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Gold Plunges Below "Crucial Level", Lowest Since Oct 2009 On $2 Billion Notional Flush
With the world closest to World War 3 since the cold war era and Russia about to unleash escalating sanctions of Turkey, it makes perfect sense that 'investors' would want to purge themselves of precious metals. Someone decided that Friday after Thanksgiving would be the perfect time to dump over 18,000 contracts (around $1.9 billion notional) sending the price of gold futures to their lowest since Oct 2009, below what Goldman called a "crucial level."
Over 18000 contracts dumped...
Sending gold futures prices to Oct 2009 lows...
As Goldman notes, in Gold, the critical level is 1,068-1,066. In Silver, support spans 13.98-13.83.
Gold Daily/Weekly – The level to watch in Gold is 1,068-1,066. This includes an ABC equality target off the January high and the trend across the lows since Dec. ’13.
The fact that oscillators are diverging positively suggests that price may be attempting to stabilize. Failure to break this support area confirms that the setup is still corrective; that a 5-wave sequence from ’11 highs ended in July. Alternatively, a break lower would warn that the market hasn’t yet completed its impulsive decline.
This would open potential to extend towards 966 (a 1.618 extension target from the January high).
Silver Daily/Monthly – The level to watch here is 13.98-13.83. This includes the previous low from Aug. 26th and the trend across the lows since Jun. ’03.
Although the wave count on Silver is a lot less evident than the one for Gold, it is apparent that rallies have all met ABC targets insinuating that rallies lack impulse. On a more positive note, daily oscillators are crossing higher from the bottom of its range.
Put another way, the balance of signals seems mixed; 13.98-13.83 does however look significant.
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While the masses are enamered with stock certificate mania and plastics debt cards, the silver and gold quietly exit the marketplace.
It's blatant manipulation/supression of the price by central and bullion banks. Gold price is basically where it was on the day Bear Stearns collapsed in March of 2008. Trillions of dollars of QE later and the doubling of US national debt it's has barely gone anywhere. Here is a good short video on the subject:https://www.youtube.com/watch?v=Kvb2QK-FsJI
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Makes perfectly sence, people are selling their gold for flatscreens at wall mart, shops opened at 6.
They must be getting nervous if they couldn't wait for the days between Christmas / New years to dump.
Asia is appreciating the discount with a physical gold buying frenzy.
I look at what the gold price has done in the last 5 years and I am SO SO SO SO GRATEFUL that even though lured by all the PM marketing, I researched the risks and rewards and alternatives, and I chose to NOT believe the hype, propaganda, spin, and fantasy promulgated by the PM peddler cultists.
I did NOT lose any of my precious savings in that shiny shit. Instead I invested my savings in treasuries, which pay interest, now have HUGE capital gains, and will have even greater capital gains whenever there is a flight to safety. And then I get my precious savings returned at par on maturity.
What a stunning difference:
Treasuries = profitable safe income-providing investment with return of capital
PMs = HUGE continuing capital losses and ZERO income
Is that you million dollar bonus?
No, it was my $4M bonus.
'Treasuries = profitable safe income-providing investment with return of capital', now thats funny chit!
I am earning income + capital gains.
You are earning ZERO income + capital losses.
I am a successful investor.
You are a successful loser,sucker and fool.
Holding gold has zero to do with a post apocalyptic scenario, but it has everything to do with the fragility of an unsustainable monetary system.
Every fiat based currency backed by nothing other then the good faith and credit of the standing government since 1,000 AD has failed, without exception.
Capiche?
The monetary system can and will remain functional for longer than I will be alive, what happens to it many years from now after I die is of no concern to me while I am still alive, but income from my savings sure is, as well as capital gains instead of loses.
The regimes will simply RESTRUCTURE the global monetary system and sovereign debt heaps, instead of the collapse and dissolution which the PM cult requires in order to justify exchanging fiat for inert.
All you cultists are compelled to peddle inevitable immanent or near-term collapse and chaos in order to justify the pitch on PMs - you have been hyping this crap for years, with the collapse always NEXT YEAR, and you are as wrong now as you have been wrong for years.
If the global monetary and debt system does not collapse, and if whatever happens does not happen for years out in the future, then sending fiat to rot and decay in PMs now is wasteful and stupid.
But, you obviously have plenty of fiat and enjoy zero income and big losses, so please keep burying your fiat in shiny PM coffins.
All of your wealth is simply a number stored on a computer. Sleep well :-)
The monetary system can and will remain functional for longer than I will be alive
Unless you're 85, no.
Why are you so angry that other people think PMs are the way to invest now? Why do you care? It is really none of your business. What it does show is that you aren't so confident in your own investment strategy, that is, your belief in the US Government and Federal Reserve, or you wouldn't be trying to denigrate others who disagree with you. You'd instead be content doing what you are doing. Investing in PMs is placing a put bet on the knuckleheads running this country, not to mention the Federal Reserve. That strikes me as a good bet when the entire world is upside down. Yov've got restrictions on free speech on college campuses, that is, a new Constitutional right NOT to be offended, but those same people are praising that new movie Tumbo about blacklisting Commies in the 1950s on account of their exercise of their free speech. These Lefties on the college campuses don't see that what they are doing is the same thing as what was done to screenwriters in the 1950s. They are appalled at what was done 65 years ago but doing the same thing is the right thing to do. Hard to imagine society being more messed up.
So just keep doing what you are doing and tell us all about how brilliant you are down the road when you've lost all your money.
I do agree with you and many others posting on ZH that the world, not just the USA, has a long and growing list of big and growing problems, but that does not necessitate the kind of extreme negative outcomes, eg collapse of the USD, bankruptcy of the USA government and repudiation of sovereign debt/treasuries, hyperinflation, etc that you cultists are always prophesizing. The economy and the quality of life will just decline continuously into mediocrity, not crash.
My reactions are in response to the hype, attacks and insults that I get when I comment on the decline of PMs, the hype in PM marketing, or alternative investments that yield far better returns. It is you PM cultists who are irrational, rabidly emotional, hostile and critical.
I am VERY happy with my profitable income-producing investment that will return par at maturity, and if you enjoy losing money at a rapid rate and collecting no income, then I am very happy for you.
but that does not necessitate the kind of extreme negative outcomes [...] that you cultists are always prophesizing. The economy and the quality of life will just decline continuously into mediocrity, not crash.
Funny, even you don't say it cannot happen, only that it won't necessarily happen.
So why don't you buy insurance for the unlikely case it does happen, and put 10% of your worth in physical PMs, or land, or whatever durable good you prefer?
Otherwise your touted investment strategy looks more like covering your ears and shouting "I can't hear you!!"
I already have had "investments" in land, ie multiple homes and an income-producing "organic wholesome-foods" farm, for years. I do not want more of these kinds of investments because of the overhead of maintaining them and especially managing the farm, even though I have a manager there, for daily operations, it still requires my involvement for strategic planning, capital expenditures, marketing, contract negotiations, etc.
The investing issue that I and millions of others have had to struggle with ever since the central bankers went beserk with ZIRP, QE and soon NIRP, is how to invest savings in what kind of passive financial assets to provide income and preserve the principal without incurring high overheads of time or costs. That is how we get into this "discussion" of the pros and cons of various kinds of bonds, treasuries, stocks, PMs, etc.
I think that ZH members can benefit from a rational exchange of reasoned non-hyperbolic facts and opinions regarding investment options.
Gold remains the best performing asset call of the millennium.......by a country mile.
You don' trade gold, you hold the physical for wealth protection/insurance, especially when the current monetray system becomes unsustainable and unstable.
What is it that you don't understand about the New Monetized Millennium?
2000-2016 S&P up 50%
2000-2016 Gold up 500%
Near zero% interest rates / ZIRP / QE / NIRP
You can be the first to call me when any of that changes.
The paper is gasping it's last breath, we are in the crack up boom phase
Get Physical or get gang debased!
Same as it ever was...........
Capiche?
I bought long treasuries and agency bonds when the yields were above 4%, and the 30 year duration will cover the rest of my life.
You should have bought treasuries and agency bonds before the central bankers implemented ZIRP, instead of buying inert metals that have HUGE losses and more to come. But you are blinded by your PM cult dogma.
When interest rates rise, you'll be kicking horse turds down the street. A 1% rise in interest rates translates into about a 12% loss of your principal. People aren't buying gold and silver for an interest rate return Mr. Brilliant Investor.
Interest rates may not rise because of the crawling global economy that you PM cult worshipers are always citing as a justification for buying PMs.
Secondly, no matter what interest rates do, I can just hold my treasuries to maturity and then get paid par - I DO NOT have to sell - and I just keep collecting interest, twice a year, for 28 more years.
Meanwhile, you PM cult worshipers ARE losing value in your PM graveyard AND you collect ZERO interest.
You strike me as one of thoee Paul Krugman toadies. Deficits DO matter. Your pemise of buying TBonds is that you will get value for value in 28 years or whatever. That's a Harry Potter fantasy. Won't happen. We are destined to have hyperinflation because we cannot control our debt. The reorganized after-the-crash government will pay off all your bonds with worthless fiat money and you'll be kicking major horse turds down the street. The only justification for investing like you are doing is that the government can keep lowering and lowering interest rates and they can find enough guppies to keep buying TBonds, inlcuding the Fed itself. Ain't going to happen. I mean how negative do you think negative interest rates can go? You sound like the investment guru in Canada named Nick Guarino. He thinks that the safe haven will be US TBonds. Hardly. Eventually you'll get your ass handed to you with that strategy simply because they aren't keeping interest rates at zero for the next 28 years. Even the most sophisticated bond guys in the business don't agree with you. You are high on the fact that you made an investment that went up. Now it is your cure all. I'd take a cold shower if I were you.
Deficits, you really mean debt levels, do matter, BUT not until the regime loses ALL of the following:
1. The ability to rollover debt - the regime will continue to have very strong demand for its debt so long as there is no better sovereign debt for global capital to buy - there is not and there will not be for at least 20 years.
2. The ability to make payments on the debt - the USA has NO problems making the payments and will not have any problems even if the debt doubles or triples - because the USA has still has large capacity to increase confiscation of earnings, ie income and other taxes, and #3 below =>>
3. The FED, ie a central bank that can create infinite amounts of money, buy infinite amounts of government debt, and crush interest rates so low that the interest payments on the debt are easily payable.
Regarding hyperinflation, you PM cult worshipers have been predicting that too for years - you all almost had heart attacks when the FED announced ZIRP and QE predicting immanent devastating hyperinflation, you trotted out the photos of the Weimar Republic's wheelbarrows full of Marks just to buy a loaf of bread, yada yada - BUT the hyperinflation has not appeared ! - Instead the world is going into DEFLATION !!! - because there is a HUGE over-population and HUGE over-capacity in production.
The USA will experience a major monetary, financial and economic negative event, but not for many decades, even generations. Huge beasts like the USA rot and decline for unbelievably long periods.
Even if there was no hyperinflation, there is also no growth in principle so the bond will lose by regular inflation alone. We are already over 10% real inflation, making the bonds worthless in 30 years- which is the scenario they try to impose on gold. It's projection.
The plan was to repudiate government debt while keeping the peasant slaves on the hook. That's why apologists like Krugman, who do know they are doing this, are so infuriating.
The inflation that you speak of erodes the purchasing power of the dollar, all incomes, and all investments. My treasuries will not be "worthless in 30 years" as you claim, they will pay me par value. The purchasing power of the USD may be greatly eroded in 30 years, but I will still get paid back par.
There is NO investment that pays income and whose growth in value exceeds the rate of inflation, in fact there is NO investment whose growth in value exceeds the rate of inflation EVEN IF IT DOES NOT PAY INCOME, and that includes PMs.
The PM worshipers have always claimed that PMs fulfilled this role, but as the HUGE decline in price of gold clearly shows - down MORE THAN 1/3 from peak - PMs ACTUALLY LOSE value FAR FASTER than any other "investment". Gold is where money goes to rot.
and the 30 year duration will cover the rest of my life
I can just hold my treasuries to maturity and then get paid par
Self-contradicting much?
If the treasuries outlive me, then they go into my Estate Trust, and will return par to the Estate Trust. Either way, the money that I invested gets returned to either me (win) or my designated beneficiaries (win).
Wannabe MDB's springing up. lol
I was so pissed that for 20 years I paid money to an insurance company, for nothing. Then one day my wife had a car accident that would have bankrupted us.
Gold is financial insurance; pure and simple. Seems useless, until it's not.
The propaganda team is unreal... Here is why: http://pricedingold.com/us-dollar/
The U.S. mint sold out of gold eagles for the rest of the year. http://www.coinnews.net/2015/11/18/us-mint-sales-2015-5-gold-eagle-bullion-coin-sells-out/
There seems to be a disconnect somewhere?
So you have only been investing for five years, or five years is the number you cherry picked to attempt to make an imaginary point?
Putin,
You're a tool of the bankers.
All you had to do was stop selling oil for dollars and euros.
Instead, you let the bankers crash gold's price.
Victory was yours.
Now you will have to fight for your life.
They never give what they promise.
Russia & China are both buying physical Gold and taking delivery. Only the stupid FED/U.S. Gov with their FIAT paper dollars are maipulating real money down in paper fiat value.
The U.S. Government/Unfunded Liabilities+Households are $160 TRILLION fiat FED Reserve dollars in DEBT.
WWW.USDEBTCLOCK.ORG
(Helicopters with speakers flying abouve the USSA:)
"Gold is radioactive! Do not touch it! Do not buy it! Repeat, Gold is Toxic! Do not buy Gold!"
(Repeats announcement)
I've recently statrted making youtube videos. Here is my take on the gold price if anyone is interested. https://www.youtube.com/watch?v=Kvb2QK-FsJI
I enjoyed your vid and agree with everything you stated. Something you didn't mention, but one of the main reasons I buy PMs, is the fact that PMs, Gold especially, are a depleting asset. Mine output is already falling, and in a decade the production levels will be much lower. All the discoveries waiting to be developed at this time are uneconomical at these prices, so either the price needs to rise, or mine supply is going to dwindle to zero over the next few decades. Of course, all the Gold ever mined is still available, but the vast majority of it will not be available for purchase at these prices.
The price of Gold will rise regardless of how long tptb can drag out their fiat ponzi scams. When very little is available for purchase, the price for physical has to rise.
A criminal empire setting the gold fix Goldman (http://www.bloomberg.com/news/articles/2011-06-01/goldman-too-big-to-fac...) UBS joined Barclays(http://morningconsult.com/2015/03/more-banks-avoiding-trial-in-era-of-de...) HSBC(drug dealers), Bank of Nova Scotia(http://www.bloomberg.com/news/articles/2015-02-24/banks-said-to-face-u-s...)and Societe Generalehttp://www.forbes.com/sites/robertwood/2015/06/04/rothschild-bank-enters...) to set the new benchmark gold price, administered by ICE Benchmark Administration,
Thank you BANKSTERS for manipulating the physical gold price down for millions of Americans. I will be buying physical gold today, and taking delivery.
The End is near --the "end" being the collapse of the Comex, et al, as trading vaults of precious metals are finally drained to zero.
The price is being driven as low as possible now as we approach the moment when a "force majure" ( no doubt to be blamed on the "Chinese" or the Saudi's, etc., etc.) will be announced and all contracts are promised to be paid off in freshly minted FRN's ( 25% cash premium for NOT taking delivery will no longer be offered).
This also signals that the final credit crisis now just around the corner. Expect a shut-down of all markets without notice.
This much we can safely assume as planned. What is not planned is the unexpected resistance that the Western Crime Syndicate will suddenly experience as its top leaders are perp-walked into the back seats of black sedans during the immediately ensuing power vacuum that such a collapse will generate. They appear not to have calculating for flip-side in the lapse in "money power" that --however brief-- even a planned collapse leaves them open to. Supreme arrogance is always utterly blind to its weaknesses.
I'm long DUST at the moment.
$160 TRILLION FIAT MONOPOLY DOLLARS OF DEBT IN THIS COUNTRY AND COUNTING. UNFUNDED LIABILITIES + U.S. TOTAL DEBT
WWW.USDEBTCLOCK.ORG
THE TRUTH THAT IS NEVER TOLD!!!!!!!!!!!!!!!!! WERE BANKRUPT! PERIOD
#BLACKFRIDAYMATTERS
Less shouting & a ' in we're would get you more recognition :)
quit your whining
Gold is insurance against central bank and government stupidity. The very nature of this blatant take down shows the depths of that stupidity of both.
I dare you to down click me because it only shows you are stupid.
No, the Chinese and the Russians are not buying gold or silver in any significant amount. The price would be significantly higher if they did. What they are doing is selling oil and manufactured goods for dollars in significant amounts. The dollar would be significantly lower otherwise.
Stop denying it. Stop denying the facts.
The Chinese and the Russians are colluding with the Americans and the Europeans. (We're talking about their respective ruling classes of course. The people themselves are ignorant deluded animals at best.)
Comex = Russia + China
If they didn't, the bankers wouldn't have been able to print money to finance all these wars, all the monsters like ISIL.
It's too late now to end these evil deeds without extreme violence and disruption.
The human race = Satan + God = evil
Brandon...?
The real financial crisis hasn't hit. So all the current pm price fluctuations are just 'noise'.
How important to the United States a viable entity - economically and militarily, is the stability and dominance of the $USD worldwide...?
In my rather simplified view, that is the only question worth asking. Answers follow without much afterthought...
All it would take for this fraudulent bankster paper gold scam to implode would be an event that cuts American sheeple and their MIC to its knees.
price is down, central banks must be buying, retail buyers find gold in short supply
BYO-KY, folks.
watch GLD inventories...they are losing gold fast..a year or 2 left?
Russia and China will rush in for this "Black Friday" sale.
I'm rushing in to buy a couple of 20 count silver eagle rolls on Ebay...Apmex is running a black friday deal... free shipping, very low premium. $339.40 "buy it now" So far today they've sold 2300 units with 76% of their inventory for this sale gone and the rest looking to sell out by tonight.
EDIT: apprx 30 secounds later its 78% sold. WOW
Only the strongest hands will be able to hold on through the manipulation.
I bought a case of Veuve today!
Maybe this means no rate hike in December, smash metal down now and then again after decision to not hike.
Surely we could have been given a new chart with the next “(SUPPORT) LEVEL”. I will have to look up my dictionary to see what “SUPPORT” actually means. It seems that what I was taught at school is no longer applicable. _JOHNLGALT