Gold Moves Higher As Greece Crisis Moves Up A Gear, Financials Get Pummelled

Tyler Durden's picture

From GoldCore

Gold Moves Higher As Greece Crisis Moves Up A Gear, Financials Get Pummelled

Gold is moving up again in U.S. dollars and is trading at USD 1,818.29, EUR 1,331.50, GBP 1,155.79, JPY 139,571.90, AUD 1,854.66 and CHF 1,603.73 per ounce. 

Gold’s London AM fix this morning was USD 1,817, EUR 1,332.31, and GBP 1,155.56 per ounce. 

Yesterday’s AM fix was USD 1,778, EUR 1,288.67, and GBP 1,126.24 per ounce. 

Stocks Down, Gold Up, no consensus, no plan, the death of the Euro by a thousand cuts continues. This morning the Euro banks are getting pummelled as their exposure to a potential Greek default grows. 

The IMF inspectors are due to visit Greece tomorrow.  If the Greek Prime Minister George Papandreou's cancellation of his U.S. trip is any indication then what they will find may not be good news at all.

Gold rose on Friday on the news that private participation in the Greek bond swap would miss the required 90% level, gold then climbed a robust $58. The Eurogroup/Ecofin meeting has disappointed the market as little or nothing of substance came from the meeting. If anything it has underscored the deep level of disunity in Europe as to how to manage this crisis going forward. This week's U.S. Federal Open Market Committee meeting may give a clue as to what quantitative easing initiative awaits the market this year.  FOMC watchers are indicating that a recognisable increase in rhetoric on the topic will become evident. Paper and ink futures are sure to soar from here.

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Silver is trading at $40.40/oz, €29.57/oz and £25.69/oz. 

Platinum is trading at $1,809.20/oz, palladium at $719/oz and rhodium at $1,750/oz. 

(The Telegraph)
$2,000 an ounce for gold is now within sight

(Financial Times)
Central Banks Return as Gold Buyers

(Reuters India)
India gold rises over 1.5 pct, nears 1-week high

(Financial Times)
Memo to gold bugs: reasons to be cautious

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oobrien's picture

Gold is in a pseudo-bubble.

The global governments will try to control the price.

It's too much of a threat.

spiral_eyes's picture


they will try and constrain the price but they will fail.

All that silver manipulation the last ten years and the price is up 800% since 9/11...

Bernanke can't print gold. 

oobrien's picture

You guys get so pissed off over the truth.

You all think gold is gonna save your sorry asses.

But it ain't.

You're up against the most powerful people in the world--who are invested in paper.

Don't kill the messenger.

spiral_eyes's picture

As I said... 

The most powerful people in the world have a vested interest in keeping silver prices low (industrial demand, missiles, suppression of silver as money, etc) Silver is up 800% this last decade.

King Canuut, bitchez.

You can't hold back the ocean. 

I notice you named your site after Gerald Celente... Perhaps you should reconsider — he seems much more bullish on metals than you.

oobrien's picture

Brother, you are looking for a metal revolution.

But rebellions take blood!  Your blood.

And until you are willing to sacrifice it, nothing will change.

Change is red.  Not yellow or silver.

Them's just the facts.

tarsubil's picture

What about all those other times where they've tried to control the price and failed miserably? If they could control the price, wouldn't Nixon have kept the dollar backed by gold?

Thomas's picture

How do you know that we are not betting with the powerful forces? If we are heading toward new currency regimes that have gold centrally located, the big folks would be buying up gold. They might want to find a way to keep it down, but it may be for their own selfish purposes. Certainly, we are betting with China, India and many sovereigns.

Bicycle Repairman's picture

How many different IDs you got, sport?  And, no, I won't be clicking on your worthless link.

LowProfile's picture

This guy is clearly a paid agent.

First he sows generic FUD.

Then he claims those in authority are "all powerful".

Then he attempts to bait some of us into threats of violence.

Sorry asshole, but if it comes to that, then the vast majority of us are simply going to take our marbles and go home. 

But from where I sit? Guess what?:

The Jig is up.

Tell your masters we will be coming for them soon, dressed in black and armed to the teeth:  But this will be no angry mob, it will be under the rule of law.  We the people will demand it.

And this century, there is nowhere to run and hide.

Oh, and Mr. Troll?  You personally may want to repent lest you make "the list"...

The4thStooge's picture

you overestimate paper. they are masters of the paper ponzi scheme, this is true. but what happens to a ponzi scheme once it runs out of new suckers?

oobrien's picture

I'm not on the side of paper.

I believe in truth, justice, Jesus Christ, and the American Way.

Nevertheless, I know the game is rigged.

What's a boy to do?

spiral_eyes's picture

I remember Methman as silver crossed $30...


Silver is currently above $40....

I hope the metals go back to under $1 an ounce on the biggest paper short of all time — I'd buy a swimming pool of them. Because when we use fundamental analysis — even pricing in the manipulation — we know fair value is more like $300+/oz for silver, $5,000+/oz gold.

Broomer's picture

There will be no silver available at these prices.

In a pure economic sense, this price wouldn't allow silver to be mined without a loss.

And if price falls to, say, $10/oz, available supplies would be all bought in a heartbeat.


malikai's picture

That's why I have the world's biggest limit order in for $10.01/oz. heh.

Sean7k's picture

You believe in four fantasies and expect us to take you seiously? 

Pluck your head out of that rectal ring and open your eyes...

thunderchief's picture

Fuck off.

That's what you do fag boy.

Smiddywesson's picture

but what happens to a ponzi scheme once it runs out of new suckers?

The Ponzi collapses, and the co-conspirators, who know nothing about earning an honest living, move on and set up another Ponzi.  That's why central banks are buying gold.  They are getting ready to set up another Ponzi referrenced to gold. 

tarsubil's picture

Isn't a ponzi with gold crazy. People just have to ask for delivery and it falls apart.

Long-John-Silver's picture

That's the reason I only buy physical Gold and Silver that is delivered within a few weeks.

pmcgoohan's picture

I cant see what post you're linking to there, but I share the concern.

If the Fed shorts gold just enough to slow it down, but not stall it, they have to print/borrow USD to cover the losses for their banking coduits (JPM etc), which is inflationary and not very effective, and probably what they are doing now.

But... if they really go for it and short the hell out of GLD with debt:

- banks recapitalize on the winning shorts

- fiat looks better vs gold

- CBs can buy gold cheap, now they are net buyers

Im not saying it would be more than temporary, but it could mean a plummeting gold price before anything resembling a gold standard comes back.

Disclosure: Im up to my eyeballs in yellow, just trying to think defensively.

jeff montanye's picture

a gold standard is not really the best answer.  for a more useful answer, imo, check out fofoa's concept of freegold combined with, i believe, floating exchange rate currencies.  

PaperWillBurn's picture

Correction: save THEIR sorry asses. The most powerful people in the world hold gold and they need it to correct their paper problem.



papaswamp's picture

...Uh no..

Via FT

" European central banks have become net buyers of gold for the first time in more than two decades, while central banks globally are set to buy more gold this year than they have since Bretton Woods collapsed forty years ago."

they are panicing too. I agree they manipulate the price...but can only do so to an extent. Their reach into such buying powerhouses as India and China (plus other Asian countries) is limited when so much is purchased privately.

pmcgoohan's picture

But if they short paper ferociously while buying physical, they could win on the short, and win on the lower physical price

papaswamp's picture

They can only slow it down. Private demand is already off the charts. They short too much and they will cause an economic separation as more of the economy goes underground.

Smiddywesson's picture

Agreed.  If they can bring down the price of gold by $200 on bad news for the markets, which should be good for gold prices, they can probably move it $400 if they had to.  In fact, there is no real limit to what they can do to gold prices if they are willing to endanger the can kicking.  Inasmuch as they haven't done so already, we must assume the can kicking is more important.  That doesn't mean we won't see the decoupling of paper prices and physical prices some of us have predicted. 

Counterparty risk where paper gold markets fail is not the only danger of trading paper gold.  The prices could plummet without warning, thereby leaving you with huge losses.  I would assume this would get the ETFs and the Comex off the hook?  It's not my area of expertise, anyone?

Sean7k's picture

It is possible that the decoupling has already begun. Look at the Dutch government asking questions about its' own holdings. As more and more governments question the loan activities of their CB's or like Venezuela, take control from the LBMA, problems will surface. 

Germany has made statements about wanting its' 6000 tons back from the NY FED. All it will take is a few sovereigns to come up short and the gig is up. If silver is leveraged 100 to 1 and the total inventory at the Comex is 104 million ounces- is it any wonder that Blythe is buying contracts with both hands?

What is the leverage figure on gold? Can't be good if all the CB's are including the gold in possession and gold on loan in one line item...

agent default's picture

If you stop using their paper you don't go bankrupt.  They do. 

dclaz's picture

That and gold doesn't have that much inherent value. It's just a shiny metal with a few industrial and commercial uses. It's worth so much now, because people THINK it's worth more than it is, or will be worth more in the future.

LowProfile's picture

Boy... You got some serious learnin' to do 'bout money.

Smiddywesson's picture

Gold is in a pseudo-bubble.  The global governments will try to control the price.

Nice try, but you stepped in the trap.  You wrote that gold is in a bubble, and is about to be popped through price manipulation by global governments.  Will this manipulation of price, which you just admitted, suddenly begin today or did it exist already?  You can't have it both ways, either there is no price manipulation and gold may have reached speculative highs, or there is ongoing price manipulation of gold and it reached these prices in the very face of that manipulation by "global governments."  How could it possibly do that if it were a bubble?


overmedicatedundersexed's picture
"Tony Blair used visits to Libya after he left office to lobby for business for the American investment bank JP Morgan, The Daily Telegraph has been told."

The Libyan's sent him packing..then the bombs fell..wonder if he was trying to get more of Libya's gold for JPM???

seems working in Gov and working for the TBTF go hand in that is news on ZH..LOL or crying take your pick

malikai's picture

I'm thinking about setting up a shop in Greece selling Guillotines. Does anybody want to go in on it with me? Which country should I manufacture them in? I hear France has a very good legacy in manufacturing such products.

Judge Holden's picture

Well everything is made in China these days.  How ironic - the communist (at least nominall) Chinese selling guillotines to a capitalist (at least nominally) European country so that they can execute the bourgeoisie.

Mr.Sono's picture

its not about the powerful people, its about powerful countrys. this is not 1930's or 1970's. and yes gold won't save our asses, since we can't wipe our asses with it like we can with paper money.

oobrien's picture

There is only one way you can win against superior power.

Tune in, turn on, and drop out.

First they ignore you.  Then they beat your brains in.  After that, you win.

So it goes.


msmith's picture

Futures down, USD up big.  Full Market Report

lewy14's picture

OT - breaking - FedWire - LOL...

Fips_OnTheSpot's picture

WHERE is the Chavez-Gold _now_?

FiscalCrater's picture

Gold can't withstand the inevitability of the olive standard.  Greece will rise again!!

irishlink's picture

The Irish Talk show quoted ZH yesterday on their posting on the level of debth in the banking system. Geithner must be very worried  , if he travelled to Europe to talk to a bunch of overpaid Bureaucrats who cannot speak to each other and are tripping over themselves with fear. We need real leaders who will propose the unthinkable, most unpopular solution,but that serves the people not this Global monster.

pmcgoohan's picture

Ive just had a look at the short interest rates for PHAU.

It is huge compared with a random selection of other FTSE stocks. What really gets me is how high it is compared with UK banking stocks. RBS, HSBC and LLoyds are all at -0.125%, PHAU is at -2.202%, >17 times more!

Is the market really 17 times more bearish on gold than on UK banking stocks. Or... just possibly... are the CBs are brazenly and nakedly shorting.

RBS -0.125
HSBA -0.125
LLOY -0.125

Has anyone got any historical data for PHAU short interest- I can only go back 5 days.

Smiddywesson's picture

Is the market really 17 times more bearish on gold than on UK banking stocks. Or... just possibly... are the CBs are brazenly and nakedly shorting.

After gold dropped on the SNB intervention, you probably don't need that question answered, do you?  The short interest may reflect that some bad news is going to come out soon, and people in the know are positioning to profit from an attack on gold.  The price suppression comes at options expiration and on news events that should be good for gold, not bad. 

msmith's picture

EURUSD Market Report has been updated.  Bearish price action to continue in the short term.

Enkidu78's picture

News everywhere trying to scare me into selling my PM? hahaha I think I shall just keep stacking thanks.