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Gold Extending Gains On Realization Fed's Only Option Is CTRL+P

Tyler Durden's picture


Update: $1700

As for those confused why EURUSD is back at 1.31, here is a reminder from 3 days ago: "Poor Mario apparently fails to grasp that for Germany a plunging Euro, and thus a surging export market to offshore trading parterns, is the only thing that matters now that its endogenous mercantilist import, pardon, trading partners of the past decade, the PIIGS, have no more debt capacity to buy German exports. Although even a technocrat probably understands that one does not get a weak currency by bailing out the weakest links over and over. Expect the European crisis to be with us for a long time. After all, that's precisely what Germany wants (of course, the Chairsatan may have other views on the matter)." It appears he did have "other views."

Presented with little comment, Gold is now at $1693, about to take out $1700 and the best performing asset class of the year: YTD: Gold +8.2%, S&P +4.9%, 30Y TSY price -1.44%. Furthermore, since this FOMC statement implies more easing imminent, it simply delays full blown LSAP so its "effectiveness", read max Russell 2000, peaks with Obama's reelection campaign.


Chart: Bloomberg


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Wed, 01/25/2012 - 14:08 | 2096824 GeneMarchbanks
GeneMarchbanks's picture

It's over.

It's all over.

Wed, 01/25/2012 - 14:11 | 2096844 Corn1945
Corn1945's picture

It is over. Even Kyle Bass mentioned that once you start ZIRP you can't ever stop without blowing yourself up.

ZIRP is the end game of any financial system. Look at Japan. If rates rise to something like 3%, they immediately implode. Is that scary or what?

And it gets to the point that even with incredibly low rates, you can still blow yourself up because you are increasing your debt so fast! A small percent of a really big number is still a big number!

Wed, 01/25/2012 - 14:21 | 2096895 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

It did not take long for ZH to get on this, what 15 minutes or so since the vertical spike started.  Bravo ZH!

Now let's see if gold keeps going up.  Maybe this is just another spike-ette that means little longer term.

Yes, Corn1945, there are few ways we can make any income as savers in a ZIRP environment.  And if/when we leave ZIRP: kaboom!

Wed, 01/25/2012 - 14:40 | 2096972 Silver Bug
Silver Bug's picture

Wow who would of guessed! Of course they have no choice except QE to infinity. Look out hyperinflation.

Wed, 01/25/2012 - 14:59 | 2097050 nope-1004
nope-1004's picture

Silver is 19% + YTD.  Wonder how high it would be if our wonderful regulators didn't beat it down at 2am last night, and also where it would be if the COMEX didn't need 5 margin hikes in 9 days to bail itself out last May.

This entire economy is a joke - corrupt and bleeding badly.  Metals need to be beat down to hide the extent of this ponzified POS.  Good luck Benocide, Timmay, and Osama......

Wed, 01/25/2012 - 15:20 | 2097156 BGO
BGO's picture

Watching platinum, the price ticker went beanzo a while ago. Check the H. 

Wed, 01/25/2012 - 16:25 | 2097470 trav7777
trav7777's picture

if you understand WHY ZIRP happens and how the Fed *does not* SET interest rates (they follow), then you understand why ZIRP never ends.

There is NO DEMAND FOR CREDIT.  This is because the forces of CONTRACTION are up on us, not expansion.  Everyone is facing no choice but to decrease borrowing.

Wed, 01/25/2012 - 16:54 | 2097562 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

NO ONE I know wants to borrow.

Wed, 01/25/2012 - 19:06 | 2098056 Zero Govt
Zero Govt's picture

"no one wants to borrow" except the bankrupt gambling bums on Wall Street and the insolvent cretins in Washington

America is sinking as fast as Europe and Japan yet all the drunk-stupid elites are demanding the central bankers keep bailing with yet more credit/debt ...just keep piling on the dynamite bankers, the fireworks will be all yours

Wed, 01/25/2012 - 19:49 | 2098154 DaddyO
DaddyO's picture



I just love ZH! Look at all the comments of those who really get it. The fuse is getting short and still burning, in fact the CB's of the world are fanning the flame.


Phyzzz, it's whats for stacking!

Thu, 01/26/2012 - 01:08 | 2098877 Freddie
Freddie's picture

Thank the Democrats and their golden Muslim.

Wed, 01/25/2012 - 15:18 | 2097142 kito
kito's picture

what qe are you talking about?!? what printing?!? another trough of fed promises, and only promises, filled with imaginary pig slop that the investment flock is running to.......nothing has changed today. another year of zirp to accommodate demand that doesnt exist (yes thats thanks deleveraging and very deflationary)? there wont be hyperinflation.....the world cbs are doling out just enough to keep things level at this point...........

Wed, 01/25/2012 - 17:43 | 2097812 Raymond Reason
Raymond Reason's picture

I wouldn't bet on deflation.  Reverse fractional reserve lending does not strengthen the dollar, it only reduces banking revenue.  The deficit must be funded.  USD will lose reserve status.  All inflationary. 

Wed, 01/25/2012 - 19:06 | 2098055 akak
akak's picture

Why do you clueless deflationary flat-earthers ALWAYS love to throw out that red herring of hyperinflation as the ONLY possible alternative outcome to your never-before-seen fiat currency deflation?  Oh yeah --- because your arguments are laughably weak and historically nonsensical.

We may not see hyperinflation in the USA or Europe, but we most definitely WILL see a significant fiat currency depreciation --- just as we are experiencing currency depreciation today, all disinformation from Bernanke and Trichet to the contrary.

Thu, 01/26/2012 - 01:10 | 2098880 Freddie
Freddie's picture

I love these deflationary trolls.  You go to the grocery store and see poor older people on fixed incomes with empty baskets and terror in their faces. Meanwhile, the muslim's voters have carts filled with junk food with their golden muslim's food stamp credit cards.

Wed, 01/25/2012 - 17:13 | 2097652 SomethingWicked
SomethingWicked's picture

ZIRP is more like a desperate attempt to stop (price) deflation.  Hyperinflation is a political. . . blah blah blah. . .

The FED is attempting to keep credit from contracting.  This is a big no-confidence vote in the economy.  It is also dollar negative - in keeping with the 'talk about strong dollar while do everything to weaken the dollar.'  The irony: Europe is more broken, so this is a losing game.

I totally agree that once the FED embarked on the ZIRP Heroin binge, the fate of the economy for the next 20-or-so years was sealed.  We are the new Japan.  Cash is king, with some PMs for hedging against the possibility of TPTB taking a big misstep and flying this plane into the ground.

Equities? Please.

Bonds? Toxic mortgage sludge securities may be the best short term performers, but only because the FED is telegraphing the desire to buy them all up as part of expanding and deepening the ZIRP Heroin binge.

Real estate?  Look what Japan for the last 20 years.  Possible exception is farming/gardening so you can save on groceries (the one area where prices ARE inflating).

Fuck it - pay off all your credit cards and buckle down.  Tell the wife that the summer vacation is now a staycation.  Oh, and remember that this time we have no gold standard to go off of (unlike FDR in 1933).  There is no fix for this.  There is only delay.

Wed, 01/25/2012 - 14:40 | 2096973 Manthong
Manthong's picture

Can we get on with the correction, now?

.. or is the S&P just going straight into hyperinflation?

Wed, 01/25/2012 - 15:19 | 2097150 tocointhephrase
tocointhephrase's picture


Wed, 01/25/2012 - 14:43 | 2096988 DoChenRollingBearing
DoChenRollingBearing's picture

@ DoChen  

Up $5 or so more since I wrote at 13:21.  $36 is a NICE MOVE.

Wed, 01/25/2012 - 15:57 | 2097333 DoChenRollingBearing
DoChenRollingBearing's picture

Spike back on, $1706, up $40.

Wed, 01/25/2012 - 22:51 | 2098597 StychoKiller
StychoKiller's picture

Au options expiry tomorrow...

Wed, 01/25/2012 - 14:21 | 2096896 Master_Blaster
Master_Blaster's picture

I guess this wasn't "priced in"...... love me my bullion!

Wed, 01/25/2012 - 14:32 | 2096945 greyghost
greyghost's picture

well i just realized that i now use zero hedge and the tyler boys as my go to news source for financials. was searching property in calif when i bounced into my trading account and saw my agq and uslv taking off and went straight to zero hedge to see whats up. sure enough top post is fed statement. go zero hedge

Wed, 01/25/2012 - 14:25 | 2096917 blindfaith
blindfaith's picture

well thanks God we have Gordon Norquist to keep us safe from economic collapse.

By the way did all the Republican congressman who signed his oath on taxes at the expense of their oath to the America Oath of Office that this gentleman also is the co-founder of the Islamic Free Market Institute?


Thu, 01/26/2012 - 01:24 | 2098893 Freddie
Freddie's picture

It is "Grover" Norquist and the majority of conservative Republican voters, not AH's who think Newt is a conservative, hate Allah's stooge Grover Al-Norquist.  Norquist is a piece if sh*t.

F him.

Wed, 01/25/2012 - 14:33 | 2096949 ilovefreedom
ilovefreedom's picture

So what you're saying is if all the unemployed people buy a house and an iphone everything is going to be alright?


Too bad you can't eat your phone.

The New American Dream: Not wanting your kids to grow up eating bugs

Wed, 01/25/2012 - 14:55 | 2097033 AL_SWEARENGEN

"Gold is your chance.  Gold is every man's opportunity.  Why do I make that argument?  Because every defect in a man and in others' way of taking him, our agreement that Gold has value gives us power to rise above...And for your effrontery at our meal a moment ago, I'd have seen you shot or hanged without second thought.  The value I gave the Gold restrainded me, you see...your utility in connection to it.  And because of my Gold, those at the other tables deferred to my restraint.

Gold confers power.  Power comes to any man who has the color."


-George Hearst - Deadwood season 3

Wed, 01/25/2012 - 15:12 | 2097054 DavidPierre
Wed, 01/25/2012 - 15:12 | 2097107 AL_SWEARENGEN

Thanks I forgot to throw a cocksucker in there..

Wed, 01/25/2012 - 15:21 | 2097161 tocointhephrase
tocointhephrase's picture

Gold $1700 Gold $1700 (PAPER MALFUNCTION PAPER MALFUNCTION) Show me the physical BITCHEZ!!!

Wed, 01/25/2012 - 15:48 | 2097291 docmac324
docmac324's picture

Spot on.

I literally have folks coming in the clinic daily wanting freebies.  They cannot affor to eat, they cannot afford their meds, et., etc., but boy they sure can sport that new iphone 4S!!  Keeps them occupied while waiting to be seen.


No shoes, no shirt, just utter consumerism.


Hopeless state.



Wed, 01/25/2012 - 14:40 | 2096976 grid-b-gone
grid-b-gone's picture

President Obama just told me last night that we've turned up for the foreseeable future. Now Bernanke tells me there will be no sustainable upturn for another three years.

So which one is the honest one?

Wed, 01/25/2012 - 14:49 | 2097006 Chief KnocAHoma
Chief KnocAHoma's picture

This is an excellent question! I think the bearded one is painted into a corner and is basically saying..."don't fucking look to me for help... all I can do now is print and pray."

Wed, 01/25/2012 - 15:16 | 2097133 DoChenRollingBearing
DoChenRollingBearing's picture

I think you are reading it right Chief!  The Fed really does not have much power to change things now other than to print.  Pretty soon it will be politicians who start coming under scrutiny.

Did Obama say last night that it was George Bush's fault?

Wed, 01/25/2012 - 15:40 | 2097253 Chief KnocAHoma
Chief KnocAHoma's picture

Did Obama say last night that it was George Bush's fault?

I only heard him say that about ten times before I finally gagged and began throwing up violently. I think the thought of living in a country that has an electorate dumb enough to elect him made me sick to my stomach.

But please understand - the Republicans are not right, they are simply less wrong.

Wed, 01/25/2012 - 15:46 | 2097281 weinerdog43
weinerdog43's picture

the Republicans are not right, they are simply more wrong.


fixed it for ya.

Thu, 01/26/2012 - 02:49 | 2098950 Freddie
Freddie's picture

Name the Democrat Ron Paul.

Name the Muslim Republican President

Fixed it for ya.

Wed, 01/25/2012 - 14:50 | 2097012 Ruffcut
Ruffcut's picture

Neither. It is contradiction to the top, boys and bitchezz.

Wed, 01/25/2012 - 14:56 | 2097039 sitenine
sitenine's picture

"So which one is the honest one?"


Wed, 01/25/2012 - 15:19 | 2097147 Poetic injustice
Poetic injustice's picture

Golden question, yes, which one of them is more honest.
I do think Bernanke is more honest as he speaks much less, and always says "tough times ahead".

Wed, 01/25/2012 - 16:23 | 2097464 Citxmech
Citxmech's picture

Niether - the only sustainable option looking forward is contraction, localization, and reduced consumption.

Wed, 01/25/2012 - 16:28 | 2097485 trav7777
trav7777's picture

that doesn't intersect well with any system that requires unabated growth, like the Fed/BOE/BOJ/etc. creditmoney systems.

Japan's credit creation hit the wall 20 years ago.  Only through carry trades and ZIRP/prints have they managed to stave off the UTTER COLLAPSE of the thing.  But, because it's only paper, they can do so forever.  Just print.  The system won't collapse.

Shit gets more and more expensive, lifestyles go down in the aggregate, but the monetary system remains.

Wed, 01/25/2012 - 19:05 | 2097775 Flakmeister
Flakmeister's picture

QOL in Japan has improved, though...

The difference is that Japan until very recently had a trade surplus and still has a modest current account surplus...

And the BOJ has US treasuries whose coupon is adequate to purchase Japan's oil imports....

You and I agree that it when the petro-dollar outlives it's usefulness will you see the full extent of your vision...

Wed, 01/25/2012 - 15:15 | 2097128 tocointhephrase
tocointhephrase's picture


Wed, 01/25/2012 - 22:09 | 2098478 Buck Johnson
Buck Johnson's picture

Your correct, it is over.  I've said this a number of years now, that the system has gotten itself in a situation that they can't exit it without the whole system imploding. 

Wed, 01/25/2012 - 14:15 | 2096861 Fred Garvin
Fred Garvin's picture

Buying just a little more time… Back in 1912  when the Titanic hit an iceberg, in short order everyone was apprised of the dire situation. There were not enough lifeboats to save everyone, but there were enough to save all the women and children and many of the men. Back in those heroic days Captain and crew went down with the ship of course. Today imagine the U.S. is the Titanic, (not to difficult) and it has struck the iceberg. The Captain and crew are telling everyone things are going to be fine. They tell all the passengers to just have another drink while they fix things up so the voyage can continue. Behind the scenes they quietly gather there rich friends and pile into the lifeboats. There are still many boats left, but instead of saving the woman and children, they loot the cabins of all on board and fill the remaining boats with their ill-gotten gains. As the string of boats rows away from the doomed ship some of the passengers notice and shout "where are you all going?" "Just off to get more Champagne of course" they reply "…carry on!"


Bon Voyage,

Wed, 01/25/2012 - 14:18 | 2096879 j0nx
j0nx's picture

Things are only this way because we the people allow it. Don't be mad at them. Be mad at us for not sticking our foot up their asses where it rightfully belongs.

Wed, 01/25/2012 - 14:22 | 2096902 blu
blu's picture

No actually it's okay to be mad at them. We trusted them to do the right thing. Trust is not wrong in that case. It may be misplaced but it is not wrong and they should have done the right thing when they had the chance and taken their lumps if any were involved.

But instead they lined their pockets. They are high criminals and enemies of the people. They should hang.

Wed, 01/25/2012 - 14:30 | 2096939 I Got Worms
I Got Worms's picture

"Hi Mr. Frog, I'm Mr. Scorpion. Mind if I catch a ride across the pond on your back?"

Wed, 01/25/2012 - 17:04 | 2097591 Jena
Jena's picture

Never mentioned in that parable is why the scorpion wanted to cross the pond in the first place.

Wed, 01/25/2012 - 17:31 | 2097749 JimBowie1958
JimBowie1958's picture

To get to the other side?


Wed, 01/25/2012 - 20:02 | 2098185 Jena
Jena's picture

I guess that's logical.  But he could have been a sociopath, looking to mess with some frog.

Too paranoid?

Wed, 01/25/2012 - 14:39 | 2096970 mayhem_korner
mayhem_korner's picture



Trust is the riskiest thing one can invest in.

Wed, 01/25/2012 - 15:12 | 2097106 honestann
honestann's picture

Believe no one.
Even more important, trust no one.

Wed, 01/25/2012 - 16:04 | 2097362 The Limerick King
The Limerick King's picture



On pondering rational thought

In an age when morality's bought

Who can we trust

To bridle their lust?

Nobody....ergo the rot!


Wed, 01/25/2012 - 14:25 | 2096910 Fred Garvin
Fred Garvin's picture

Fair enough. People forget that America is not a place or a group of people, it is an idea that must be kept alive through dilligence, hardwork and sacrifice. Sticking a flag on your porch between getting a beer and watching Ameican Idol does not make you a patriot.

Thu, 01/26/2012 - 01:54 | 2098918 Bananamerican
Bananamerican's picture


"America" is a state of mind, applicable to any People on any landmass, capable of rational thought and sustained vigilance.

Wed, 01/25/2012 - 14:28 | 2096933 Ace Ventura
Ace Ventura's picture

Only problem is they have the 'law' and the costumed enforcers of such on their side. Your foot would barely be in mid-swing before one of their jackboots would hit paydirt on YOUR backside.

Not disagreeing mind you, just sayin'. Only way to solve this is full-tilt-boogie 1776 Part Deux.



Wed, 01/25/2012 - 15:10 | 2097100 honestann
honestann's picture


But give a break to those of us who have been energetically warning everyone about this for decades, and have been called "kooks" and worse the whole time.

Wed, 01/25/2012 - 14:24 | 2096912 tarsubil
tarsubil's picture

Unfortunately, a couple of the passengers brought Bad News with them and the lifeboats can't get out of range fast enough.

Wed, 01/25/2012 - 14:30 | 2096934 Azannoth
Azannoth's picture

Those few were than quickly shouted down and even more quickly forgotten

Wed, 01/25/2012 - 14:44 | 2096992 tarsubil
tarsubil's picture

A Bad News cannot be shouted down and the effective range is up to 1500 yards.

Wed, 01/25/2012 - 14:55 | 2097036 swmnguy
swmnguy's picture

"This is your captain speaking... do not rush for the lifeboats ... women, children, Red Indians, spacemen (stock film of long shot of sinking vessel, the voice over fading) and a sort of idealized version of complete Renaissance Men first!"

-Monty Python, or Ben Bernanke; can't remember which at the moment...

Wed, 01/25/2012 - 15:24 | 2097172 BLOTTO
BLOTTO's picture

Good stuff Fred!

How do you like this Titanic of a fact:

Construction of RMS Titanic, funded by the American J.P. Morgan and his International Mercantile Marine Co., began on 31 March 1909.[22]

 Banker J. P. Morgan was scheduled to travel on the maiden voyage, but cancelled at the last minute.[55] Travelling in first class aboard the ship were White Star Line's managing director J. Bruce Ismay and the ship's builder Thomas Andrews, who was on board to observe any problems and assess the general performance of the new ship.[54]

Banker J.P. Morgan cancelled at the last minute...

Banker J.P. Morgan cancels last minute... J.P. Morgan cancels last minute...

All work and no play makes J.P. Morgan a dull boy...

Wed, 01/25/2012 - 22:13 | 2098485 Buck Johnson
Buck Johnson's picture

That is exactly what is going on.  Because like the Titanic if they told everybody on the ship that we are sinking and there isn't enough lifeboats, there would be a mad rush to get on those boats.  And the elite, the bankers etc., wouldn't have space for their ill gotten gains or even for themselves or family.  So with the help of some of the ship crew (govt. officials) they get to go ahead of everybody else and with the promise of money and/or a spot on the life boat the picked crew/govt. officials silently stow away into the night.  While the rest of us finally see the US as it truly is, another broke country that has been sent into a third world nation.

Wed, 01/25/2012 - 14:22 | 2096903 midtowng
midtowng's picture

Intermediate trend just turned bullish. Gold just broke above the 50DMA and a downward slant of reistence that started in September.

Wed, 01/25/2012 - 14:32 | 2096947 doomz78
doomz78's picture

i cant say that my great panther silver and sandstorm gold arent doing well today.  Or my silver bullion.  Thanks Ben.  I was expecting a pinky finger but you delivered a kit-kat bar..  you sly bearded handsome man. 

Wed, 01/25/2012 - 18:17 | 2097943 PhattyBuoy
PhattyBuoy's picture

Benny Bling - he the man ...

Wed, 01/25/2012 - 14:45 | 2096996 tabasco71
tabasco71's picture

Sh*t!!! I wish I'd been in that today!!!!

Wed, 01/25/2012 - 14:50 | 2097007 SHEEPFUKKER

The Bernanke "is a student of the Great Depression" and he is the professor of the Great-est Depression.  Student, meat teacher.......teacher, meet student. 

Wed, 01/25/2012 - 14:50 | 2097008 SHEEPFUKKER

The Bernanke "is a student of the Great Depression" and he is the professor of the Great-est Depression.  Student, meat teacher.......teacher, meet student. 

Wed, 01/25/2012 - 14:52 | 2097020 SHEEPFUKKER

Oops, double trouble.   You suck so badly Gentle Ben I hit the button twice. 

Wed, 01/25/2012 - 14:54 | 2097029 EL INDIO
EL INDIO's picture

I know I’m gonna be fired upon here but I’ll say it anyway:

I think today marks a temporary top in Gold.

Today’s reaction was way overblown; it will probably be reversed by the end of the week.

Regarding Silver, get out if you bought lower while you can.

Wed, 01/25/2012 - 19:39 | 2098131 saulysw
saulysw's picture

Why do you think this?

Wed, 01/25/2012 - 20:47 | 2098293 EL INDIO
EL INDIO's picture

Simple, no QE.

ZIRP is no QE.

Without a strong QE hot air pumping, the punctured hot air balloon plummets.

And today the remaining suckers have been suckered in (I'm talking about the market in general, not specifically PMs).


Wed, 01/25/2012 - 15:22 | 2097166 fockewulf190
fockewulf190's picture

Just had a silver bears movement. Time to change my undies.

Wed, 01/25/2012 - 15:30 | 2097199 fockewulf190
fockewulf190's picture

BTW, currently has 1oz. gold bars selling for less than €4 over spot! The kilo bars are a few hundred € under spot! Time: 20:27 CET. This won't last long. All the 100oz. bars are gone.

Wed, 01/25/2012 - 15:51 | 2097306 fockewulf190
fockewulf190's picture

Update: 20:47 CET

All the 1oz. gold bars are sold out. 500oz. and 1kilo bars still available and under spot! Still have a bunch of 20 gram bars, but probably not much longer.

Wed, 01/25/2012 - 16:17 | 2097395 fockewulf190
fockewulf190's picture

Update 21:09 CET

20 gram bars now less than €4 over spot! These bars must be flying off the shelves at this price. See what happens when you only update your prices twice a day!

Wed, 01/25/2012 - 16:23 | 2097448 fockewulf190
fockewulf190's picture

Update 21:20 CET

All the 1 kilo bars are sold out! I've never seen anything like this since the panic buying in 2009!

Wed, 01/25/2012 - 18:59 | 2098038 smiler03
smiler03's picture

Interesting commentary, danke :O)

Wed, 01/25/2012 - 20:43 | 2098284 fockewulf190
fockewulf190's picture

Well, checked the website a few hours later and all the 20 gram bars are gone as well! Incredible!

Wed, 01/25/2012 - 14:08 | 2096826 exartizo
exartizo's picture


Wed, 01/25/2012 - 14:10 | 2096842 Jonas Parker
Jonas Parker's picture

I bought silver yesterday - and gold is up today... figures...

Wed, 01/25/2012 - 14:15 | 2096860 NotApplicable
NotApplicable's picture

Silver is up a buck, BTW.

Wed, 01/25/2012 - 14:17 | 2096875 njrod
njrod's picture

still a good buy point, though.

Wed, 01/25/2012 - 14:32 | 2096946 Captain Kink
Captain Kink's picture

Silver up 3.4%

Gold up 2.0%


Hi-O Silver!

Wed, 01/25/2012 - 14:39 | 2096967 Eally Ucked
Eally Ucked's picture

if you think about it why not to buy a bit of platinum at 150$ below gold price? It's been below gold prices only few times in history and for very short time.

Wed, 01/25/2012 - 15:19 | 2097148 DoChenRollingBearing
DoChenRollingBearing's picture

Platinum is a GREAT way to diversify anyone's PM holdings.

Wed, 01/25/2012 - 15:24 | 2097174 xela2200
xela2200's picture

Because industrial demand has a huge impact on its price now a days. I still believe that it will go up, but it is a different ride. Maybe long platinum and short gold is a better play.

Wed, 01/25/2012 - 16:31 | 2097497 trav7777
trav7777's picture

don't tell the silverbugz about industrial demand.

And that pair trade I put on awhile ago.  Has so far been profitable but not wildly so.

Wed, 01/25/2012 - 17:24 | 2097695 akak
akak's picture

And that pair trade I put on awhile ago.

Was that the one in which you traded your pair of cojones for some SLV?

Wed, 01/25/2012 - 17:46 | 2097819 Captain Kink
Captain Kink's picture


Wed, 01/25/2012 - 20:05 | 2098190 fuu
fuu's picture

This one?

"yes I did try to long SLV short fkin shares to borrow"

Wed, 01/25/2012 - 14:41 | 2096978 mayhem_korner
mayhem_korner's picture

Silver up 3.4%

Gold up 2.0%

Thus, in real terms, stocks are down.  Again.  Despite what CNBC posts.

Wed, 01/25/2012 - 14:16 | 2096868 ZeroPoint
ZeroPoint's picture

I am picking my order today. 500 silver maples. Took my dealer two weeks for his supplier to get it.


Wed, 01/25/2012 - 14:24 | 2096913 tekhneek
tekhneek's picture

Damn bubbles.

Wed, 01/25/2012 - 15:01 | 2097055 squib
squib's picture another m1a or another gold eagle or keep the $1700 in FRNs in my savings account...

Whatever will I do?


Wed, 01/25/2012 - 15:01 | 2097062 The Disappointed
The Disappointed's picture

Make sure you take a hand truck with you. It is gonna be heavy.

Wed, 01/25/2012 - 15:30 | 2097205 Silver Pullet
Silver Pullet's picture

Last week I had planned to buy 50oz silver maples on Saturday, so the price rose 5% on Friday. Got them anyway.

This week I planned for another 50oz on Wednesday afternoon, so it rose 3% Wed morning. I'll get those too anyway.

I will let everyone know when my next purchase will be so you can frontrun me.

Wed, 01/25/2012 - 16:50 | 2097548 Angus McHugepenis
Angus McHugepenis's picture

2 weeks?!... I can get 5,000 oz in my hands within an hour. Wish I had the fiat to do it.

Wed, 01/25/2012 - 14:08 | 2096827 Comay Mierda
Comay Mierda's picture

good year for gold, keep track of the spx priced in gold chart, you will see a major downturn this year

Wed, 01/25/2012 - 14:08 | 2096829 Confused
Confused's picture

Ctrl + P indeed.


We are getting change all right. Just not the type we were hoping for.

Wed, 01/25/2012 - 14:08 | 2096830 Sheeple-49
Sheeple-49's picture


Pur Adrenaline


Wed, 01/25/2012 - 14:08 | 2096831 vocational tainee
vocational tainee's picture

Please let it come true...

Wed, 01/25/2012 - 14:08 | 2096832 tmosley
tmosley's picture

Let's see what happens when people realize that there is no unencumbered gold or silver in their paper vehicles.

Wed, 01/25/2012 - 14:17 | 2096871 NotApplicable
NotApplicable's picture

Shit, they cannot even understand why it matters, so what's the difference?

All they know is to beg to be one of the rescued.

Wed, 01/25/2012 - 14:36 | 2096960 Long-John-Silver
Long-John-Silver's picture

They will be repaid in more paper as were MF Global bullion holders that thought they had physical in the vaults.

Wed, 01/25/2012 - 14:09 | 2096835 CitizenPete
CitizenPete's picture

spike in the chart - 1693 @13:09

Wed, 01/25/2012 - 14:10 | 2096838 monopoly
monopoly's picture

We here at Zero Hedge have waited a while for this. We have taken abuse, been cursed at, ridiculed and left for dead. No way will I return the favor for all the "brilliant trolls" here that are all knowing.

This is what I continue to believe in and know that gold, silver, miners will do well moving forward. It is where I have been for years now, and do not plan any changes.

This site has helped me maintain and continue on. Thank you Zero Hedge.

Wed, 01/25/2012 - 14:44 | 2096990 fuu
fuu's picture

none of whom are around right now

Wed, 01/25/2012 - 14:10 | 2096839 swanpoint
swanpoint's picture

Yes, but it's gonna be a slower CRTL+P until it's a big fast CRTL+P..

Wed, 01/25/2012 - 14:43 | 2096987 mayhem_korner
mayhem_korner's picture



But started in 1971.

Wed, 01/25/2012 - 14:52 | 2097019 grid-b-gone
grid-b-gone's picture

It started in 1913. The writing on the wall appeared in 1971.


Wed, 01/25/2012 - 14:11 | 2096845 DavidC
DavidC's picture

I know it's been said before, but absolute insanity. When this blows (and it will) it's going to be curtains.


Wed, 01/25/2012 - 14:11 | 2096846 Defiant1968
Defiant1968's picture

I would like to know if there is any gold in Ft Knox - I think Rubin sold the gold -

Wed, 01/25/2012 - 15:01 | 2097060 Ruffcut
Ruffcut's picture

Yes there is, inthe form of gold paper wrapping dog turds.

Wed, 01/25/2012 - 14:12 | 2096847 ghostfaceinvestah
ghostfaceinvestah's picture

It's over.  Fiat currencies are on their last breath

Wed, 01/25/2012 - 14:15 | 2096862 ohhhhhbaaaaahhh...
ohhhhhbaaaaahhhhhhhhhmaaaaaahhhhh's picture


Wed, 01/25/2012 - 14:17 | 2096872 Backspin
Backspin's picture

I see what you're saying - the end is inevitable.  This is not the last breath, though.  It takes a lot to get a population to abandon their currency, even if it is just pure paper.  In Germany in the 1920's, people continued to use the paper through severe devaluation.  It took a staggering amount of printing before they switched to cigarettes, etc.

Buying gold and then seeing the price go up is kind of fun in a way, but I'm not actually hoping for that kind of money printing.


Wed, 01/25/2012 - 14:25 | 2096916 ohhhhhbaaaaahhh...
ohhhhhbaaaaahhhhhhhhhmaaaaaahhhhh's picture

What a buzz kill!  

Wed, 01/25/2012 - 14:35 | 2096955 Backspin
Backspin's picture

Haha - sorry.  Don't worry.  I'm on this train.  But I don't think this is the end, or the big move.  The end is still years away, and the price of gold then will make today's numbers seem small.

Wed, 01/25/2012 - 15:21 | 2097160 DoChenRollingBearing
DoChenRollingBearing's picture

+ $55,000

Wed, 01/25/2012 - 17:20 | 2097683 Backspin
Backspin's picture

That's actually a reasonable number.  US debt divided by US ounces of gold works out to about $55,000 per ounce.

And that, by the way, is one of the calculations that Jim Sinclair talks about.

And that doesn't include the unfunded liabilities.... or the possibility that the gold might not be there...  Man, oh man....

Wed, 01/25/2012 - 19:48 | 2098146 cranky-old-geezer
cranky-old-geezer's picture



That's actually a reasonable number.  US debt divided by US ounces of gold works out to about $55,000 per ounce.

That comparison is meaningless.  It has no real-world implication.  US govt debt isn't payable in gold. 

It isn't payable in anything since it will never be paid back.

US govt debt is a meaningless number on a ledger sheet somewhere.  It could be $20 trillion, $25 trillion, $30 trillion, who cares.

The only meaningful comparison is gold price in dollars, and that number is gonna keep rising as Ben keeps on printing.

I believe $2500 / oz is where USD starts losing reserve currency status, at $3000 / oz that's it, game over, USD no longer WRC. 

From there it rises rapidly through $5000 / oz and keeps going, America is facing currency collapse.

Now you know why JPM and such are trying so hard to keep gold (and silver) prices suppressed.

Wed, 01/25/2012 - 19:50 | 2098157 Flakmeister
Flakmeister's picture

The role of the dollar as a reserve currency has nothing to do with the price of gold....

Reserve currency status is a result of the worlds oil being priced in dollars...

More interesting is the price of oil in gold.....


Wed, 01/25/2012 - 20:18 | 2098227 cranky-old-geezer
cranky-old-geezer's picture



Reserve currency status is a result of the worlds oil being priced in dollars...

...which is changing now, as China, Russia, and India agree to buy Iranian oil in their respective currencies, bypassing USD.

This is an earthshaking event for USD, first time in modern history a significant oil exporting nation says "fuck the US dollar" and has three major nuclear powers on their side.

I guarantee other oil exporting nations will want to join that alliance.

Wed, 01/25/2012 - 20:49 | 2098287 Flakmeister
Flakmeister's picture

If only Iran defects, it is not a serious problem....

I suggest that you look up the the 33 countries that export the lions share of oil on the market and estimate where they stand vis vis the US and what they export....

The petro-dollar has at most 15-20 more years, perhaps longer. This a not prediction only an upper limit based on empirical data....

This is out of date but a good place to start

this appears to be better

 Edit: Note that the lists are not Net Exports....

Wed, 01/25/2012 - 23:30 | 2098684 cranky-old-geezer
cranky-old-geezer's picture



The petro-dollar has at most 15-20 more years, perhaps longer. This a not prediction only an upper limit based on empirical data....

Well here IS a prediction:  USD doesn't have even 3 more years as world reserve currency nor petrodollar, based on the development I mentioned.

Thu, 01/26/2012 - 08:49 | 2099151 Flakmeister
Flakmeister's picture

So you are calling for a collapse of the military then...


Wed, 01/25/2012 - 14:19 | 2096882 NotApplicable
NotApplicable's picture

You've no idea how large their "lungs" are, though.

You might die of old age while waiting for them to exhale.

Wed, 01/25/2012 - 14:12 | 2096849 LawsofPhysics
LawsofPhysics's picture

Let the great revaluation begin!  Got physical?

Wed, 01/25/2012 - 14:14 | 2096850 whaletail
whaletail's picture

Pretend and extend the pea eating.

This is thinly-veiled QE. Savers will be crushed. Keep stackin' ZH'ers.

Wed, 01/25/2012 - 14:13 | 2096853 Snakeeyes
Snakeeyes's picture


Wed, 01/25/2012 - 14:14 | 2096854 TradingJoe
TradingJoe's picture


Wed, 01/25/2012 - 14:14 | 2096858 slaughterer
slaughterer's picture

Set up shorts quickly right now.  

Wed, 01/25/2012 - 14:20 | 2096889 tekhneek
tekhneek's picture

These aren't the +$30/+$50 moves you're looking for. Move along... nothing to see here...

Wed, 01/25/2012 - 14:14 | 2096856 valley chick
valley chick's picture

what is CRTL+P ?  I am still learning... :(

Wed, 01/25/2012 - 14:17 | 2096878 Rakshas
Rakshas's picture

... Command P for you mac users...


Wed, 01/25/2012 - 14:21 | 2096898 drink or die
drink or die's picture

Try it on your keyboard and see what happens...

Wed, 01/25/2012 - 14:26 | 2096922 Diet Coke and F...
Diet Coke and Floozies's picture

It is generally the fast way (key combo in the fle menu) to print a document on a Windows computer

Wed, 01/25/2012 - 15:26 | 2097186 xela2200
xela2200's picture

It is the short cut in the keyboard for printing. It is a joke for printing money.

Wed, 01/25/2012 - 19:55 | 2098173 cranky-old-geezer
cranky-old-geezer's picture



It's the new shorthand for currency printing.

And it started right here on ZH.  Soon everyone will be using it

Wed, 01/25/2012 - 14:14 | 2096857 soopy
soopy's picture

lol CTRL+P.  Old school!  Can I get a printer too?

Wed, 01/25/2012 - 14:15 | 2096865 TheSilverJournal
TheSilverJournal's picture

It bewilders me that the market is so stupid that it didn't realize that rates can never be raised or else the US goes into immediately insolvency due to higher borrowing costs. So, when operation twist is announced which is a brand new program that poors money into longer term bonds, the market goes down, but when the Fed essentially does nothing, PMs soar.

Wed, 01/25/2012 - 14:19 | 2096885 ffart
ffart's picture

The U.S. is already insolvent and has been for years. they're just slowly raising the temperature on the pot of water so all the little bond monkeys don't jump out in a panic.

Wed, 01/25/2012 - 14:17 | 2096874 vegas
vegas's picture

To the moon Alice.

Wed, 01/25/2012 - 14:17 | 2096877 tekhneek
tekhneek's picture

I should have just listened to Roubini and gotten the hell out of this bubble a long time ago. I hate the continuous gains after market corrections.

Stupid bubbles.

$2 of silver for every $1 of gold and dollar cost average month over month, bitchez.

Wed, 01/25/2012 - 14:46 | 2096997 _underscore
_underscore's picture

 True tekhneek. Au & Ag is starting to look 'expensive' again to me after cost averaging down this past ~8 weeks or so, but sure glad I did. The stuttering bull trend line for both will probably present one or two more chances to buy on minor corrections - so be ready with your paper, y'all,

Wed, 01/25/2012 - 14:19 | 2096881 zerotohero
zerotohero's picture

Unfortunately this conversation will be repeated again and again over the next couple of years. The system is "fixed" which means TPTB have plenty of tools at their disposal to maintain status quo. I too have silver and gold - but am not under any illusions that all of a sudden its End Game time.

This will go on and on for a long time - 5 to 10 years before anything of consequence happens.

Do NOT follow this link or you will be banned from the site!