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Gold: Knock, Knock, Knocking On Record's Door
Update: gold is now at a fresh all time nominal high, with a price equivalent to that fateful year in which the world's biggest and perfectly legitimate criminal cartel was founded on Jekyll Island some years ago.
When it comes to gold, one can now officially skip the foreplay (because apparently there is such a thing s a 2G spot). Unlike two weeks ago when the latest Shanghai margin hike caused gold to temporarily lose its equilibrium and flop, however briefly, somewhere in the lower 1700s, as of tonight it has valiantly processed, and completely ignored, news from the Shanghai Gold Exchange that trading margins for the gold forward contract, Au(T+D), will be raised, temporarily starting Sept 9 to 13 percent from 12 percent, while the daily circuit breaker would be lifted to 10 percent from 9 percent, and has proceeded to rise to within nickels of the all time high, with spot trading over $1910 at last check. Since Europe is about to open shortly, and since the free fall in risk will resume now that virtually every rhetorical gimmick has been used and abused ad inf, it appears that absent the CME doing away with margin altogether, we will see $2G spot within hours.
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Looks to be the quickest dip in a while. Probably over 1910 by 10am GMT.
I'm watching the chart ... it looks like the V from V For Vendetta.
Then they will smack it down again, and the longs will respond again.
Get ready for a roller coaster ride!
That shit dropped about 2% in less than a half hour.
Not going to be double top, just buy physical gold! and you will be fine!!!
Gold just dropped $50 in seconds.
Hilarity to ensue.
Oh my goodness, they 've done a drive by...
1867 and a vertical drop on 1,402,000 contracts!
Ag 41.67 and wobbly. Jeezus
netdania charts with volume kick ass
1867 and a vertical drop on 1,402,000 contracts
I just missed launching an order @ 1867.xx. I had just finished entering the damn thing when it kept tanking, so to cover my ass I went to change it and was debating between 63.xx-64.xx, when the elevator went the opposite direction. My quick exit was for just under 1889.xx, but with a light touch trigger finger .....!@#$%$%^&.
About now there are a number of pairs of Armani pants being discarded as both, stop loss and hail Mary orders got filled, and even liquidated within seconds due to hitting the other side or stop losses.
I was just about to mention the mayhem in the FX markets when Bloomberg started addressing the issue.
Spreadshits and calculators buttons are flying off about now and sweat is flowing @ many desks.
Damn sweet moves if you know how to play them. Shit ...$55 from the low in ~30 mins. Damn it .... missed it by seconds. Grrrrrr
Hang in there!
The cartel fuckers will attack again.
$2000 must be a major line in the sand that they will defend.
The best defence is attack, they will try to keep it just below $1900. Any cheaper would just attract buyers.
The mechanism will be fear, sudden plunges to scare off the weak hands.
The plunges of course, are our friend.
Gold clears 1913.50, the key high from Aug. 23. This is an important bullish development. The metal has Initial resistance at 1925.28, a key extension level. A break above this level would extend gains towards 1972.88, an extension level. The metal is overbought on hourly chart, so we expect a short term correction. Initial support lies at 1874.45.
For Silver, our outlook remains bullish. The metal has key resistance at 44.25, Aug. 23 high. A clearance of this level would be a key bullish development. Next resistance comes in at 45.56, the top of bull trend channel drawn off July 1 low. Near-term support lies at 41.10 ahead of 40.20.
For Platinum, the 50-day MA crosses above the 100-day MA to substantiate the bull trend. The metal now heads towards 1916.75, the year-to-date high. A break above this level would signal extension of gains towards 1935.48, an extension level. Support lies at 1868.50.
For Palladium, the likely crossover of MACD line above the zero line endorses the bullish conditions. The metal has initial resistance at 794.95, 61.8% retracement of the decline from 849.00 to 707.50. A move above this level would expose 815.61, 76.4% retracement level of the same decline. Support lies at 752.25.
Dienstag, 6. September 2011
Source: UBS
And Silver burning. Lulz.
Hoping yesterday wasn't a bad time to drop 10 large on PMs.
any day like that is a good day as long as you
are in phase and liquid with time and will to live.
It was a paper smash for the idiots that set stops ! They will learn sooner or later not to keep moving the stops up behind the price. That will learn em'
They was robbed ! LOL Back over $1900 from a smash to $1857.31 all in 86 minutes................................ a world record stop smash.
http://www.netdania.com/Products/live-streaming-currency-rates-foreign-exchange/real-time-quotes/QuoteList.aspx
It must make for heated debates at the top table in the cartel; "is the price advancing so fast because we are not firing enough paper ammo? Are we being too timid, or is it time for nuclear paper?"
Since I imagine that these 'people' are all hubristic, table thumping elites, it would be a joy to behold when reality finally runs them over, reverses back over them a couple of times for good measure, then leaves them for dust.
Say, who (and where) is that dork who was on CNBC about 2-3 months ago who gave, like, 10 reasons the stock market was going to scream upward?
SNB 1,2 EUR-CHF floor. 900 PIPS
Tyler do something, they just started attacking my gold coin. It's already down almost one per cent. They must have found a way to turning off the fan when it gets hit by the sh....
Do you think there might be another $50 fall today or possibly a $100 rise?
Will today be just another attempt at saving face in the face of catastrophe or will the masses fall for more fiat generated fantasies and good news stories?
"massive" 45$ attack on gold, 1.2$ on silver
and ehh it recovered in 30 minutes...?
gold has sustained 700k volume per minute on netdania
London Calling. Tyler rubbed the sand in their pointey nosed faces agin! Predictable response. GDaff's gold still not available to help out.
They're all in this morning... Leave yur $ on the table, drive it off da lot!
this may be the last chance in your lifetime to pull the trigger under $2000. It's midday where I live, but if I was still hemmeragin in the western hemmerisphere, I'd be stayin up all night to watch the screen this month. Buy now or forever hold yur piece (in vain attempt to defend your perimeter!)...zombies gonna get ya!
Gold window closin...this be the Last Call! Last Call!
HERE WE GO ! Swiss just devalued the Franc !!!!!!!!!!!!!!!!!!!!!!!!!!!!!
CHF @ 1.20 minimum exchange rate !!
http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.pdf
Swiss National Bank sets minimum exchange rate at CHF 1.20 per euro
The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development.
The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities.
Even at a rate of CHF 1.20 per euro, the Swiss franc is still high and should continue to weaken over time. If the economic outlook and deflationary risks so require, the SNB will take further measures.
SMASH Gold on a tear now !
Wow, gold up 123 francs in about an hour.
Governments are determined to destroy the fabric of society to keep intact their monopoly over money.
Crazy bastards. Any bets on whether the next violent revolution will be in Switzerland, the last place people have been looking?
Hahaha! Violent revolution? No, the Swiss will have for a while the "privilege" of a peg to the EUR and for an even smaller while lower rates.
This move puts the EUR in a completely different light for a while...
Yeah, that's what I mean. The purchasing power of the Euro is not improving.
Switzerland just joined the Euro zone by fiat.
Gold still acting erratic this morning. Why? Everyone's suddenly-favorite-again safe haven CHF just committed helicoptercide. I would have expected gold to shoot the moon.
Fiatocide has a nicer ring to it.
Me too.....I thought it would spike up not down...but then again TPTB probably tanked it to get as much as they can before the crash....
Soon they will realize that this is not enough and they have to peg to the USD and the JPY as well...
http://www.youtube.com/watch?v=l3OOY7ndLdY&feature=related
Warren Zevon covers Dylan's "Knockin' on Heaven's Door"
.
so there.
Maybe they will have some more "experts" on CNBC today, telling us about the bursting gold bubble. Que insane laughter. Muhahahaha...could these fuckers be that dense? Yes as a matter of fact, they could. http://thecivillibertarian.blogspot.com/2011/09/gold-cracking-1905-again...
nice kneejerk reaction in gold. technically double top set. ( For now)
Looks like SNB dumps gold and silver to buy foreign currencies.
Eh? Why? As soon as the EUR/CHF goes below 1.20 they print CHF and exchange it for EUR. Simple. No Metal involved.
...while the Central Bank of EURSS 'takes note':
6 September 2011 - Statement of the Governing Council of the ECB on the decision of the Swiss National BankThe Governing Council of the European Central Bank has been informed by the Swiss National Bank about its decision to “no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20.”
The Governing Council takes note of this decision, which has been taken by the Swiss National Bank under its responsibility.
European Central BankDirectorate Communications
Press and Information Division
Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404
Internet: http://www.ecb.europa.eu
Reproduction is permitted provided that the source is acknowledged.
Jawohl! Acknowledged!!
Pursuant to ECB internal rules section 5 subchapter 439, "taking note" shall be followed within 5 minutes by opening a bottle of cognac aged not less than 25,000 business days.
This is interesting. The Swiss chose to back the Euro rather than the dollar. I like this if it is as it appears to be. The system is much weaker than any of us imagined; all the central baks of the planet have bet the fucking farm that this will work. I don't know if it will work or not---we'll see, but I think that it will not. In any event this may have finished the dollar---the Europeans stuck together---probably with our money---irony is the only true humor--shit, I just love this!
How'd you like to be on the trading desk when the sky falls on your positions??
Fucking WOW! is all I can say----never saw a more historic moment in the markets than this
Gotta go to bed now----I'm just an oldman after all om
Oldman, the Swiss have a functioning small economy heavily dependent on bilateral trade with the Eurozone, while their involvement in the Dollarzone has a share of some 10%-15% (decreasing).
IMHO they know the chinese will (continue to) back the euro v. the USD in their quest of tanking the USD. So will the soviets and a good number of arab countries. After all they need a 2nd player so to play one v. the other, although, under the current US monarchy, HRM King Husein and his jester Timmy, they do not need such complex scheme. Timmy will drop his pants anytime the King asks him to. Once done with the USD the euro will be easier to deal with. Game not over. The puppeteers never sleep !!!
"SNB move is totally irrational. They've driven the market almost 10 big figures...Nothing has fundamentally changed and won't succeed in defending Eur/Chf floor"
Video:
http://insider.thomsonreuters.com/link.html?cn=uidTWEMEA&cid=259410&shar...
What drivel. "Totally irrational"? Let's see, about as irrational as the chinese peg to the Dollar? And please, why should the SNB not be able to defend a floor? They can print as much CHF as they want.
Shit is getting real. Man, if you are a saver, does this not show you what a fucking SHEEP you are?
Buying more PMs tomorrow. Fuck this manipulation.
Also, do people see this as I do? That is, the Swiss peg just removed yet another safe-haven competitor to gold.
Very rapidly, gold may stand alone as the safe haven asset the world over.
Yes
Neither gold nor silver will ever be worthless. They are safehavens so long as governments don't begin to confiscate private holdings.
Bingo!!! You got it. No good deed goes unpunished. You worked hard, were productive, did not borrow, paid your taxes and saved??? Shame on you How is a bank(er) to live (high on the hog) ugh??? By paying you for your savings ???
And if you lived like an irresponsible jerk, with multiple mortgages .....'we love you man' ....
If you were a responsible parent or guardian, teaching kids to save and live within their means, you look like an absolute idiot. I sure as hell do. Here's the banks statement kids: you earned a whopper of 0.00025% ....congratufuckinglations!!!! Remember to pay taxes on that too.
Fucking irresponsible politicians on both sides. Line one of the austerity cuts should be to benefits to/of former and current politicians unless they have an annual income of $80k and graded on a scale. The more they have, including in/from trusts the less they need/get, just as they are doing to the rest of us. Bastards and bitches. They making GS bankers seem like hard working boys/girls scouts.
The only path to actually save the sweat of your brow without inflation confiscation is by purchasing PMs.
So how many tons of oro will Ben be selling today, in a futile attempt to mash it down?
FUCK i have CHF... no more everything will go to gold/silver now.
Fiat is BS.
Isn't it terrible? Makes me sick to my last breath. Some fat bitch in an office presses a computer key, and boom -- cuts your wealth by 8%, which looked to be the euro/chf move after the announcement. Zerohedge has been right from the beginning: gold is the last, best safe haven, everything else is manipulated to the core.
WHEN WILL THE PEOPLE REVOLT AGAINST THIS BULLSHIT?
Ironically, today IS the day the wife and I picked to quit smoking.Lol.
Freshfruit Nicorette tastes like shit, btw.
Good luck, no sarcasm intended. Good for you.
Aman loads shopping cart with milk, eggs, bread. Hands cashier a 1-ounce gold coin ands says, "can you please make change for this. It's worth $2000". Cashier says, "how the heck do you expect me to make change for that?"
Bman loads shopping cart with milk, eggs, bread. Hands cashier two silver dimes and says, "see you again next week". Cashier says, "thank you for shopping".
NEVER has gold been money that silver has also not been money. And, for that matter, copper, for small change.
Early morning smash down in gold @ 4:00 am. after a 3% + move, then back up.
Here's a great two part essay by economist Antel Fekete on the gold price suppression, which is also a scheme to support government bonds. Written in 2006, reposted by GATA. Antel E. Fekete is a well known mathematician and monetary scientist. Must read, key excerpt(s):
"The government has the following desiderata:
"1) To have a floor below the bond price.
"2) To have a ceiling above the gold price.
"Indeed, without such a floor and ceiling, the bluffing epitomized by check-kiting could be called, and the international monetary system would unravel.
"To promote these desiderata, the bond and the gold markets are manipulated. It is true that the Treasury and the Federal Reserve prefer not to play a direct role in it. Speculators are induced to do it for them through the lure of risk-free profits.
"Simply put, the role of the derivatives market is to make phantom bonds available to buy, and phantom gold available to sell, for the benefit of speculators. It is no problem to make speculators want to buy phantom bonds. They have the incentives. They know that the Federal Reserve is going to buy, rain or shine. This offers a risk-free opportunity for profits. All the speculators have to do is to pre-empt Federal Reserve purchases -- that is, to buy beforehand. So let them.
"The tricky part is how to make speculators want to sell phantom gold. This problem is solved by setting up a gold mine as a front, beefing it up as the world's largest gold-mining concern, and letting it introduce a phony hedge plan."
Antal Fekete outlines the gold-suppression, bond-support scheme | Gold Anti-Trust Action Committee
Both links to two part essay. Predicted in 2006 system would unravel, gold scheme was weak link, says Barrick is the phony gold hedge, describes how it works, how it will unravel. Encapsulates everything Tyler and the front row seat at ZH has been saying all along.
Fekete may well be the seminal monetary thinker of our time. He's a dense read sometimes, but worth the effort.
Phony hedge plan. Barrak gold is thy name.
Tyler, for once, must be alseep. I think the SNB move is big news, worthy of a new post. Mind you, he (they?) could be writing it as I type...
Here come the currency wars..followed by the trade wars followed by the war wars.
It does look like there is no European Tyler ?
Yeah, I've been checking back the last few hours for an update on this and nothing.
Europe's on vacation, I guess.
It's not midnight in Europe
You're right, it's ten seconds to midnight.
FYI, I hadn't had my morning shower yet, so I was still sleep muddled. I fixed the post before you posted, though.
Yeah, I've been checking back the last few hours for an update on this and nothing.
If fuck-wits cannot understand why "Tyler" cannot cover everything, then let them open their own sites (which will never happen).
Though a recent comer to Zerohedge, I really appreciate the depth which ZH permits.
Few "alternative sites"permit this: http://whatreallyhappened.com/WRHARTICLES/bbc_wtc7_videos.html?q=bbc_wtc7_videos.html
Doesn't Tyler sleep with some kind of pager that beeps when important stuff like this happens. Come on! Must have gotten all excited and passed out when gold hit $1920.
If you do not like this site and have no humanity, then leave.
Your sarcasm and cynicism is not appreciated by myself at least.
If you think you can do a better job, then start your own site.
I bet that you cannot do that.
Call me naive - or worse - but I just do not get this gold-fascination (not that I would knock back a ton, or even just an ounce, falling off the back of truck).
If gold was so reliable, then how come we are not still living under the Roman Empire?
Rhetorical question, because gold coinage was snipped and/or adulterated with baser metals ... easier to do than counterfeiting paper media of exchange.
And on that note: modern banking began some five hundred years ago, with such as goldsmiths taking physical gold for 'safe keeping', then issuing paper receipts - because no one wanted to cart around (nor store at home) such a cumbersome metal and risk getting robbed. But prototypical banksters soon cottoned on to the fact that they could leverage actual gold holdings and issue far more 'certificates' than could really be redeemed in physical gold.
Does no one ever learn? This is what is going on now, via entities selling mere paper (or digital) "promises" to deliver physical gold on demand - though it probably does not exist.
But say that you do obtain delivery of a gold ingot. What the hell are you going to do with it? Shave a bit off and ask the check-out chick to assay it and ascertain the latest 'value' in dollar terms?
The only way that gold has ever been accepted as legal tender, has been via minting as coinage with a face (essentially fiat) value, so the only way you can actually exchange a gold coin for groceries (or whatever) is the stamped 'value', NOT the prevailing price of content.
My personal experience of this was with silver nearly 60 years ago, when I used to collect silver three penny pieces, which were being withdrawn, because the metal content had gone beyond the face value - and in collector terms.
But I was only about eight years of age and really wanted to buy a tortoise, so I took my collection of some twenty pieces of silver = four shillings and bought my my tortoise, with neither I nor the shopkeeper knowing knowing more than the face (fiat) value.
I was very naive back then.
Am I still?
These days I am more informed and can look back on the history of the crime, fraud, piracy, theft, corruption and crime involved in "the love of gold".
The legend of King Midas nailed it over two millenia ago, but few ever learn.
Actually, neither the gold aureus nor the following solidus were ever debased or snipped. The Romans used gold for foreign trade, and since they produced little more than war machines and welfare payments, the gold never returned. It was the silver coinage that was snipped and debased.
Back then, it was really easy to detect fake gold as opposed to fake silver. Real gold was the densest element available at the time, so checking for purity was super easy. All you needed was a set of scales and an accurately marked beaker. Detecting debased silver was more difficult, requiring non-existent chemical tests, or a highly trained ear.
Also, the first paper currency was issued in China 1200 years ago. To the same disastrous end that it has been known for in the West, I might add. Chinese economists called it "empty money", though Marco Polo (speaking of a later incarnation) called it "flying money". Marco didn't see the disastrous effects, only the wonderful power it bought for the great Khan. The Chinese economists saw collapse after collapse caused by this empty money, and after the collapse of the Mongol Empire they abandoned paper money for some eight centuries. It took a long time to forget the hard lessons taught by the barbarians wielding their truly barbarous relics.
I won't dispute, because I do not know enough; but I seem to know that the tally stick served well for a few hundred years.
Only that gold never worked, nor paper I agree.
So what is your answer?
I have one - debt-free issuance of any means of exchange ... see Elen Brown and the Bank of North Dakota, but that will never be allowed generally ... hence Iraq, Libya and probably Syria being destroyed.
Don't know what I am refering to? If so then you know nothing of history.
There were many issues that went into the fall of the roman empire, one being the belief that they could constantly grow and take more, while not producing anything of real value themselves... does that sound familiar.
At that stage in financial evolution, gold was used as a medium of trade(money), rather than a medium of wealth. If you don't understand the difference of these two, I suggest you start here.
This pertains only to those who purchase paper gold. I myself have never owned, nor ever plan on owning paper gold. From my first purchase and all of the purchases since, I've only sought to buy physical gold. First from APMEX, then from a local coin store, who happens to pretty much match APMEX prices, minus shipping costs.
This pertains to the difference between wealth and money, or mediums of wealth and trade. Gold has transformed into a medium of wealth. Paper/digital currencies are too convenient, and are essentialy required for an easy flow of trade. Wealth however, has no problems sitting on the sidelines, retaining value, and compensating for lost value in fiat currencies. However, it is good that you note that you can "shave a bit off" because, unlike the wealth assets we've been sold in the past, this is a viable option for the owners of gold. Can you shave a peice of your home off and sell it to buy something else? No, you have to get a 2nd mortgage, HELOC, or sell the entire property. Gold is free from all of those strings. If you had one share of a stock, and wanted to extract only a portion of it's value for trade, is that possible? No, you have to sell the entire stock, AND you have to sell it for the currency it is denominated in. Same goes for bonds. I hope you are starting to see a difference.
If you're following my other points, you realize this point is now mute.
There is a difference between those that want everything they own to be gold, and those that want to preserve some of their saved wealth as gold. If you can't see the differnce, then I am going to go with naive. Western civilizations have been sold the illusion of wealth for the benifit of the few. If you don't think thats the case, take a look at how many people have lost their "wealth" due to foreclosure, or stock market crashes, or fiat currencies explodiing. While the majority of people in the collective pool of market participants were fleeced, there is certainly a small group who were doing the fleecing and have come out unharmed on the otherside. Gold is a tangible asset that can be maintained with little effort and doesn't take up much space. There is enough for anyone to get a piece, and it can be divided small enough that anyone can afford a piece. And, it doens't require liability to attain/keep it.
Here is a strategy to trade gold stocks that has made 17% a year since 1985 http://www.ripetrade.com/2011/09/trading-strategy-for-gold-stocks.html
When Marco Polo showed the Emperor's fiat to the Europeans (who at the time had only seen Gold and Silver as money) they said 'why would anyone accept this paper as money'? Marco Polo's answer was 'if you don't accept it, the Emperor will cut your head off and put it on a pike in front of your house'.
Oh, the joy of fiat and the liquidity it provides.
Someone over at FOFOA indicated that Jim Cramer said to "sell/avoid stocks, buy gold." Okay, time for correction. I really hate that Cramer SOB. Oh well, stack it higher on the dips... Just sayin...
My first post. I've been reading post at ZH for about 2 months, and I've learned more about economics than ever. I read the post and wikipedia the terms with which I'm not familiar. Great learning exp. Thank You all! I do know that if there are companies in America that are Too Big To Fail and are always going to be saved by the cartel, the inverse of TBTF are real American small business who are now hoplessly Too Small To Succeed! TSTS.....Thanks again.
Welcome - ZH is like my therapist/financial advisor/drinking buddy all rolled into one.
BTFD
Yet another margin hike, bitchez ? Though not as successfull like previous ones.
so the franc depreciates, the euro depreciates and
the dollar gets the temporary boost.(makes up the difference).
currency war, ongoing. remember, in war, all sides lose.
who wins, in time? the collective consciousness, of those
who survive, if that mind can learn.
never mind