Gold Trading Volumes Hit Record High As Dollar Crashes

Tyler Durden's picture

As gold prices break above the election night spike highs, it seems interest in the precious metal has never been higher...

 

Gold has pulled in traders like never before on its way to the highest price in a year.

As Bloomberg details, volume on the COMEX in New York, the largest bullion futures exchange, hit a record in August as North Korean tensions and a weaker dollar boosteddemand for the metal.

Some 6.55 million contracts -- worth almost $900 billion now -- changed hands last month, more than when Donald Trump was elected U.S. president or during substantial price spikes and slumps.

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The_Juggernaut's picture

"As gold prices break above the election night spike highs, it seems interest in the precious metal has never been higher..."

PM prices are breaking out AND there's a lot of interest in them?  AT THE SAME TIME?!?!?!  Whoever could have guessed that these might coincide?

 

Dsyno's picture

"Gold Trading Volumes Hit Record High..."

And then when you read the article, it simply means "August has had the highest volume in several months".

The click-bait headlines seem to be increasing.

Mr. Universe's picture

Not only misinformed but incorrect as well. The headline should have read...

"Fake gold trading volumes hit record high" All that volume, yet no one actually traded any physical gold.

BaBaBouy's picture

Yuge Paper GOLD Trading attracts the Flies ...

Pinto Currency's picture

85% of global daily 'gold' trading is in London on the LBMA.  The COMEX gold trade is irrelevant in terms of volume.

Both of these exchanges trade gold debt instruments (unallocated contracts) and not gold itself - its a show.

http://www.safehaven.com/article/42600/transition-of-price-discovery-in-the-global-gold-and-silver-market

Swampster's picture

I wish I had bought gold, I never factored in a move...first  a major estuarine salvage effort, then a 500 mile journey, then another riverine craft mishap with 500 lbs. of Ag....What the F was I thinking at $13.81 a Troy Ounce?

American Psycho's picture

I suspect the purchasing power of the PHYS at $13.81 / troy ounce is similar to the purchasing power at $1,350 in terms of fiat. 

I had a chat with a co-worker about how Au preserves one's purchasing power.  I told her that in 1975 the price of gold was ~ 140 / ounce and that an average house was ~ $43,000 or 307 ounces of the shiny.   In 2010, Au = ~$1400 and an average house was $291k or 207 ounces. 

techpriest's picture

Yes, exactly. If you look at the last 50 years, a house goes for between 100-700 ounces, with the average being in the 300-400 range. "A good delivery bar buys a house."

Also, most manufactured goods tend to become cheaper over time relative to gold. Look at the price of a Ford Mustang in 1970 vs. today.

It turns out that the original "investment strategy" of saving a large percentage of income worked just fine in the USA, right up until 1971. In the 1800s an item that was a dollar in your youth was priced at 50 cents when you were old, and in the late 1900s the 1 dollar item became ten.

American Psycho's picture

Yes sir.  Savings made sense when money was actually backed by something.  For a good read on favorable depreciation look at Tom DeLorenzo's book "How Capitalism Saved America." He does a nice job showing how increased efficiency and manufacturing technology put significant downward pressure on goods as they became more easily manufactured. The outcome was that the standard of living for all Americans rose as products that were once only available to the rich became accessible for the common man (think cell phones in today's economy). 

I enjoy having debates with people about why think inflation (and for the sake of convenience I let inflation = increase in cost of goods rather than the increase of money outstanding) is good.  I never get a response in the affirmative as to whether they want their insurance, food, rent, fuel, and taxes to increase.  The response I usually get is, "inflation primes the economical pump."  I have no idea what they means other than "CNN, MSNBC, NYT, and HuffPo say this, so I will repeat it."  When people say they want inflation what they mean is that they want their house values to increase and their stock portfolios. 

The only entity that really likes inflation is .gov since they are repaying their debts in FIAT that is less valuable than when they initially borrowed it. 

BaBaBouy's picture

This Is Bullshit paper selling, keeping the price down and saving the CB'er Butts...

Same fucking shit, check the Report out later today, how much more paper was shorted???

Bay of Pigs's picture

The fraud ridden, manipulated and massively rigged COMEX?

Gee, thanks for the heads up.

JPMorgan's picture

Does not matter.

They are hemorrhaging phyisical on a global level by keeping the fiat price artifiically supressed.

It will not last forever, it is physically impossible to maintain indefinitely.

Something has to give, the only real question is when.

They better pray we don't see the 'hundredth monkey' effect kick in... then it really will be game over.

ReturnOfDaMac's picture

"It will not last forever" --- yes, it will.  King dolla will reassert in a few days.  Monkeys can't find hammers with all the hurricanes and stuff.

chubbar's picture

And yet the gold price remains range bound, how does that work?

Swampster's picture

How does that work?

 

In Math terms....

 

Greedy 'Nazi jews + $$$ Printing Press x 8 Trillion Dollars Under Obama = Buy whatever the fuck you want

JPMorgan's picture

Simple the fiat price is 'managed' (until it's not and they finally lose control).

realmoney2015's picture

The dollar has been crashing since 1913, when we have a private Bank cartel power over our money. Since then the dollar has lost 97% of it's purchasing power. Gold and silver have held their values and pretty much buy the same amount stuff throughout history. 

www.scentsaverscandles.com

https://m.facebook.com/scentsaverscandles/

We make all natural candles and out real silver coins inside to help educate friends, family and others on the value of real money. Our message is simple. End the Fed and go to a monetary system based on sound, real money. 

Help us spread the message. 

Give Me Some Truth's picture

Check out the plunges of most of the mining shares today. 

"Someone"  knows what is coming. Somehow they always do.

Give Me Some Truth's picture

Re: "Hammer time"

It started today. Silver touches  $18.21 and an hour later it is at $17.89 - a quick move south of 32 cents or almost 2 percent. Today's news? The government is going to keep printing as much paper money as it needs. Which apparently is incredibly bearish for real money, bullish for fiat money.

HRClinton's picture

Puh-lease!  Has Au hit $2000?  Has AG hit $50?

No?  Let us know when they do.

Just MOAR clickbait at ZH. 

Cash2Riches's picture

Wait for the cartels to come in and smash both gold and silver higher. Forunately, one of these times, it is going to break loose and not even they will be able to contain it. The free market always wins in the end.

ET's picture

Crypto Endgame is now.

Race to Hard Assets.

The_Juggernaut's picture

Yep.  Great advice.  It's all or nothing.  WHatever you do, make sure it's drastic.

anarchitect's picture

There's nothing hard about cryptos (even though they're interesting).  And Comex contracts, which are the highlight of this story, are even worse.  The Comex action is a prelude to idiots getting fleeced once again.  They seem drawn to this casino likes moths to a flame.

taketheredpill's picture

Diversify.  Bullion, Crypto, and (Local) Miners.

And never, ever bet the Ranch.

 

FreeShitter's picture

+

Land, weps. lots and lots of ammo, water purification.

 

HRClinton's picture

I like Littlefinger's approach: cater to the Rich & Powerful with a top-shelf brothel. The money plus secrets you get, is amazing. 

Unlike him though, I'd have to keep tabs on Quality with statistical sampling, but not over-sampling.

;-) 

HominyTwin's picture

Which is why miners are down today. Makes perfect sense.Time to go all in on on ConCoin...cuz crypto is the future and stuff.

shizzledizzle's picture

Was looking into bitcoin options and was humored by the fact that they settle in bitcoin... Let's say I want to bet against bitcoin by way of put options. Wouldn't it be great to be correct, see the price plummet and get this... be paid in BITCOIN! Well, you thought it would be worthless, it is now and here you go paid in full with what you are betting against. Oh By the way, in the time between settlement and converting it to cash it lost half it's value again! Sorry about your luck. LOL

 

Give Me Some Truth's picture

Re: Miners down today

If you were part of a team that controlled the prices of gold and silver; that is, you knew when prices would peak and reverse, why would you trade on this info just on the COMEX?

Couldn't you also make a killing selling mining shares at their temporary top and then buying them back at their bottom? Or "shorting" a tranch of stocks like the pros short the metals? And then doing the whole thing over again in a month or two.

Anyway, today's action in the shares tells us what is coming with the prices of gold and silver next week. 

(All of the miners probably have the Mother of All Class Action Suits they could file ... if they had the guts. They don't). 

JPMorgan's picture

In physical gold we trust.

"Gold Is Money, Everything Else Is Credit" - JP Morgan

Buy it, hold it, own it.

yogibear's picture

The Federal Reserve has already made it obvious that they intend on taking the US dollar down.

No debt limit and infinite rounds of QE and well as doubling the US debt every 6 to 7 years.

Any country outside the US can see that there is no intention to pay the debt back responsibly.

They are printing the debt away.

See how that has worked historically.

Bay of Pigs's picture

Venezuela comes to mind. Oh, and lets not forget Greece and Zimbabwe.

JPMorgan's picture

Here is my favourite Fed chart... it's ALL anyone needs to know about their mandate.

http://3.bp.blogspot.com/_pMO3DvPVgww/S_43YO6pxTI/AAAAAAAAA_Y/AjsFXscXqZ...

You can't dispute history.

ikhan's picture

and somebody's credit is somone else's debt. who hold the sack of risk... not the banks! 

small axe's picture

Is Blythe Masters dead or just lying low? Is it safe to come out now?

JPMorgan's picture

Probably developing derivative blockchain financial weapons of mass destruction.

http://www.digitalasset.com

small axe's picture

holy sheet, she's gone nuclear...we're DOOMED

saldulilem's picture

Correction: Paper Trading Volumes Hit Record High ...

WillyGroper's picture

who cares about the contracts.

awan a know about delivery.

this equifax breach is the perfect scapegoat amid the chaos happening across the country.

no firewall & this mf'r gamble had a degree in electronic engineering from cornell.

 

nrse82's picture

Yet GLD & GDX are both down today.

yogibear's picture

The central banks have arranged paper gold contracts hugely over-subscribed.

Naked shorts work well.

Give Me Some Truth's picture

The miner shares are getting slaughtered today, at least some of them. This is about as clear a signal as you can get.

scatterbrains's picture

900 Billion dollars?  wow that seeems like so much.   What is the upside limit to how much the fed can print out of thin air in order to maintain a cap on pricing?  Maybe they are limited to only printing a few trillion dollars of sell orders against all that demand?   lmao!!

A82EBA's picture

not out of thin air..someone went into debt for all those printed dollars, they owe principal + interest

chubbar's picture

This is why the recent China/Russia oil for Yuan/Gold announcement is so important. The SGE only settles in physical and only physical contracts are accepted. The smokescreen of Comex is going to be blown away as soon as massive gold deliveries are required to settle Oil contracts at the SGE. When the SGE needs to source gold from around the world, one place to get it is at the Comex by standing for delivery. Let's see these asshole bankers wiggle out of that program!

assistedliving's picture

prob is next week "they" sell those $900B...

noise.  keep stackin mf'ers