Eurozone Contagion Deepens After Disastrous German Auction; Silver Supply Issues

Tyler Durden's picture

From GoldCore

Eurozone Contagion Deepens After Disastrous German Auction; Silver Supply Issues

Gold is trading at USD 1,687.10, EUR 1,262.60, GBP 1,086.30, CHF 1,554.20, JPY 130,590 and CNY 10,760 per ounce. 

Gold’s London AM fix this morning was USD 1,686.00, GBP 1,083.55, and EUR 1,260.46 per ounce.

Yesterday's AM fix was USD 1,697.50, GBP 1,083.90, and EUR 1,253.14 per ounce.

Cross Currency Rates

Gold is lower in all major currencies today except euros with euro gold having risen 0.25% to EUR 1,263/oz. 

The euro came under pressure due to the surprise collapse in new Eurozone industrial orders which led to Germany failing to get bids for 35% of bunds offered. The German 10-year bund yield rose sharply from 1.92% to over 2.06%.

This is one of Germany's worst auctions since the launch of the Euro with the Bundesbank having to pick up nearly 40% of the 6 billion euros on offer.

The German auction in turn led to further weakness in European equity markets. Asian equity indices followed US equities lower after news of a new US bank stress test and then the poor Chinese manufacturing data.

Gold will be supported at these levels as the euro zone debt crisis continues to degenerate with the periphery increasingly affecting the core – leading to contagion.

The bond auction in Germany is a disaster. If Germany has to buy its own bonds, it is frightening to think how other European nations, including France, will fare at bond auctions in the coming weeks.

Gold remains possibly the most under-owned asset in the world, and definitely the most infrequently and poorly covered in the mainstream media.

The specialist financial press and media (FT, Bloomberg, Reuters, WSJ, CNBC, Dow Jones etc.) covers gold, but the mainstream media continues to report on gold sporadically at best. When the mainstream media does cover gold it is covered badly with poor analysis and a continuing simplistic suggestion that "gold is a bubble".  It fails to comprehensively cover the gold market.

The vast majority of investors and savers in the western world have no allocation to gold whatsoever and know little or nothing about gold. 

Daytime TV and the popular press and media almost never have segments about how to invest in, or own gold. 

The western public is not familiar with the gold market, let alone familiar with how to invest in or own gold bullion, gold coins or gold bars.  This leads to a large number of the public who don't trust what they are not familiar with, or what they simply do not understand.

Gold in USD – Bloomberg Inflation Adjusted (1970-2011)

The 'woman and man in the street' in much of the western world continues to sell gold as seen in the 'cash for gold' phenomenon. This is in marked contrast to the Chinese and Indian public that has been aggressively buying bullion as a store of value. 

Inquiries and sales from the general public remain anemic and there has been only a very slight pick up in demand from the public - despite the real deterioration in the outlook for the Eurozone, the US and the global economy.

GoldCore remains confident that most of our business is coming from educated investors.

This means existing clients who already have allocations are increasing their allocations, high net worths and some corporates concerned about deposits due to currency and systemic risk.

The majority of the public does not understand gold and the importance of diversification.

There continues to be a lot of preconceived notions, lack of knowledge and ignorance about gold as a safe haven asset and as an important diversification.

A plethora of excellent research articles by the World Gold Council, Casey Research (see their excellent report on gold in commentary today), major banks, ourselves and many others continue to be ignored by most of the media.

Comprehensive research is ignored. Singular and minor news events such as a few gold ATMs globally or comments by George Soros or Nouriel Roubini are focused on in a lazy fashion and used to suggest that gold is a bubble.

Financial ‘experts’ and ‘advisers’ with little or no experience or knowledge of the gold market often speak authoritatively about gold and generally in a negative manner which dissuades investors and savers from properly diversifying.

The case for owning gold has never been stronger and yet popular media and public skepticism remains high.

The lack of coverage in the mainstream media and the occasional poor coverage is symptomatic of a bull market in its infancy.

Animal spirits and public participation remain negligible.  

From the GoldCore Trading Desk
There are reports of some US and UK bullion dealers not having supply of certain bullion product – particularly silver bars.

We currently have stock of nearly all major bullion products in volume and ready for immediate delivery.

However, supply issues are developing with regard to 10 oz silver bars which are not available for now. 100 oz silver bars in volume require a 2 week wait.

With regard to gold product, there are 1 week delays for kilo bars and for 1 ounce Krugerrands and Philharmonics. 

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

Silver is trading at $31.66/oz, €23.64/oz and £20.34/oz 

Platinum is trading at $1,545.20/oz, palladium at $584.00/oz and rhodium at $1,575/oz. 

Gold hovers around $1,700; euro zone eyed

Gold retains gains; euro zone concerns persist

Fed Requires Top Banks to Submit Capital Plans

Gold to Gain on Central Banks, Corn to Advance, Hermes Says

(Zero Hedge)

Casey Research: Is Gold Still The Answer For Investors?

(Mish’s Global Economic Trend Analysis)
New Currency Controls in US at Currency Online; Capital Flight and Forced Repatriation in Europe

(Mish’s Global Economic Trend Analysis)
Perfect Storm the Most Likely Scenario; Is Europe Set to Declare a Chapter 11 in Early 2012?

The Two Prerequisites for Hyperinflation

Stephenson on Euro Breakdown & Gold Great Investment for Next Decade

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TruthInSunshine's picture

Only Mo Cheez can save the economy now.


SGS's picture

Silver? What Silver?  Its not in JPM's report. 

CPL's picture

Silver baby.


The other white meat.  The cheaper cut that everyone owns in terms of physical.

Oh regional Indian's picture

IF ONLY people under-stood the real nature of Gold and Silver. But esoteric thinking is for Astrologer types, right?



bernorange's picture

Sprott is going to have a hard time finding silver for his PSLV shelf filing.

CPL's picture

Yes he will.



Dr. Richard Head's picture

Come's only 50 million ounces at today's price.  It's not like JPM is short those 10,000 contracts (thanks Turd).

Republi-Ken's picture

TALKING YOUR BOOK you fucking asshole conservative...



akak's picture

It's bad enough to be a retard, but really, really annoying to be a screaming retard.

knukles's picture

Most of the western world remains ignorant of how to buy gold?

That's sales hype.
Europeans (the other white meat) have been owners of gold, silver, for eternity.
It's the Nord Americanos who don't know fuck about the PM's.

Gimme some breathing room.

Fucking pubescent shite.

akak's picture

Silly Knukles, don't you know that for the vast majority of (provincial and ignorant) Americans, the United States of America IS the Western World?

In the minds (such as they are) of the average Wal-Martian, a map of the USA is simply blank on the other side of our borders --- "beyond here there be dragons".

Xibalba's picture

'If it hurts when you drop it on your toe, SELL IT.'  - JPM 

get those digitized credits. 

Saxxon's picture

Just buy and put in a cigar box in your closet.

Captain Kink's picture

Monster box crushed the poor cigar box...before I took it out in my canoe and it fell overboard. Darnit!

Dr. Richard Head's picture

There is a rash of burglaries happening in my neck of the woods.  The FIRST place the thieves go is into the master bedroom closet.  Of course, the houses that have been broken into are ones that have left a door unlocked.  Pull together the fact that people are putting their valuables in a spot know for "hiding" valuables along with leaving a door unlocked and you got yourself a Darwin Wealth Winner.

knukles's picture

Somebody tried that on one of my neighbors a while ago.  He keeps his gold and silver out on his coffee table in plain sight.  They didn't pay attention to the sign that said "beware of the claymores".  Stepped on the pressure pad and..... 

PaperBear's picture

Silver supply issues ? And yet there is pleny of paper silvers being sold by JPM and the other criminals.

SheepDog-One's picture

Yea isn't paper silver just as good? I'm sure they got our back just like MF GLobal, what could go wrong?

knukles's picture

Paper silver is best when held in segregated commodity accounts at the CME.

JSD's picture

Get your umbrellas out; it's about to rain Euros.

thunderchief's picture

Nice link. 

One and a half billion dollar purhase of physical silver at these criminally manipulated prices. 

I hope they drive the price down lower in the coming weeks so he gets even more bang for the buck. 

ParkAveFlasher's picture

Thanks for that link drop.  Gave me an ingot in my pants, gettin shinier by the minute.

ActionFive's picture

Sprott's near inside looking silver trade history is getting more attention than the fed. Is this where they have to cross his trade?

Carlyle Groupie's picture

My TurkeyHedge is in the hurtlocker.

Use of Weapons's picture



Paid troll. Blocking in effect.

thunderchief's picture

Sprott physical Silver fund PSLV is going to make another offering.  A boat load of physical silver will come off the market in the coming weeks/months. 

tmosley's picture

What, paper price going down disrupts physical supply?  Say it ain't so!

apberusdisvet's picture

All of my 3 local coin/bullion dealers have little or no product to sell; 3-4 week wait.

Montgomery Burns's picture

Mine also. Funny how they seem to have plenty when the price is up but have little or none when the price is low. hmmm.

youngman's picture

Someone pulled a lot of silver out of Comex yesterday....I too am confused why Gold and Silver are not skyrocketing and setting new new highs.....the western world is defaulting in front of our eyes....someone is losing alot of money somewhere....if you are a bond holder who is watching his investment fall by 15%..or more..depending on the country....what do you do...these pensions that rely on an 8% year over year return...good luck...oh well...more rum for the crew I say...keeps em happy

BidnessMan's picture

Compared the fiat paper market, the Gold and Silver markets are tiny.  Easy to manipulate when you have a blank check from the Plunge Protection Team.

eddiebe's picture

Steady as she goes boys and girls. Now is not the time to panic with the herd. Trade your Federal reserve notes and other Government IOU's for PM's, food, oil and yes, lead. There is a sale on for limited time only.

Gief Gold Plox's picture

Unfortunately, not so much in euros. But that's ok, I was almost out of powder anyways.

r101958's picture

"If Germany has to buy its own bonds, it is frightening to think how other European nations, including France, will fare at bond auctions in the coming weeks."

We are conveniently pointing our finger at EU issues. We should remember that when we point a finger at the EU three fingers are still pointing back at us.


FL_Conservative's picture

Can somebody speed up this S-L-O-W M-O-V-I-N-G train wreck already?

LuisF's picture

Helicopter Ben will save the world today. Sell all PMs. JPM gave trhat advice. TRUST them 

SheepDog-One's picture

DANG! Well cant printing more piles of paper solve all this? Get busy there, worthless central banksters who have never produced a damn thing of value your whole lives come on if youre gonna print, dont talk about it...PRINT! Ya bastards!

topcallingtroll's picture

Germany wont allow printing.
The market finally understands and this is the beginning.
Huge deflation. The worst kind, with rising interest rates.

yabyum's picture

One of the hoard of "we buy gold and silver" shops in town has upgraded its work force. The sign carrying chicken is now a goriila. who are these people who have the full page ads in the paper? They are trying to sock it away. Have yet to see Blythe. Yet.

OliverTwist's picture

And somebody took out a few ounces of silver from Brink's .... (ca.: 2.3 Million)

Wasn't me!

(sorry I saw that youngman has already posted this fact)

Gief Gold Plox's picture

"German 10-year bund yield rose sharply from 1.92% to over 2.06%"

German 10Y bond yield now at 2.125%

Franken_Stein's picture

If you American knuckleheads still don't get it what this is all about, then I can't help you and maybe you deserve what is about to be unleashed onto you.


When, for the love of God, will you start to connect the dots ?!

Iwanttoknow's picture

Sir,you are one of the few who gets the the forest.ZHers are a smart bunch.However,they are mostly fixated on the trees.No sarcasm.Are we moving to to a global currency and a global fed reserve?

MachoMan's picture

We are moving that way, it's just not perfectly in a straight line...  more like a stair-stepping effort...  each boom bust cycle we'll get closer and closer to unifying world central banks (and political control) once and for all.  The problem, of course, is that the best laid plans of mice and men...

until that day.

Josh Randall's picture

Was Corzine spotted in Europe?

TideFighter's picture

Anybody buying potassum, nitrogen, and phosphate? After all, them 48 million soon-to-be 'snap-pers' will need a meal.

Bansters-in-my- feces's picture

So what the fuck is with silver dropping over $1.00 again.....?

Fuck You's J P Morgan Chase & Co........

................................FUCK YOU'S.......................