Biggest Gold Drop Since December 2008 Sends Metal To... Week Ago Levels

Tyler Durden's picture

Gold this morning is plunging by the most since December 2008. For those seeking the reason for the sell off, it once again appears that the market is about 24 hours late in processing news that has been out for over a day. One of the main catalysts for today's gold price is the realization that the Shanghai Gold Exchange hiked gold margins by 26%. Of course that this happened not one but two days ago (as we reported) is irrelevant. There are other factors to be sure: on Tuesday holdings of the SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell by nearly 25 tonnes, their biggest one-day outflow since Jan. 25. Furthermore, there is another rumor that hedge funds that have been crushed by the market volatility over the past month are shoring cash ahead of Jackson Hole by selling their winners. Either way, at last check gold was down to $1770. This is the price it was on August 16: about a week ago. As for where gold will go next: we suggest investors consider what the options for the world central banking cartel are, and how many of them do not include diluting paper. We are eager to hear the alternatives.

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TradingJoe's picture

Gold is GOOD! Let the Noise be just that, NOISE!

Pladizow's picture

This was expected.

It is good, normal behaivior.

Expect alot more volatility as gold rockets upwards!

Olivia Newton John - Bitches!

foofoojin's picture

I was starting to fill crazy waiting for this correction. I was worried gold was in a bubble and this just proves that fundamentals still matter for hte material.  it was so high off it's 200d average.

Pegasus Muse's picture

It's Option Expiration day for Gold and Silver on the COMEX tomorrow.  Check the volume of the selloff.  

Which market participants have pockets deep enough to cause that decline?  My vote goes to the Gangster Banksters (aka Bullion Banksters, aka Large Commercial Shorts).  JPMorgue and its crew market manipulators, that's who.   

dwdollar's picture

The outfit was 'finding' Hugo's gold which they supposedly had 'on deposit' for him.  Now that buying spree is over.

TruthInSunshine's picture




I get my investment themes and paradigms from CNBC soundbits, interviews and anchor talk.



nuinut's picture

It may be sarcasm for you, but the reality is that the majority really do inhabit that paradigm.

The Paradigm Shift is on, however.

Gold is the focal point of the shift, for good reason.

RockyRacoon's picture

THAT is great stuff!  Thanks for the link.

Whalley World's picture

With all that Libyan gold in the hands of the rebels (NATO) they will find it easier to pay off Hugo in the real thing.

tunckar's picture

No bubble in gold, buy gold whenever find it;    "The most important thing about money is to maintain its stability. . . .   You have to choose between trusting the natural stability of gold and   the honesty and intelligence of members of the government. With due   respect for these gentlemen, I advise you, as long as the capitalist   system lasts, to vote for gold."  


—George Bernard Shaw, 1928    


cynicalskeptic's picture

Now, now, Libya's gold is being held for 'safekeeping' - and maybe some leverage to make sure the 'right' oil companies get long term contracts......

Has to be the first 'revolution' ever where the one of the first things the rebels did was set up a new central bank....... this from guys who wer scrambling to make whatever weapons they coudl find usable (see the video of the workshop where they wer modifying 20mm aircraft cannons to be used on the back of pick-ups?)

trav7777's picture

wtf?!?! just yesterday you called me stupid for suggesting gold was overbought...put your tits away and STFU

Dangertime's picture

It is called "rationalization".


No matter what happens, it is good for gold.

fiddler_on_the_roof's picture

Can you confirm  you are short Gold now ? I will have a hook on you, when Gold turns higher. I just bought with some play money.

DosZap's picture

Dudes, they MURDERED the Shorts,now they are taking down the LONGS........................

Same old story, same old song.


fiddler_on_the_roof's picture

we shall see who will be right.

Terminus C's picture

Why are you still here? Back in June you were calling for gold to go to $800 and silver to $15.

Changing your avatar doesn't mean you get any new credibility on PM's.

d00daa's picture

and you have ZERO fucking credibility on anything PM related,  gtfo with your gravy-training bullshit.

Potemkin Nation's picture

People have been calling it a bubble since it was $400.  There were people back then projecting $1650, and for the most part they were viewed as so loony it wasn't even worth the time to mock them.  Look at the long term chart.  If it was any other market, it would be touted nightly on CNBC.  You can call it rationalization, but the fact is, gold bulls have been on the right side of the trade for 10 years now.

Pladizow's picture

To: Trav777 and his butt buddy DangerTime.

Does my avatar upset you Travy?

And not only did I call you stupid but also full of shit!

trav7777's picture

and yet here you are aping me...go figure

Pladizow's picture

You would think little Travvvvvvvvvvvv would be happier since his imaginary short should be paying off.

Man are you stupid and full of shit!

d00daa's picture

any actual response to the fact that you made an unbelievably shitty call yesterday, and have thus far pretended you never did?

it's ok to be a bug, but don't embarass yourself if you don't actually know what the fuck you are talking about.

Pladizow's picture

How can someone who has bought gold for several years be embarassed by a ONE DAY correction?

Those that should be embarassed are those that have continued to be wrong for ELEVEN STRAIGHT YEARS!

So in closing STFU!


ZeroPower's picture

Didnt we stop arguing with gold and silver bugs a while ago? I just agree and say 'all metals to a million obama dollaz'. Much simpler.

GoinFawr's picture

Heh, I seem to recall you being short gold since it was around 1200 US bitz and bytes ZP; no wonder you 'stopped arguing with gold bugs a while ago'. Only 5 c-notes or so to go before you can turn up the knob on your shadenfreude, 'til then you've still got the 'suck' dial twisted right off past 'max'.

ZeroPower's picture

Definitely not, but feel free to peruse my posts for such proof. Only time i mentioned being in anything at all was short silver from ~41s and 44s after it went to 50 and down.

The long-term thesis for gold bugs is correct, IMO, (for silver i am not convinced, but again, i wont go to an AA meeting explaining my love for Bombay & T now will i..) but i am basically astonished at how (some) rational minds here understanding bubbles cannot see a short term one when its evident in their face.

GoinFawr's picture

Pardon me, not `short`,  I meant `bearish`. Otherwise my comment is spot on then?

scratch_and_sniff's picture

Yeah, i mentioned a little "price" bubble the other day, and one guy, whom i wont name said "the gold markets laugh at my parabolas"... indeed, it laughed so hard that it fell over. Nothing new under the sun.

Gavrikon's picture

Don't listen to him.

The tits STAY!

theotheri's picture












fuu's picture

Only pussies whine for the moderators.

GoinFawr's picture

`struth. Gotta take the good with the bad in a speakeasy.

Throwbacks are actually useful idiots anyway

JW n FL's picture

considering you call me racist and I am anything but??? I dont know, maybe it is not this other person or me?

maybe you are a zionist plant? trying to get the truth removed from the sight of everyone..

if I am a racist.. then are these other 300,000 - 400,000 people who HATE Israel's Government as well Racist? is it Jew on Jew hate? 

or it ok for them to hate the lobby whore Government there that controls our Government here?

The largest protest in Israel's history. Around 400.000 people took the streets all over the State of Israel - in Tel Aviv they were more than 300.000. The mass rally, organized on 6th August 2011, was to push the government to make reforms with a deep sense of social justice, stopping the rising prices and reducing the life cost in Israel.


Look at ALL of those Nazi Racists! me and my crew say fuck you!

fuu's picture

Personally I was wrong about you. I still think your copy/paste 3,000 word posts are annoying but I was wrong to assume instead of reading.

JW n FL's picture

Not! You Bro!!

You were just new.. You have figured out that I maybe an asshole.. but I am the asshole who is on yourside..

this idiot above you has NOOOOOO! CLUEEEEE!! he needs to read and open his mind or go back to finger painting with the kids at huffington post.

here we push the facts! ugly or not! and I am happy to be the bad guy! or a punching bag to help people see! whatever it takes to help!

much luv fuckers!!


StychoKiller's picture

Define "Social Justice..."

russki standart's picture

Ban yourself theotherri, you do not have to read his posts.  I may not agree with his views, but its called exercising your first amendment rights. 

MFL8240's picture

Yes, it was.  Did anyone expect this courrpt cartel to allow real money to rise like that without an assault?  Never, the confetti machine is where the fools trust their money, Ill stay in Gold.

The Wolf's picture

The point is, ladies and gentleman, that gold, for lack of a better word, is good. Gold is right, gold works. Gold clarifies, cuts through, and captures the essence of the evolutionary spirit. Gold, in all of its forms; gold for life, for money, for love, knowledge has marked the upward surge of mankind. And gold, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA. Thank you very much.

mr_T's picture

GreeOLD is not good fool. Glad I sold my calls @ 1860 days paid in full. Let's see what happens at Jackson's Ahole... BTW I love that movie.. the sequel sucked ass...

fiddler_on_the_roof's picture

I sold at $1890 and bought just now.

theMAXILOPEZpsycho's picture

Dudes, I just noticed something!

Jim Sinclairs 1764 has not been breached!

I think its the angels wings that are now pulling it and stopping it falling further!

Dips over folks, I'm loading me up some physical...

theMAXILOPEZpsycho's picture

Doh, well there it goes - I might wait for tomorrow. Should be a negative day as the rest of the weak hands get shaken out.

I'll make a prediction. Bullion stores are going to get cleaned out over the comming week.

cynicalskeptic's picture

With the amount of paper shorts they can throw at the market (at least over the short run) they can paint the charts hpwever they want..... technical analysis over anything but the VERY long term in a manipulated market doesn't mean much.   You can bet this was a 'kitchen sink' effort to bring the price down as far as possible - yet its's still not even dow to what the price was two weeks ago.

I'll bet you're seeing some major buying - look at the drop in GLD stores.... I'll bet that was big boys exchanging for physical (only the select few participants have that right).   SO this smack down burns a bunch of longs, lets the big banks cove shorts and make a fortune onthe way down AND grab some more physical out of GLD at cheaper prices.