Gold And Silver Update: This Is What A Global Fiat Bailout Looks Like On One Chart

Tyler Durden's picture

Presented without comment - except to say the 11% rise in Silver since Friday (and 16.7% rise since last Thursday's lows) is the highest 4-day move since 7/18/11 and is over 2 standard deviations on a long-run mean.

Gold is up 8.5% from the Thursday lows of last week and the USD (measured by DXY) is 1.6% weaker this week.

Chart: Bloomberg

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yabyum's picture

Silver is on a tear, it is REAL money.

Pladizow's picture

"A choice must be made between the natural stability of gold and the honesty and intelligence of the members of government,....I advise you, as long as the capitalist system lasts, vote for gold." - George Benard Shaw.

nope-1004's picture

Too bad Haines isn't alive, he'd be calling this another bubble.


CPL's picture

We'll be at $100+ WTI oil tommorrow.


Then it gets interesting.

trav7777's picture

gold actually down in AUD and BRL terms....dollar is getting fucking SMOKED today.

Where are the deflationists?

nohweh's picture

She's got something up her sleeve.

Triggernometry's picture

Let me guess- "it only costs $5 to pull out of the ground"

Sorry Trav, I still can't let that one go

The Big Ching-aso's picture

No kidding?   I thought it was $6.

Troll Magnet's picture

Must be deflation or something.

trav7777's picture

?  I wasn't the one who said that.

mick's picture

Mathman, AKA Methman gets honours for that.  Trav's more of a eugenics guy.

akak's picture

Where are the deflationists?

I suspect that, one by one, they are jumping in despair off the edge of their flat earth, as their laughable theories and/or pro-Establishment disinformation is discredited again and again by real-world events.

"Deflation", in the contemporary fiat monetary world, is nothing but a threat in search of a reality.

Bay of Pigs's picture

Hey akak,

Come on over to Turd's site sometime. You would fit in nicely around there.

akak's picture

Hey BoP, nice to see you again!  Sorry meeting up in Hawaii didn't work out earlier this year (never made it to Maui, just the Big Island once again).

I have considered joining Turd's community, just not sure if I have the requisite technical background to fit in there.  Nothing against his site at all, I'm just a bit intimidated by many of the posts, and posters, there (as I was initially here on ZH almost two years ago ---- today, to be honest, not so much).

Bay of Pigs's picture

There a fellow over there named ivars talking up his deflation theory and creating all kinds of chaos on the main board. I swear he was here at ZH last spring and got run off. Do you remember him?

Peace and Aloha to you...

akak's picture

You know, that name does ring a bell, but it may be only because I have in fact seen his posts over on Turd's site recently --- not sure if I remember him from here on ZeroHedge.  Can't say that I have closely followed his posts on TF's Metals Report, but doesn't he predict the eventual hyperinflation and/or collapse of the US dollar as well?  That would seem to not fit in with the usual deflationists' outlook.  His posts, to the extent that I read them, did not seem particularly trollish, just very TA-obsessed if anything.

I am not saying that one cannot make the deflationary argument in good faith, but my suspicions are that many of those who do try to make that case, both here and elsewhere, are disinformation agents for TPTB, trying to steer the herd from the REAL threat (i.e., guarantee) of fiat currency depreciation and collapse.  But those who are making the deflationary argument in all honesty and in good faith are, in my estimation, woefully misguided, and clearly and demonstrably ignorant of monetary history and the lessons that it teaches about overindebted governments and their fiat currencies.

Bay of Pigs's picture

I know he's here now, I just thought he was here last spring as well. I can't find any history of him back then, but I remember that name from before. 

pupton's picture

Red for requesting Haines resurrection, Green for getting his assinine perspective right.

GetZeeGold's picture


He got to take all his fiat with him......St Peter looks at him and brought paper with you?



Ponzi Unit's picture

Let's show a little respect for the deceased. Mark Haynes was a fine shill, a remarkably effective round-heeled whore for the MSM, a consummate bully and sell-side cheerleader. We will not see his like again. Okay, hats on.

CompassionateFascist's picture

Dorothy Parker (Jewess) upon hearing that Cal Coolidge had died: "How could they tell?".

SRSrocco's picture


I wondered why the commercials added over 63,000 short positions against the dollar over the past month.  It was the same reason why they liquidated enough commerical shorts to have the lowest NET SHORT POSITION in silver going back to 2003.  We are just beginning to see some fireworks in GOLD and SILVER.

The Commercials knew this was coming and the big bullion banks prepared for the US DOLLAR slaughter as well as the big move up in commodities, gold and silver.  The question we must ask, will this trend continue?  Or will we have some sanity back in the markets after lunch?  Many times in the past when there is a huge run up like this, during the latter part of the day we see a downtrend. 

In reality, it doesn't matter.  ENRON, BEAR STEARNS, LEHMAN BROTHERS and a whole slew of others saw their stock price plummet in the end.  Those who were using Technical Analysis to show how good of a stock these were when they were pushing to new highs before the PONZI FUEL ran out, failed miserably.  The opposite will be true for GOLD and SILVER. 

The big move higher towards $50 this year in silver was not a SPIKE or a BUBBLE but a move towards its true value.  Both gold and silver have been HELD LOWER like a balloon 100 feet below the water line.  Enron, Bear and Lehman were kept higher by the TA NOOSE, which finally killed the stock in the end.

So here we have to wait and be patient for the balloon to be released pushing the price of silver towards $100-$200.  When we finally see this sort of price in silver those NITWITS and GADFLIES who have been calling for gold or silver in a bubble will get more coverage on CNBC and FOX business.

pupton's picture

Good post.  I think we should start charting gold and silver in terms of how many oz one $1 FRN can purchase.  So instead of a chart headed upward toward infinity (which must necessarily break $50 to acheive) we would look at a chart showing the deminishing purchasing power of the USD.  It would be slumping downward.  After all, that is truly what we are talking about here.  The dollar is dying a slow death.  It's air is being let out of its bubble, not a bubble in silver being filled up with air.

seek's picture

This is actually how I track a goodly-sized chunk of my personal finances, converting things to/from miligrams of gold or silver.

For reference, 17.83 mg of gold buys a dollar today, and 884 mg of silver does the same.

Ten years ago, it took 89 mg of gold and 6220 mg of silver.

So yes, dollars are much cheaper to buy today.

rosiescenario's picture

"Both gold and silver have been HELD LOWER like a balloon 100 feet below the water line"


Like that analogy....when you are down 100 feet and exhale a small bubble it begins expanding and accelerating as it races to the it ascends and the surrounding pressure drops it gets bigger meaning that the lifting forces become greater as its displacement grows. Anyone who has used a lift bag knows what I is the visualization.

GoinFawr's picture

To boot, the lift bag is full of helium.

The Big Ching-aso's picture

The IMF = The Dollar.    Who's gonna bail out Europe?

Why Super Ben of course.



StychoKiller's picture

What, you don't believe in Sovereign Man?

"Normally, I'm not a praying man, but if you're up there somewhere, PLEASE save me, Superman!" -- Homer Simpson


TeamDepends's picture

When Black Friday comes.....

nohweh's picture

I'll collect everything I'm owed,

And before my friends find out I'll be on the road

thunderchief's picture

I do not think silver is on a tear yet.  It just has no resistence to the low forties, as the last take down was a drive by take down. 

A gap down for no reason will at some point lead to a gap back up.  Silver needs to fill the gap to 42 where it had steady buying al the way up. 

It was a fake takedown, just as in late April, and that leads to a gap back up to reality.  We will see what silver does when it goes back to 42 range..  I say a gap up to 50.

Balmyone's picture

Get your physical now.  Solving debt with more debt is a fool's game.  Thankfully there is a way out.  Physical silver and gold.  I just can't wait to see what happens when China's property market bubble finally crashes.  As you all know, property prices declined for the first time in recent memory last month.

FYI - 1 oz PAMP gold bars at $24 over spot at Gainesville Coins.


Gubbmint Cheese's picture

this market is f**ked.


GeneMarchbanks's picture

Bond market, you mean, of course...

GetZeeGold's picture


Only auto or sovereign nations.....the rest is all good.....

Quintus's picture

Just about everything other than bonds and the dollar is going through the roof.  


qussl3's picture

EUR/CHF is down too.

Something is up.

Rynak's picture

Leaked? Did you miss the M1 and M2 supply stats?

Then again, i don't know what to make of this recent move. After all, its all paper prices, and we know who are the major paper dealers..... prices crash out of nowhere, prices spike out of nowhere..... *shrugs*

Quintus's picture

The monetary base data have been out there for quite a while now, I can't believe that people only started looking at them today.