Gold Matches USD Weakness As Silver Jumps

Tyler Durden's picture

Equity and credit markets traded in a narrow range with late day ebullience (as VIX collapsed but we note implied correlation did not) pushing them to marginally new multi-month highs and tights respectively. The markets tracked one another very closely as did HYG (the high-yield bond ETF) but into the close HYG sold off quite notably (relative to the day's action). Financials staged a late-day advance (responsible largely for the move in the index along with Energy names) as average trade size picked up right at the end suggesting covering at the end. The relatively calm in equity, credit, and FX markets (especially post Europe's close) was not at all evident in the commodity markets where Silver jumped dramatically (up over 8% on the week) while Gold gently pushed higher (+1.7% matching USD's weakness on the week). Oil was the week's biggest loser (down 0.5%) as Copper clung to 3% gains on the week. Treasuries ended the week at their high yields (30Y +19bps) with the curve considerably steeper (and 2s10s30s up nicely) which supported risk assets broadly as opposed to oil's weakness (and stability in FX carry pairs) which did not.

Commodity divergence was the theme today as Silver took off and oil did not. Ever get the feeling that as much as they try to pressure one market down or up, that liquidity squirts out somewhere...

FX markets ended with the EUR 2% higher vs USD on the week, JPY unchanged and SEK a notable winner up 3%. AUD rallied today vs USD back in line with USD overall weakness on the week.

but equity and credit markets stayed in very close proxiomity as risk was clearly on. Stability in the last day or so (amid rising average trade size) may suggest we are topping but any good news on the Greek PSI deal (no matter how totally spun it is) will probably lead to a pop given perceptions of downside risk here (and we note that the continuous ES is very clsoe to seeing the 50DMA cross above the 200DMA which is sure to garner much attention once it does). The late-day jump in financials and dump in vol may reflect mostly options run offs but its tough to fight this tape - even though the number of canaries in this coalmine continue to rise.


Charts: Bloomberg

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falak pema's picture

they say the historical ratio from Alexander the Great to Napoleon's times was 1 kg of Gold = 12-15 Kg of silver.

Now it more like 55! So silver, hi ho away !


Pete15's picture

Gold & Silver you fuckers!!!!

nope-1004's picture

Ok MDB.... no need to lurk.  Come out and play.

Looks like Clive Maund shit the bed on this one.  Nice call Clive.... are we still headed for $22?


JPM Hater001's picture

I can confirm... I am somewhere over Texas (gawd i love in-flight wifi) and I just saw silver fly by...anyone for golf in Dallas Sunday? I just left Wisconsin with one though...warm.

MillionDollarBonus_'s picture

Silver is a dangerous market that has absorbed countless naive and trusting lemmings. People should know better than to trust a bunch of conspiracy theorists, right-wing extremists and other fringe lunatics to give them sound investment advice. 

tmosley's picture

Trav wants everyone to sell their physical silver and buy paper.  So just do the opposite of that.

Thanks for the fine advice, MDB.

akak's picture

"Million(Zimbabwe)DollarAnus" is more like it.

Transformer's picture

Aww come on, he's not so bad.  Like most of us here, we've only got about a 100% gain in two years, hardly anything to write home about.  I was hoping for some real gains.

trav7777's picture

paper went up today didn't it?

Your great "prediction" of decoupling will fall flat on its face like all the rest

akak's picture

It would be amusing, and fitting, if you would get married to that AnonymousAsshole poster, and then the both of you could collectively blame all the world's ills on "nigger-loving silver-pumping US Citizenism".

trav7777's picture

we'd be too busy laughing at you to spend any quality time'd never work out

tmosley's picture

Trav doesn't have the capacity for any form of intimate relationship.  That's why he's alone and bitter.  :((((((((

Oh regional Indian's picture

You guys sound like a buch of old hens.

Meanwhile, Gold Down, Silver up.... Gold Down, Silver Up...



new game's picture


interesting perspective

adds to the lure;

and, just maybe, that is how simple the attraction is...

fish fall for shiny objects too.

zerotohero's picture

MDB in the immortal words of mulder "trust no one" - wink/nod

Silver Pullet's picture

It just WOULD have to jump 5% the day before I go to buy another 50ozs. Oh, well...

JPM Hater001's picture

Did the bears teach you nothing... Ignore the fucking fiat.

Boo hoo...I had to pay a buck more to buy it an now it's only trading at 400...

Silver Pullet's picture

The bears taught me that it's not uncommon to shit one's pants.

You are exactly right. I'm not complaining. It's still on sale. I was just pointing out to MDB that I'm a naive lemming.

Silverhog's picture

Hey Bogus million Bucks. I sold the farm and jumped in at $16.00 only a couple of years ago. I read this same BS then too. Thanks for the advice.

francis_sawyer's picture


That was the first time that one of your posts finally struck a nerve and made me LOL...

I gave you a green arrow for it... Congrats!

GeorgeHayduke's picture

"People should know better than to trust a bunch of conspiracy theorists, right-wing extremists and other fringe lunatics to give them sound investment advice. "

Exactly! That's why I never buy anything recommended on CNNBCBS-FAUX, et al. Boy, the crazy, lunatic crap those folks peddle is incredible.

s2man's picture

Ah ha ha ha ha ha ha ha ha.  Oh, I can't stop laughing.  Thanks MDB

I tried to imitate you yesterday, but I just couldn't do it. Kudos on the Street speak.

Babushka's picture

I shell confess I still don't get it. My logic is:

1) Money is a medium of exchange.

2)Money is how your work is being payed.

3) Wouldn't be a logical to exchange the money (result of your work) for the things you might need or want, I mean now ...?

Your logic:

1)Buy a gold for already debased currency (meaning expencieve) instead of whatever stuff avalible now which is underpriced (if I get it right) due to currency manipulation.

2)Wait untill SHTF.... and prices jump up to ze MOON "and everyone and their brother is jumping on the PM bandwagon out of fear or greed "and than what? Sell for a 1trillion ZWD and be happy? or what wait untill its all get settled and currency devaluated or reset and pegged to Gold/Silver, so you are exchanging your gold for the currency which will start to be debased again from the moment of exchange? But isn't it a deal with a loss when you buy asset for a high price wait until price dropped and than sell?

Just somebody could elaborate what is a purpose of the scam....Is it a bet that buying power of gold is going to be much higher than it is now (meaning that after reset you could buy more stuff with a OZ of gold) Is there any data which might support such a claim?

I am comlete at loss!!! Help!!!

Mitzibitzi's picture

All you say is probably true, but I think you're missing the point of why some guys are stacking gold... it's not in the hopes that the gold will buy more in the future than it does now (although it might, we won't know until we get there). It's for a far more pragmatic reason. If the currency does hyperinflate or outright collapses, then that big stack of paper with pictures of dead guys on it will be worth nothing. Gold will still be gold.

Gold for wealth preservation.

Silver for spending (and possibly making a profit on, if the traditionl ~15-1 Ag/Au ratio reappears)

Babushka's picture

OK, I get this so far... but if the money is medium of exchange in between work and goods/services one could need/want and will sonner or later exchange for... than what is a difference, gold, fiat or red feathers...the only things still count are work and goods on offer...? And it only makes a sence if some one works now and wishes to preserv the results of it to exchange for goods/services later. But what I can not understand why? why later? why sombody wants to gamble about how much he would get for his money later if one could enjoy his money now?

slyhill's picture


Tegrat's picture

This is equivalent to that shiny silver light in the corner distracting those from the shiny little yellow light in front of them...


nwskii's picture

Silver britchez bitchezzz

achmachat's picture

today was a nice day.

My stash is back in the positive; dollar average price-wise.

too bad it's lost at the bottom of a lake.

catacl1sm's picture

Given the plethora of PM boating accidents around here, I would have thought you all would have learned other's lessons.

francis_sawyer's picture

I'm long scuba gear & long PM's... (it's a PAIRS trade)...

DeadFred's picture

It's remarkable how people smart enough to buy precious metals in the physical form are so stupid they take it boating with them again and again. Take a clue, it doesn't float.

Prometheus418's picture

I just don't like to leave it at home.  

Of course, way up north, I didn't drop mine in a boating accident- it slipped and fell down an ice-fishing hole.

akak's picture

Someday before too long the government is going to be inquiring about, and probing, every one of your holes in their zeal for your precious metals.

Oh regional Indian's picture

I think the metal they will be hunting is Gold. They do not understand Silver. That, or is scares them 


akak's picture

Or might they go after silver first and foremost --- as the British effectively did in your own country a century and more ago?

tmosley's picture

We need heavy stuff for ballast, and rocks just don't cut it, to be honest.

Tsunami Wave's picture

That's a lesson I have the hardest time learning. My former stash is out somewhere at the bottom of the Atlantic Ocean... very sadly, my savings took a fatal hit like so many other people's here

francis_sawyer's picture

That never stopped JPM from creating a paper market out of something that you might or might not have owned in the past...

You must be a WUSS...

Prometheus418's picture

Me too.

Cost-averaging is a beautiful thing.  Getting lucky and buying at $26 and change certainly didn't hurt the breakeven line.

s2man's picture

I track the paper shit, but have no record of the dollar-cost-averaged physical; An ounce is an ounce.

Hmmm, come to think of it, no one else has a record of my physical either. :-)

Tegrat's picture

Yes by chance, i bought actualy a large chuck of phys Nov 2010 at 26 and change.Now it's major support/resistance. I had no clue at the time....


apberusdisvet's picture

When even the disinformation specialists reluctantly agree that the above ground stocks of gold exceed those of silver, but stubbornly cling to the notion that a GSR greater than 50 is appropriate, it's obvious that even those who aren't totally mentally challenged will eventually see the light.

tmosley's picture

Even funnier is that we only produce about 6-7 times as much silver as we do gold every year, and almost all of the silver is consumed in such a way as to make it almost impossible to recycle economically.  Impossible until patients with burn wounds treated with silver bandages have a few bucks worth in their urine each day.

trav7777's picture

silver production has risen...simple as that.  gold hasn't.

Your claim that almost all silver is destroyed is nonsense...doesn't stop your making it WHILE AT THE SAME TIME claiming that silver ISN'T an industrial metal!

Silver has a 50/50ish industrial to non- consumption figure.  All the jewelry, bars, coins, and stuff buried out behind the doublewide with your canned ham is not consumed.

CompassionateFascist's picture

After System Collapse, Trav will visit local green market. Make smart remarks. Walk away starving. Those with silver, with lead strapped on, will get the grocs.