Gold & Silver Surge To New Cycle Highs After China Strengthens Yuan By Most In 11 Years

Tyler Durden's picture

With Japan closed, and unable for now to do more damage (or damage control), China stepped in with some modest turmoil of its own by strengthening the Yuan fix by the most since 2005, pressuring the USD weaker for the 5th day in a row. Commodities have tended to push higher on the back of this with Crude above $46.50 but Gold and Silver have surged to fresh 15 month highs (over $1275 and near $18 respectively).

The biggest strengthenig in Yuan fix (implicitly pressuring the USD weaker) since 2005...


Sent PMs higher overnight...



And lifted crude (June) to the highest since Thanksgiving...up 4 days in a row


As it appears crude is playing catch up with gold post-BoJ...


A lack of BoJ "help" has left S&P futures trading in a very narrow range overnight - oscillating around VWAP...

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OldPhart's picture

Three pounds of silver bought three days ago, along with three ounces of gold look like they're doing well.  But in actuality, they just kind of sit there and gleam.


Arnold's picture

You shouldn't expect any affection in return.

Eventual service, yes, affection, no.ald

XAU XAG's picture
Gold & Silver Surge To New Cycle Highs 


infers it will drop once it hits CYCLE HIGH

VinceFostersGhost's picture



Tick freakin tock bitchez!

SoilMyselfRotten's picture

They don't just sit there and gleam OldPhart, they gloat, those cocky, smug little bastards, looking at me daily, telling me, 'i told you so, i told you so'

Bumpo's picture

Isn't today options expiration for gold and silver? I would expect an end of month body slam to bring the prices down. I don't remember a month finishing on the upside for years. Maybe the manipulators didn't figure on Gold getting repriced by the revaluation of the Yuan. Maybe it is different this time.

John Kich's picture

Trump Got it right again! Economic collapse coming in 2016! 

However the mainstream media isn't saying a word about it!

What are they really trying to cover up?!

cowdiddly's picture

Sounds like you are in bad need of Cowdiddly's Pond Dredging and Boat Repair Service. I also offer free garden tilling and attic inspections.

cowdiddly's picture

No coupon, but 10% off for people with sagging attic beams or pond fish starting to turn blue.

new game's picture

algae on my beams(underwater), fishy smell about; can you remedy? no coupon, will trade services though. i can repair engines and remodel...

Volkodav's picture

finally explain those blue catfishes...bluegills?

Mr. Magoo's picture

So, does anyone think this is the breakout or do you think another round of paper contacts will be dumped on the market. I am curious to see what everyone on this post thinks

Haraklus's picture

I'm a market newbie, ESPECIALLY in PMs, but I haven't ever seen a sustained price movement like this before.  Looking at the silver chart there's nothing this long & heavy since 2013 or 2011.

I wouldn't expect this to be The Big One, though.  That probably won't happen until after we officially enter a recession and there's a liquidity crunch -- weak hands will be flushed as people scramble to make rent, prices will momentarily depress, and then skyrocket. At least that seems to be the pattern as far as I can tell.

American Psycho's picture

a little upset I only bought 100 oz of silver back at 14.90. 

bfellow's picture

Right? I failed to load up on enough physical myself (but whats "enough?", maybe MOAR?) but I'm LOVING the silver mining stocks. I bought into three seperate companies and all their gains are outpacing the gain in physical silver itself, by at least 2/1. Keep stacking my friends. This is just beginning. Wait till the silver/gold ratio gets to 15/1. I'll buy the first fucking round when that happens. 

Haraklus's picture

Yeah, I kind of feel bad I didn't stack more, but I also allocated essentially 100% of my savings to it during that timeframe.  I kick myself a little bit, and then I realize that I essentially went "all in".  I was basically just wishing I had more money.  And who doesn't?

Trubador's picture

I bought 40 oz (my first purchase) when it was at $15.35. I wished I had bought it back at the end of 2015 when it was just under $14.00 (I hestitated).

I was going to buy another 40 oz this week, but I felt that I was behind the curve. At nearly $18 at closing, I think I was right. IMHO I think it'll settle back down briefly before it (and gold) take off again. I'll sit a little bit and follow the market over the ensuing weeks, and make my second purchasing leap accordingly.

Edited to add: Replying to bfellow, I started investing in the mining stocks a couple years ago. I knew that early on they would take a hit, but I'm now seeing the rewards by sticking with them. It's a tiny portion of my investments, but a long-term one.

ZH Snob's picture

the yuan is moving to a defacto gold standard.

Jungle Jim's picture

When does the next smash-down come? How far can they hammer it down this time?

The timing matters to me, yes.

Debugas's picture

i expect it to go to 1400 before smack down to below 1000

TeamDepends's picture

Dream on, they have lost control already. Are you blind?

XAU XAG's picture

Sorry TeamDepends

They have not lost control.


What happend to pm's in 2008 when the markets went.


That will not change...................margin calls will dicktate what happens to the price.

new game's picture

have to agree xau, as history dictates future control...

not to mention they can outlaw the stuff when pressed to corner...

any cog dis present? if you think you have control, i would suggest you are out of control.

VinceFostersGhost's picture



before smack down to below 1000


I would have said 700.....but that's just me.


Now go back to mom's basement....we'll call you if we need you.

ZH Snob's picture

they haven't lost control.  the real question is how committed are they to throwing good gold after bad paper?

that's the best thing this new SGE platform has provided: honest, physical price discovery.

Mr. Kwikky's picture

Do you know what controls the market..TRUST and it's declining

RadioFlyer's picture
RadioFlyer (not verified) Debugas Apr 29, 2016 5:31 AM

Very possible, but an ounce of gold or silver doesn't lose any value, the number of fiats just goes up or down.

Ask any Greek, Brazilian, Venezuelan, Italian, Russian, Japanese, or Indian if they wish they converted to gold or silver in their past.

Theonewhoknows's picture
Theonewhoknows (not verified) RadioFlyer Apr 29, 2016 5:39 AM

If you want to know whether gold is 'expensive' check it against Dow Jones (i.e. how much one index cost in ounces) this guy talks about this method here

ConfederateH's picture

I expect finally war to break out in either the Baltic, Black or Bering seas.  That or in Ukraine, Armenia, Ossetia, Kalingrad, or Chechnya.

At that point international gold will skyrocket in value, but US gold and silver markets will be frozen.  No sales, no purchases.

This is where FATCA gets ammended, and all US person gold holders with gold overseas will be forced to register it with the IRS on FBAR and FATCA (8538?) forms.  This would be April, 2017.  At this point there will be a mandatory "deemed" sale for all registered gold, international or domestic.  There will of course be a new offical "gold windfall tax surcharge" bringing the tax rate well over 50%.

If there is reciept for the original purchase price, then the >50% tax wil be on the gain.  If there is no receipt, then the tax will apply to the entire deemed value.

Domestic gold owners will be given the opportunity to pay their tax debts in gold, but at the old pre-freeze price.

RamzaBehoulve's picture

Ok Nostradamus. If you are wrong, we expect you to give us all your gold.

ConfederateH's picture

I would rather give it to you than to the war pigs like clinton and mccain.

RadioFlyer's picture
RadioFlyer (not verified) ConfederateH Apr 29, 2016 5:41 AM

Thus another case for silver.

ConfederateH's picture

I agree.  And possibly a case for Numismatic gold, although I think they would include numismatic gold in the 8358 reporting requirements, probably with a "street" collector value as well as a bullion value.  They could then tax it at the same rate as bullion gold or perhaps some special numismatic premium slightly lower than bullion as a sop to collectors.

Mr Pink's picture

I'd like for them to try taking my sterling "family heirlooms"

TeamDepends's picture

"Domestic gold owners will be GIVEN the opportunity to pay their tax debts in gold...". At that point the black markets will be flourishing, the money-changers' heads will be on pikes, and federal employees will fear to set foot on private property.

ConfederateH's picture

At that point Caitlin Jenner will finally get her dick chopped off and for 2 weeks we will hear nothing else except that, Putin hate and Putin war crimes.  Meanwhile the EBT cards will continue being topped up, the flouride will remain in the drinking water, and the chem trails will have prozac added. 

ZH commenters and other extremists, being at the head of the states enemies list, will have their credit cards blocked and will either be under monitoring or already undergoing FEMA reprogramming.


TeamDepends's picture

Going to be a helluva ride, isn't it?!? Not worried about credit cards but we will say this, if you don't have it now you'd better get it quick. Finally, you won't be seeing us in any FEMA Fun Camp as we will be taking at least one of the lucies into the next world with us.

lakecity55's picture

Ho, ho.

News Story rankings:

Brucelyn gets wanger whacked: 80,000,000 hits
Gold goes up 800%: 42 hits

Montani Semper Liberi's picture

  " If there is reciept for the original purchase price, then the >50% tax wil be on the gain.  If there is no receipt, then the tax will apply to the entire deemed value."

 This is exactly what my tax preparer told me this year. Even if your gold is sitting on the bottom of a lake it is important to retain the receipt.

 As for your comments about a potential "gold windfall tax surcharge", it wouldn't surprise me, it would piss me off to no end, but it wouldn't surprise me.

 The PTB will try to cut off all avenues of financial escape when the markets finally tank and gold surges accordingly.

TeamDepends's picture

I don't need no STEENKEEN RECEIPT!!!! (money-changer suddenly has two new holes in body)

NoPension's picture

Who gets a receipt for gold? Or Silver?

I give my guy fiat, he gives me rounds. Done.

My " receipt " is shiny.

His receipt folds.

XAU XAG's picture



A receipt proves you own it.


No receipt means it can be confiscated due to no proof of ownership



NoPension's picture

Haha! Lol!

Edit....Molon Labe

Not My Real Name's picture

Any of you who plan on paying taxes to convert your precious metals to a new currency or exchanging them for other real assets are fools. 

lakecity55's picture

Fuck that. It's buried in an ammo box in the woods, surrounded by alligators.

Of course, when you go to get it, eventually, you have the bonus of hides for shoes and belts!

XAU XAG's picture

yes Debugas


but my figure is around $1300 and if follows through then around $1350

when the stock market goes will go with it


then woooooooooooooooooosh both will rocket

zeroheckler's picture

This afternoon! They can't permit GS short squeeze at 1290