of gold?
ZH may be right in the end. But, the journey is what matters when this shit storm might last a decade or more. Even then, what will it mean to be right?
How many people are all-in and will have to sell to buy groceries when we all get to play Greece? What will the street price be?
Rational discourse here on ZH regarding PMs is impossible thanks to the "buy, buy, always buy, buy more" crowd.
I have not made predictions or told anyone to buy gold or silver here for over four years.
The only reason people should buy them is because they are the most undervalued assets on the planet right now. PM's are a hedge against ZIRP, NIRP, QE, currency debauching/inflation and all the massive debt. Owning some is only prudent to cover your ass when this current stock, RE and bond bubble implodes.
I'd say that's being "rational".
My point is more about how the "gold" discussion really struggles to have a good conversation. The word "sell" is tabboo. And every article says the same thing (bottom is in, smart money is buying hand over fist).
Regarding your statement here, we are in perfect agreement actually. I was having fun earlier to see if the ZH moonbats would go on the attack. lol. Poking the proverbial bear (err... bull) using your posts! Your taking the wind out of my sails here (ha ha).
Yeah, I think not owning some is just stupid. And these prices are not that awful of a place to take on some risk. I do think it will go lower. Sentiment here on ZH provides some insight. When the bulls are puking, like the good Dr. says somewhere in the last post or two, that will be the bottom. I will accumulate along the way. But not at the expense of my ability to also preserve cash and make other hedges too. As time goes on and this shit show unfolds I will keep rebalancing as best I can - but never giving up any complete position if possible.
Thanks for the cool response by the way.
It has only been declining for how many years? How long since that $1,800 price with the forecasts of $10,000 in another year?
There are conspiracy theories comming from all of the gold bugs. Generating those is how they pass the day and night.
Maybe that mystery gold bear is an offspring from an alien mateing with a sasquatch.
BTW, is your tin foil hat one of those one-size-fits-all models or was it custom made for your block head?
If I was a Tyler I would ban you on grounds of stupidity alone.
You really are a hopeless fuckan rube.
Stupidity has been holding gold and increasing position all the way down from $1,800.
People who do that cannot be good customers for the ZH advertisers. Oh, wait. They may be the target market of confirmed stupids that advertisers are looking hard to find.
If you are a "trader" by definition gold and other promissory notes are a means of accumulating dollars.
If you want to trade dollars and other promissory notes to accumulate Gold, then you're called a "gold-bug".
The difference is your standard for credibility. Is an element of the periodic table more likely to remain unchanged? Or is a promise recorded on paper?
As a store of value...and value is what you really want to accumulate...which do you want.
When looked at in this way Stocks look like this:http://pricedingold.com/sp-500/
Are you sure this is such a big blip in the value of Gold?
Now try to actually buy at these prices. I mean buy for delivery...and then even the illusion of a drop in Gold is gone...
Why is it that you cretins always assert that anybody in PMs has ALWAYS and ONLY bought at that very top of $1800?
Please explain it in AS MUCH detail as you possibly can for us dumbasses and we promise not to laugh, ridicule and point at you until you're done.
Since silver is the most malleable (meaning you can make really thin foil from it) metal, besides being the most reflective and best conductor, our silver-foil hats can be easily adjusted to fit any ukranium and easily filter out any gubbermint mind-control propaganda.
Update: My buddy in Cali just picked up another thousand ounces too. 100oz bars are still in stock.
He who laughs last, laughs best.
Yuk it up now, bankerman.
8% dip as the world implodes. This is what happens when you give acess to free money to Jim Dimond and Loyd Blankfien. This shit is real old and I really have seen enough of the games!
Who is Jim Dimond?
DavidC
Thompson Rueters is zion
Well done, you manged to misspell BOTH names - it's Thomson Reuters.
As to whether it's zion, if you mean Zion (with a capital Z), as it's a place and Thomson Reuters is a company there's a flaw in your statement.
DavidC
Ignoring the below remarks by the bond-loving dumb-money troll, I just added another 3,000 oz of .9999 fine silver to my monstrosity gunsafe.
Thanks, central planners!
Yeah, good time to buy, except there are back orders due to all the people who want their relics of a barbaric past.....
more hype from the gold peddlers
I'd be backing up the truck...,
if it wasn't already repossessed.
Seriously, I sold gold in exchange for bitcoin in 2011. Best trade ever.
Seriously, I've been buying gold and silver since the 90s and was never stupid enough to even consider bitcoin. Best choice ever.