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Demand in Asia and “Semi Official Buyer of Gold” On ‘Roubini Dip’

Tyler Durden's picture




 

From GoldCore

Demand in Asia and “Semi Official Buyer of Gold” On ‘Roubini Dip’

Gold’s London AM fix this morning was USD 1,585.50, EUR 1,221.87, and GBP 984.17 per ounce. Yesterday's AM fix was USD 1,627.00, EUR 1,250.77 and GBP 1,008.99 per ounce.

Silver is trading at $28.77/oz, €22.27/oz and £17.92/oz. Platinum is trading at $1,506.75/oz, palladium at $613.20/oz and rhodium at $1,300/oz.

Gold dropped $31.90 or 1.95% in New York yesterday and closed at $1,606.80/oz. Gold gradually fell again in Asian and European trading and looks set to test support at $1,580/oz.


Cross Currency Table – (Bloomberg)

Gold hit a 4 month low today despite deepening worries that the political upheaval in Greece may sink the country into chaos and endanger the euro zone's efforts to end the debt crisis – possibly leading to contagion and or a monetary crisis.

Some decent demand from South East Asia has been reported at the $1,600/oz level and there are also reports from Reuters of a “semi-official buyer of gold” emerging “on dip below $1,600/oz”. 

Gold’s weakness yesterday may have been again due to dollar strength and oil weakness - oil is now below $97 a barrel (NYMEX). It may also have been due to wholesale liquidation which created a new bout of "risk off" which has seen global equities and commodities all come under pressure.

However, gold’s weakness yesterday was also contributed to by more unusual trading activity. As trading in New York got underway, there was an unusually large bout of selling with some 6,000 gold futures contracts sold in minutes and this led to gold's initial $10 fall to the $1,615/oz level.

Momentum driven algorithm trading may have then led to follow through selling and the initial sell off may have emboldened tech traders to sell more leading to the falls below $1,600/oz. 

Given strong store of wealth demand from the Middle East and China (as seen in figures yesterday), long term buyers will use this sell off to again accumulate bullion.

Greece’s problems coupled with France’s election of socialist candidate Francois Hollande as President creates a disruption of old Franco German alliances.  Hollande and the socialist victory in France will likely be positive for gold as he favours looser fiscal and monetary policies in the EU. 

Spot gold hasn’t seen these levels since early January and the next level of support for gold is $1,580/oz and then $1,545/oz – the low on December 29th 2011.


(Bloomberg)

As has been the case in the early stages of nearly all bouts of sharp risk aversion in recent years the initial beneficiaries have been the dollar, US debt and German Bunds, while gold was more correlated with the euro and riskier assets. 

However, gold’s correlations with risk assets have been short term in recent years. Gold has fallen less than other risk assets, based and then recovered and seen sharp recovery gains soon after the initial falls.

These recovery gains are often seen while equity and commodity markets have continued to fall. Similar patterns may be seen in markets again in the coming days and weeks and short term gold weakness should again be used to ease into an allocation to gold.

Nouriel Roubini has again taken to Twitter to engage in his semi annual bout of name calling and frequent suggestions that gold is a bubble and that gold will fall in price. He has been doing so since gold rose above $1,000/oz in 2008.

Overnight he tweeted how “Gold getting close to fall below 1600. In which caves are the gold bugs hiding...?”


Nouriel Roubini ‏ @Nouriel

Gold getting close to fall below 1600. In which caves are the gold bugs hiding...? 

This continues the recent meme regarding gold investors and store of wealth bullion buyers being ‘bugs’, people or animals who ‘hide’ in ‘caves’ or are “uncivilised” people.

Attacking the ball and not the man is a way to avoid engaging in real debate regarding the merits of gold as a diversification and as an academically and historically proven safe haven – one that has protected people both throughout history and again in recent years.

It is interesting that Roubini has not written a paper on gold nor has he conducted an interview about gold or written an article about gold in recent years. He confines his simplistic, ill informed anti gold comments to Twitter where he can be brief and not have his faulty thoughts and logic examined.

From a contrarian perspective, Roubini is a gift as his name calling and anti gold comments almost always coincide with an intermediate low in the gold price.

Prudent diversifiers are advised to buy this latest dip - what could be termed the ‘Roubini dip’ - as many have done overnight and this morning – including store of wealth buyers in Asia and central bank monetary diversification buyers.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


XAU/EUR 1 Year Chart – (Bloomberg)

OTHER NEWS
(Bloomberg) -- Gold to Rebound to $1,700 an Ounce This Year: Technical Analysis

Gold will rally to $1,700 an ounce later this year after trading below $1,600, according to technical analysis by Barclays Plc.

“The metal may slip to about $1,580 an ounce and then $1,525 an ounce, a level close to the weekly low seen in late December, before rebounding to $1,700 an ounce, the high seen in late March,” Dhiren Sarin, chief technical strategist for Asia Pacific at Barclays, said today by phone from Singapore.

Bullion has climbed 1.8 percent this year after a 10 percent increase in 2011, the 11th consecutive annual gain as investors sought to diversify from equities and some currencies amid concern over Europe’s debt crisis and expectations that central banks will add further stimulus, boosting haven demand.

“About the rebound to $1,700, it’s a bit of wait and watch but $1,580 is a potential place where buyers may come in and $1,525 to $1,530 area is another potential area,” he said, referring to levels singled out in Fibonacci analysis.

 
XAU/GBP Currency Chart – (Bloomberg)

Gold fell as much as 0.7 percent to the lowest level since Jan. 4 and traded at $1,594.05 an ounce at 12:13 p.m. Tokyo time, losing for a third day as Greece’s leaders struggled to form a government, increasing concern that the region’s debt crisis will escalate and boosting the dollar as a haven.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low.

NEWS
Gold, Silver Tumble as Deadlock in Greece Drives Dollar Higher – Business Week

Gold dips to 4-month low on Greece uncertainty – Reuters

Gold, Silver Tumble as Deadlock in Greece Drives Dollar Higher - Bloomberg

Global shares, commodities retreat on Greek uncertainty – MSN

Silver Forecasters Bullish as Funds Retreat From Slump - Bloomberg

COMMENTARY

Ron Paul Has a Gold Ally in the Buffett Family – The Street

Mauldin: End of the Debt Supercycle Draws Near – Casey Research

Did He Just Call You “Uncivilized”? –Agora Financial

Economic Alert: If You’re Not Worried Yet…You Should Be – Zero Hedge

"Uncivilized" China Quietly Building Gold Reserves As Gold Imports From HK Soar By 587% In First Quarter – Zero Hedge

Why Civilized People Buy Gold - GoldSeek

 

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Wed, 05/09/2012 - 09:01 | 2409582 GetZeeGold
GetZeeGold's picture

 

 

They're clearly insane.

 

Wed, 05/09/2012 - 09:06 | 2409588 fightthepower
fightthepower's picture

Keep Stacking!

Wed, 05/09/2012 - 09:11 | 2409607 DeadFred
DeadFred's picture

I think the dips happen because there are a good number of people who still think of gold as a commodity. Foolish them.

Wed, 05/09/2012 - 09:22 | 2409628 Pladizow
Pladizow's picture

Drops in gold price over the last 12 years have all been temporary:


2001 = -21.1% temporary drop in price. End of year performance = +1.4%

2003 = -15.3% temporary drop in price. End of year performance = +21.4%
2004 = -12.1% temporary drop in price. End of year performance = +4.8%
2006 = -21.6% temporary drop in price. End of year performance = +23.2%
2008 = -28.9% temporary drop in price. End of year performance = +4.3%
2010 = -12.6% temporary drop in price. End of year performance = +30%

Avg temporary drop = -18.6%

Drop from high of $1920/oz to today at $1583/oz = -17.6%.

Will the trend continue?

Wed, 05/09/2012 - 09:51 | 2409718 bdc63
bdc63's picture

nicely done

Wed, 05/09/2012 - 10:01 | 2409758 He_Who Carried ...
He_Who Carried The Sun's picture

Wishful thinking + Hopium = Goldbug?

Gold's next stop is at that 'shoulder' at 1410.

Why not sell now and get back in when its cheaper?

Oh, right, you need a truck to transport all your savings to the exchange...

Wed, 05/09/2012 - 10:04 | 2409762 agent default
agent default's picture

Because you are trying to time the market, and it is one of the best ways to bankrupt yourself.

Wed, 05/09/2012 - 10:29 | 2409845 Darth..Putter
Darth..Putter's picture

Gold futures = Hopium,  Gold nows = ???

Wed, 05/09/2012 - 10:35 | 2409882 Pinto Currency
Pinto Currency's picture

 

How can anyone know the short term of a rigged market.

Long term, we know.

Short term, who knows.

Interesting contra indicators to watch:

Paper bugs like Buffett, Gates, and Roubini are shouting SELL GOLD!!

Hmmmm.

 

Wed, 05/09/2012 - 10:52 | 2409942 Badabing
Badabing's picture

With the way the paper PM market is today you can get Corzined / MFGed or hit with a margin hike or better yet, hold out for delivery and receive another piece of paper a “delivery receipt” or an ETF equivalent.

They (TPTB) don’t want any small players in this market that will take physical out.

We as individuals don’t make a dent, but together we can extinguish the comex PM physical supply.

The small guy is now buying his physical PMs from the street and that doesn’t reflect the spot price.

It’s a giveaway get it while you can!

Wed, 05/09/2012 - 12:40 | 2410301 SILVERGEDDON
SILVERGEDDON's picture

The only reason why you don't harvest more down votes is that set of nipples cancels out aggression in most who would torch you otherwise. Go buy a confetti shredder for recycling all of your fiat when the time comes. Use it to mulch the plants in your yard. Might's well get some use out of your paper.Dipshit.

Wed, 05/09/2012 - 09:57 | 2409744 ParkAveFlasher
ParkAveFlasher's picture

Roubini's twitter is linguistic-algo-driven bot programmed specifically to talk shit whenever spot gold dips below the 200dma.  Had me fooled but its perfect timing and snarky douchebaggery doesn't pass the smell test.  Too perfectly douchebag.

Wed, 05/09/2012 - 11:05 | 2409985 Jake88
Jake88's picture

are you surprised that someone has a personal motive when offering market views. you must be broke.

Wed, 05/09/2012 - 10:00 | 2409755 Hobbleknee
Hobbleknee's picture

Thanks for the perspective.

Wed, 05/09/2012 - 10:06 | 2409765 Peter Pan
Peter Pan's picture

Those falls in the price of gold were just opportunities for the manipulators to make obscene profits. Gold's upward trend simply mirrors society's downward trend.

Wed, 05/09/2012 - 10:17 | 2409797 machineh
machineh's picture

Yes, and in March 2000, I could have proved to you that every S&P dip for the past 18 years was temporary.

How did that work out for the S&P bugs?

Thu, 05/10/2012 - 15:23 | 2414245 matrix2012
matrix2012's picture

"Will the trend continue?"

TIME will be the final, unshakeable testimony!

Meanwhile your presented stats serves as a BEACON for a sailing amidst the foggy coast... watching the time to stack again :D real, physical PM

 

Thanks Pladizow for the helpful stats!

Barbaric Relic for UNcivilized folks!!! ...  i'm a barbarian then :)

 

Wed, 05/09/2012 - 12:23 | 2410248 Gringo Viejo
Gringo Viejo's picture

The paper tail can wag the physical dog.....until it can't.

No worries here.

Wed, 05/09/2012 - 09:09 | 2409604 Spider
Spider's picture

Yearly Estimated Silver Mine & Scrap Production: 1 billion ozs
Yearly Estimated Gold Mine Production: 90 million ozs
Total Value of above-mentioned annual Gold & Silver = $170 billion

Total Interest on 2011 US debt: $450 billion (at effective rate of around 3%)
Normal US interest-on-debt-rate (i.e. no QE): 6%

Enough said...

Wed, 05/09/2012 - 09:02 | 2409583 junkyardjack
junkyardjack's picture

You have to give Roubini his props, he was right

Wed, 05/09/2012 - 09:06 | 2409587 Quintus
Quintus's picture

When?

Wed, 05/09/2012 - 09:07 | 2409592 EscapeKey
EscapeKey's picture

"All the gold bugs who say gold is going to go to $1500$2000they're just speaking nonsense.” —Nouriel Roubini

Wed, 05/09/2012 - 09:10 | 2409605 SheepDog-One
SheepDog-One's picture

Seems I remember him saying gold would never go above $1,000. I guess 'right' is just a matter of when the timeline starts.

Wed, 05/09/2012 - 09:21 | 2409627 DeadFred
DeadFred's picture

Roubini speaks truth the way Goldman does, when it's convenient.

Wed, 05/09/2012 - 09:42 | 2409680 Ruffcut
Ruffcut's picture

That may be true once adjusted for inflation.

Wed, 05/09/2012 - 09:30 | 2409648 Peter Pan
Peter Pan's picture

Roubini was the guy who said that if you are worried about inflation you are better off buying spam rather than gold and that you cannot eat gold but you can eat a spam sandwich.

His own consultancy company was up for sale even though it was running at a large loss in 2011.

Gold's performance has beaten all his predictions.

Is the man:

(a) A Loser or

(b) A loser or

(c) A loser?

 

Wed, 05/09/2012 - 09:43 | 2409687 GetZeeGold
GetZeeGold's picture

 

 

.......hold on I'm thinking. This is too much pressure.

 

 

Wed, 05/09/2012 - 10:08 | 2409771 Peter Pan
Peter Pan's picture

LOL. Imagine how much pressure poor old Roubini is under. The poor old boy does not realise that gold simply does what fiat cannot do when fiat is under the control of spendthrift governments and manipulative bankers.

Thu, 05/10/2012 - 15:35 | 2414347 matrix2012
matrix2012's picture

" Imagine how much pressure poor old Roubini is under. The poor old boy does not realise that gold simply does what fiat cannot do when fiat is under the control of spendthrift governments and manipulative bankers. "

 

I don't think so! I think Roubini is just another paid mouthpiece of the banksters, just like the Krugman! Nowadays their jobs are getting tougher and tougher to sell out those craps ... :-)

Wed, 05/09/2012 - 10:37 | 2409894 EscapeKey
EscapeKey's picture

D) All of the above.

Wed, 05/09/2012 - 10:14 | 2409787 eddiebe
eddiebe's picture

Roubini is probably stacking gold with FRN's handed to him by Benny for helping to step on gold bugs. What a fucking retard. Calling gold a bubble when FRN's along with all types of government IOU's are sloshing all over the place. The guy is either beyond an ultra moron out in an alternate universe, or more likely a paid off Fed mouthpiece. Pathetic. Give him his dues? I would love to.

Wed, 05/09/2012 - 12:19 | 2410238 ActionFive
ActionFive's picture

No- you would have to know the markets were fake to make that call- or be an insider.

Wed, 05/09/2012 - 09:06 | 2409590 rsnoble
rsnoble's picture

Looks like the H&S on SPY is going to play out.  Probably around the 130 area we are going to be bombarded with "everything is awesome again" news.

Lieing motherfuckers, I bet it's a real circus behind closed doors probably looks similiar to an anthill you hit with the lawnmower.

Wed, 05/09/2012 - 09:06 | 2409591 LawsofPhysics
LawsofPhysics's picture

The only "uncoupling" that anyone should be concerned about is the uncoupling between markets and PMs or more specifically the paper versus the physical price.

Reminds me of living in Russia during the 90's.  I saw lots of "official" prices for things, yet that was never the price people had to actually pay.  If you pointed out the descrepancy, a rather large and well-armed man would ask you what your "problem" was. 

Wed, 05/09/2012 - 11:47 | 2410150 Raymond Reason
Raymond Reason's picture

And this is why Russians don't believe what comes from the mouths of governments.  Except for those who immigrated to America, under the false assumption that ours is different. 

Wed, 05/09/2012 - 09:07 | 2409593 SheepDog-One
SheepDog-One's picture

What happened to constant obsession over stocks and QE? Its weird that as soon as stocks start collapsing, suddenly all anyone cares about is barbaric old gold? No worries, as soon as Bernank hits the QE panic button gold is right back over $1,800, I dont see what the hand wronging is about.

Wed, 05/09/2012 - 09:11 | 2409608 Sudden Debt
Sudden Debt's picture

DOW is already signalling to Bernanke that he'd better start prepping for it

Wed, 05/09/2012 - 09:14 | 2409614 SheepDog-One
SheepDog-One's picture

'DOW signaling to Bernank'? How can something totaly controlled by him be sending a 'signal'? 

Wed, 05/09/2012 - 09:21 | 2409625 Sudden Debt
Sudden Debt's picture

the fed can control about 15 to 20%. if the market really turn against them they can't stop it.

 

Wed, 05/09/2012 - 10:50 | 2409936 EscapeKey
EscapeKey's picture

What's to stop the Fed from endlessly accepting repo's with the PDs with questionable collateral (ie, equities eventually)?

Wed, 05/09/2012 - 09:11 | 2409609 GetZeeGold
GetZeeGold's picture

 

 

It's a couple articles down......just look and you'll find it.

 

Wed, 05/09/2012 - 09:08 | 2409594 youngman
youngman's picture

There is nothing out there right now that I would rather invest in than gold.....this world is getting worse and worse....crazier and crazier.....as the rats drown..they will lie and cheat....I think this drop is not a drop of value...its a HFT raid to aquire at a better price.....they boys with the computers know they can cheat the market...but i also think other buyers will pick it up on the cheap...so we lose the hard asset to a foreign shore.....the computer boys get a paper gain....

Wed, 05/09/2012 - 09:12 | 2409610 GetZeeGold
GetZeeGold's picture

 

 

How much money are they going to have to throw on the fire to change your mind youngman........do you have a figure in mind?

 

Wed, 05/09/2012 - 10:02 | 2409759 youngman
youngman's picture

Right now I think the MARKET prices should be...Gold $2,000 and rising....the EURO....par with the US dollar and dropping....and the US dollar dropping

Wed, 05/09/2012 - 09:07 | 2409595 BandGap
BandGap's picture

This is predictable. The onset of a good chaos driven event is never noticed by the masses. Hindsight is where everyone goes once hell breaks loose. Stand back and look at the whole picture. Of course gold is going down. Sure QE3 is going to happen.

Wed, 05/09/2012 - 09:07 | 2409596 tocointhephrase
tocointhephrase's picture

Back up the truck boys!

Wed, 05/09/2012 - 09:15 | 2409615 GetZeeGold
GetZeeGold's picture

 

 

Would it be considered cheating if I backed up a low-boy semi trailer?

 

Wed, 05/09/2012 - 09:35 | 2409651 fuu
fuu's picture

Nope. Cheating is dangling off the federal jock in your Park Ave. vulva-laden apartment tweeting that hard asset owners are cave dwellers.

Wed, 05/09/2012 - 09:57 | 2409749 LawsofPhysics
LawsofPhysics's picture

Yes, all the while leasing your physical assets so you can front-run your insider knowledge and keep that apartment.

Wed, 05/09/2012 - 09:08 | 2409597 JustObserving
JustObserving's picture

Where is the CFTC as gold is being manipulated?  Watching porn with their buddies at the SEC?  We should shut down these agencies since they give the pretense of regulation ad fraud-prevention while doing nothing.  They just enable fraud by the powerful and the well-connnected.

Wed, 05/09/2012 - 09:19 | 2409624 GetZeeGold
GetZeeGold's picture

 

 

Where is the CFTC as gold is being manipulated?

 

Heh heh....classic.

 

Dude, they're government employees. I'm not even sure if they actually have to show up for work.

 

Wed, 05/09/2012 - 09:28 | 2409640 EscapeKey
EscapeKey's picture

You even have to ask?

The job of the enforcement agencies is to give the big banks a permanent advantage. They have nothing to do with keeping a competitive, level playing field.

Some pigs are more equal than others.

Thu, 05/10/2012 - 16:29 | 2414481 matrix2012
matrix2012's picture

 

GO  ASK  GATA

tHEY kNOW wHERE iS CFTC...

 

many sheeples often recite that the USSA is an amazing country with the high reliability... there's practically a regulatory institution to safeguard EVERY thing...

for food & drugs safety-->FDA; environment-->EPA; stock exchange-->SEC; domestic security-->DHS; emergency camp-->FEMA; commodity futures-->CFTC; and so on...

 

whereas, in reality it goes:

 

The more corrupt the state, the more numerous the laws.” — Tacitus, The Annals of Imperial Rome

 

* the cheat, oops, tax code itself is self-explanatory

 


 

Wed, 05/09/2012 - 09:08 | 2409598 Kina
Kina's picture

Interesting quote from Jesse's site.

http://jessescrossroadscafe.blogspot.com.au/
Jesse's Café One of the more interesting facts to come out is that producers became so disenchanted with the wild speculative swings in the US oil markets, affectionately known by trader as 'The Asylum, due largely to paper speculation, that key producers rejected it for other non-US benchmarks.

I suspect strongly that other commodity markets will follow, and the US will lose its role as the world's price setting leader in many markets because of its tolerance for fraud and manipulation.

 

I think we can say that US markets go beyond 'tolerance' for fraud and manipulation and are instead market makers and leaders in fraud and manipulation.

Question then is when will the price of real gold be taken from another non US corrupt mechanism?

Wed, 05/09/2012 - 09:14 | 2409613 youngman
youngman's picture

Tomorrow Shanghai starts trading silver.....I think it has already started....

Wed, 05/09/2012 - 09:22 | 2409630 Sudden Debt
Sudden Debt's picture

to bad chinese are gamblers and will never go for delivery

 

Wed, 05/09/2012 - 09:23 | 2409634 GetZeeGold
GetZeeGold's picture

 

 

Wrong slick.......you're thinking about the western world. Asians are all about delivery.

 

Wed, 05/09/2012 - 09:41 | 2409676 Sudden Debt
Sudden Debt's picture

Asians love to gamble.

Wed, 05/09/2012 - 09:46 | 2409692 GetZeeGold
GetZeeGold's picture

 

 

Why the racism? Why the hate?

 

Wed, 05/09/2012 - 10:21 | 2409804 Temporalist
Temporalist's picture

Ever hear of Macau?

Wed, 05/09/2012 - 10:26 | 2409835 AnAnonymous
AnAnonymous's picture

Portuguese enclave.

A must visit though if you want the illustration of Smithian economics (core of US citizenism) and how it disqualifies certain activity through concentration of wealth and ship it onto the periphery.

Even the settling the score activity of the gangs that run the city was shifted out of Macau.

Wed, 05/09/2012 - 12:54 | 2410335 akak
akak's picture

I am the Great Stoolman Mousy Tongue, psychopathic murderer of tens of millions, and I approve this Chinese Citizenism message.

Wed, 05/09/2012 - 10:47 | 2409927 Mary Wilbur
Mary Wilbur's picture

And Singapore?

Thu, 05/10/2012 - 17:18 | 2414746 matrix2012
matrix2012's picture

PORTUGESE led the casino race, built the FIRST casino in MACAU in 1850s; LAS VEGAS came later, 1931 under Herbert Hoover, shortly before the Great Depression.

Then Malaysia in 1971; Singapore in 2010. Pretty soon possibly in Japan.

Next casino wave will sweep across European countries.

 

In all countries, one gambling company stands out:

RESORTS WORLD xxxxx

 

Wed, 05/09/2012 - 10:58 | 2409972 Sudden Debt
Sudden Debt's picture

Idiot. If you call that racism you got serious mental problems.

Wed, 05/09/2012 - 09:50 | 2409713 Kina
Kina's picture

Well, my wife is HK Chinese and she readily gets pissed the SE Asians are hopeless gamblers.

 

Though when it comes to gold and silver the littler guys will be buying to keep for the future.

Wed, 05/09/2012 - 09:09 | 2409599 mess nonster
mess nonster's picture

The smugness felt by non-gold-holders is countered by the dismay felt by the inexperienced gold-buyer, and the glee felt by the hardened veteran of gold, who buys the dip knowing globalsystemic insolvency can only be countered by global QE, with gold poised to break 2000 in the aftermath of the latest resue bailout fiat drugliquidity injection that MUST come.

Wed, 05/09/2012 - 09:08 | 2409601 Crimedog
Crimedog's picture

Hahahaha.  ZeroHedgies running scared, waiting for Tyler to justify every drop in the price of gold.  This thing is going lower, and it has nothing to do with "manipulation" like you all hope.

Wed, 05/09/2012 - 09:16 | 2409618 bshirley1968
bshirley1968's picture

If it is not manipulation in the futures market, why is it going lower?  Who is selling here and why?  Physical is not selling (at this price).  No one is trading in REAL gold for paper dollars here.  This is simple asset rotation in the paper world (that is about to come tumbling down) which is about to not qualify as an asset.

Wed, 05/09/2012 - 09:18 | 2409620 mess nonster
mess nonster's picture

Elucidate, vear sa snill.

Wed, 05/09/2012 - 09:27 | 2409633 fuu
fuu's picture

Upvoting yourself is just sad son.

Wed, 05/09/2012 - 09:29 | 2409642 GetZeeGold
GetZeeGold's picture

 

 

Actually for the record......I gave him the vote.

 

.....and I downvoted you for questioning his honor.

 

Wed, 05/09/2012 - 09:38 | 2409666 fuu
fuu's picture

I added a -1 as well for giggles.

Wed, 05/09/2012 - 09:46 | 2409698 GetZeeGold
GetZeeGold's picture

 

 

Heh heh......that's the spirit.

 

Wed, 05/09/2012 - 09:59 | 2409754 WAMO556
WAMO556's picture

I added one clownbux too (-1)!!!

Wed, 05/09/2012 - 09:27 | 2409636 EscapeKey
EscapeKey's picture

You BETTER MAKE SURE to PARK YOUR WEALTH SAFELY in the US CLOWNBUX.

Wed, 05/09/2012 - 11:21 | 2409778 oddjob
oddjob's picture

NARCOBUX...chosen currency of the war monger and drug trafficker.

Wed, 05/09/2012 - 11:33 | 2410111 GeneMarchbanks
GeneMarchbanks's picture

Tarders don't give two shits. There is no bottom when market nihilism and apathy take over.

Wed, 05/09/2012 - 10:15 | 2409681 LawsofPhysics
LawsofPhysics's picture

wrong. see post above.  PMs have experienced bigger and bigger short term drops every year, but the YoY performance keeps getting paper.  You want to be the last one holding the paper bag?  Fine, take it.  All things physical for me, especially assets that generate revenues like land leases and rental units.  You want paper, take it, you will get "Corzined", but maybe you are into that sort of thing.

Wed, 05/09/2012 - 09:58 | 2409748 grey7beard
grey7beard's picture

>> This thing is going lower, and it has nothing to do with "manipulation"

 

I think you are right, and wrong.  I think it is going lower, but manipulation has a lot to do with it.  How do you explain the massive number of contracts dumped on the market in a few moments time?  It has happened repeatedly and quite often in the slowest trading hours.  If you can give a reasonalble explanation of that I'll give it a reasonable consideration.

I think gold is getting hammered hard by the US government to punish those trading gold for commodities, especially oil.  I don't know why I don't see this particular scenario discussed anywhere.  The US has to attack gold to protect the petro dollar.  Iraq is no Iran or Libia.  The US can't invade to protect the petro dollar, all it can do is attack the new medium of exchange.  This could be a long viscious battle.  Then again, when it's in it's best interest, China could overwhelm the shorts much like they sent massed troops across the North Korea border to overwhelm US troops. 

The most telling indicator of a massive downside potential in gold that I saw was GS recomending it as a buy.  Oddly enough, it  has done nothing but go down since then.  Who has a better ear to the plans of the US Treasury than GS?

Wed, 05/09/2012 - 11:16 | 2410055 FranSix
FranSix's picture

It's more like a central bank intervention, since lease rates haven't risen, which means that gold is being leased out, which can only come from a central bank source. No wonder the Queen's investment fund sold huge chunks of gold miners.

Wed, 05/09/2012 - 09:08 | 2409602 billwilson
billwilson's picture

As the chorus of doomsayers on gold reaches its climax ... gold gets set to reverse course.  ... as always.

We just need a few Europeans (greeks that means you) to start trading in their Euros for gold, before the Euro undergoes a radical slimming down (bye Greece etc). The insane correlation between gold and the Euro has to break. Then look out.

This decline has been wonderfully choreographed throughout and is clearly a managed event (BIS, China, Fed ?????). The second to second managing of miners with the gold price and the euro and the overall market has been a sight to behold. China must be licking its lips ... Treasuries which is trying to sell are getting bid up, and gold, which it is trying to buy is getting hit (win-win). I would not even put it past the Chinese to be behind the gold price fall (as a way to get cheap gold).

Wed, 05/09/2012 - 09:22 | 2409631 youngman
youngman's picture

As the Eu crashes...and I think it is going to ...and faster than I thought..one thing the central bankers cannot have is another option......another currency...like gold....so i believe they have been behind this dive in price....also I agree with the China play.....if I was them i would be selling my treasuries and buying gold...or oil..or coal..or copper...or farmland......and that is exactly what they are doing...smart boys those Chinese....they think long term...

so in a few month we will have heard that China/ Asia has imported a new record amout of gold and silver...blah..blah..blah...

If you are watching the Comex...and I do...very little activity in the dealers.....how are they settling all the claims if nothing is coming in ...nor going out....to me very weird

Wed, 05/09/2012 - 09:29 | 2409643 Quintus
Quintus's picture

Harvey Organ reported today in his blog that so far this delivery month, based on official Comex reports, 12 million oz of silver have been 'Delivered'.  Meanwhile only slightly more than 2 million oz has left the registered (dealer) inventory.

How is this possible if they are actually delivering physical?

Wed, 05/09/2012 - 10:37 | 2409892 GetZeeGold
GetZeeGold's picture

 

 

Hope and naivety is a powerful combination.

 

Wed, 05/09/2012 - 09:13 | 2409611 TrumpXVI
TrumpXVI's picture

The escalating verbal attacks against gold by the likes of Buffett and his cronies and his CNBC cheerleading squad, Roubini, etc., are only building my own confidence that the Golden Underground is starting to get these crooks and buffoons genuinely worried.

I expect their next move will be to start lobbying the government to confiscate private gold or at least to make ownership illegal pretty soon.

I suspected that I was right back in '06 when I started to buy.  I don't pretend to be able to guess as to all the dark recesses into which it all will lead.

 

Wed, 05/09/2012 - 09:46 | 2409700 Bastiat009
Bastiat009's picture

Anyone who accepts to be bailed out, like Buffet who actually demanded, begged to be bailed out, can never talk about markets, capitalism, freedom or work ever again .. and before I forget, taxes too. Of course. Buffett must pay back everything he was given by the government before he can start saying that other people should give him more.

Wed, 05/09/2012 - 10:06 | 2409769 LawsofPhysics
LawsofPhysics's picture

You sir, are a terrorist! < sarc off >

Wed, 05/09/2012 - 13:06 | 2410374 Winston Churchill
Winston Churchill's picture

Detatch your mind completely from the gold/fiat price.

Fiat will soon be gone.Only PM's will remain.

Steady nerves are now essential for all ZH readers.

Just wish I hadn't mislaid mine in an unfortunate garding accident.

My lead is still handy though.

Wed, 05/09/2012 - 09:12 | 2409612 MFL8240
MFL8240's picture

Nouriel Roubini has again taken to Twitter to engage in his semi annual bout of name calling and frequent suggestions that gold is a bubble and that gold will fall in price. He has been doing so since gold rose above $1,000/oz in 2008

 

THIS ARAB HAS NEVER BEEN RIGHT ABOUT ANYTHING.  GET HIM OFF THE NEWS, HE IS AN EMBARRASMENT!

Wed, 05/09/2012 - 09:30 | 2409645 DavidJ
DavidJ's picture

Nouriel Roubini is actually Persian.   

You ignorant racist!

Wed, 05/09/2012 - 10:37 | 2409896 DosZap
DosZap's picture

Nouriel Roubini is actually Persian.

You ignorant racist!

Chill dude.................maybe he did not know,as there are so much difference between the two.

NOT

Wed, 05/09/2012 - 11:22 | 2410069 Jake88
Jake88's picture

towel head camel fucker

Wed, 05/09/2012 - 09:15 | 2409617 Al Capowned
Al Capowned's picture

You would have to be clinically insane to sell your PM's on the eve of a world wide fiat currency collapse!!!

This is the only sentence people need to know/remember

Wed, 05/09/2012 - 09:23 | 2409632 GetZeeGold
GetZeeGold's picture

 

 

You would have to be clinically insane to sell your PM's on the eve of a world wide fiat currency collapse!!!

 

Wow dude......I don't think you can actually say that.

 

Wed, 05/09/2012 - 09:27 | 2409638 Al Capowned
Al Capowned's picture

Ok i have updated it --  What i mean is you would have to be clinically insane to sell your PM's on the eve of a world wide fiat currency collapse if you have not already lost them in a tragic boating accident like me and everyone on here?

Is that better?

Wed, 05/09/2012 - 09:31 | 2409647 GetZeeGold
GetZeeGold's picture

 

 

Much.

 

Wed, 05/09/2012 - 10:20 | 2409799 n8dawg84
n8dawg84's picture

What about selling to raise cash for munitions?

Wed, 05/09/2012 - 09:30 | 2409646 mess nonster
mess nonster's picture

What do you mean by "collapse"?

Do you mean that hyperinflation makes fiat essentially worthless? (gold to 3000,5000,10,000 and beyond)

OR...

Do you mean that critical systemic insolvency sucks up all the fiat in a massive credit mycardial infarction that wipes out the fiat in a deflationary cataclysim never experienced by anyone ever? (gold to 1000, 450, 175, 36 and below)

Wed, 05/09/2012 - 09:42 | 2409683 Bastiat009
Bastiat009's picture

You cannot say that gold can go down on this site. Never.

That reminds me of sites and places where you could not say that house prices could go down.

Wed, 05/09/2012 - 10:12 | 2409781 ParkAveFlasher
ParkAveFlasher's picture

Right, because Barney Frank is legislating to support gold prices.  As we speak.  In fact, banks are stumbling over themselves to fund gold purchases because they get commission for each gold contract. 

You might be on to something, gold teeth are huge with the subprime crowd.

Wed, 05/09/2012 - 09:16 | 2409619 Xel3
Xel3's picture

Nouriel Roubini - "Gold getting close to fall below 1600. In which caves are the gold bugs hiding...? "   

The same cave that protected them from '08? lol

Wed, 05/09/2012 - 09:20 | 2409629 mantrid
mantrid's picture

everything's falling but the pundit sees only what he wants to see. so how is gold doing when priced in oil?

Wed, 05/09/2012 - 09:24 | 2409635 mess nonster
mess nonster's picture

Really, we all want high gold prices. High gold prices mean the system is still functioning. How ironic that a fiat money system keeps gold prices elevated. If there is ANYONE who is MORE invested in the current system than a gold-buyer/holder, I can't think of who it might be, unless it is the creators and maintainers of the System themselves. Irony- it's better than breakfast.

Wed, 05/09/2012 - 09:38 | 2409662 Joe The Plumber
Joe The Plumber's picture

Yeah if gold goes to 500 we are all fucked even the non stackers. That would be one hell of a painful economy.

Wed, 05/09/2012 - 09:31 | 2409637 Paper CRUSHer
Paper CRUSHer's picture

Roubini,thanks for your invaluable insight..... damn twit.

Who knows he may next quote this last paragraph from an important speech by the maestro himself ex Fed chairman Mr' Magoo' Greenscam:

"If the evident recent success of fiat money regimes falters, we may have to go back to seashells or oxen as our medium of exchange. In that unlikely event, I trust, the discount window of the Federal Reserve Bank of New York will have an adequate inventory of oxen".

http://www.federalreserve.gov/boarddocs/speeches/2002/200201163/default.htm

Wed, 05/09/2012 - 09:27 | 2409639 Joe The Plumber
Joe The Plumber's picture

I dont think bernanke is gonna start with qe in june as expected. FRN's are looking good right now.

I will be a buyer of gold at 1500 1530

Wed, 05/09/2012 - 09:32 | 2409650 bshirley1968
bshirley1968's picture

Hard to make that call.  These markets could get real, real ugly in a matter of days.  Ben will step in quickly if he has to, and it looks like someone will need to step in before this gets too much momentum to the downside.

Wed, 05/09/2012 - 09:30 | 2409644 bshirley1968
bshirley1968's picture

Some serious investment capital has moved to gold/silver over the last 4 years.  Money that the Fed would like to have circulating back in the paper markets.  They are going to bash gold every chance they get.  There is no way the Capt Ben of this Titanic is going to allow the rescue boats of gold and silver to come and rescue his passengers.  He wants all to go down with him.  He cannot allow there to be an alternative to his precious, sinking currency.

Confiscation?  That day will come but we are a little early.  The goal will to try and find a way to make it useless and therefore worthless.  Problem is all the high rollers in the West are having to go to the pawn shop and liquidate their best assets to stay afloat, and the pawn shops are run by the BRICS.  Brics won't outlaw gold.

When they pass the law that makes my assets illegal it will be the day I become an outlaw.  I just hope there are those who have the back bone to make the same stand for the sake of freedom.

Wed, 05/09/2012 - 09:54 | 2409734 Al Capowned
Al Capowned's picture

Bernanke actually does look a bit like the Captain from the film Titanic,

When the crisis hits he will slowly walk into a control room in his money printing room, on the way he will break open the ink containers and flood it with Ink and watch it slowly fill the windows between himself and the printing floor whilst taking time to painfully think what the hell he was thinking over the last 4 years.

At the last minute he will slowly take a Gold watch his father gave him out of his top pocket whilst reminiscing a childhood memory... a talk his Dad gave him on the neccissity of sound money in any economy before giving him the gold watch  as a tear slowly crawls down his cheek.

He will then look up as the cracks begin tearing down the glass  and breaks In signalling his ultimate demise...........

Wed, 05/09/2012 - 10:30 | 2409861 Mary Wilbur
Mary Wilbur's picture

Keep your gold at home.

Wed, 05/09/2012 - 11:55 | 2410179 Deo vindice
Deo vindice's picture

It appears most ZHers are amateur canoeists and for some bizarre reason have chosen to keep their gold in their canoes.

And then lost it.

Go figure.

Wed, 05/09/2012 - 12:19 | 2410230 prole
prole's picture

Damn you Coleman Corporation!

Wed, 05/09/2012 - 13:18 | 2410420 Bohm Squad
Bohm Squad's picture

If you're going to have an accident, it's best to include the media!  :)

http://www.upi.com/Odd_News/2011/08/29/Australian-man-throws-away-50000-in-gold/UPI-32791314665330/

Wed, 05/09/2012 - 10:56 | 2409906 DosZap
DosZap's picture

Some serious investment capital has moved to gold/silver over the last 4 years. Money that the Fed would like to have circulating back in the paper markets.

Yes, if your an idiot..............................after watching the morons add 16 trillion clowbux to to the tally.

Wed, 05/09/2012 - 09:33 | 2409652 SilverTard
SilverTard's picture

Roubini... who cares what this guy has to say.  He is the ultimate government tool, nothing else.

 

Wed, 05/09/2012 - 09:40 | 2409671 ArrestBobRubin
ArrestBobRubin's picture

"Gold’s weakness yesterday may have been again due to dollar strength and oil weakness"

100% Bullshit.

Wed, 05/09/2012 - 09:40 | 2409678 Bastiat009
Bastiat009's picture

The oil thing is total bullshit. The oil market is controlled by the Saudis who controle the middle-east and where most "terrorists" come from. Gold is absolutely not related to oil.

Wed, 05/09/2012 - 10:15 | 2409790 Kaiser Doomheiser
Kaiser Doomheiser's picture

Most terrorists come from Washington D.C.

Wed, 05/09/2012 - 10:19 | 2409801 ParkAveFlasher
ParkAveFlasher's picture

"Gold is absolutely not related to oil."  I disagree, the relationship is 16 barrels to the ounce.  Break out your Hello Kitty ruler and track it through time. 

Wed, 05/09/2012 - 11:41 | 2410135 LawsofPhysics
LawsofPhysics's picture

There you go.  Energy rules all at the end of the day, gold only remains the safest medium of exchange.  No energy, nothing gets done and no economy, period.

Wed, 05/09/2012 - 12:39 | 2410291 ActionFive
ActionFive's picture

Excepting Iran/Asia-LOL!

Wed, 05/09/2012 - 09:48 | 2409711 east paris trader
east paris trader's picture

 

Let's see... euro is falling apart.  Euro banks are majorly fucked.  Euro citizens (with brains) are looking for cover, but the gold market is getting hammered.    Looks like the work of an experienced arson --- step #1 is soak all exits with gas...  

I'd say the eurozone countries (with the fed) are selling the shit out of paper gold to avoid a currency flee.   They're selling paper and cleaning out their physical to support their dieing paper.  FOFOA had it called in '01.

The paper market will probably bounce here.   No more stops to run.   The fed chums the water with huge 7000 contracts dumps in quiet markets.  The raptors follow and sell it down through the stop levels.   JPM (the fed) covers as the levels break.   They are not profit oriented.  They just want to paint the tape to discourage currency runs.   When the stops run out, the raptors quit the game and all cover. 

Ask yourself, what exactly is so gold bearish about greece and france turning anti-austerity?   Since when is fiat chaos and out of control spending gold bearish....  This raid is similar to the SNB euro-peg raid.  Very gold bullish news that was raided.  

The question to ask is when will the raids stop?  Answer:  they won't.  The raids will continue until the comex/lbma fail.   They will continue to raid until their last breath.  They have to.  The minute they stop the price goes through the roof and all paper collapses across the board.

The fed/ecb is getting scared and stepping up the attacks.   One final question given the current condition of the world --- would you rather be the guy holding physical gold or the guy trying to stop its rise in price?

 

Wed, 05/09/2012 - 10:24 | 2409829 youngman
youngman's picture

"The fed/ecb is getting scared "

I am getting scared..it does seem to me that the rats are downing...and they are going to take you down with them.....just think if you were from Greece....what would you do with your "money"..and what kind of money is that????

If you were in Spain right now..what would you be doing????

In Italy....?????

Ireland should be in the news..but it is very quiet right now....

The age o the Euro is over....probably the EY too

The US fed will TRY to save them..give them liquidity..trillions...and they probably are today....there has to be bank runs today...I am scared and I have gold...

China, Russia, Asia, South America, The Middle East..all have to be watching this like we watch American Idol.....in amazement of how stupid we are/were...and most importantly...planning accordingly

If you add in the USA politicial season and what is coming up here on our agenda....debt ceiling...Bush tax cuts..its going to get very interesting

Wed, 05/09/2012 - 10:49 | 2409937 DosZap
DosZap's picture

youngman

What are Greece and Spain, and Italy doing..........?

They have already done it.

Anyone with wealth has pulled it from the banks, and moved it out of country.

Wed, 05/09/2012 - 11:43 | 2410139 LawsofPhysics
LawsofPhysics's picture

And gone where?  Mars? Unless you can fund a private army, no place on earth will be "safe" moving forward.

Wed, 05/09/2012 - 09:54 | 2409738 Bastiat009
Bastiat009's picture

There is support at $1,600 in Asia, that must be why gold never went OVER $1,600 in Asia. I don't know where gold it's going but I can tell you it's being hammered these days, in Asia too.

You can speculate about the future all you want but you cannot alter the past.

Wed, 05/09/2012 - 10:45 | 2409917 gnomon
gnomon's picture

I observe a cold, chaotic reality.  Given that fact, what is your agenda?  Is it personal or business?

Wed, 05/09/2012 - 12:51 | 2410327 ActionFive
ActionFive's picture

Got to save the Rupee- the tax thing fell through. Compare yesterdays Rupee/gold trade with other currencies.

Wed, 05/09/2012 - 10:06 | 2409763 Canadian Dirtlump
Canadian Dirtlump's picture

Roubini is the carnack the magnificent hat wearing mongoloid who is so precient when it comes to everything that...

 

His business has never made money and is / was for sale?

 

Keep collecting chromosomes bro..

Wed, 05/09/2012 - 10:36 | 2409884 Shock and Aweful
Shock and Aweful's picture

I am a fairly small coin and bullion dealer (I do local / regional shows here in the upper midwest)

The thing that makes me think the downward price is going to be fairly short lived  (maybe another 3 months?)

is that the senitment I hear from well over half the people I run into and deal with is that they are scared silver and gold are gonna fall out of bed.

 

I have not heard people this "bearish" since 2008.   And that right there is the reason I am opitmistic.  Gold and silver are probably the most contrarian investments you can ever get involved in -- esp. PHYSICAL.

When you hear a general consensus talking one way or the other....get all your shit together and get ready to head the other way.....it works out that way more often than not.

SIlver and gold have been under tremendous downside / bearish pressure for at least the last 6 months....and while everyone else was buying stocks and bonds (Why would you do the latter...I have no idea)...gold and silver have kind of been the red-headed stepchild that no one is paying attention to.

Sure...I definately see a bit more downside to both metals  - maybe even taking us back to Pre-QE @ price levels  (Sub $20.00 and Sub $1300.00)....but once that happens...that rubberband is going to be pulled so goddamn tight, that you will want to be on the upside ride when it starts.

 

Just don't shit your panties....it could get kind of ugly for the next couple months. 

GOOD LUCK...and stay the fuck away from leverage and paper metals!

Wed, 05/09/2012 - 10:35 | 2409885 Shock and Aweful
Shock and Aweful's picture

I am a fairly small coin and bullion dealer (I do local / regional shows here in the upper midwest)

The thing that makes me think the downward price is going to be fairly short lived  (maybe another 3 months?)

is that the senitment I hear from well over half the people I run into and deal with is that they are scared silver and gold are gonna fall out of bed.

 

I have not heard people this "bearish" since 2008.   And that right there is the reason I am opitmistic.  Gold and silver are probably the most contrarian investments you can ever get involved in -- esp. PHYSICAL.

When you hear a general consensus talking one way or the other....get all your shit together and get ready to head the other way.....it works out that way more often than not.

SIlver and gold have been under tremendous downside / bearish pressure for at least the last 6 months....and while everyone else was buying stocks and bonds (Why would you do the latter...I have no idea)...gold and silver have kind of been the red-headed stepchild that no one is paying attention to.

Sure...I definately see a bit more downside to both metals  - maybe even taking us back to Pre-QE @ price levels  (Sub $20.00 and Sub $1300.00)....but once that happens...that rubberband is going to be pulled so goddamn tight, that you will want to be on the upside ride when it starts.

 

Just don't shit your panties....it could get kind of ugly for the next couple months. 

GOOD LUCK...and stay the fuck away from leverage and paper metals!

Wed, 05/09/2012 - 11:39 | 2410128 SilverRhino
SilverRhino's picture

It's bearish in the short term but there is NO WAY we will get to pre-QE pricing levels.    If that happens I'd expect to see 20-30% premiums for physical show up. 

Wed, 05/09/2012 - 11:51 | 2410159 Shock and Aweful
Shock and Aweful's picture

I tend to agree with you....and if the world markets blow up and we get another big $4 - $5.00 pull to the downside in silver / $100 - $200 to the downside in gold....it won't be there long

 

There will be ALOT of big buyers rushing in at those levels I think.....I will be keeping a good amount of money in cash for the next few months...just hoping for a chance to buy in at a sub $25.00 / $1400.00 price point.

 

I guess we will see....anyone who tells you they know for sure what is going to happen is either full of shit, or has a vested interest in making you a bagholder.

 

I will say one last thing on the topic....although it plainly sucks that silver and gold have been getting the bark ripped off them for the last couple weeks....I do take solace in the fact that they will NEVER be valued at zero. 

Wed, 05/09/2012 - 10:51 | 2409940 DosZap
DosZap's picture

Funny, for some odd reason, they just cant get silver below 29,at least not yet.................wonder why?

Wed, 05/09/2012 - 11:02 | 2409987 beaker
beaker's picture

I am tad bit less jaded about this particular gold break. I am not sure this is break is some grude fuck the Fed has against gold.  It seems to have nicesly coincided with the collateral calls these banks are getting.  In other words, they need to sell positions and post USD.  If you look at the breaks (after a period of consolidation) we have had in the past 12 months, they seem to run for 3 days.  History may not repeat, but I am keeping my powder dry to buy tomorrow. FWIW.

Wed, 05/09/2012 - 11:19 | 2410066 d2themfi
d2themfi's picture

Anyone know why the gold/silver miners are doing well today while physical isn't?

Wed, 05/09/2012 - 11:23 | 2410073 jimmyjames
jimmyjames's picture

Anyone know why the gold/silver miners are doing well today while physical isn't?

**********

That has all the earmarks of a bullish divergence-

Gold could continue lower for awhile yet-but "if" this is real-the turnaround wont be long in coming-

Wed, 05/09/2012 - 11:33 | 2410110 rosiescenario
rosiescenario's picture

All the QE3 ducks are lined up and quacking.....time for Ben to feed them.

Wed, 05/09/2012 - 13:01 | 2410367 SILVERGEDDON
SILVERGEDDON's picture

In twenty years, I want to see the television retrospective. " Where Are They Today ? " Roubini will probably be doing a Steve Martin impersonation. " 78 years old..... living in a van......... down by the river. "

Bernanke will still be packing his fudge for lunch. Shit on a stick.

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