Geopolitical "Powder Keg" Supports Gold's Resurgence

Tyler Durden's picture

Despite the second slam in as many days into the London Fix...


Gold is trading near the highest in five months, and, as Bloomberg notes, at least one measure suggests the rally is gaining momentum.

Open interest, a tally of outstanding contracts in Comex futures, this week climbed to the highest since January as global tensions ranging from the U.S.-North Korea rift to European elections fuel demand for haven assets.

“The open interest went up because we had people that wanted to protect themselves against all the uncertainty," said Frank Cholly, a senior market strategist at RJO Futures in Chicago.

“Everything has gotten really tense in geopolitics - it’s a powder keg right now.”

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JoeTurner's picture

All your bullion are belong to us

Pinto Currency's picture

This article is bullshit.
The price of gold is a fraud - add a zero when the paper fraud breaks. And then the price will run from there.

Creepy_Azz_Crackaah's picture

As long as there are central banks there will be incredibly powerful monkey hammers.

Raffie's picture

I'm swapping some of my gold for silver before things go nuts.

The gold ratio is so messed up that I finally got off my butt to do this.

Silver has the greatest percentage gain over gold.

CHX13's picture

just keep adding yellow and shiney to stack in roughly the same dollar amounts

Anarchyteez's picture

Without question your observation is correct.

assistedliving's picture

your lips to _od's Silver miners telling me different...for now

Long and Strong (well...wobbly?)


Trubador's picture

The historical average S:G value ratio has been 40-50:1 (approx 45:1).

The current market has a ratio of 70.5:1.

If the precious metals market was back to normal, at the current price of Gold, Silver should be $28.46.

In a market that finally gets normalized (i.e., when Gold reaches $2000) Silver will settle at around $45.

I bought my Silver on two separate occasions at an average spot price of $16.06.

HRClinton's picture

"All your bullion are belong to us"

How do you say it in Mandarin, Arabic and Hebrew?

Justin Case's picture

Moar like Chindian.

Wedding season is coming and if the crops were good so will bullion buying.

c2nnib2l's picture

I've got a question 


Who is doing this ?

can we kill them or soemthing ? kidnap their families ? 

Seasmoke's picture

When they can take 23 hours worth of gains and smash them in 23 seconds, day after day, the game is not fixed. It's criminal.

City_Of_Champyinz's picture

I just find it funny that people think that they can protect themselves via paper 'gold'.

Anarchyteez's picture

Paper gold is for gambling with.

My phys stack only goes one way. Up.

NugginFuts's picture

my stack looks the same today as it did yesterday. Did someone take yours?

E.F. Mutton's picture

Have they run out of paper?  Then they've got plenty of "Gold" to dump whenever they please

Sonny Brakes's picture

When the time comes people's gold won't be able to feed them. Quality organic soil close to clean water and sunshine will become the new gold. We seem to be turning our agricultural land into housing.

Consuelo's picture



The rise was never the concern.    It will always be the rate of rise which makes the pharisees nervous.  


No matter though.   At this late stage, only $USD denominated trade-skirting events outside of Western banking are going to have any meaningful influence for the POG.

Mr. Schmilkies's picture

"... the rally is gaining momentum." 

Oh yeah, like a locomotive, can't stop it.  /sarc

GunnerySgtHartman's picture

... just before it goes off the cliff (BTTF 3)

biker's picture
biker (not verified) Apr 19, 2017 2:39 PM

Technically, the powder keg
would be better
than the paper weight.

up 10%

corporatewhore's picture

is it worry over geopolitics or the growing awareness that government has lost control fiscally, legally, politically?

Uranium Mountain's picture

What is the paper to gold ratio now?

Anarchyteez's picture

I just love these gold pump headlines while gold plunges.

Bought DUST Monday and it's workin out well. It'll bottom at $1,250...well anyway that's when I'll switch back to NUGT.

Trend is ur friend.

youngman's picture

when gold goes up a $100 in a day..then you will know something is up...

kiwimail's picture

And when gold suddenly goes up $100 in a day, you will find all the suppliers are suddenly out of stock!

AC_Doctor's picture

If gold and silver were barbarous relics of the past, then the Globalists wouldn't need to smash/waterfall prices dozens of times a month. 
They want to let the average investor to stay away from the shiny.  The proof is in the pudding. 

Jungle Jim's picture

All I know is, it went down. And it is still going down.

I do not give a shit about "one day," "someday," "finally," "ultimately," ""sometime between here and forever," or "between now and eternity." I am circling the drain NOW.

jtlien's picture

I have a theory.   When gold goes down, gold mining stocks go down.

When gold goes up, gold mining stocks go down...

When gold was at a LOWER price in February NUGT was over 12.

Now with a higher gold price it is 9.50.

SoilMyselfRotten's picture

Seems like several things lately are deviating from their normal patterns

Kefeer's picture

Deviants are the new normal from paper to people.

exartizo's picture

so my friend....

ALL those LOW volume Direxion triple/double/inverse/blah/blah ETF's are rigged, manipulated, games.

Sorry you had to hear it from me first.

I advise an exit because they are daytraders' stock in trade. They are not to hold.

All the best.

BurningBetty's picture

“The open interest went up because we had people that wanted to protect themselves against all the uncertainty,"

Read that line again and again and understand the significance of gold!

brushhog's picture

Gold looks good to me right now. The market is teetering, fed slashing rates yet yields are actually falling, there's going to be no other place to go for panicky buyers.

Kefeer's picture

Except the Central Banks are the markets and Europe will have a crisis well before the US; so for a while the safe haven will be both bonds, gold, and perhaps other commodities.

Herdee's picture

It boils down to demand for physical gold. There are currently hundreds of paper synthetic claims for every true ounce of the physical real stuff. I'll stick to buying the real, not the fake. The time will come that when you want it, it won't be available. It's now rel physical gold markets around the globe vs. fake/synthetic derivatives of paper gold in NY/Chicago.

jm's picture

The case for shorting gold is strong.  The sensible French aren't likely voting in a communist nor whatever Le Pen is. 

Kim Jong Un is more likely to get a bullet in the back of his head than attack South Korea.



Buy all the supplies you will need to survive NOW while you can still get them and your fiat money is worth something.

Only then, start piling up silver dimes for future trading for whatever you will need for more supplies.

Gold is for escaping a dangerous situation with a great store of value, silver is for trading for what you need but comparatively much HEAVIER for an equivalent value amount.

Only buy gold COINS. They are not really worth the cost of counterfeiting and are much more reliably really gold than bullion is. And, if bullion turns out to be counterfeit, you will lose a greater amount than you would lose with fewer gold coins, unless you bought your coins ALL from the same place. The odds of buying couterfeit gold coins from different sellers is much less likely.

Silver coins are much easier to determine if they are real just by their apperance and the sound they make when dropped on a hard surface versus non-silver coins. That and the fact that most dimes would be pre-1965 coins and show some wear.  The newer ounce coins could be NOT all silver, but again, not worth the cost of counterfeiting.

The coins advertised on TV are usually CLAD coins that are extremely over priced and would be almost impossible to trade to anyone with a brain.

Gold is much harder to determine if it's real or not, especially bullion which you have to drill into to determine if it's ALL gold for sure.

Using your precious metals to trade for what you will need in the future could be difficult, even if what you need is available.

It would also expose you to being robbed and/or having your PMs confiscated.

OCnStiggs's picture

SCAM! This class action project wants the injured parties to fund the legal process before it begins. Normally, Class Action attorneys work pro-bono and take their fees in the recovery. These guys want you to pay with zero promise to yield anything for your contribution.

Jungle Jim's picture

I *never* had *any* "paper" gold. All I ever had was _physical_ metal.

I once had 51-point-something troy ounces of gold, and 1648-point-something troy ounces of silver.

I had no more income of any kind,and all my other assets ran out just avout the time the prices of both metals were crushed lower than whale shit, which is on the bottom of the ocean.

Since everything else I had of any value had already been sold, at that point I was forced to start selling my *physical* metals.

I sold the silver first. *All* of it. I now have zero ounces of silver.

Then I started selling the gold.  I am now down to _five_ ounces, from fifty-one. And I must sell an ounce in the next couple of days. At these shit prices.