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In Eerie Replay Of 2011, Gold Spikes Abruptly To Over $1770, Silver Follows
Day after day, the long overdue correction of gold to fair value which as we have discussed previously, is now at about $2000 based on the recent multi-trillion Central Bank balance sheet expansion, keeps getting delayed, providing cheap entry points to all real money adherents. And then we get moments like the past 10 minutes, when gold goes on the same kinds of buying sprees that we remember best from the summer of 2011. With no news at all, in a span of minutes, both gold and silver have soared, with gold touching on $1772, and now about $150 away from its all time highs. The return of gold now is 13% YTD, compared to the far lower 8.4% return for the general market. Why the move? A big buyer obviously. But besides that, why the hell not - when one considers that the last time gold was over $1900, total central bank assets were $2 trillion less, it is a miracle gold is not far, far higher. The catalyst this time according to some is the "sudden realization" that in one week the ECB's balance sheet is about to increase by at least 20% courtesy of the latest and greatest LTRO. According to others, it is "more buyers than sellers." Both are right. As a reminder: we have warned repeatedly that the massive balance sheet expansion is spilling over out from equities and into everything else, including gas and now, gold. We pointed out that the biggest trade off of a soaring market could well be the one thing that derails Obama's presidential campaign. Now the only other thing that could stop central bankers from their CTRL+P frenzy - the surge in real money - is starting, and unlike 2011, it is starting quite early this time around. As we said over the weekend: inflation is a-coming back.
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The thing that scares me about acquiring more gold up here is that lately, when the mood is "risk off" gold follows equities down. I'm sure that relationship would de-link at some point on the way down, but where?
Not to mention gold's habit of liking to come back and clear out stops just above recent highs. Will have to wait and see if it holds above this breakout.
Village Smithy
Why do you care?
UP HERE?, soon you will be writhing in agony at not getting it UP HERE.
When it hits $2-3k, and is still going up.
Will UP HERE be cause to NOT buy then?.
We know how this story ends......
Time to buy gold and silver again.
Somebody knows something
Fibonacci bitchez!
Barbarians are buying.
Breaking news Lord James of Blackheath has spoken in the House of Lords holding evidence of three transactions of 5 Trillion each and a transaction of 750,000 metric tonnes of gold and has called for an investigation
listen to his speach in the house of Lords, takes big B.s
http://www.youtube.com/watch?v=eL5hqvTWkYg
that stinks, you print allot of money then find out the gold was never there
It's not a miracle its not a lot lot higher... It's manipulation that its at price that its at
We all know that there is no alternative to the central bankers increasing the money supply. Just tell your children and grandchildren that they must compete for jobs with Foxconn where 12 hours per day, 6 days per week, living 20 per room in 3000 room dorms, eating 2 meals per day of pork/rice, w/o benefits, no financial aid, no entitlements is considered a good job. Now look at your ipad, smart phone, computer and think of the slave labor working for you. Thats the future. Slave labor will be here soon enough. So enjoy American Idol and inane TV, twitter, LinSanity, Tebow. It will end and it will be verrry painful.
Here is how slave labor will arrive in Amerika. People receiving any form of public subsidy, beginning with those on Food Stamps and Welfare, and progressing to the socially useless elderly receiving social security, will be told to report to work at a government job ( supervised by Chinese contractors) or they will lose their benefits. Many of those 'jobs' will be far away from where these people live, so the government will 'provide' them with housing. If they have young children, those children will be taken from them and sent to re-education camps. Older children will be given the choice of joining the military or going to special work camps. The cost of the housing (and food etc) will be deducted from their 'wages' and they will always owe more than they are making. At some point they will be transported around the country en masse to work on government projects - separated far from their home community with no way to contact anyone they know. If they try to contact anyone outside, they will be agitators and punished with short rations. If they refuse to work, they will be disciplined with increasing severity until they comply. If they fight, they are terrorists and executed - by executive order of five-term president-for-life Obama. They will never be able to escape this debt servitude.
Anyone want to bet that this plan is NOT already on the books?
Slaves.
Ron Paul Bitchez. His campaign heats up when gold does.
CAN I ASK WHAT HAPPENS TO GOLD WHEN THE FED RISE INTEREST RATES AGAIN ? CAN THIS MOVE LEAD TO GOLD PULLING BACK DOWN.
The Fed wont increase interest rates. The market will. When that happens the US treasury defaults and we become the new Greece.
The FED won't see the day when it would be willing to raise rates. Only a new gold backed currency can bring investors back to paper.
The gold price will rise if bond yields start to rise. People will sell bonds and buy gold until bonds are a good deal. If the yield on bonds doubles, they still won;t be a good deal. But their prices will be cut in half. No one wants any part of that until bond yields are near 30% to match inflation. Feel free to laugh at that 30% number. You won't be for long.
30%
Tears flow at that level.
50 Lips quiver and so on...
Maybe it is a plot against Obama. Obama should fire the idiot Bernank.
I wonder what Roubini is thinking about this.
Gee this spam tastes good.
Pump and dump.... preferably on US exchanges. Happening this obvious since mid-2011..... cue talking heads screaming "bubble!", followed by a "correction" that by coincidence is aproximatelly the same, as the spike right now...... blythe and co. luv making the paper-metals market look like a square wave.
The purpose? Cause fear via volatility, and while doing so earn a bit from those suckers naive enough to believe what they're seeing.
Short term volatility is down at the same time. We could see an orchestrated melt-up.
But at the end of the day, you're right about the P&D comments. When enough suckers are piling into the game, the so called smart money sells to them.
I don't think they've been too successful as of late though. Volume is abysmal.
Abysmal volume makes it even easier and safer. That goes for the entire so called "market" by now.
Silver bitchez!
Herding Greek Cats from Bondage
By: Jim Willie CB
Did you just call me a golden jackass?
<puts up his dukes>
nothing mattters except that crystal moment when you're short and the shit hits the fan. if you get it right, it's the career trade
Burl Ives - Silver & Gold
http://www.youtube.com/watch?v=azcj749wMIU
GOLD and SILVER are the most underowned and undervalued assets on the planet. It's that fucking simple.
Let's not forget PLATINUM.
Actually yes, forget it. Can't use Platinum to buy groceries.
Yup, and fiat is biggest and most widely spread practical joke.
No it isn't. Paper gold and silver do not behave like this without artificial intervention. But don't let that stop you from calling those artificial spikes "natural", yet the equally big plunges "manipulation", without figuring out the obvious.
Geez, guys. it happened quickly, but it was still less than a 1% move...
Enough. Lets talk about something important. Like the upcoming Zero Hedge sponsored Whitney Huston memorial. Trav7777 has produced a life sketch that will bring tears to your eyes. We need volunteers for the music and dont forget your favorite recipees for the potluck following individual tributes. Best, Benjamin.
http://www.borowitzreport.com/2012/02/20/cnn-says-nuclear-attack-by-nort...
yes...I did?
Paper goes up paper goes down....paper is boring. If the Fed (or whoever has a printing press that can create infinite sums) wants to they can sell enough gold to bring it down to 300/oz tomorrow. Why they don't is curious. In the end the paper price will be irrelevant. It will all be about the ounces you can pet.
"Why they don't is curious."
Not curious at all. Think of the stampede to buy physical gold tomorrow if the paper price suddenly dropped to $300.00 an ounce.
They can only drop the paper price of precious metals so far without a serious backlash on the physical front.
To whomever junked my comment above could you please explain the error in my logic?
Weeeee! Up two days in a row during US trading. That's not supposed to happen
If you view the minute by minute charts, you can see the real war is being waged in the silver pits. The banking cartel has laid in massive new shorts and are making a herculean effort to knock silver back below $34.
THAT is what I am beginning to think.
The board I am looking at sees no one bidding above 36.00
While the Asks are emptied because spot + Comm. is too damn high.
I am sitting tight. I can afford to. =)
Sunshine... sunshine on my shoulders....
Gold @1776, someone's trying to tell us something.
this time is different ???
still climbing... Que CME margin hikes in 5.. 4.. 3.. 2.. 1..
"He who has the gold makes the rules."
-- unknown
This spike is the gold market's answer to another Greece bailout ...sorry, I mean bank bailout disguised to look like a Greece bailout ...meaning Greek taxpayers get nothing from it ...but get to pay for it.
The bailout was announced late sunday night ...well ...early monday morning actually. It took 3 days for the market to figure out what really happened ...about how long it typically takes these days ...why these frauds have a half-life of 3 days or less.
Don't laugh at the EU, same thing happens here in America, like stimulus packages claimed to help the economy but end up being bank bailouts charged to taxpayers.
Whenever government says they're borrowing more money to help taxpayers, they're lying.
They're borrowing more money to bail out banks. Taxpayers just get the bill for it.
...ah, the Golden Fang
of the
Suicide Vampire Squid
of the
Great Wal Mart of China
...and without mercy the pathetic Whore of Babylon riding Chairsatan's Beast
With A Golden Cup In Her Hand
filled with golden compulations
AND
The WINE of WRATH
Are you so tempted and blind that your ''eyes'' are ''wide shut''? ...or are you just winking and thinking to escape the the seal of the mark of the beast by buying selling and trading the Golden Calf that Fiat Built?,
...like good little Fellow Masonic Worshipful Master Morons?
LMAO.
Sacrifice the child first and use the gains to secure your dusty asses, shall you?
Well
the BLACK HOLE IS AAAAH COMIN
FOR YOU ...bitchez
Here's your big gold buyer.
DSK just freed in France.
He must've bought a shitload.
I think it's people seeing the inflation, too, via gas prices. Some staple foods went up .20 this past week in my town, and I imagine that's diretly related to gas prices. That Obama is lowering the corporate tax rate just means the chickens are coming home to roost. Hyperinflation is in the offing. The one thing that doesn't make sense: short treasury ETFs are down.
check out the long and short of it (T curve) here: Real Time DOW Jones Futures QUOTE|Live SGX Nifty Update|Dow Futures Live Price|Live FTSE Futures|DAX Futures |NIKKI Futures|Gold|Crude Oil|Silver|Doller
when the longs are ^_^, the shorts are ?_?
The Mystery of Banking.....fraction that!
http://mises.org/books/mysteryofbanking.pdf
Should be, "The Mystery of Fractional Resrve Banking"
"it is a miracle gold is not far, far higher"
Miracle - n. That which is out of the ordinary course of nature, such as beating 4 Kings and an Ace with 4 Aces and a King. (Ambrose Bierce)
In gold we trust.
Here's my prediction based on the above chart: the CME is going to issue a major margin increase within 2 days, if not tonight....they have received a memo to do so from Ben...."we do not want any very obvious signs of inflation as it might slow our currency devaluation agenda. Gasoloine prices we can address with some BS, but when the pm's go orbital, it is hard to keep a staright face when discussing the need for QE3."
War/safe haven flows. Oil/Gold/DXY (USD break out trade looming) are all bid, equities sell.
Also good for gold is the constant insanity from ECB/EU and the dumb a-holes at the IMF. They have made a mess of the European bond market. Starting with Greece. Idiots. From wires:
--Analysts worry about likelihood of Greece strong-arming private creditors into the restructuring
--Use of "collective action clauses" would sound alarms across euro zone, especially for Portugal
--Exercising CAC would trigger payments on $3.2 billion of Greek CDS; threatening to use them would not
Credit goes to ZH ( a few weeks back) for pointing out potential Portuguese issues with bond (legal) issues
This is Iran giving us a primer. If we don't back the @ down they are going to start buying Silver and pop some of our commercial banks...imho
Look everyone has to make up their own minds about whether to be in PM or not - simple as that - and you live or die by the sword. Anyone that goes all in on anything is stupid. Little bit of this and little bit of that - try to protect yourself and try not to WORRY too much.