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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.

For our latest news and commentary please join us on Twitter.

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

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

NEWS
(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

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

 


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Mon, 09/19/2011 - 07:15 | Link to Comment oobrien
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.

http://geraldcelente.proboards.com

Mon, 09/19/2011 - 07:16 | Link to Comment spiral_eyes
spiral_eyes's picture

BS.

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.

http://azizonomics.com/2011/09/10/can-bernanke-print-gold/ 

Mon, 09/19/2011 - 07:19 | Link to Comment oobrien
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.

http://geraldcelente.proboards.com

Mon, 09/19/2011 - 07:24 | Link to Comment spiral_eyes
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.

Mon, 09/19/2011 - 07:57 | Link to Comment oobrien
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.

http://geraldcelente.proboards.com

Mon, 09/19/2011 - 08:09 | Link to Comment tarsubil
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?

Mon, 09/19/2011 - 08:10 | Link to Comment Thomas
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.

Mon, 09/19/2011 - 08:53 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

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

Mon, 09/19/2011 - 09:54 | Link to Comment LowProfile
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"...

Mon, 09/19/2011 - 07:26 | Link to Comment The4thStooge
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?

Mon, 09/19/2011 - 07:31 | Link to Comment oobrien
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?

http://geraldcelente.proboards.com

Mon, 09/19/2011 - 07:38 | Link to Comment spiral_eyes
spiral_eyes's picture

I remember Methman as silver crossed $30...

"IT'S A RIGGED GAME. FAIR VALUE IS MORE LIKE $10. SILVER IS IN A BUBBLE! IT'S ABOUT TO CRASH!"

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.

Mon, 09/19/2011 - 07:45 | Link to Comment Broomer
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.

 

Mon, 09/19/2011 - 07:49 | Link to Comment malikai
malikai's picture

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

Mon, 09/19/2011 - 08:44 | Link to Comment Smiddywesson
Smiddywesson's picture

NM

Mon, 09/19/2011 - 08:27 | Link to Comment Sean7k
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...

Mon, 09/19/2011 - 11:16 | Link to Comment thunderchief
thunderchief's picture

Fuck off.

That's what you do fag boy.

Mon, 09/19/2011 - 07:52 | Link to Comment Smiddywesson
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. 

Mon, 09/19/2011 - 08:11 | Link to Comment tarsubil
tarsubil's picture

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

Mon, 09/19/2011 - 08:51 | Link to Comment Long-John-Silver
Long-John-Silver's picture

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

Mon, 09/19/2011 - 07:32 | Link to Comment pmcgoohan
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.

Mon, 09/19/2011 - 07:45 | Link to Comment jeff montanye
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.  

Mon, 09/19/2011 - 07:33 | Link to Comment PaperWillBurn
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.

 

 

Mon, 09/19/2011 - 07:34 | Link to Comment papaswamp
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.

Mon, 09/19/2011 - 07:37 | Link to Comment pmcgoohan
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

Mon, 09/19/2011 - 07:55 | Link to Comment papaswamp
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.

Mon, 09/19/2011 - 08:02 | Link to Comment Smiddywesson
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?

Mon, 09/19/2011 - 08:38 | Link to Comment Sean7k
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...

Mon, 09/19/2011 - 07:50 | Link to Comment agent default
agent default's picture

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

Mon, 09/19/2011 - 09:49 | Link to Comment dclaz
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.

Mon, 09/19/2011 - 10:02 | Link to Comment LowProfile
LowProfile's picture

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

Mon, 09/19/2011 - 07:48 | Link to Comment Smiddywesson
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?

 

Mon, 09/19/2011 - 08:02 | Link to Comment papaswamp
papaswamp's picture

+1900

Mon, 09/19/2011 - 10:03 | Link to Comment LowProfile
LowProfile's picture

+55,000

Mon, 09/19/2011 - 07:23 | Link to Comment overmedicatedun...
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 hand..like that is news on ZH..LOL or crying take your pick

Mon, 09/19/2011 - 07:24 | Link to Comment malikai
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.

Mon, 09/19/2011 - 07:57 | Link to Comment Judge Holden
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.

Mon, 09/19/2011 - 07:24 | Link to Comment Mr.Sono
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.

Mon, 09/19/2011 - 07:28 | Link to Comment oobrien
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.

http://geraldcelente.proboards.com

 

Mon, 09/19/2011 - 07:38 | Link to Comment msmith
msmith's picture

Futures down, USD up big.  Full Market Report http://bit.ly/pJzX1z

Mon, 09/19/2011 - 07:38 | Link to Comment lewy14
lewy14's picture

OT - breaking - FedWire - LOL...

Mon, 09/19/2011 - 07:38 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

WHERE is the Chavez-Gold _now_?

Mon, 09/19/2011 - 08:16 | Link to Comment StrangerThanFiction
StrangerThanFiction's picture

It was sold!

Mon, 09/19/2011 - 07:43 | Link to Comment FiscalCrater
FiscalCrater's picture

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

Mon, 09/19/2011 - 07:44 | Link to Comment irishlink
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 ...one that serves the people not this Global monster.

Mon, 09/19/2011 - 07:51 | Link to Comment pmcgoohan
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.

PHAU,-2.202
RBS -0.125
HSBA -0.125
LLOY -0.125
GSK,-0.125
III,-0.49937
EPN,0.28537
NXT,-0.125

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

Mon, 09/19/2011 - 08:13 | Link to Comment Smiddywesson
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. 

Mon, 09/19/2011 - 08:00 | Link to Comment msmith
msmith's picture

EURUSD Market Report has been updated.  Bearish price action to continue in the short term.  http://bit.ly/nHbHy1

Mon, 09/19/2011 - 08:04 | Link to Comment Enkidu78
Enkidu78's picture

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

Mon, 09/19/2011 - 08:04 | Link to Comment msmith
Mon, 09/19/2011 - 08:16 | Link to Comment Smiddywesson
Smiddywesson's picture

My theory last week was they were going to attack gold this week.  It looks like they are going to try to take it down today.  I expected them to wait until the FOMC meeting, but hey, what do I know?  Maybe this means something WILL happen in Greece today.

Mon, 09/19/2011 - 08:25 | Link to Comment Enkidu78
Enkidu78's picture

Now it begins!!

Mon, 09/19/2011 - 08:26 | Link to Comment fdisk
fdisk's picture

Gold just dropped again. Need to clear 1825 resistance.

Correlation looks like broken. Equity futures down 140 points

and GOLD barely holding.

Mon, 09/19/2011 - 08:35 | Link to Comment msmith
msmith's picture
USDCAD bullish price action. A large move higher could be developing. http://bit.ly/pYLx6u
Mon, 09/19/2011 - 08:48 | Link to Comment mess nonster
mess nonster's picture

My broken record... Peak oil means enevitable massive deflation as energy starved ecomies shrink. The inevitable war will not bring profits this time, because energy supplies will be further curtailed by conflict: in this war, everyone will be Germany and Japan, starved to death by a lack of petroleum.

Gold's value is intrinsic, that is, it doesn't change, and buying power of gold is constant. Fear and what little inflation can be blown into the system at this point with all CB's huffing and puffing with all their might have created a bubble, CB's buying gold because they have gobs of fiat money they refuse to loan out. They have to do something with it, (protecting their own diseased balance sheets is #1 priority) driving prices up further.

Everyone forgets that money is an abstract of who gets the energy. Thermodynamics rule, not fucking gold or paper money. Global money represents debt obligations, which once tracked energy supplies, but now have so far outstripped them it is ludicrous. Eventually, inevitably, as the debt is written off, the money supply will shrink, and so will the price of gold.

It doesn't matter, gold will buy the same, whatever the valuation. but just as gold prices outstrip energy supplies and reflect the current  glut of useless fiat currency, it may drop below the energy/money supply as everyone, sick with fear that their gold is now worth "less" in terms of fiat, dump gold to snatch a share of rapidly devaluing fiat.

Whosoever has gold should keep it, and not panic, is my say.

Mon, 09/19/2011 - 08:55 | Link to Comment 7bit
7bit's picture

Gold is moving higher?

There is a setting in your display driver where you can turn off this annoying mirroring that makes everything  upside down.

Mon, 09/19/2011 - 08:59 | Link to Comment mess nonster
mess nonster's picture

Most of the time, these are my sentiments exactly.

Mon, 09/19/2011 - 10:04 | Link to Comment silverscouseparis
silverscouseparis's picture

When you see cramercnbc fronting gold stocks with him saying "I've always loved gold"you just know that you need to sell your gold shares and buy some physical..
How the protesters outside let the guy through I don't know!
If he's not the enemy who isn't?

Mon, 09/19/2011 - 10:39 | Link to Comment FranSix
FranSix's picture

Divide your gold stock value with the gold price.

 

Mon, 09/19/2011 - 10:22 | Link to Comment El Gordo
El Gordo's picture

Here's my simple strategy regarding silver:

If it goes up, buy a little bit

If it goes down, buy a little bit

If it goes down a lot, buy a lot more

 

Mon, 09/19/2011 - 10:37 | Link to Comment FranSix
FranSix's picture

Looking for the test on the 13-week EMA, then sideways trade for an extended period:

stockcharts.com $Gold weekly

http://ow.ly/6yjJc

The mainstream opinion on gold is not yet resolved, its still seen as a risky, volatile trade.  This does not fit with stabilité.

Mon, 09/19/2011 - 11:13 | Link to Comment thunderchief
thunderchief's picture

One day or week or morning/afternoon in the price of gold means nothing. 

It's all paper games.

Gold and silver will get taken out behind the woodshed early this week like last week because the bankers know it should be 50/2000 plus.  So turn your computers off and keep buying everything in the silver gold market.  Except GLD and SLV which are scams.

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