Gold Double-Slammed As 'Traders' Puke $3.5 Billion Notional Through Futures Markets

Tyler Durden's picture

The Italian referendum's "no" vote sparked the rational reach for safe-havens as the Euro-endgame became more questionable... but that lasted less than an hour and since the $1190 highs overnight, gold has been monkeyhammered to 10-month lows amid two legs lower (EU open and US open) with spikes in volume of around $3.5 billion notional...

 

 

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Muad'Grumps's picture

They can't knock it down too low. Watch the spread between Comex and SGE.

agstacks's picture

I'd be curious if any Comex buyers are taking delivery to sell to Shanghai. Seems like that would be a dangerous game. 

spastic_colon's picture

gold in USD with supposed rate hikes coming....not surprising

Yukon Cornholius's picture

So what's that? Like a decade's worth of production dumped in a minute? That makes sense.

Haus-Targaryen's picture

Don't know what production this year was, but they just dumped the equivalent of 95 tons into the market. 

Rubicon's picture

This is confirmation there will be no rate hike this month.

Save_America1st's picture
12/5/2016:  Deutsche Bank To Pay $60 Million To Settle Gold Manipulation Lawsuit

 

http://www.kitco.com/news/2016-12-05/Deutsche-Bank-To-Pay-60-Million-To-...

 

But of course, there's nothing to see here folks...just move along. 

 

FireBrander's picture

No chart support until $1100...so expect another $65 down in a few weeks/months.

Perimetr's picture

Quick, sell a few thousand more tons of paper gold contracts to drive the price down.

What, that makes like 16 thousand tons they have sold since the election?  

6 years of global production -- sold in future contracts --in less than a month?

No rigged markets here, move along, nothing to see.

Yet . . .

brockhardman's picture

Shhhh...Don't tell India.  They seem to not care about the rigged precious metals market.

eclectic syncretist's picture

$3.5 Billion would be enough to wipe out the paltry 2.2 million ounces of gold the CRIMEX has registered as available for delivery.

http://www.cmegroup.com/clearing/operations-and-deliveries/nymex-deliver...

That alone pretty much sums up how the CRIMEX is rigged and allows what is essentially illegal naked shorting.

fockewulf190's picture

Dude, don´t worry...the CFTC is so on this.  They´re realllly gonna get those guys.

c2nnib2l's picture

are you for real ?! :D CFTC ? 

Cluster_Frak's picture

Annual gold production is around 3,000 tonnes

Cluster_Frak's picture

Annual gold production is around 3,000 tonnes

Haus-Targaryen's picture

It occurred to me we are all fighting TBTB.  We short fiat for physical, while TBTB shorts physical with fiat. 

The AG/AU community need to keep educating people on how money works (Jim Rickards new book is a great xmas gift) so as to make TBTB keep doubling down on their shorting of physical.  

Eventually we'll just outnumber them ("Quantity has a quality of its own") and the constant slams will be impossible. 

actionjacksonbrownie's picture

TPTB have unlimited "money" to do as they wish. Us plebes... not so much.

OregonGrown's picture

That is why I LOVE P.M's..... sure they can print an unlimited supply of currency.... but there is only a finite amount of ounces / real money!

 

There is an equalibrium point!

Azannoth's picture

Untill you can pay for your daily bread at the local bakery with an ouce of Silver they will always be winning against us. They don't care how much Au/Ag you have stacked at home b/c when you go hungry you still need to go to the TBTF and exchange it for their virtual f.i.a.t.

FireBrander's picture

Accurate, but wasting your breath; the bugs think they will barter for that bread...and even though the government put a $1000 reward on anyone trying to "buy bread" with anything but fiat, they're sure no one will turn them in.

tarsubil's picture

Did you literally just fall off the turnip truck?

FireBrander's picture

No, I fell off a good 50 years before you; so I'm far less ignorant on this issue.

2_legs_bahhhhhd's picture

I dunno, but it sounds like he'd rat you out for 1000$ of fiat...beware

Not My Real Name's picture

Your arrogance is surpassed only by your ignorance, FB.

FireBrander's picture

You have to be extremely ignorant to think I'm ignorant...Try reading up on history...unless you think "it's different this time".

https://en.wikipedia.org/wiki/Executive_Order_6102

Scuba Steve's picture

That argument is good until it isnt .... 

 

tarsubil's picture

You don't think a real local baker would accept silver for bread? Why the fuck not?

The problem is that I would not accept bread for silver as silver is undervalued. Undervalued currencies do not circulate. This is a basic monetary law that is obvious when observing the silver dollar or pennies with more than one cent of copper.

FireBrander's picture

"You don't think a real local baker would accept silver for bread? Why the fuck not?"

Because it is a criminal act to possess silver...risk prison time to sell a loaf of bread?

https://en.wikipedia.org/wiki/Executive_Order_6102

legalize's picture

You can do this right now with debit cards backed by physical deposits.  Also, some states have made it legal to conduct transactions in physical.  I happen to live in one. :-)  That's not the same as saying it's easy to find a vendor that understands this and will do the transaction.  Stupidity abounds everywhere.

Muh Raf's picture

There is no such thing as an 'equilibrium point' - either in economics or markets. This is an old orthodox theory which is totally disproven. Check out prof Steve Keen and his "Debunking Economics". The Heterodox movement has as its cornerstone the predicate that equilibrium is a neo-classicist/Keynesian delusion that was propagated to keep the models and maths simple, whilst totally failing to realistically represent the real world in any meaningful way.

tarsubil's picture

That is why we need to spend the little we have wisely.

dark fiber's picture

I think we should better get used to the idea that this index we are all watching will eventually go down all the way to zero.  We don't even know what the COMEX paper to physical ratio is anymore and if they told us, I am not sure I would trust their figures.  For all we know, those billions dumped on the market are insiders dumping their paper in a panic and scrambling to buy physical because the whole thing is close to collapse.   Then again I could be wrong and DB Xextra Gold ETF is as good as the real thing in your safe.

Muad'Grumps's picture

Eurodollars have been pricing in multiple rate hikes for awhile now. 

Nominal rates going up are not necessarily gold negative. Capital is already in bonds. Rates going up is not just inflation expectations going up. It could be capital simply moving. It abhors stasis. The game of flipping bonds back to a greater fool CB may be ending in the eyes of the market. So itz gotz to move.

seek's picture

"Nominal rates going up are not necessarily gold negative"

For anyone who doubts this, just look at the late '70s. Gold hit its record not long before Volcker pushed rates to nearly 20%.

The mechanisms and reasons were different, but both instability and inflation are gold-positive. Rates going up could result in either or both. We've never seen economies de-ZIRP/NIRP so we have no idea of the actual outcomes.

myne's picture

There's a reason for that. 

It's the event horizon. 

tmosley's picture

Unlikely to be significant spread. The Chinese were in on the globalist game from the start. Communist filth supported communist filth here by stealing the productivity of their own citizens and "lending" it (giving it, knowing it could never be repaid) to said communist filth here.

They are now in disarray. Forced to start their endgame before their peices were all in place.

Wonder if they will play innocent, or go full Red.

Muad'Grumps's picture

The real black swan could be civil war in China.

Ciw1978's picture

No worries

It already rebounded in a mere 3 hours.

I would be closed green.

Lol....

OccamsCrazor's picture

What are they so worried about, that they have to "monkey hammer" it lower ? 

Arnold's picture

Just readjusting the package.

Raffie's picture

So when gold spikes it will be in the range they want so it will not have a big effect an they can keep the USD in power.

Pre-positioning in action.

MANvsMACHINE's picture

I'm with you on this.  Whatever happens will be gold positive and they need it to drop first so it remains in a 'safe' range after it spikes.

Raffie's picture

Also they DO NOT want golds spike to be to high breaking tech barriers and get noticed.

They want to keep everyone they can focused on the Wall St Casinos.

Ink Pusher's picture

Simply Put ; Gold goes up the dollar goes down and the same on a inverted scale. If the bond rate exceeds "safe levels" They have no choice but to hammer Gold down to balance the offsets which are beyond massive. This is the most blatant and repetitive example of market manipulation using notional paper as the working tool that you can find.

Paper is acquired for pennies on the dollar and used to effect real currencies and commodity prices in real time.

 I cannot wait for SHTF Day to get here, this mega dump paper play has gotten really old.

illuminatus's picture

Appearantly not nearly old enough.

Raffie's picture

Gold loss shrinking FINALLY.. dollar -$1.41

Ink Pusher's picture

If you actually do the numbers , the USD is in reality only worth about $0.04 (Four Cents)today.

 

Arnold's picture

Just in time to be added to Santa's Sleigh manifest.

Good little boys and girls need not go unrewarded.

GunnerySgtHartman's picture

Just put in an order for more.

If anyone is interested, APMEX is selling tubes of Silver Eagles at a discount today only.  Good timing IMO.  I have no connection to APMEX other than being a satisfied customer.

http://www.apmex.com/product/97875/2016-1-oz-silver-american-eagle-tube-of-20?_campaign=12052016product97875

A. Boaty's picture

Sadly, I lost my tubes of Silver Eagles in an unfortunate boating accident.