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Gold And Silver Surge Above 200DMA

Tyler Durden's picture




 

The last few days have been 'different'. Equities have relinquished their role as QE-sensitizers as Treasuries and precious metals have taken the reins. Perhaps though, as CNBC's Rick Santelli noted earlier, Gold and Silver are acting as barometers of anxiety - as opposed to clarifying QE expectations - as we see both Gold (> $1650) and Silver (> $30) break above their 200DMA and trade back to near five-month highs.

 

Silver has surged an impressive 9.4% in the last four days - its largest such jump in 10 months - and broken above its 200DMA...

 

Gold has soared back above $1650 ($1672 at last look), broken above its 200DMA, and the jump in the last 3 days is most in two months...

 

Charts: Bloomberg

 

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Thu, 08/23/2012 - 12:09 | 2730560 pazmaker
pazmaker's picture

nice

Thu, 08/23/2012 - 12:13 | 2730572 BaBaBouy
BaBaBouy's picture

GOLD $50K Bitchies ...

 

Print Benjamin, PRINT ...

Thu, 08/23/2012 - 12:14 | 2730588 Pladizow
Pladizow's picture

Gold is a treasure, and he who possesses it does all he wishes to in this world, and succeeds in helping souls into paradise. – Christopher Columbus

 

Only when the last tree has died and the last river has been poisoned and the last fish been caught will we realize we cannot eat money - Cree Indian Proverb

Thu, 08/23/2012 - 12:19 | 2730623 BaBaBouy
BaBaBouy's picture

BALONEY ...

 

If You "Cannot EAT Money" (I.E. Buy Food), then what the Crap is it good for???

 

 

Thu, 08/23/2012 - 12:23 | 2730648 fonestar
fonestar's picture

Another roll of A-Mark Liberty rounds on the way!

Thu, 08/23/2012 - 13:25 | 2730915 bernorange
bernorange's picture

Ned Naylor-Leyland claims the LBMA is having trouble delivering silver for large orders.  Sprott buying silver.  Soros/Paulsen/et. al. buying gold.  Basel III rules for making gold a tier 1 asset in the works.  FOMC hints at pending QE.  Global economies still under duress.

It's nice to be sailing with the wind for a while.

www.pmbug.com

Thu, 08/23/2012 - 14:29 | 2731190 Arcturus
Arcturus's picture

Buying gold and buying GLD are two different things. They are not taking delivery.

 

They are paper gold bitchez.

Thu, 08/23/2012 - 14:50 | 2731273 TruthInSunshine
TruthInSunshine's picture
Ron Paul vs Bernanke: Is Gold Money?

 

Ron Paul:             "Why do central banks hold gold?"

The Bernank:        "Well, it's a form of reserves"

Ron Paul:             "Why don't they hold diamonds?"

The Bernank:        "Well, it's tradition...long term tradition."

Ron Paul:             {Laughing}

Thu, 08/23/2012 - 15:00 | 2731317 DosZap
DosZap's picture

And another round of QE for BONDS helps JOBS how?.Just one more nail in the coffin.

Focus, man,Focus.....................LOL

Thu, 08/23/2012 - 13:52 | 2731045 Svendblaaskaeg
Svendblaaskaeg's picture

Life of Brian:

MANDY: Heh. Nortius Maximus his name was. Hmm. Promised me the known
world he did. I was to be taken to Rome, House by the Forum. Slaves.
Asses' milk. As much gold as I could eat. Then, he, having his way
with me had... voom! Like a rat out of an aqueduct.

Thu, 08/23/2012 - 12:19 | 2730625 malikai
Thu, 08/23/2012 - 13:20 | 2730892 dogbreath
dogbreath's picture

please explain.  regards

Thu, 08/23/2012 - 13:54 | 2731047 Svendblaaskaeg
Svendblaaskaeg's picture

a rat out of an aqueduct?

Thu, 08/23/2012 - 17:17 | 2731720 oddjob
oddjob's picture

Beware, longs.

Hello....people are placing savings in PM's now, paper is passe...drive the price down even more and see what happens.

Thu, 08/23/2012 - 12:59 | 2730806 Oldballplayer
Oldballplayer's picture

You must be a barbarian.

Thu, 08/23/2012 - 14:39 | 2731240 Seorse Gorog fr...
Thu, 08/23/2012 - 12:33 | 2730702 Kaiser Sousa
Kaiser Sousa's picture

"everything is unfolding exactly as i have foreseen...."

The Emperor Darth Sidius

 

FUCK YOU BERNANKE AND UR BITCH ASS BANKER BRETHREN...

cue the hatchets...

Thu, 08/23/2012 - 13:04 | 2730827 boogerbently
boogerbently's picture

In 2011, gold went from $1500 TO $1900 in two months. If it does it again, that will put us to October. If Israel attacks Iran as it wants to BEFORE the election (knowing Jews overwhwelmingly vote democratic), that will rocket gold further.

The "Black Swan" we have been hearing about may be the "Goose that laid the golden egg"!

Thu, 08/23/2012 - 12:09 | 2730561 midtowng
midtowng's picture

Looks like someone is expecting more QE

Thu, 08/23/2012 - 12:14 | 2730589 Cognitive Dissonance
Cognitive Dissonance's picture

Is that more QE in your pocket or are you just happy to see me?

Thu, 08/23/2012 - 12:14 | 2730596 NotApplicable
NotApplicable's picture

Or widespread dissemination of a picture of Blythe with her shorts around her ankles.

Thu, 08/23/2012 - 12:43 | 2730695 Lets_Eat_Ben
Lets_Eat_Ben's picture

I agree. I think this is frontrunning by insiders. QE III is coming. They sense the time is right (whispered) "...umm eletion in Novermber election in November" and the operation is a go. Will it be weeks or months?

I totally agree, this move in PMs in the past 8-10 trading days is pricing in an upcoming QE announcement.

Thu, 08/23/2012 - 18:53 | 2732001 ZeroAvatar
ZeroAvatar's picture

A move of this magnitude in this short a period of time is almost certainly insider frontrunning. (I'm making a list of possible reasons).

 

Somebody HAS to know something.  JPM trading down 5%?  Silver Scandal?  Possibly.  We won't know until the money has left the building.

Thu, 08/23/2012 - 12:11 | 2730564 BaBaBouy
BaBaBouy's picture

OR ... GOLD > $50K Bitchies ...

Thu, 08/23/2012 - 12:10 | 2730565 davinci7_gis
davinci7_gis's picture

It's starting :)

Thu, 08/23/2012 - 13:56 | 2731053 Svendblaaskaeg
Svendblaaskaeg's picture

Like getting a papercut while writing a suicide note? :-)

Thu, 08/23/2012 - 12:10 | 2730566 Cognitive Dissonance
Cognitive Dissonance's picture

Hold......HOLD.......HOLD.........

<I sure hope y'all were buying the fucking dip.>

Thu, 08/23/2012 - 12:39 | 2730728 Lets_Eat_Ben
Lets_Eat_Ben's picture

I went all in at $49.50. I'm so totally loaded with Silver!

Thu, 08/23/2012 - 12:46 | 2730756 Cognitive Dissonance
Cognitive Dissonance's picture

The second mouse gets the cheese. The first is just clearing the mine field.

Thanks for doing your part.

Thu, 08/23/2012 - 13:20 | 2730894 Nevermore Peabody
Nevermore Peabody's picture

I, for one, BTFOTFD, which is where one buys the fuck out of the fucking dip.

Thu, 08/23/2012 - 12:10 | 2730567 GeezerGeek
GeezerGeek's picture

Gold is up more than 1% today. Time to give up a little.

Thu, 08/23/2012 - 12:13 | 2730582 AgShaman
AgShaman's picture

"It's like a piece of rock candy...but it's not for eatin'...it's just fer lookin' thru"

Thu, 08/23/2012 - 12:42 | 2730706 Dead Canary
Dead Canary's picture

"Are you a bounty hunter?"

"Man's gotta make a livin."

"Dying ain't much of a livin boy."

Thu, 08/23/2012 - 13:31 | 2730945 AgShaman
AgShaman's picture

nice work....

Thu, 08/23/2012 - 12:13 | 2730583 NRGIsFree
NRGIsFree's picture

Barbarians!

Thu, 08/23/2012 - 12:13 | 2730584 Karlus
Karlus's picture

Gold, bitchez

Thu, 08/23/2012 - 12:13 | 2730586 TheCanadianAustrian
TheCanadianAustrian's picture

For some reason I decided to order 125 new maple leafs on the 10th. It's nice to have the market move in my favor for a change, even though it means I can't buy more as inexpensively.

Thu, 08/23/2012 - 12:19 | 2730617 pazmaker
pazmaker's picture

I'm a simple man...so no gold can't afford it...but I buy silver from a local shop just about 3 times a month last week he had 10 2001 silver eagles I got them at 28.50 each...it's great if you can buy local no shipping no taxes .. but I've been buying from him for 3 years now...

Thu, 08/23/2012 - 12:39 | 2730726 TheCanadianAustrian
TheCanadianAustrian's picture

Local gold and silver dealers are basically nonexistent around here. There's just no demand. The closest thing you can find is a pawn shop that sells the odd quarter or dime from 1910, at a minimum 200% markup of course.

You have no idea how ignorant Canadians are about gold and silver compared to Americans. I'm reminded of that video where that guy walked the streets trying to sell his $1500 gold maple leaf for $25. You could probably walk the streets of Toronto for an entire day and not find a single person willing to pay $25 for a gold coin.

Thu, 08/23/2012 - 13:16 | 2730879 philosophers bone
philosophers bone's picture

I know - "Do you realize how bearish owning silver bullion is?"

Yes.  Next Question?

Thu, 08/23/2012 - 14:07 | 2731104 Svendblaaskaeg
Svendblaaskaeg's picture

Congrats, be carefull now, dont lose them in a tragic blimp accident

Thu, 08/23/2012 - 14:42 | 2731253 TheCanadianAustrian
TheCanadianAustrian's picture

Bad news. The FedEx guy delivered my rounds to me at work today... I ran home, and in my excitement, I tripped and the whole box went flying over the bridge. 60 feet down, wouldn't you know it, a family of gypsies were passing by in a dingie. I'm facing 12 hate crime counts of involuntary manslaughter. :(

Thu, 08/23/2012 - 12:14 | 2730595 disabledvet
disabledvet's picture

Technical analysis from gold bugs? Whassupp wid dat?

Thu, 08/23/2012 - 12:16 | 2730607 NotApplicable
NotApplicable's picture

Reckoning Day can only be delayed, never avoided.

Thu, 08/23/2012 - 12:16 | 2730605 q99x2
q99x2's picture

BTFD. No way. My IChing at the beginning of the year said, "Get the fuck out of stocks by the end of August. If you wish to dabble during the 2012 collapse then you might try a 100 shares of UVXY just for fun."

 

Thu, 08/23/2012 - 12:29 | 2730677 Abraxas
Abraxas's picture

What translation of I Ching do you have? Mine is only talking about crossing some great water, and something about what the superior man would do, and that going South is propituous, and shit like that. No investment tips whatsoever.

Thu, 08/23/2012 - 13:15 | 2730875 fockewulf190
fockewulf190's picture

I Ichinged all my paper back in 2008 and have been buying real ching-ching ever since.

Thu, 08/23/2012 - 12:17 | 2730608 realtick
realtick's picture

Metals have nasty descending triangles to deal with before the bulls can celebrate:

http://chartistfriendfrompittsburgh.blogspot.com/2012/08/descending-meta...

 

Thu, 08/23/2012 - 12:26 | 2730639 akak
akak's picture

Fortunately, the metals' current ascending heptagonal pyramidal parallelogram trumps your measly descending triangle.

Thu, 08/23/2012 - 12:29 | 2730686 XitSam
XitSam's picture

+[current POS] for funny comment of the day.

Thu, 08/23/2012 - 19:41 | 2732111 Deo vindice
Deo vindice's picture

Not to mention the circular reasoning behind the comment.

Only on ZH can one get geometric forecasts of PM's.

Thu, 08/23/2012 - 15:45 | 2731482 Overfed
Overfed's picture

I'm putting all of my $$ into stocks right away!/s

Thu, 08/23/2012 - 19:02 | 2732020 ZeroAvatar
ZeroAvatar's picture

Yeah, bottom line is, don't get too excited, yet.....it may fall back, yet again. It may go to the moon, too!  (keeps fingers crossed)

Thu, 08/23/2012 - 12:19 | 2730624 Lost Wages
Lost Wages's picture

Surf the silver surge!

Thu, 08/23/2012 - 15:34 | 2731446 HungrySeagull
HungrySeagull's picture

You would get crushed.

 

Stay out of them there tubes.

Thu, 08/23/2012 - 12:20 | 2730627 czarangelus
czarangelus's picture

I don't think it's takeoff, yet. Too many people still think the "rally" in equities means anything. As for me, all I know is every month before the breakdown gives me another month to prepare, so despite my impatience, every new day it doesn't crack up is a little miracle...

Thu, 08/23/2012 - 12:26 | 2730667 larynx
larynx's picture

Me too! I wanted to buy for the last 2 weeks, but it did rise each time i looked. Damnit!

I will have to wait for the next dip back to the now support line, because i do not chase and only buy the dips. Like every body should do :)

 

Thu, 08/23/2012 - 13:45 | 2731014 misterb4096
misterb4096's picture

Anything below $35 or so is a "dip" right now... What's one FRN at the end of the day anyway? I like to chase the dips as much as the next guy, but I'm not going to get left out waiting for the "perfect moment" either. If you've got the cash, BUY!

Thu, 08/23/2012 - 15:38 | 2731455 HungrySeagull
HungrySeagull's picture

Anything below 50 is a buy.

 

Do it.

Thu, 08/23/2012 - 12:20 | 2730633 JustObserving
JustObserving's picture

The Fed will have to be on permanent QE as US debts and unfunded liabilities rise by $8.25 trillion every year.  What will create jobs in USA?  Exports to Europe? (Japanese exports to Europe down 25% year over year).  Exports to China? - not a chance.  We are already in a recession.

Permanent QE is the only solution.  Very bullish for gold and silver.

Thu, 08/23/2012 - 12:22 | 2730640 NEOSERF
NEOSERF's picture

You simply cannot elect a new president who will repeal the laws that have made your bank less profitable without a crash in the confidence indicator err...market...Let's face it, in Europe Spain's situation is about the same as Greece's and Greece is already in the kitty for about $400b so at 5x their economy, $100b is a nice start for Spanish banks to continue paying back German and French banks but this is a $5T issue (adding in Italy) and politicos are still playing with dimes...ESM and the EFSF doesn't help them...even massive printing that takes the ECB debt up to $8-9T doesn't wipe bad debt off although it may buy time it may push all investors out. 

Thu, 08/23/2012 - 12:24 | 2730654 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Recent fluctuations in the markets have been caused by the 47.572-day cycle exponentially-smoothed RSI crossover ratio stochastic variable Bollinger-band flow-channel indicator reaching a second-derivative Fibonacci inflection point.

 

Tuco Benedicto Pacific Juan Maria Ramirez

 

 

Thu, 08/23/2012 - 12:27 | 2730661 Karlus
Karlus's picture

So do we need to hedge the phyzz a bit with DZZ, or is that just madness?

 

Im also wondering if shorting the crude after the strike will be nice....

Thu, 08/23/2012 - 12:29 | 2730688 fasTTcar
fasTTcar's picture

Slightly off topic - Bank run in Vietnam. - http://www.bbc.co.uk/news/world-asia-19358745?print=true

Quote of the day:

The bank run has also put pressure on the dong and has led to an increase in the price of gold.

 

Thu, 08/23/2012 - 12:43 | 2730744 SAT 800
SAT 800's picture

It's not off topic at all; it's exactly on topic. The present ongoing bank run in Europe and the sheeple fleeing the stock market are providing funds to bid up the price of the metals.

Thu, 08/23/2012 - 16:13 | 2730778 akak
akak's picture

 

The bank run has also put pressure on the dong and has led to an increase in the price of gold.

I often put pressure on the dong as well (usually while sitting in front of the computer while alone at home).

Thu, 08/23/2012 - 12:33 | 2730703 QE49er
QE49er's picture

I am convinced, there is no way silver is going below $25 again.  There is no stopping this paradigm shift from the virtual automaton to hard assets, nothing.  I predict China will announce that they have a strategic allocation of silver buillon as an additional reserve currency this year, along wtih gold, which will boost the price above $100/oz. in less than a day.  This will be the start of the paradigm shift, congratulations ZH'ers you are ahead of the curve.

Thu, 08/23/2012 - 12:45 | 2730752 SAT 800
SAT 800's picture

I am convinced also; of course, I am sometimes wrong.

Thu, 08/23/2012 - 19:44 | 2732124 Deo vindice
Deo vindice's picture

But being convincingly wrong can sometimes be its own reward. :-)

Thu, 08/23/2012 - 12:33 | 2730704 LoneStarHog
LoneStarHog's picture

Yes! ... and ... Karl Denninger and The Market Ticker response? ... "Zzzzzzzzzzzzzzzzz....." :)

Thu, 08/23/2012 - 12:49 | 2730764 akak
akak's picture

Karl "Herr Forumfuhrer Denninger" is an asshat of the first order.

Thu, 08/23/2012 - 13:03 | 2730824 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak said:

Karl "Herr Forumfuhrer Denninger" is an asshat of the first order.

He almost sinks to the level of an assnadlerhat.

Thu, 08/23/2012 - 13:08 | 2730847 akak
akak's picture

Indeed --- Denninger is almost lower than a Nadler's belly.

Thu, 08/23/2012 - 15:53 | 2731504 Intoxicologist
Intoxicologist's picture

Sinking lower than Nadler's belly in a Chinese luxury boat.

Thu, 08/23/2012 - 12:37 | 2730720 monopoly
monopoly's picture

No change here. Just moving along with what I got. Not surprised at what we are seeing.

Thu, 08/23/2012 - 12:39 | 2730730 Arnold Ziffel
Arnold Ziffel's picture

But...but...but,  "you can't eat gold!"

Thu, 08/23/2012 - 12:50 | 2730767 molecool
molecool's picture

A 'DMA' is a Displaced Moving Average. You are referring to a daily Simple Moving Average. 

Thu, 08/23/2012 - 12:50 | 2730769 jomama
jomama's picture

the old pump and dump.  where/when have we seen this before?

Thu, 08/23/2012 - 19:13 | 2732044 ZeroAvatar
ZeroAvatar's picture

Caution would be advised:  For those of us already holding, YAHOOOOOO!  For those about to 'jump in with both feet'....baby steps.

Thu, 08/23/2012 - 13:00 | 2730808 Its_the_economy...
Its_the_economy_stupid's picture

It's kinda humorous to read the metals market predictions after a significant up day.

( and I am all in)

Thu, 08/23/2012 - 13:04 | 2730833 dow2000
dow2000's picture

Just bought some pretty cheap Oct AGQ puts as a bit of insurance against my phyizz hoard, I smell a trap.  If i'm wrong, I inusred myself for a couple hundred bucks through October.

Thu, 08/23/2012 - 13:13 | 2730864 lakecity55
lakecity55's picture

QE off the starboard bow!

Lift those chests, ye scalawags, an' don' lose a single coin!

Thu, 08/23/2012 - 13:15 | 2730872 exartizo
exartizo's picture

Looks like this is a short term bounce in PM's my friends.

Once the Euro starts to drop again and the dollar gains, gold will decline until the demise of the Euro.

There will be no more US QE until after the election, unless S&P <= 1150.

Thu, 08/23/2012 - 13:21 | 2730898 Money By Trading
Money By Trading's picture

Gold will at the very least re-test the 200 DMA, and probably swoop below it.  I'm going to get very interested in buying in the $1650s.

Thu, 08/23/2012 - 13:42 | 2731000 Hulk
Hulk's picture

Risk On Bitchez!!! Strong divergence between the DOW and Au

 

Got Gold ???

 

Thu, 08/23/2012 - 13:49 | 2731032 SmokeyTheBear
SmokeyTheBear's picture

You guys are crazy if you think these useless metals are anything of value.  Nancy Grace said it best. Quit being lonely white men and go out and get laid. http://www.youtube.com/watch?v=SMZbtoNEQbQ

Thu, 08/23/2012 - 13:56 | 2731050 akak
akak's picture

Thank you for that erudite analysis, RobotTrader.

Thu, 08/23/2012 - 14:02 | 2731077 SmokeyTheBear
SmokeyTheBear's picture

Nothing like comparing one of the most important economic issues of our time to one of the biggest insecurities of American males.  If you collect silver you're a 40 year old virgin who can't please a woman.  I am damn good at sex and not lonely.  Fuck silver. Baahhhh Baahhhh!

Thu, 08/23/2012 - 14:05 | 2731095 akak
akak's picture

And if you "collect" dollars, what does that make you?

Thu, 08/23/2012 - 14:13 | 2731132 SmokeyTheBear
SmokeyTheBear's picture

A cool ass fly mother fucker apparently.  Nancy Grace wouldn't lie

Thu, 08/23/2012 - 15:49 | 2731494 Overfed
Overfed's picture

You fergot yer sarc tags there, Smokey.

Thu, 08/23/2012 - 14:27 | 2731177 vinitbolinjkar
vinitbolinjkar's picture

Silver $31 is a crucial level once it trades three days above this then the stock is on its way to rock and roll. IMO the underperformance of silver to gold since 1980 will be played out over the next few years as silver plays catch up. (remember gold has more than doubled from its 1980s high of 800 while silver barely achieved its 1980s high of $50.

This time out silver because of its compelling fundamentals of frenzied demand, vanishing underground resources and virtually non existent overhead supplies makes for a perfect storm in a tea cup.

The first clue to the storm shaping up is the drop in silver mining in the US by 14% for the H1fy2012. The Latin Americas (43% of global production) are hell bent on nationalisation and the frequent flash strikes in their mining belts can lead to acute silver shortages which can cause spikes in the silver prices.

IMO silver is the best investment of this decade and maybe the next also.
slidsha.re/MNgM11
bit.ly/Ov2Zu4
bit.ly/O1KwFb

http://winningtrades1.com

Thu, 08/23/2012 - 15:15 | 2731381 plata pura
plata pura's picture

highest and best use of the precious will reveal itself; hopefully before it gets the extinct asterisk on the periodic table. expect more nations to nationalize it's silver fields.

Thu, 08/23/2012 - 16:19 | 2731560 Intoxicologist
Intoxicologist's picture

Surely all those boating accidents have left some visible PM's on the sandbars of the Mississippi, and other water bodies. 

BTFD ...in the water level.

Thu, 08/23/2012 - 18:24 | 2731911 Spigot
Spigot's picture

Watch week ending gold price. If we close at or above these levels, then game on for run past 1900 in gold. Will be "fast and furious" IMO.

Thu, 08/23/2012 - 19:43 | 2732107 knowshitsurelock
knowshitsurelock's picture

But the dollar is the worlds reserve currency!  All global oil is pegged to the dollar, and there are more dollars circulating in the world than in the USA.  How can metals, which do not have the demand, compete with the dollar?

There's no way that the dollar can ever collapse.  It's as solid as anything on the planet, while gold and silver are manipulated.

Remember when Max Keiser was screaming to buy silver and take down JPM?  Well, the only one's who got taken down were the gold and silver bulls.  I'll bet their asses still hurt.

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