This page has been archived and commenting is disabled.
Gold and Silver Plunge – Called “Intervention”, “Window Dressing”, “Temporary Smash”, “Paper Fiasco”
From GoldCore
Gold and Silver Plunge – Called “Intervention”, “Window Dressing”, “Temporary Smash”, “Paper Fiasco”
Gold’s London AM fix this morning was USD 1,721.00, EUR 1,289.812, and GBP 1,079.13 per ounce.
Yesterday's AM fix was USD 1,788.00, EUR 1,329.96, and GBP 1,120.79 per ounce.
Gold fell 5% in New York yesterday and closed at $1,696.70/oz. This was its largest one day loss since December 2008. Spot silver was down 6.4 percent at $35.54/oz, reversing the 4.5% seen Tuesday.
Cross Currency Table – (Bloomberg)
Spot gold has risen more than 1% today after the sharp drop yesterday as Asian jewellers, traders and investors rushed to take advantage of attractive prices. Gold in Europe remains near the highs seen in Asian trade and is now trading at $ 1,718.38/oz.
There was blood in the gold and silver trading pits yesterday as leveraged longs got their heads handed to them on a plate.
The massacre was attributed to a host of different reasons - from month end book squaring, to the positive PMI numbers to Bernanke's suggestion that ultra loose monetary policies may soon come to an end.
None of these reasons would justify the scale of the massive sell offs seen in gold and silver yesterday.
Gold and silver markets saw massive sell orders from large institutional sources - as only large institutions selling could have caused a price falls of the magnitude seen yesterday.
There were highly speculative unsourced rumours of an Asian fund selling gold and rumours of a single bullion sale of 31 tonnes or some 1 million ounces by an unnamed seller.
The unusual trading activity saw some very determined sellers who appeared to not be motivated by maximizing trading profits.
One trader said how he had not seen that sort of volume before and the activity was akin to "computerised manipulation" and that there were “massive volumes going through and appeared as if some large entities had bids and offers at the same price”.
5 Year Gold Price Daily– (Bloomberg)
The positive PMI data would ordinarily result in some price weakness as would the testimony from Bernanke which suggested that the Federal Reserve's ultra loose monetary policies may not continue much longer.
However, the scale of the selling and size of the price falls was unusual.
Respected analysts such as legendary Jim Sinclair, John Embry and Jean-Marie Eveillard suggested that the sell off was due to manipulation by bullion banks.
Sinclair said it was an “intervention” and was “window dressing” that long term bullion investors should not be concerned about as inflation was coming due to “QE to Infinity.”
Embry said that it was a “smash down” and a “paper fiasco.” Jean-Marie Eveillard suggested that central banks may have intervened, as they are doing in fx and bond markets, and sold gold in volume into the market.
It is of course very difficult to ascertain what caused the sharp falls in the precious metals yesterday however it would be naive to completely discount what Sinclair, Embry and Eveillard believe may have happened.
The Commodity Futures Trading Commission (CFTC) has been investigating manipulation of the silver market for more than 3 years now.
While Bernanke’s nervous testimony in front of the US Congress yesterday drove down stock markets and boosted the dollar, many market participants believe the US Fed will launch another round of quantitative easing and will flood the markets with more cheap money.
This will lead to inflation - giving investors an additional reason to buy bullion.
European banks took €530 billion of cheap 3 year funds from the ECB yesterday, bringing to over €1 trillion the amount of money the ECB has dumped into the financial system in two months.
Bullion is still up 10% this year, on track for its twelfth yearly gain, as interest rates remain low and central banks continue to inject cash into the markets boost liquidity.
It provides yet another great buying opportunity for gold and silver bullion buyers whose are focused on the long term and realise bullion's ability to protect and preserve wealth.
It shows the importance of being wary of leveraged trading which should only be engaged in by experienced professionals and even they should be wary. 'Widows and orphans' should avoid all forms of 'paper gold' and stick to physical bullion.
The sharp fall in silver may again be used to warn and prevent investors from buying silver as it is "too volatile".
When similar sharp falls occur in equity markets (Nikkei and many European indices in recent years), it is never used as a stick to beat stocks. This again shows the continuing bias and double standard against gold and silver and in favour of equities.
Currency & Precious Metal Ranked Returns YTD – (Bloomberg)
It is worth remembering that while gold and silver fell sharply yesterday, gold and silver are up 9.5% and 24.5% YTD. Again, showing the importance of focussing on the long term diversification and safe haven benefits of the precious metals.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
SILVER
Silver is trading at $34.77/oz, €26.13/oz and £21.81/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,695.50/oz, palladium at $710.00/oz and rhodium at $1,475/oz.
NEWS
(Reuters)
Gold bounces back, bullish tone intact
(Reuters)
Gold down 5 percent, biggest one-day drop in 3 years
(Wall Street Journal)
Gold, Silver Take It On The Chin; Bernanke Warns Of Inflation
(Money Control)
Is the profit-taking in gold a buying opportunity?
(Jim Sinclair)
Today’s Window Dressing Fall In Gold
(Forbes)
Ron Paul Tells Bernanke He Killed The Dollar, Silver Coin In Hand
(Zero Hedge)
Ron Paul To Ben Bernanke: "People Lose Trust In The Government Because You Lie To Them About Inflation"
(King World News)
Embry - Gold & Silver Smash Temporary, Oil to Super-Spike
(Reuters)
Iran's gold-for-oil offer won't shake bullion world
»
- 18082 reads
- Printer-friendly version
- Send to friend
- advertisements -
Nevermind. Perhaps you edited while I responded.
Gold dump coincides with the report of China dumping treasuries and Iran trading oil for gold. TPTB in the west will do all that is possible to undermine gold in favour of the USD.
why would you trade oil for gold? i thought "life was the other way around."
200-210 barrels per oz seems fair.
Actually, this reminds me when I was flying across the Atlantic and the plane suddenly nosedived for 2-3 seconds. Then it righted itself and flew on to JFK.
The Captain never said a word.
I buy physical and while the fiat is a good point of reference, IMHO that is all it is, a reference. Once true barter starts to a large degree, again IMHO, the true value of PMs will be known, sorta. Although depending on the trade, your negotiating skills, date, place and time can add more variables too so who the hell knows right now anyway?? But I think we will see barter sooner than later on a lot more stuff. BTFD, Physical only bitchezz none of that paper crap for me.
PPT ... BEWARE THE IDES OF MARCH...
they're going to stop printing, WTF do they pay the defeceit with? hope and change?
lol piss in someone elses ear B bernank.
Doesn't anyone ever get suspicious that gold always goes up everywhere but the U.S. and always goes down in the U.S.? It must be coming from the pawn shops.
god this is a stupid post, and really should just have achart of GLD and the asce3nding channel drawn in the proper manner adn it was at the top of that the cart going back to 2008.
0n 12/30/ 12 it touched the bottok of that channel, and has been running anlong the top of it since about 2/3/12
even better do it monthly!
Maybe Willie is right? – ONE GOLD EVENT, THE BIG SQUEEZE
So, the selling of 31 tons out of a total of how many known to exist, would lead to a price collapse of 5%? If that's the best story they could come up with, straws were very firmly being clutched.
Do me a frickin' favour! HOGWASH!!!
Bullshit, fucking manipulation can go suck a big one
Dear Ben.
Got your memo. Bought Silver Bullion at $36 yesterday.
Thanks,
Timmy Geithner
Weed:
She beats scotch for trade and grows out the ground for Harvey & Willis ...
... side order of silver & gold with that.
No guns or ammo for me unfortunately.
I can, however, accelerate an 18mm steel ball bearing from rest to impact, accurately & with consistence, using my mountain bike inner-tube powered catapult.
It can fire pebbles too. And screws / old nails etc. In fact, it will sling shit, with lethal velocity, just about anywhere.
Anyone know where Goliath is hanging out?
We needs to talks ...
I was one of the leveraged longs yesterday, but thankfully tight stops kept my head on my neck... however, my hair was on fire with a 4% loss.
3rd time for me, first was 20% portfolio loss, 2nd about 9%.
So, that's it then for paper. The issue has always been phys storage, but maybe an alarm system and 2 safes, 1 a dummy and 1 main.
midnight gardening? there is something to "not all eggs in one basket"
Its been my experience that the low prices shown on the screen never lasts until when the coin shop opens up in my time zone. However, today looks like a good day to buy a round shiny object of monetary value, thanks bitchez!
Bernanke looked anything but nervous yesterday. He looked like he was doing a cocky, Keynsian victory lap, all the while shouting, "Na-na-Na-na-boo-boo!"
All this happened in 08. They smashed gold repeatedly and many were disheartened and thought the bull was over. And here we are at 1700. THey can smash it but it will just keep coming back.
Time is on our side
Yeah, love to watch all the wall street jagoffs and talking heads try to explain what happened. Gold down $100, $Vix flat, stocks hardly move... " Market" looks fine here, except the only thing that makes sense to be long is down 5% in 30 minutes.
Lets see them croak oil for 5% one morning.
GOLDCORE....
Why don't you's stop pussy footing around and saying lots important people are saying manipulation is taking place,while you say you find the size of the price fall "unusual"
Just come out and say it.
The bullion banks with the blessing of the USA Govt went to town on anyone trying to save money from being STOLEN through inflation taxes.
The USA Treasury also was most likely involved through the ESF that Timmy the weasel has sole power over to do with as he wishes.
FUCK YOU'S BANKERS.
Manipulation until it can't be manipulated any more. When will that be? Hard to say. Hold on to your PMs. Insurance.
I was hoping it would go down further so I'd have another good "buy" point.
Maybe next month.
Bullion got smacked down but the miners held their own for the most part. They are also booming today. Pretium Resouces just made another all time high.
In Bob Quartermain we trust.
"the testimony from Bernanke which suggested that the Federal Reserve's ultra loose monetary policies may not continue much longer"...
Umm...I read the transcript, where the fuck does he say this? He said the exact fucking opposite, yet I keep reading this lazy-ass retro-fitted opinion everywhere. Gold got hit...oooh, musta been sumptin the Bernank said.
The man is Marriner fucking Eccles in a second life come back to fix his "mistake" of 1937. I'm getting sick of Goldcore.
The most convincing explanation we have to date for this sell-off is a reported massive 31 tonne sell order that triggered gold and silver price collapse.
This most likely at least started the sell-off.
Explanation and source link here:
http://financeandopportunity.blogspot.com/2012/03/bullion-dealer-explains-metals-plunge.html
We think Long Silver $SLV and Short $GLD is a very interesting spread trade
We invite every one to join us today, at 4pm, for a live webinar hosted by Efrem Hoffman. Global Head of Macro-Market Strategy, as he presents New Capital Asset Pricing Framework
- See how the application framework traces out the next Black Swans Events, across
Diversified Asset Classes and World Geographies, for 2012 and 2013
- Learn how Market Uncertainty can be Converted into Absolute Returns;
- Using an Innovative Capital Asset Valuation Framework which;
- Taps Into the Perception Space of Financial Decision-Makers --
- Combining elements of Bottom-Down Analytics with Behavioral Finance and
Quantum Decision-Making.
use this link to sign up
https://www2.gotomeeting.com/register/242289650
or go to
NakedSwanTrading.com
I think we are seeing a further bifurcation of physical and paper. When the metals were getting pounded yesterday I was giddy with being able to acquire some more silver at reduced prices. I went to Gainsville and started looking at rounds maples and ASE's. At the end of the day with Silver down over $2 and Gold $90 I saw relatively no change to the prices. ASE's were at $38 if you paid by CC and that was relatively unchanged frm the previous day
Anyone else see anything similar on any of the other bullion sites?
I bought PMs for what comes after the fall of our current debt ponzi. Although, I admit, I like to see the price rise (it gives me more financial flexibility); Ultimately, I really don't care what "the market" says it's worth today as I have no plans on selling today. I bought it for "The Day After".
I also look at buying pyhsical as my way of fighting the status quo. Remember that America's founding fathers mutually pledged to each other "our Lives, our Fortunes and our sacred Honor". Is it really so much to ask those of us who want to see a new world with honest money that we have to pledge a few dollars? Doesn't seem to me. Regardles of how it "pays out", it's the best investment I ever made.
Happy trails.
I should have gotten physical about 40 years ago. But I did what I was told. Make a 401k etc etc etc.
All illusions easily burnt on paper that goes with it.
I am no longer a Silver Bug. I am now a Silver Beserker. Must buy silver when money allows. Debt be damned.
i'm a gold bug, but I think the correction is coming.
http://www.jinrongbaike.com/
http://www.cnhedge.com/