Gold Matches USD Weakness As Silver Jumps
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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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 !
Gold & Silver you fuckers!!!!
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?
A Turdite called "reachwest" makes these daily. He does a nice job.
http://www.youtube.com/watch?v=I04jWNgHNJo&feature=player_embedded
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.
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.
Trav wants everyone to sell their physical silver and buy paper. So just do the opposite of that.
Thanks for the fine advice, MDB.
"Million(Zimbabwe)DollarAnus" is more like it.
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.
paper went up today didn't it?
Your great "prediction" of decoupling will fall flat on its face like all the rest
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".
we'd be too busy laughing at you to spend any quality time together...it'd never work out
Trav doesn't have the capacity for any form of intimate relationship. That's why he's alone and bitter. :((((((((
You guys sound like a buch of old hens.
Meanwhile, Gold Down, Silver up.... Gold Down, Silver Up...
ori
gold-de-spell-ed/
ori
interesting perspective
adds to the lure;
and, just maybe, that is how simple the attraction is...
fish fall for shiny objects too.
MDB in the immortal words of mulder "trust no one" - wink/nod
It just WOULD have to jump 5% the day before I go to buy another 50ozs. Oh, well...
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...
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.
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.
@MDB
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!
"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.
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.
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!!!
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)
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?
dup
Backwardmotherfuckindation!
This is equivalent to that shiny silver light in the corner distracting those from the shiny little yellow light in front of them...
Silver britchez bitchezzz
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.
Hmmm...which lake?
Given the plethora of PM boating accidents around here, I would have thought you all would have learned other's lessons.
I'm long scuba gear & long PM's... (it's a PAIRS trade)...
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.
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.
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.
I think the metal they will be hunting is Gold. They do not understand Silver. That, or is scares them
ori
Or might they go after silver first and foremost --- as the British effectively did in your own country a century and more ago?
We need heavy stuff for ballast, and rocks just don't cut it, to be honest.
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
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...
SCUBA-DIVING.
Me too.
Cost-averaging is a beautiful thing. Getting lucky and buying at $26 and change certainly didn't hurt the breakeven line.
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. :-)
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....
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.
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.
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.
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.
you're pretty fuckin insane...
You have no idea. Insane rules.
Insane rules, so true. If the SHTF comes, it is the "weeklys" I worry most about. Need meds, need dialysis, need food, have no prep skills, or common sense. Totally reactionary response.
Those will be your real life zombies. No insulin, no problem.
I could make you a few weeks worth out of the dogs everyone turns loose, but after that you are on your own.
Dogs and cats will be useful. Cats will (and do already) keep the rats away, and dogs will keep the tweekers away.
WHy would you want to keep them away? They are another good source of insulin.
Juice the pancreas?
Aqueous extract, but yeah, pretty much.
Fascinating Dr. Lector. Tell me more...
The rats or the tweekers?
Tweekers. The rats are too small. Hard to work with. Especially given that you need to keep them alive for a week or two to maximize yield.
Fava beans and a fine Chianti should keep them alive for at least a week or two.
+1 for the uber sarc
If you're that desperate for insulin post apocalypse that you go round killing animals for it to keep you going for a few more days then I would suggest keeping some heroin instead and use that to die in joyful peace.
Until extraction from fetal calfs was perfected, that was the only way to survive. Read up on the history of insulin. There was a rather touching movie about it. Kids with type one diabetes would waste away until they died, truly a horrible death, until insulin extracted first from dogs came around, then they were able to live as children again, at least for a little while.
Of course, today it is produced by genetically engineered bacteria. Of course, if you could get your hands on some of that stuff and an incubator, you could probably make it yourself. Just be sure to steam sterilize and filter before injecting yourself.
Tweekers = want to put antlers on everything. It's just how they are.
I put the nsa in insane
"Insane Rules"
You'll ask yourself, "where is my mind" Pixies/Fight Club soundtrack: http://www.youtube.com/watch?v=AFKK-zfHXI8&feature=related
There is a chance you are right Trav. However, if you are not.......it will be ugly.
there's NO CHANCE he's right...
When a study comes out that says that there's not a nigger on the planet that will accept owning any gold or silver, he'll change his tune...
Trav's bias on Gold/Silver can be expressed in 3 letters... "MR. T"
chance I'm right about what, that idiots won't be trading silver for groceries with "lead strapped on"?? ROTFL.
The amount of Call of Duty you people must play....
My COD avatar has a happy face giving a F-U as an army company sleeve patch... & I only shoot at black people...
It's a cultural experiment to see how many levels I can progress in a simulated war game experience...
Pity da FOOL!
Thats what I have been saying for a long time. No one knows how this is going to play out. Got to cover the bases and stay nimble. The beauty is that most of the things one can do don't go to waste. Win-win in my opinion. Even some "investments" which I would rather call "insurance" won't simply go to zero like what is going to happen to promised money.
Stay nimble... wise words. Except have some PMs as core investments. Added to the silver via paper trade today. What a ride!
Ditto. I grabbed PSLV when it dropped 9% yesterday. Wheeeee!
You don't say much, Kink, but I like you. To the point.
Although I disagree with your outlook on silver, your use of trailor park humor is second to none.
RNR/LFP/Max Fischer did it better.
Maybe but it has a hell of a lot more intrinsic value than the $100 bill in my wallet. My advice: Get a real nice coin...A Chinese Panda with lots of work put into the fabrication process (not a crude generic bullion coin) and just look at it. You will know that it's quite valuable jut by holding it.
Ron Paul rounds ftmfw.
So you're telling me that production doesn't matter at all, huh? The fact that silver is only produced at a rate of 6-7 times that of gold, then USED UP, while gold sticks around forever, is bearish for silver?
Do you realize how fucking stupid you sound?
+1
I think he's just pissed that we don't launch our entire arsenal of cruise missiles on the continent of Africa...
He'd flip bullish overnight...
wtf good would that do? cruise missiles at africa? why? To burn up silver or something?
cruise missiles blowing up witch doctor huts doesn't sound like a great idea to me, seems like...overkill
But just think of all the uncreative, wheel-less, water-system-lacking, sexually rampant, murderous niggers that a fleet of well-placed cruise missiles could rid the the world of! Just picture all those damned useless darkies getting blown into fragments! Doesn't it just positively make your heart swell and give you goosebumps, trav? Admit it, the very thought of it gives you a raging hard-on, doesn't it?
I don't know why you morons can't figure out how to SOLVE problems without killing people. That's all your little chimp brains can grasp, isn't it? The solution is ALWAYS killing.
Right, your ideas are FAR superior. Just sterilize them, then let them die as the demographics shift to the point that the population is 95% elderly. Real smart move, dumbass.
come on man, pleeze - this is the stupidest thing I've ever heard.
a demographics shift to the oldside correlated with the sterilization of young idiots?
What a fucking maroon.
Trav has plenty of legitimate flaws to point out, why make an ass out of yourself based on nonsense?
Note that he advocates sterilizing everyone with an IQ lower than 140. Which is 95% of the population.
That means 95% of the population won't have children to support them in their old age, either directly or indirectly.
This is not nonsense, this is what Trav actually believes, and has vigorously defended in the past, though now he tries to weasel out of it like the coward he is.
Let's not mince words, Trav is a monster. A real one. He would be the next Hitler if given the chance. He won't as long as good men speak out against his filth, and continue to call him out for what he is. This is why he hates me so much.
well thank god I'm not hitler depending upon morons like to oppose me. Because you're too dull to manage the average chimp.
You are aware that birthrate of the fertile could be raised, right?
No, don't suppose you are...just too dumb. Children to support them...LOL. Sure, human population can grow forever.
When niggers are outlawed, only outlaws will own niggers.