This page has been archived and commenting is disabled.
Euro Fudge Distracts From Global Debt Titanic; Intervention in Gold Market?
From GoldCore
Euro Fudge Distracts From Global Debt Titanic; Intervention in Gold Market?
Gold is trading at USD 1,719.00, EUR 1,283.70, GBP 1,095.30, CHF 1,582.40, JPY 135,510 and AUD 1,689.0 per ounce.
Gold’s London AM fix this morning was USD 1,712.00, GBP 1,094.49, and EUR 1,281.34 per ounce.
Yesterday's AM fix was USD 1,739.00, GBP 1,105.81, and EUR 1,297.28 per ounce.
Cross Currency Table
Gold edged higher in euros, pounds, dollars and all currencies today after the European Union leaders failed overnight to get all of the bloc's 27 members to agree a change in the EU treaty allowing fiscal integration as the ‘decisive’ summit in Brussels ended its first day in the early hours Friday.
Gold traded higher after the ECB interest rate cut yesterday, prior to sharp selling that came into the market at 1335 GMT. This led to gold falling 2% on the day and it is now down 1.3% on the week – again outperforming many equity indices.
Market News International (MNI) reported that market sources said that the Bank for International Settlements, the Bank of England and the Federal Reserve have been “good sellers of gold” after it had popped to a fresh session high of $1,755.90/oz.
The MNI report has not been explored and there have not been any official denials of official selling.
From a trading perspective there is at least a ring of truth to the MNI report as the sharp fall in the gold price was counterintuitive given there was no negative gold news and indeed the news was bullish with significant risk ahead of the EU summit and continued ultra loose monetary policies and negative real interest rates.
Given the scale of the coordinated intervention in markets by central banks recently one would have to be completely naïve to dismiss the report out of hand. There is of course the historical precedent of the London Gold Pool which ended in failure.
However, before jumping to conclusions it would be good if the MNI report was looked at and some questions asked - in the finest traditions of journalism.
Markets reaction to the euro summit fudge was not as bad as some of the ‘end of the world in 9 days if no agreement’ theorists who fear mongered in recent days. Many of the ‘9 day’ doom merchants had banking and political interests and agendas.
European indices are tentatively higher despite losses in Asia.
At the end of the day, agreement or no agreement the fundamental challenge facing Europe and the developed world is humungous levels of debt in the banking sector and in the shadow banking system (derivatives with a value in the hundreds of trillions) and real global financial system.
The root cause of the problem is this debt, as has been pointed out by many for months and years now. The problem cannot be solved by socializing the debt and piling public debt on top of this private banking debt.
As long as the official policy response is the printing and electronic creation of trillions of dollars, euros and pounds and ‘bazooka’ style currency debasement remains the monetary panacea du jour, there will be no real resolution of this crisis.
Therefore, fiat currencies will continue to be debased and fall in value versus gold.
Myopic markets continue to have the attention span of a goldfish with the sole focus on the Eurozone crisis again in recent days while completely ignoring the global fiscal titanic as seen in the appalling finances of Japan, the UK and the US.
The iceberg approaches and we only see the tip of the iceberg.
The total net cost of the Federal Reserve’s bailout alone is now estimated at an incredible $29.616 trillion according to research from the Levy Economics Institute (see commentary).
The global debt crisis is not a short term phenomenon rather it is a medium and long term phenomenon that will challenge us for years. No magic wand solution from central bankers or politicians is possible.
One UK analyst made the witty comment this morning that the UK is “as isolated as someone left on the dock in Southampton as the Titanic sailed away.”
Witty, however it ignores the fact that this crisis is very close to or already in the early stages of contagion and very close to another Lehman Brothers systemic ‘event’. The UK and the massive liabilities in the City of London are very much part of the global debt titanic.
These huge fiscal and monetary challenges remain the reason why the vast majority of investors and savers are being prudent in having a healthy allocation to gold for the foreseeable future.
Gold will continue to reward and protect prudent investors and savers from negative real interest rates and global currency debasement.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
SILVER
Silver is trading at $31.83/oz, €23.84/oz and £20.33/oz
PLATINUM GROUP METALS
Platinum is trading at $1,487.75/oz, palladium at $666.00/oz and rhodium at $1,500/oz.
NEWS
(Bloomberg)
Gold Analysts Most Bullish in Month on Debt Crisis
(RTT)
Gold Edges Up Amid Flat Dollar
(Reuters)
Gold steady as hopes fizzle on EU summit
(Reuters)
Britain isolated as Europe splits on fiscal union
COMMENTARY
(RitzHolz)
Bailout Total: $29.616 Trillion Dollars
(CNBC)
Video: GoldCore "Gold is Hedge Against Monetary & Systemic Risk"
(The Street.com)
Video - GoldCore Interview - Why Gold is Still a Safe Haven
(KWN)
Embry - $2,500 to $3,000 Gold Could Send Silver to $250
(Zero Hedge)
MNI Reports Coordinated Central Bank Intervention Sends Gold Lower Intraday
»
- 9709 reads
- Printer-friendly version
- Send to friend
- advertisements -
Courrption, deception, maipulation, and fraud, the halmark of the global banking cartel.
Stupid thing is they are using gold as a hedge which run completely contrary to fiat and the gross mismanagement that happening with it.
Then theres the questionable value of 'gold clad' tungsten as a hedge for anything much at all.
I find it curious that there is general agreement about central bank intervention in the equity, currency and bond markets, yet, when it comes to intervention in gold, no one believes it.
I suspect that is because no one (in our generation) really has any experience needing gold as a store of value. Therefore they say "why would there be any intervention in gold - it serves no purpose".
I'm so gonna be one of those bastards you hate that says "I told you so" to so many of my peeps.
It is "Peak Fiat Currencies", but unlike peak oil the producers of currencies can produce from nothing hence the debt collapse. Producers of fiat money will do anything to prevent the loss of faith and trust in their product including war, murder, assassination and even nuclear destruction. Keynes said one thing that defines Central Bank guiding principle, in the end we all die, which is exactly what these bankers will do if given the chance.
If you hate their game, stop playing it. Take physical delivery of the global banking cartel's kryptonite (aka gold). Leave the paper circus behind to burn a fiery death.
www.pmbug.com
The "game" is rigged and has no rules. Why would anyone continue to play? You think you are smart enough to beat them at a game they control? There is no rule of law in the financial markets, it's in "emergency/crisis" mode.
How would you know what I hold? Further, that does not change the fact that the Federal reserve mandate is PRICE STABILITY and EMPLOYMNT STABILITY, NOT manipulating the stock, bond or commodity markets.
Why can't the miners just hold back supply ala OPEC?
leave the circus, stack the fiz.
Fer Bugs: Interivew with Jim (Santa) Sinclair
You missed blood rituals, devil worship, and pedophila...
An oldie but a goodie still on topic:
I've noticed a strange situation
The spot gold and DOW correlation
It's easy to see
The Powers That Be
Have ordered this manipulation
I love your posts.
Hail the king baby, hail the king.
You should be published.
Not possible. According to Jeffrey Christian (CPM Group), there is never any deliberate manipulative intervention in the gold markets by central banks... never. The same circle that suppresses gold protects the likes of Corzine et al.
Looks like all his hard work an woodsheddin paid off! I smell the hand of M$Bonus here - Gold Core in house contrarian?!? Hats off BoneyM! Nice work if you can git it!!!!
p.s. drop us a line now n agin!?!
Precious Metals are a hedge against hyperinflation!!!
We are in a deflationary spiral with credit unwinding and debt destruction in full force...it's the debt.
During an economic setback, Gold and Silver will go down with equities because people seek more cash to pay off debt or hold more cash by not spending. They sell other assets like Gold and Silver to raise cash to meet margin calls or pay debt or hold cash.
My Golden Ratio (punt intended:
Equities Down = Gold + Silver DOWN
Equities UP = Gold + Silver UP
Not exact sync in degrees but absolutely in direction.
You first point is a valid one.....but you are exactly incorrect in your analysis that seems to support the meme TPTB are promoting lately - that gold will rise and fall with equities. TPTB have shown beyond any doubt that they are prepared to print to the death to try to stop the unrelenting (and unstoppable) deflation that is ocurring as the result of decades of false demand creation (Thanks Larry!). This will result first in stagflation, which we are experiencing now - and ultimately hyperinflation, which will be coming to a theatre near you very shortly. Therefore gold should be shooting higher.....unless of course it is being manipulated lower by TPTB....which of course it is....and which any second rate moron should understand.
So in other words: Wake the fuck-up and stop being a shill for TPTB!
My screen says
S&P 500 down 1.85% for the year
Gold 20.48% for the year
So I just don't see how has your golden ration been profitable this year nor how does it correlate in direction.
Signed in just to +1
I think you're wrong. If TPTB were going to print to the death, they'd be printing more right now (we all know they're doing it covertly). This is a $700 trillion debt bomb that is imploding. The forces of deflation will overwhelm TPTB. After the deflation destruction has occured, you'll get your hyperinflation, but not before.
You are correct. What's the timeline? I assume our President will do anything to get in there for a second term. I suspect cash will be flowing out fast. How do we see it though?
Well cant promises of more total failure bailouts revive this pathetic Santa Rally? I think Pink Floyd said 'just one more fix, should do the trick'.
Of course you always need a bigger "fix" to get the "high" your'e looking for. At some point the drugs don't get you high, they just make you sick (or dead). Ron Paul represents rehab for America, and most Americans don't want to go there.
"they tried to make me go to Ron paul but I won't go..go..go"- U.S. Voter
You are correct and one of only a few that get's a cookie. The Don Rickles of Zero Hedge gets no cookie.
Congratulations John Kearney...Alan Taylor...And the rest at Canadian Zinc!!!!!!! Super Job!!!!!
Sorry Earl...I didn't forget about you!!!!
Wait... What's happening with CZN?
Wonderful things with about a million two shorts on the rack...Should be fun to watch!!!!
Tyler!!!!!!??????
You assmunch's...What gives??? Why do you punish prudence and intelligence!!!
OT: No love for the insolvent French banks
U.S. Prime Money Funds Cut Holdings of French Bank Debt by 68% in Novemberhttp://www.bloomberg.com/news/2011-12-09/u-s-prime-money-funds-cut-holdi...
Anyone who has followed bill buckler's advice has had many a good nights sleep since.
When will this endless debate about whether there is Gold intervention or not END?
Of course there is Gold price manipulation. OF COURSE THERE IS GOLD PRICE MANIPULATION.
Yesterday was a prime example.
"If you own gold, you're fighting every central banker in the world." -Jim Rickards
Good thing there is more of us than there are of them. And our numbers are growing.
I only allocate $50/mo, plus 10% of any windfalls, to PMs. They just think I'm sick and ignore me. And if two of us buy PMs, they'll just think we're faggots, and ignore us both. And if three of us do it, they may think it is an Organization. And can you, can you imagine fifty people a day, I said fifty people a day buying PMs? Friends they may thinks it's a movement.
And that's what it is , the Buy and Hold Physical PMs Financial Massacre Movement, and all you got to do to join is buy physical precious metals next time a dip comes around.
With feeling. So we'll wait for it to come around here and buy it when it does. Here it comes....
Agree and personally I prefer "Golden Revolution".
Geez. That was a total rip off of Alice's restaraunt. I thought I'd get +50 for it. I must have posted too late, and the thread was long gone. So sad.
When Greenspan was Fed Reserve Chairman he was quoted as such.... What we have now are psych-ops. Simple manipulation of belief systems, and they work.
But, but, but, the FED is on record saying they "own" no gold.
That's OK. They probably didn't sell any either. They sold or leased paper claims to more paper claims.
I myself noticed that striking anomaly....how can you sell what yu donna own, I said to meself...meself replied, well ask an expert....like Jon Corzine!!?!?
The Fed{not federal} technically probably doesn't own any gold.
But the Treasury does most likely,and they would hold it in a secret slush fund called "the Exchange Stabilization Fund".
The Treasury has free run of this fund with no oversight and no holds barred rules.
The treasury (weasel Timmy) would allow the Fed to act as an agent for him and do his dirty work with his gold stash.
This fund should be exposed to the American People,it is not Democratic,in any way,and effects the whole worlds populations.
It is a VERY HUGE FUND,and most Americans have never heard of it.
.......The usa "EXCHANGE STABILIZATION FUND".......
LEARN ABOUT IT
If they hold any gold in their vaults they do so as custodians, mostly for other central banks. Any American gold belongs the US Treasury, which "owns" the metal (on behalf of the people of the United States). That's the theory, at any rate.
There's no technological/digital defense to protect gold from and against a group of traders/ bankers/ scumbags who talk out of both sides of their necks and have the manpower to digitally beat gold's pricing into whatever state of reasonableness they determine. Safety is illusory - especially when they change the rules and then can show up at your door with guns.
Time, the avenger.
Great point.
Did you see the article just put up here on ZH -
The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold.
Time, the avenger!!
Yesterday on the European rate decision gold popped right up to the declining trand line from September. It did not break through to the upside, although it may have had not the ECB head come out and say that he was not signalling more printing. That seems to have been enoiugh to send the momo guys in the opposite direction causing the tidal sell-off.
We have had massive support at 1705, despite repeated raids. It has to hold or we will see a lot more carnage in weak holiday markets.
Yes it smacks of intervention ... but for now we remain in a steadily closing wedge. It will have to break at some point.
OT: Quote of the day comes from the completely and utterly insolvent Spain
12-09 9:15: Spanish PM says Eurozone will be fiscal sustainability fortress
Aaaahahahahaaa!!! Seriously, these dudes are mentally ill. And crap, i need to change my diaper again.
Meanwhile Spanish businesses relocate to Deutschland...
http://www.bloomberg.com/news/2011-12-09/wary-european-ceos-move-cash-to...
Well, Deutschland is within the fortress. Oh f*ck i need to change my diaper again! ;-)
indeed the news was bullish with significant risk ahead of the EU summit and continued ultra loose monetary policies and negative real interest rates.
while i dont doubt there was intervention, i wouldnt describe a lack of printing by the ecb to paper over europes mess as bullish for gold. the lack of printing is clearly deflationary in a time of deleveraging.............
If GATA.org is not on your favorites list, then you should add it immediately. Their work has proven beyond question the price of gold and silver have been manipulated for at least 30 years and probably much, much longer. It is very simple, exchange fiat for real money and compare the value of real money to oil, land and housing prices and the picture will be much clearer. If you like, you can also compare real money to the DOW and see how the value of real money is growing stronger in every catagory.
Today's selling by the central banks must be a plight to raise cash. Once again this provides a nice entry opportunities for those fearful of the gold trade. The reality is that all this global debt is here to stay. The only thing imminent is more easing across the board. Gold makes sense in this market and should continue to outperform going forward.
they create "money" they don't need to sell gold, to get money. it's a ruse
Why the big fuss about taking down the gold price? Isn't that what a gold-backed currency does? If the government continuously manipulates the price of gold to be a constant dollar amount that is a gold-backed currency.
Look at the IMF numbers. Cameron was right and Sarko wants a bailout! Europe is drowning in debt and slow economic growth.
Europe Moves Ahead With Fiscal Union, UK Declines – Europe Buys More Time With Bailout And Vague Promises Of Budget Cuts – Mission Impossible!http://confoundedinterest.wordpress.com
Gold still has a lot of catching up to do compared to
the amounts of paper outstanding and with all
the printing still going on, my money is in
gold and silver.
And in case of a deflationary collapse,like the one
bigB is so afraid of '30 style,gold has not done
to bad at all compared to other asset classes.
Gold rules through the ages.
Why would anybody be stupid enough not
to own gold.
#AgSinner 'Why would anybody be stupid enough not to own gold'
I don't know but I happen to know plenty. They seems to be positioned well enough financially, hold jobs that seem to require rational and intelligent decisions. I hope they are wrong on this one and I'm right.
The Euro fudge is getting packed...