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Central Planning Sends Gold To Seven Month High As EURUSD Hits 1.28 On Massive Short Squeeze

Tyler Durden's picture


Total meltup panic and confusion in all but the US equity market where the INTC punch has sent stocks reeling, as an epic, Volkswagen-like short covering squeeze has taken the EURUSD up well over 100 pips in the past few hours (with technicals now running rampant as predicted three months ago), and where gold has now soared by nearly $40 on the day, sending it to just shy of $1740 and at the highest level since February. And all of this is happening without the Fed having announced QE, which it very well may not as it would then be seen as a largely political organization, or the ECB having bought a single bond under its restarted conditional monetization program, which paradoxically still needs Spain to crumble and demand a bailout before any of its bonds are eligible for purchases. In short: total centrally planned confusion, whose ultimate achievement will be to scare the last remaining non vacuum-tube based traders out of the market. 


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Fri, 09/07/2012 - 10:55 | 2771690 malikai
malikai's picture

New charts:

Gold, as usual.

EDIT: Looking at our other models it seems quite clear that as of now Gold is taking the lead and pulling everyone else up, with equities lagging.

Fri, 09/07/2012 - 10:56 | 2771711 BaBaBouy
BaBaBouy's picture

Like It Or Like It Even More...

GOLD $50K ...

Fri, 09/07/2012 - 10:59 | 2771729 Pladizow
Pladizow's picture

CME Margin hikes in 3...2...1.....

Fri, 09/07/2012 - 11:02 | 2771738 malikai
malikai's picture

Yea, seriously. Just waiting for the inevitable.

Well, either margin hikes or another MFG/PFG. What other Futures shops are named *FG? Might be time to start watching out.

Fri, 09/07/2012 - 11:17 | 2771791 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'll say it before and I'll say it again - if the CME keeps washing margins investers will turn to owning bullion instead of contracts.

So, in the long run, margin hikes are extrememly bullish.

Fri, 09/07/2012 - 11:32 | 2771845 El Oregonian
El Oregonian's picture

"What other Futures shops are named *FG?"

BFG = BUY F'ING GOLD!!! There.

Fri, 09/07/2012 - 11:03 | 2771752 scatterbrains
scatterbrains's picture

As JPM accepts more and more gold as collateral, when do margin hikes in gold start to harm stawks ?

Fri, 09/07/2012 - 11:05 | 2771760 ParkAveFlasher
ParkAveFlasher's picture

I wonder if the new Asian exchanges are coordinating margin hikes, or will they force CME to compete?

Fri, 09/07/2012 - 11:15 | 2771780 GetZeeGold
GetZeeGold's picture



How dare you question the CME's authoritah!!!



Fri, 09/07/2012 - 11:31 | 2771824 ParkAveFlasher
ParkAveFlasher's picture

I just figured out what I can do when I move to Ecuador, the unapologetic original banana republic, after the shtf here in NYC.  I'll open a commodities exchange. 

Fri, 09/07/2012 - 11:52 | 2771935 scatterbrains
scatterbrains's picture

Not a lot of overhead needed.. just an old pick up truck, a few armed thugs and just stack your bread loafs up on crates and your good to go  zimbabwe style

Fri, 09/07/2012 - 12:00 | 2771967 ParkAveFlasher
ParkAveFlasher's picture

You do the Ecuadorians no justice!  They might not have an iPad in every pot, but "no one starves in Ecuador". 

And when it becomes fashionable to dump the dollar, which will happen very suddenley in the depth of the night, they'll do just that.

I'm thinking a futures exchange, because obviously, if Asia can compete with the CME as a futures exchange, why can't South America?

Fri, 09/07/2012 - 13:29 | 2772334 Bicycle Repairman
Bicycle Repairman's picture

Don't forget the thugs.

Fri, 09/07/2012 - 15:24 | 2772815 ParkAveFlasher
ParkAveFlasher's picture

+1 Oh yeah, I'll totally bring thugs.  But them, I'll hire them in Peru.

Fri, 09/07/2012 - 12:43 | 2772137 midtowng
midtowng's picture

Probably true, but they already hiked the margin so many times (and only reduced it once) that it loses effectiveness.

Fri, 09/07/2012 - 14:50 | 2772664 lasvegaspersona
lasvegaspersona's picture

margins...what do they have to do with buying METAL....Tulving does not charge no stinkin margins!!!

seriously ....margins are for those who want to bet on the price of gold, ie those who need 'gold' to 'balance' their 'portfolio'. Those who wish to have it as a trustworthy wealth asset, who buy the real deal, do not care about fact a good margin hike just brings the price down.

Fri, 09/07/2012 - 11:53 | 2771936 vast-dom
vast-dom's picture

and please do NOT forget SILVER and look at the OIL chart for today -- pure market insanity!

in other words PM's that should be much higher are now rising and SP500 is more than double it's actual value....this is not sustainable.

Fri, 09/07/2012 - 14:54 | 2772688 lasvegaspersona
lasvegaspersona's picture

vast-dom...consider this...central banks have silver....just gold....

gold needs to be repriced to work as an asset

silver will rise but only t the extent its industrial use demands....

better get this one right or you will loose out BIG TIME. I was into silver until 5/2011. I have sold it all. 

Gold is a monetary metal NOT silver, wish all you want but if you want to play the game the central banks are about to play you should have gold.

don't hate me (actually I don't care but for your financial good) get gold.

Fri, 09/07/2012 - 15:23 | 2772816 bonderøven-farm ass
bonderøven-farm ass's picture

Silver is NOT a monetary metal?!?! As defined by whom, the banks (as you suggest)?  It's money to me as I'll gladly accept silver over fiat for my produce anytime.  It's up to me to determine the value of my labor, not some fucking worthless banking cartel...

Sat, 09/08/2012 - 02:58 | 2774052 terryfuckwit
terryfuckwit's picture

FOFOA donkey ass comment...The fofoa big long wordy(i love the sound of my stupid theory) paper has not explained why investment in ASE's silver exceeds gold by a ratio of 75 to 1.. Boy oh boy those industries like their ASE's.

Silver's history as money is stronger than gold's. Donkey FOFOA... what the establishment have done to both gold and silver sidelined by fiat is what fofoa are trying to have silver sidelined by gold.

Total bollocks... silvers pure investment demand utterly destroys this theory

Fri, 09/07/2012 - 15:22 | 2772806 Silver Bug
Silver Bug's picture

Up Up and away! QE to infinity here we come.

Fri, 09/07/2012 - 10:52 | 2771691 Temporalist
Temporalist's picture

Gold in "euro terms" at all time highs.

Fri, 09/07/2012 - 10:53 | 2771700 Canadian Dirtlump
Canadian Dirtlump's picture

I'm fondling some ASEs I bought this week at my desk with a bruno (half boner) as we speak. I finally bought some after stacking almost exclusively maples..


Mount up silver tards.

Fri, 09/07/2012 - 11:02 | 2771745 caimen garou
caimen garou's picture

he,he,he,he, fondling ase's and looking at the chinese girl dating advertisement

Fri, 09/07/2012 - 12:33 | 2772096 D-Man
D-Man's picture

Yup, just bought 20 ASEs this AM right  before the $1 pop, gotta love getting lucky in the short term in addition to what's to come in the long term.

Fri, 09/07/2012 - 10:55 | 2771705 ParkAveFlasher
ParkAveFlasher's picture

Greece flaking off the Euro like an ice shelf off Antarctica?

Fri, 09/07/2012 - 22:33 | 2773822 StychoKiller
StychoKiller's picture

When Greece starts cutting police pay, the end can't be far behind...

Fri, 09/07/2012 - 10:55 | 2771706 101 years and c...
101 years and counting's picture

kill the shorts before the crash. 

Fri, 09/07/2012 - 11:31 | 2771840 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Finance is based on economics.  Economics is based on lies.

Anything bid or asked in finance is based on the faith and credit of the underlying system.  The underlying system is based on lies.

The paradigm is false.  There is no sound logic behind the theories that are used in the pseudo-science of economics.

Fri, 09/07/2012 - 10:55 | 2771708 fuu
fuu's picture

Kitco getting monkey hammered.

Fri, 09/07/2012 - 11:23 | 2771802 Mr Lennon Hendrix
Fri, 09/07/2012 - 11:32 | 2771848 fuu
fuu's picture

Nope. I meant their website is totally grinding today.

Fri, 09/07/2012 - 11:44 | 2771908 Bay of Pigs
Bay of Pigs's picture

Yeah where is kito?

Funny how the deeflayshun/doelarr bulls vanish on days like this. LOL.

Fri, 09/07/2012 - 11:56 | 2771955 XitSam
XitSam's picture

I miss Trav

Fri, 09/07/2012 - 12:19 | 2772043 Tsunami Wave
Tsunami Wave's picture

Don't forget the other, other, other white metals, Platinum and Palladium! Big gains over the past 20 days!

Fri, 09/07/2012 - 12:38 | 2772114 tocointhephrase
tocointhephrase's picture

The problem is....most people forgot about Gold and Silver and are still sleeping. When Silver hits the all time high they are going to snap back like oil hitting the fat fryer!

Fri, 09/07/2012 - 11:59 | 2771964 tocointhephrase
tocointhephrase's picture

I had to refresh the chart 10 times before it would load. Winning!

Fri, 09/07/2012 - 10:56 | 2771710 lsbumblebee
lsbumblebee's picture

So much for "sterilization". Unless Draghi would like to volunteer.

Fri, 09/07/2012 - 10:56 | 2771715 Conman
Conman's picture

Who are these mystical shorts everyone keeps talking about? Ah you mean the hedged shorts that are making money anyway!? Insane. Rich get richer.

Fri, 09/07/2012 - 10:57 | 2771716 walidsassia
walidsassia's picture

u have to be an idiot and trade this market and u surely win, being rational  u will definitly loose. 


Fri, 09/07/2012 - 10:58 | 2771721 indianajohns04
indianajohns04's picture

So much for that Amazon short!

Fri, 09/07/2012 - 11:03 | 2771750 gjp
gjp's picture

One of a few poster children for the venality, waste, and manipulation that the market is today.  Incredible.

Fri, 09/07/2012 - 11:12 | 2771773 indianajohns04
indianajohns04's picture

No stop losses for me on this one....I'm gonna wait as long as it takes.

Fri, 09/07/2012 - 10:57 | 2771722 Vincent Vega
Vincent Vega's picture

DXY flirting with 79 handle.

Fri, 09/07/2012 - 10:58 | 2771724 LawsofPhysics
LawsofPhysics's picture

...and for that we thank you.  Go ahead, print.  Stupid sheep.

Fri, 09/07/2012 - 10:59 | 2771726 s n p
s n p's picture

but what does crude oil know that its not telling?

Fri, 09/07/2012 - 10:59 | 2771727 caimen garou
caimen garou's picture

watch out for the margin hiker in chief,does'nt matter,Hard assets bitches!

Fri, 09/07/2012 - 10:59 | 2771728 blueridgeviews
blueridgeviews's picture

Ahhhh volatility. Thats what voters like. sarcasm.

Fri, 09/07/2012 - 11:00 | 2771731 El
El's picture

What a nice thing to wake up to this morning.

Fri, 09/07/2012 - 11:00 | 2771732 blueridgeviews
blueridgeviews's picture

Europe is going off the fiscal cliff and their currency is valued higher than the US dollar? How does that work?

Fri, 09/07/2012 - 11:31 | 2771842 Tortuga
Tortuga's picture

A. ECB is making stuff up, faster?

B. The set up, is being, set up?

C. The algo's are front and back running?

D. JD, doing the work of GOD, is buying Spanish bonds.

E. All of the above.

Fri, 09/07/2012 - 22:34 | 2773825 StychoKiller
StychoKiller's picture

Alright, WHO is JD?

Fri, 09/07/2012 - 11:02 | 2771740 falak pema
falak pema's picture

I have a friend sitting in Geneva who has bet his shirt that the Euro would hit 1.15 before september 15. I don't know what he knows about KArlsruhe...but right now it doesn't look good for him. When he told me this Eur was quoting 1.24 moving to 1.25 and he was rubbing his hands...I think I'll have him buy me a dinner on September 11. Its the day when...oh well, life and coincidences....Maybe on September 16 he will ring me up and tell me, "from now on you do all the buying 'cos I can't get my shirt back from the dry cleaners!" 

Fri, 09/07/2012 - 11:31 | 2771843 fiddler_on_the_roof
fiddler_on_the_roof's picture

Tell you friend to get out of EUR short and start reading FOFOA. EUR will be better currency - they have low external debt, their Trade is balanced, use oil more efficiently.

Their state socialism is getting trimmed etc...EUR , I think have also aligned with Russia and China against Dollar seignorage.

otherwise, he will surely lose his shirt.

Fri, 09/07/2012 - 22:36 | 2773828 StychoKiller
StychoKiller's picture

This "trimming" of state socialism, got any proof of that?

Fri, 09/07/2012 - 11:02 | 2771744 Everybodys All ...
Everybodys All American's picture

I see no need for QE 3. QE is not working. Jawboning has worked famously though if you think success (wealth effect) is based on where the Dow lines up.

Fri, 09/07/2012 - 11:22 | 2771806 NotApplicable
NotApplicable's picture

Those are exactly the reasons QE Whatevah will happen.

Fri, 09/07/2012 - 11:33 | 2771855 exi1ed0ne
exi1ed0ne's picture

What's the opportunity cost of looting on your way out of a burning building?  Nailing a pregnant chick without a condom?  Of maxing the credit card before bankruptcy?

Jawboning doesn't provide payola to the playahs.

Fri, 09/07/2012 - 11:39 | 2771887 walidsassia
walidsassia's picture

if the central planner are getting the result they need by Jawboning the market , and the market is at all time high i guess mission accomplished , market are on year high without printing , is not that what they want ? or what they only care about?

Fri, 09/07/2012 - 11:03 | 2771746 Freewheelin Franklin
Freewheelin Franklin's picture

Gold, bitc.....


Ahhh, fuck it. You know the drill.

Fri, 09/07/2012 - 11:28 | 2771833 ParkAveFlasher
ParkAveFlasher's picture


Fri, 09/07/2012 - 12:33 | 2772092 Never One Roach
Never One Roach's picture

Charlie Munger reportedly on stroke watch as "that Barbaric metal" soars up, up and away.

Fri, 09/07/2012 - 13:25 | 2772307 resurger
resurger's picture

i was looking for this post +1

Fri, 09/07/2012 - 11:04 | 2771749 Yen Cross
Yen Cross's picture

 I would bet there will be some "sizeable" gaps in the F/X market, when it opens Sunday. This Europium driven short squeeze is gonna be short lived! Tyler you couldn't have said it better about the jobs numbers. I got up this morning (squared my trades last night)  looked at that (8.1) print, AND LAUGHED MY ASS OFF!

Fri, 09/07/2012 - 11:35 | 2771862 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You are going long the dollar ahead of the Fed meeting??

Big gamble....

Fri, 09/07/2012 - 11:48 | 2771920 Yen Cross
Yen Cross's picture

 I will "square up" the night before the Fed Meeting , and trade off of the Fed News. ;-)

Fri, 09/07/2012 - 11:14 | 2771757 Cult of Criminality
Cult of Criminality's picture

That cannot be right, Bloomberg said just yesterday, gold was to fall as the dollar is going to fly WTF

ROFLMAO Bahahahaaaa

The markets ..Where everyday is ground hog day....



Fri, 09/07/2012 - 11:05 | 2771758 williambanzai7
williambanzai7's picture

This general environment of densely packed unknowns is ripe for a genuine black swan event and the Lords of Kaching literally have no clue what can happen.

Fri, 09/07/2012 - 11:15 | 2771785 asteroids
asteroids's picture

Being a bit of a tape watcher, something weird is happening with the tape. I have a feeling the tape is really a reflection of not the real market, but of "black pool" trading that front runs everything and everyone.

Fri, 09/07/2012 - 11:32 | 2771849 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Count Draghula and the Lords of Kaching


Fri, 09/07/2012 - 11:06 | 2771761 sharky2003
sharky2003's picture

Is it just me or does the chart look a bit ... parabolic?

Fri, 09/07/2012 - 11:09 | 2771767 fijisailor
fijisailor's picture

Vaccum tubes?  I once had a prof in college who worked on one of the first defense dept computers using vacuum tubes.

Fri, 09/07/2012 - 11:25 | 2771817 Tortuga
Tortuga's picture

Was Algore interning there when he invented the www?

Fri, 09/07/2012 - 14:49 | 2772663 nofluer
nofluer's picture

Admiral "Amazing Grace" Hopper was the person who initiated the term "bug" for computer errors after a moth screwed up the vac tube & relays "computer" her group was using.

Fri, 09/07/2012 - 11:12 | 2771775 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Fri, 09/07/2012 - 11:18 | 2771792 Yen Cross
Yen Cross's picture

  No shit :-) Trading at March levels on the dxy. Get ready for $5 a gallon gas.

Fri, 09/07/2012 - 11:36 | 2771857 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Locked and loaded.

Fri, 09/07/2012 - 11:15 | 2771784 crusty curmudgeon
crusty curmudgeon's picture

Three truths for today:

1.  It's a good day to buy silver. 

2.  Yesterday would've been better.

3.  It's a great day to buy silver.

Fri, 09/07/2012 - 11:16 | 2771786 IronShield
IronShield's picture

Though I strongly believe in the future price action for the PMs, I am suspicious of this notion that QEx is going to be announced next week.  I mean, isn't that a little too obvious?  As much as it pains me, no new PM purchases for the time being.

Fri, 09/07/2012 - 11:22 | 2771805 crusty curmudgeon
crusty curmudgeon's picture

I share your concern but have long since given up trying to outsmart these markets.  Instead, I eat donuts.  And I have faith that someday PMs will trade at their market prices--or at least as close to the free market price as you can have in this regulated and corrupt world.

Fri, 09/07/2012 - 11:30 | 2771836 IronShield
IronShield's picture

Donuts; not a bad comfort food.  I find comfort in beer.  Overall I agree with you.  I'm definitely not smarter than the market by any stretch, but I do try to buy PMs on dips.  Something just doesn't feel right and if everyone is expecting QE, and the MSM is anticipating this as well, I just have to go the opposite direction on this.  I might have to pay up, but I can handle that.

Fri, 09/07/2012 - 16:01 | 2772982 TWSceptic
TWSceptic's picture

Get your online PM order ready, click buy or cancel when the Bernank is done flapping his gums. 

Fri, 09/07/2012 - 11:18 | 2771795 walküre
walküre's picture

What are they tryint go prove? That "UNLIMITED BOND BUYING" with money created from thin air is NOT going to end in a complete DESTRUCTION of the financial world as we know it?

Germans are NOT going to foot the bill for UNLIMITED BOND PURCHASES!! It's utter bullshit! Draghi reeks of desperation. He must know that he can't do it. The money to buy the bonds would still have to come from Germany's treasury. No German treasurer is going to hit "send" for the wires to fund these "unlimited bond" purchases.

Just look at the theatrics of this stuff. Draghi is an asshole. Germans are pissed to no extent. Anti-EU and Anti-Euro sentiment is at all time highs. Wall Street is salivating over ECB and FED print orgies which will never ever happen.

MARK MY WORDS - THERE WILL BE NO FURTHER OUTRIGHT QE! Speculate away at your own risk. Investing is DEAD.

Fri, 09/07/2012 - 11:26 | 2771823 TheSilverJournal
TheSilverJournal's picture

Hold your wealth in currency and your wealth will be dead. "Investing," as you say, is the only way to maintain your purchasing power. If the printing stops, the roof comes down, and if the printing continues, hyperinflation is the end result. Either way, countries are going bankrupt and fiat currency of bankrupt countries ALWAYS gets crushed.

Sorry, my friend,  you are failing to see the world's monetary system as the giant fiat ponzi that it is. When push comes to shove, do you really think the central planners are going to stand by and let their printing presses become useless?

Fri, 09/07/2012 - 12:05 | 2771993 walküre
walküre's picture

That wasn't my point. (Civil) WAR IS the only possible END GAME.

The stage is being set because:


Same as it ever was

Fri, 09/07/2012 - 12:20 | 2772049 TheSilverJournal
TheSilverJournal's picture

Currency collapse is the only possible end game. War is just a political decisions as those in charge attempt to scapegoat and, although war is likely, it can be avoided.

The critical point is when currency collapse happens and the cries of the people for the government to "help them" grow the loudest. If government answers that cry and completes the stranglehold on the economy, we're in trouble. But if the government finally recognizes they can't create a thing and can only redistribute things that others create, there will be an incredible boom in productivity with the likes the world has never before seen.

Fri, 09/07/2012 - 12:37 | 2772107 walküre
walküre's picture

But if the government finally recognizes they can't create a thing and can only redistribute things that others create

How is this possible? Please be realistic. Government is here to stay and grow. Government controls and oppression will only increase, never decrease. They may cut staff due to automation but that doesn't mean we will gain liberties back. Nope.

The 1% which pretty much owns every government in the country is living quite well off. The redistribution from the 99% to the 1% is working for them. Why would they want to change that?

Fri, 09/07/2012 - 13:04 | 2772202 TheSilverJournal
TheSilverJournal's picture

Because the currency is going to collapse. With the printing press rendered worthless, the government will no longer be able to redistribubte resources that simply aren't there. It doesn't work to suck the wealth out of the economy when there is no economy. If the government tries to "help," the economy dies completely and everything moves to black markets.

Fri, 09/07/2012 - 22:44 | 2773842 StychoKiller
StychoKiller's picture

The consequences of ignoring reality cannot be ignored:

"We are on strike against self-immolation.  We are on strike against the creed of unearned rewards and unrewarded duties.  We are on strike against the dogma that the pursuit of one's happiness is evil.  We are on strike against the doctrine that life is guilt.

There is a difference between our strike and all those you've practiced for centuries:  our strike consists, not of making demands, but of granting them.  We are evil, according to your morality.  We have chosen not to harm you any longer. We are useless, according to your economics.  We have chosen not to exploit you any longer.  We are dangerous and to be shackled, according to your politics.  We have chosen not to endanger you, nor to wear the shackles any longer.  We are only an illusion, according to your philosophy.  We have chosen not to blind you any longer and have left you free to face reality -- the reality you wanted, the world as you see it now, a world without mind." -- John Galt

Fri, 09/07/2012 - 15:39 | 2772866 4horse
4horse's picture


agree, val kyrie eleison

once again, the plan all along





Fri, 09/07/2012 - 11:26 | 2771825 css1971
css1971's picture

Yuhuh they will.

Fri, 09/07/2012 - 11:27 | 2771828 crusty curmudgeon
crusty curmudgeon's picture

I think you need to watch more television.  It's almost as if you think this brilliant monetization scheme has been tried before!  Watch Biden on the tube and you'll soon see.

I always try to remind myself of what my fellow plant workers say:  The world is run by smart people who are trying their very best to do what's best for us.  After all, Bernanke has a PhD, you know. 

Fri, 09/07/2012 - 11:22 | 2771807 EmileLargo
EmileLargo's picture

If anyone was short gold today, they probably had their posterior handed to them on a platter. :D

Fri, 09/07/2012 - 11:23 | 2771808 Squid Vicious
Squid Vicious's picture

what short squeeze? Draghi fixed everything, expect 4-5% Euro GDP and euro back to 1.50 soon...right?

Fri, 09/07/2012 - 12:39 | 2772116 DosZap
DosZap's picture

 Draghi ,yeah he said where are the funds to back it up?.Who is going to,able to keep the balls in the air?.

Answer: NONE

Fri, 09/07/2012 - 11:27 | 2771821 Iamzlatan
Iamzlatan's picture

When all are skimming pips on eurusd you know it's time for the storm. Batten down.

Fri, 09/07/2012 - 11:27 | 2771826 jmcadg
jmcadg's picture

Keep pushing the EURUSD higher, leaves some great put options available for the kick back the other way in  5... 4... 3... 

Fri, 09/07/2012 - 11:28 | 2771829 NumNutt
NumNutt's picture

And This just in, remember keep your gold close, the FEDs will take it:

Fri, 09/07/2012 - 11:28 | 2771831 Never One Roach
Never One Roach's picture

Gold to $2,100....Barbaric !

Fri, 09/07/2012 - 13:13 | 2772252 edifice
edifice's picture

Conan like gold... Like silver better! Ugh!

Fri, 09/07/2012 - 11:34 | 2771860 SmoothCoolSmoke
SmoothCoolSmoke's picture

I'm afraid it's end of August 2010 all over again.  GD mofos!

Fri, 09/07/2012 - 11:35 | 2771866 Tombstone
Tombstone's picture

Remember to thank your local central planner and/or banker when gold crosses $20,000 an ounce.  The world  will need $trillions more to keep the debt ball rolling during this decade and the next.

Fri, 09/07/2012 - 16:16 | 2773018 Haager
Haager's picture

If gold crosses $20000 in the near future you would like to have guns and bullets and some guys on your side.

Fri, 09/07/2012 - 11:50 | 2771925 KingdomKum
KingdomKum's picture

we few, we happy few, we band of silver holders  .  .  .  

Fri, 09/07/2012 - 12:29 | 2772085 tocointhephrase
tocointhephrase's picture

Seeing that avatar makes me even happier

Fri, 09/07/2012 - 11:56 | 2771953 Assetman
Assetman's picture

It's interesting to see 5-year Treasury TIPS (implied inflation expectations) move strongly north towards 3%.

It's as if the Fed doesn't really care about the one essentially important part of their mandate.  What price stability?

The more bizarre thing is that Bernanke actually seems to believe there is very little secular influence in current unemployment trends-- so he's going to try to solve that little ditty on his own as well... for the 3rd or 4th time.  Wow... just, wow.

QE3 will just give the world more inflation and eventually induce more global chaos.  It ain't gonna do diddly squat for the unemployed... unless you think financing transfer payments classifies as "doing something".

Congrats to all the gold and silver bugs out there... CTRL-P is here to stay!

Fri, 09/07/2012 - 12:12 | 2772016 walküre
walküre's picture

Not so fast. I'm one of those gold and silver bugs BUT ... we know its a manipulated PAPER market

What better way to lend credibility to Draghi's absolutely ludicrous and unconventional statements than PUSHING prices on equities and PMs higher.

The FED has the power to do just that in order to create the backdrop to suit their own narrative.

Their strategy is to get people excited and buying into the STATEMENT.

When RUMORS no longer work, they make STATEMENTS. However irrational and ludicrous.

But are they actually doing something besides jawboning?


Fri, 09/07/2012 - 12:25 | 2772065 devo
devo's picture

Why print when you can pretend you're going to print and get the same results? Until the market calls his bluff there won't be any (publicly announced) printing.

Fri, 09/07/2012 - 12:42 | 2772130 walküre
walküre's picture

Agreed. At the end of the day, someone somewhere will have to either sign the cheques or push the button to electronically transfer billions from Germany's treasury into the ECB. Unless of course the ECB doesn't even care where the money comes from and just creates money from nothing. But that's not their game. It doesn't work and they know it.

Germany and other nations still need to actually part with THEIR money to support the PIIGS above and beyond what has been "committed".

If Draghi wants to purchase "unlimted bonds" he needs to have unlimited funds to do so. It's a ruse and the manipulation is obvious.

Muppets piling in. More bulls than bears on ZH is a tell tale.

Fri, 09/07/2012 - 11:58 | 2771957 Zen Bernanke
Zen Bernanke's picture

i'm not buying the short squeeze story.    A tell tale sign of a short squeeze is after it's over, that market reverses close to where it had been previously.   Perhaps the short squeeze story was right at 1.20 and maybe again at 1.22, but that's it.   Eur/usd has been on an upward trajectory for the last month.

Fri, 09/07/2012 - 12:14 | 2772028 walküre
walküre's picture

BDI is unimpressed.

Lower lows

I guess vessels run on fumes as well.

Fri, 09/07/2012 - 12:20 | 2772051 Nobody For President
Nobody For President's picture

Market? There is a market out there with real price discovery?


I will take the under on QE3 this week - with the so-called market HFT'd to the moon and the headline number of 8.1 unemployment, no matter how generated - no way does the Fed need to act this close to the election, and risk the 'political motivated' backlash from Mitts and company.

And all this info on German reaction to Draggy - how about the Finns and the Danes? Are they overjoyed?

Stack and hunker down friends, this is clearly not going to end well.

Fri, 09/07/2012 - 12:46 | 2772146 rosiescenario
rosiescenario's picture

Just wondering, is there still that huge short position in silver we used to discuss here?

Fri, 09/07/2012 - 12:47 | 2772150 tocointhephrase
tocointhephrase's picture

Its the year of the dragon and looking at the 10 year of Silver it seems she agrees. Just sayin

Fri, 09/07/2012 - 12:48 | 2772153 XtraBullish
XtraBullish's picture

Just short cash (USD/EC) and replace it with gold/silver/stocks/farmland - these moron politiicans are in FULL DEBASEMENT MODE.

Don't you LOVE the smell of BBQ'd E uro U.S. equity shorts these days. The hedgies are going to be so far behind their marks that I smell REDEMPTION FEVER in the air...NEVER underestimate the replacement power of equities within an inflationary spiral.

Fri, 09/07/2012 - 14:07 | 2772505 Jim B
Jim B's picture

Ordered more silver yesterday.... 2nd order in 2 weeks....


The printers are making me very nervous...

Fri, 09/07/2012 - 13:02 | 2772180 Swarmee
Swarmee's picture

ZeroHedge, I love what you do for us, the news and analysis you provide is invaluable. However, no one can be right all of the time. I find this article to be missing some commentary in light of this ZH article from August 2nd:

ZH of course trumpeted that taking the opposite trade was clearly the move to make given Stolper's record, but anyone who took that advice better have bailed out or they are sitting on a big loss, especially after today.

So what's the thinking on this? 1.30 is looking more and more likely in the short term whether it is rational or not. And if Ben does pull a QE before the ECB moves then eurusd seems likely to keep rising until EU hits Ctrl-P on their end.

Full disclosure, I took neither side of that trade, it is way too obfuscated for me, I added to my stack instead and enjoying that decision as always.

Fri, 09/07/2012 - 13:24 | 2772301 ivars
ivars's picture

Check out this log-periodic forecast I made 2 days ago- missed the day by 1 due to approximating by hand- but actually its spot on if You do it with mote accurate approximation technique.

Called 34,11 for yesterday/today, at the moment when silver was 32,11.  There is still some way to go today.

Fri, 09/07/2012 - 14:00 | 2772483 LMAOLORI
LMAOLORI's picture


Personally I'm more into spendable silver and prepping simply because it fits my budget/life plans but for you Goldbugs


Why is Putin stockpiling gold? Commentary: Russia is bulking up its gold reserve

Fri, 09/07/2012 - 14:43 | 2772644 jomama
Fri, 09/07/2012 - 15:51 | 2772935 ian807
ian807's picture

The world is converging on the mean of a few rich, and many poor people who are effectively slaves even if we don't call them that.

Fri, 09/07/2012 - 16:11 | 2773006 Haager
Haager's picture

It was kind of amusing to watch EUR/USD, AUD/USD, AUD/CAD, EUR/CHF etc., but then I remembered this one:

Fri, 09/07/2012 - 16:35 | 2773080 are we there yet
are we there yet's picture

I'm hoping PM has one more puylback with the EU hitting another delusion denial crisis that pushes it down and the $ up briefly, then I plan to buy either more AU or AG physical.

Fri, 09/07/2012 - 20:33 | 2773615 knowshitsurelock
knowshitsurelock's picture

When Charlie Munger said that those who buy metals are idiots and that only refugees sow it into their coat pockets, I sold all my gold and silver and bought the facebook IPO.

I think I may have made a mistake.

Sat, 09/08/2012 - 03:19 | 2774089 terryfuckwit
terryfuckwit's picture

Governments and central Banks have decided albeit somewhat surrepticiously that gold is their money. The people have decided silver is their money with investment demand outstripping gold by 75 to 1..What a sweet irony to see silver outshine gold in the long term... keep stackin folk and remember it is you and i that decide what money is... and a f'king lot of us have gone for the white metal...

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