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Gold Plunges As Bernanke Speaks: China Is Most Grateful

Tyler Durden's picture


It would appear that the asset-class most sensitive to the next round of renewed money-printing by the Fed - that implicitly seems to provide stock investors with some belief that their USD-numeraire priced holdings should go up in price - is dropping fast and pricing out hope of a 'New QE' anytime soon. As The Bernank speaks and offers nothing more than a Draghi-reinforcing check-to-the-government around the poker table of global macro, Gold is plunging. The biggest beneficiary of the Bernanke soliloquy so far is China, which has managed to get a new cheaper entry point on Bernanke's latest attempt to talk down Gold while keeping stocks up (because rising input costs courtesy of oil apparently only impact the gold bottom line). After importing 100 tons in physical gold (not GLD) in April, the country will be even happier to buy far more at lower, not higher prices.

Gold vs Stocks vs Treasury Yields vs USD...

Chart: Bloomberg


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Thu, 06/07/2012 - 11:50 | 2504033 Dr. Engali
Dr. Engali's picture

If I were buying gold right now I would be most grateful, however I am not.  This is getting exhausting.

Thu, 06/07/2012 - 11:52 | 2504050 SeverinSlade
SeverinSlade's picture

Less exhausting than the central bankers constantly hitting CTRL-P.

Thu, 06/07/2012 - 11:56 | 2504082 Thomas
Thomas's picture

Yup. It is tedious for those of us who are at full position in gold. On the bright side, a good chunk of my cost basis is below $300, which gives me some reason to flip him off and simply wait for his next speech.

Thu, 06/07/2012 - 12:19 | 2504207 Harlequin001
Harlequin001's picture

Does anyone know how the gold price is actually calculated, and I don't mean the AM/PM fix?

Thu, 06/07/2012 - 12:38 | 2504289 Panafrican Funk...
Panafrican Funktron Robot's picture

Personally, I calculate it by calling around my local coin shops to see what their price is on a 1/10 oz eagle, since that is what I prefer to buy.  The price is what you can actually buy it for and hold it in your hand, the rest is just phantoms.

Thu, 06/07/2012 - 13:12 | 2504443 malikai
malikai's picture

This is bullshit! I want $20 gold.

Thu, 06/07/2012 - 13:46 | 2504610 Harlequin001
Harlequin001's picture

What I mean is that the gold price doesn't steadily rise and fall throughout the session, it either shoots or plunges within seconds and then remains fairly flat for the remainder of the session. So what can make it plunge in short order other than direct manipulation?

So, does anyone actually know how the gold price is calculated?

Thu, 06/07/2012 - 14:28 | 2504775 LULZBank
LULZBank's picture

My guess would be, they move up and down violently when the BIS or CBs want to adjust FX rates among currencies.

The violent move up or move down is not the issue, but by how much in various currencies, which I dont think would be uniform in exchange rate terms.

There could be arb opportunities when Gold priced in various currencies and FX rates for those currencies, if it could be traded somehow.

Im no expert, just my guess or gut feeling.

Then ofcourse there will be demand and supply and inflation aspect, which accounts for the more subtle moves.

Thu, 06/07/2012 - 14:42 | 2504777 TWSceptic
TWSceptic's picture

"So, does anyone actually know how the gold price is calculated?"


It's buy & sell orders mostly done by computers these days. You can see it struggle a bit around 1600 then once it goes below it kept dropping. There is little human interaction at that point. Then once below the 1600 level the price drops further based on more preset sell orders coming in. This is how I understand it, someone correct me if I'm wrong.

Thu, 06/07/2012 - 16:40 | 2505312 Havana White
Havana White's picture

The price of gold -- it's right here on this particular thread, the chief reason for gold's big drop today.  Swing traders had piled in over the past several days as technicals signalled green light.  Stochastic, for example, peaked higher than it has since March.  These traders are hitting the sell button as a group, the stochastic turning over like the tip-top slope of a roller coaster.  But the believers, the longs, are in already.  Too few of us to pick up the slack.  In a few days there'll be different charts, different signals.  Eventually, fundamentals will win the day.

Thu, 06/07/2012 - 14:43 | 2504769 greensnacks
greensnacks's picture

As Europe resists temptation of further LTRO, the Fed was to announce further QE? That didn't seem likely. It also feels like a coordinated effort is being implemented to devalue gold pricing, maybe not to $20, but down, down, down.

SWIFT sanctions forced Iran to find other ways to trade and gold being #1. China is happy, because they continue to buy oil from Iran at bottom dollar discounts. Come July 1, EU will stop buying Iranian oil. Forcing an already more harsh depression on Iran. Maybe this is the answer to avoiding war and accommodating their allies with cheap resources?

Thu, 06/07/2012 - 13:22 | 2504500 AustriAnnie
AustriAnnie's picture

Its determined by reading the minds of every market participant at once, and then trying to guess when and how they will change their minds in the next instant.


Thu, 06/07/2012 - 11:59 | 2504096 BoNeSxxx
BoNeSxxx's picture

if it looks like a coordinated smackdown and quacks like a coordinated smackdown, then well... it's probably a coordinated smackdown.  fuckshites all of them

Thu, 06/07/2012 - 12:01 | 2504112 ArrestBobRubin
ArrestBobRubin's picture

Friend, that's the 1/2 empty outlook. The 1/2 full one? BTFD!

Thu, 06/07/2012 - 12:16 | 2504194 BalanceOrBust
BalanceOrBust's picture

Looking at that chart, it would seem that a group got together yesterday just before noon hour and decided that they would collectively take gold down today at the start of Bernanke's speech. Then a few of them went to their trading desks and decided to front run the group decision a bit. After all, which of their fellow conspirators would dare report them to the authorities (assuming of course that the authorities were not in on the conspiracy)?

Thu, 06/07/2012 - 12:33 | 2504267 ITrustMyGut
ITrustMyGut's picture

if we look.. we se plenty of evidence of coordinated transfer of wealth... and the aggressive end of the FRN.. china's direct access to monetize us debt, etc.

so.. gold take down is indeed purposeful... that Asia, and specifically China.. is being offered it cheaply... that a new Reserve currency is being prepared.. again, simply... they are aggressively coordinating.. to eliminate the FRN... and establish new.. will it be Renembi? not sure.. but it will NOT be USD/ FRN

Thu, 06/07/2012 - 12:39 | 2504293 Vagabond
Vagabond's picture

True.  The big runnup yesterday was manipulation as well.  There was no major news story that I know of to trigger such a move.  Looks to me like the big move up yesterday was posturing for todays take down.  Bull trap.

Thu, 06/07/2012 - 13:01 | 2504396 Soul Train
Soul Train's picture

Indeed, China wants an alternative to the usdlr. Who can blame them??? Competition is good, right?

Thu, 06/07/2012 - 11:52 | 2504051 SilverTree
SilverTree's picture

The TRUTH will set us FREE!

Thu, 06/07/2012 - 12:08 | 2504155 LongSoupLine
LongSoupLine's picture

Bernanke is guilty of treasonous acts against the United States.

Try, convict and impose the punishment for treason.

While you're at it, throw the rest of the FED, Congress, Treasury and Justice in there too! 

I love my country and what it could be.  I hate what it has and continues to become because of these greedy, manipulative and power hungry self serving fucks!

Thu, 06/07/2012 - 12:22 | 2504221 BoNeSxxx
BoNeSxxx's picture

bernanke??? for piss sake kissinger is still a free man.  until that asshat is held accountable for his treasonous acts and crimes against humanity there will be no justice for bernanke (or corzine, or...)

Thu, 06/07/2012 - 14:21 | 2504755 flacon
flacon's picture

How is it that Kissinger keeps on ticking? He was a fat kid, and a fat man, but he's like a bizillion years old. Same goes for David Rockefeller. 

Thu, 06/07/2012 - 14:53 | 2504866 BoNeSxxx
BoNeSxxx's picture

drinking the blood of children?  harvesting the energy from the human anguish they have caused?  no, it's probably just good ol' clean living... they do that other stuff for their own amusement...

Thu, 06/07/2012 - 13:16 | 2504418 Oh regional Indian
Oh regional Indian's picture

Sliver Tree...



Thu, 06/07/2012 - 11:53 | 2504054 Pladizow
Pladizow's picture

When it comes to physical PM's, remember - Bernanke and the manipulators work for you, not against you!

Thu, 06/07/2012 - 11:56 | 2504078 ArrestBobRubin
ArrestBobRubin's picture

Darn tootin' Think of it as your Sicko Subsidy

Thu, 06/07/2012 - 12:16 | 2504177 fockewulf190
fockewulf190's picture

Purposeful headfake from Yellen yesterday dropping the hint about QE 3 being a possibility. Seems the goal was to burn gold sentiment and rape the speculators. No doubt some have been shot down in flames. I'm glad I kept my powder dry and held back....I smelled a rat and it sure as shit showed up today. I'll wait a few days and let this play out a bit and then order some more Phyzz off the bottom. Nothing has changed. Not one single fucking bit.

Thu, 06/07/2012 - 23:55 | 2506210 jwoop66
jwoop66's picture

yeah, it was all a setup from the fed.   Chasing people away from pm's.  Bernank should just shut the fuck up.

Thu, 06/07/2012 - 11:53 | 2504057 achmachat
achmachat's picture

... don't forget stackers all over the world. Stackers are most greatful too!

Thu, 06/07/2012 - 11:53 | 2504061 LULZBank
LULZBank's picture

This is getting exhausting.

When people are exhausted or tired, their ability to resist or making sound decisions is low.

Thu, 06/07/2012 - 11:58 | 2504094 DoChenRollingBearing
DoChenRollingBearing's picture

@ Dr. Engali

I signaled gold's price drop by buying phyzz on Tuesday...

Thu, 06/07/2012 - 12:08 | 2504153 fuu
fuu's picture

See there you go again, you could have  hired a couple of sales guys for the same cost...

Thu, 06/07/2012 - 12:54 | 2504358 Chump
Chump's picture

Keep up the good work.  I do the same with silver.  Wait and wait for an entry point, buy, boom watch the price drop by several percent.

Thu, 06/07/2012 - 12:05 | 2504142 Peter Pan
Peter Pan's picture

I used to have the same attitude until I realised that it's the full time score that matters in this game and not the half time score. If you have any doubt about the final outome then sell your gold and join the other zombies who are paid 1% interest.

Thu, 06/07/2012 - 19:29 | 2505683 NOTfromSanFrancisco
NOTfromSanFrancisco's picture



"...zombies who are paid 1% interest."... Who's getting 1% interest?... Where?... My C.U. savings is paying 0.1%...

Thu, 06/07/2012 - 13:00 | 2504385 Nobody For President
Nobody For President's picture

Agreed, Doctor - so buy silver instead.

Thu, 06/07/2012 - 14:53 | 2504886 kekekekekekeke
kekekekekekeke's picture

seriously ugh screw all these stragglers they had their chance >:O

Thu, 06/07/2012 - 11:50 | 2504037 SeverinSlade
SeverinSlade's picture

Get yer PMs heeeeeere! 

Thu, 06/07/2012 - 11:50 | 2504039 VonManstein
VonManstein's picture

extremely harsh moves but i still got it placed (bouncing now) of my breakout channel.

bear in mind though i am a complete amature with this trading thng and much prefer my physical

Thu, 06/07/2012 - 11:52 | 2504044 Rip van Wrinkle
Rip van Wrinkle's picture

Remember those days when Benrnake opened his fat mouth and gold rose on every sylable?


These guys are smart. They've learnt their lessons. Bernanke opens his mouth now and the POG disappears off the charts. Wonder why??


Has anything else changed? Is anything better now than it was then?

Thu, 06/07/2012 - 11:57 | 2504083 No Euros please...
No Euros please we're British's picture

Bernanke is not so smart if he can't see the Chinese sucking up real physical gold everytime he suppresses the price and he doesn't wonder why.

If China get enough gold to re-introduce the gold standard they become the new world currency and the good ol' USD is sunk bigtime.

Thu, 06/07/2012 - 12:01 | 2504117 GeezerGeek
GeezerGeek's picture

What makes you think Obama and Bernanke aren't under orders from the Chinese to suppress the POG until China has enough, however much that may be?


Thu, 06/07/2012 - 12:36 | 2504283 ITrustMyGut
ITrustMyGut's picture

+1 BINGO.. we have a Winner!

Thu, 06/07/2012 - 14:33 | 2504797 TWSceptic
TWSceptic's picture

Why? makes no sense.

Thu, 06/07/2012 - 15:41 | 2505081 FREEEEEEEEEDOM

China can end this game tomorrow if they want, always stay friends with the guy who got the whistle. Atleast you have to accept his decision.

Once you realize that the dudes running this shit aint retarded current times become very interesting. The petrodollar is sure coming to an end and i think Bernanke, in some perverted way, actually is doing everything right. He sure knows that this shit aint gonna go back to the heydays of 99, all he can do now is minimize the damage during the transition. What else can he do? Ctrl-P looks like the option that will bring the least amount of pain to the debtridden west. History might be kinder to him than we think.



Thu, 06/07/2012 - 16:13 | 2505236 ATM
ATM's picture

Obama is a Maoist.

Bernenke not so sure but being where he is I wouldn't discount that chance that's he's in bed with Obama and those cohorts. 

You destroy a country by destroying it's currency. All these people know that. They are all on pace to destroy the currency and thus the country.


Thu, 06/07/2012 - 11:54 | 2504045 Temporalist
Temporalist's picture

It's more contrived than a 3rd grade performance of Oliver "Twist"

Thu, 06/07/2012 - 11:57 | 2504086 ArrestBobRubin
ArrestBobRubin's picture

Please Sir... more bullion?

Thu, 06/07/2012 - 12:28 | 2504250 ArrestBobRubin
ArrestBobRubin's picture

Starring creepy old Bernanke as Fagin and Geithner as the Artful Tax Dodger.

Thu, 06/07/2012 - 11:51 | 2504046 Snakeeyes
Snakeeyes's picture

And Swedish yields spike as regulators take away incentives to buy Swedish bonds. Reverse QE2?

Seriously, these central planning idiots will destroy us.

Thu, 06/07/2012 - 12:04 | 2504129 GeezerGeek
GeezerGeek's picture

All is going according to plan. Unfortunately.

Thu, 06/07/2012 - 11:51 | 2504047 LULZBank
LULZBank's picture

Anybody who whines or complains, is gonna get it!

Thu, 06/07/2012 - 11:52 | 2504053 Jason T
Jason T's picture

We're in a bull market of volatility

Thu, 06/07/2012 - 13:44 | 2504599 Winston Churchill
Winston Churchill's picture


We are in a rally within a secular bear market.Been in that

since 2001.On average they last 18 years.

This one never ends until the Dow hits 0.

Thu, 06/07/2012 - 11:54 | 2504064 ArrestBobRubin
ArrestBobRubin's picture

Is there an echo in here? Glad my earlier point was seen by ZH as well.

China says: thanks for the Flucking Dip Mr. Banksta! Now we takee even more of JPM's gold... Nicee pricee!

Thu, 06/07/2012 - 11:54 | 2504065 slaughterer
slaughterer's picture

Buy GLD puts on spikes.  Problem solved.  

Thu, 06/07/2012 - 11:54 | 2504066 GOSPLAN HERO
GOSPLAN HERO's picture

Bernanke's BS will come to an end: DISASTER.


Thu, 06/07/2012 - 11:54 | 2504071 ParkAveFlasher
ParkAveFlasher's picture

Anyone else have a sneaking suspicion Uncle Sam is settling up its bonds with China via gold suppression?

Thu, 06/07/2012 - 11:58 | 2504091 LULZBank
LULZBank's picture

Could be.

Would'nt be surprised if there were too many hands squeezing Uncle Sam's balls.

Thu, 06/07/2012 - 12:02 | 2504119 youngman
youngman's picture

I smell the same thing...and it stinks...but there is a deal somewhere...

Thu, 06/07/2012 - 12:12 | 2504181 ParkAveFlasher
ParkAveFlasher's picture

well here's to hoping they don't expect delivery.

Thu, 06/07/2012 - 12:18 | 2504202 Conax
Conax's picture

A year ago I read that Geithner had a meeting with the Chinese finance poobah, and when he emerged from it his face was ashen gray..

Your suspicions are logical, that they cooperate to pass the gold to China in exchange for a little extension on the payments due. This is financial treason, or maybe it is just plain treason.

Anyone with fiat left in hand should convert it, just like the Chinese are doing.

Thu, 06/07/2012 - 13:04 | 2504407 ParkAveFlasher
ParkAveFlasher's picture

Anyone have technical knowledge of how it would be moved from the Fed vaults?  NYC is a warren of train tunnels and I have to guess that you can easily move large masses of bullion underground with literally no one knowing.  The tunnels essentially connect the financial district - ex-WTC site included - by continuous rail all the way up the Hudson (upon which West Point perches) and all along many small seaports in Long Island.

Thu, 06/07/2012 - 11:55 | 2504073 Cdad
Cdad's picture

I am absolutely certain that some dumb ass on the Nanosecond Money halftime show will strut himself out there upon the stage and tell you to short gold and silver...right here into the hole.  And when that happens, that will be your opportunity to accumulate.

Use stupidity to your advantage...courtesy of The BlowHorn [CNBC] where stupidity and "getting backwards" is a way of life.

Thu, 06/07/2012 - 13:04 | 2504406 Nobody For President
Nobody For President's picture

Plus 1 for Nanosecond Money halftime show.

Thu, 06/07/2012 - 11:55 | 2504074 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'll take some when its on sale too.  Got it on it last week when it was 1530's.  Dollar cost averaging bitchez!!

Thu, 06/07/2012 - 11:56 | 2504076 papaswamp
papaswamp's picture

Sell orders at 1625 and 1627.

Thu, 06/07/2012 - 11:56 | 2504077 tocointhephrase
tocointhephrase's picture


Thu, 06/07/2012 - 11:57 | 2504084 q99x2
q99x2's picture

Bernanke below 1200 by years end.

Thu, 06/07/2012 - 11:57 | 2504088 GernB
GernB's picture

Question is will it rally now that the European markets are closed.

Thu, 06/07/2012 - 11:58 | 2504092 monopoly
monopoly's picture


Thu, 06/07/2012 - 11:58 | 2504095 MunX
MunX's picture

I love sales. I'm Irish and cheap.

Thu, 06/07/2012 - 11:59 | 2504098 kito
kito's picture

No lsap no gold 2000. So plain and simple to see. and it should occur to gold proponents that even if ben does print, it may, at best, only be enough to offset all of the asset destruction/deleveraging/deflation and nothing more. That certainly won't push gold to higher levels

Thu, 06/07/2012 - 12:01 | 2504113 Global Hunter
Global Hunter's picture

until somebody or something demands physical delivery or a foreign CB demands delivery from their stash at the FRBNY

Thu, 06/07/2012 - 12:03 | 2504131 oddjob
oddjob's picture

So you are saying Gold will do better in deflation than other asset classes...well done Kito.

Thu, 06/07/2012 - 12:20 | 2504213 jimmyjames
jimmyjames's picture

No lsap no gold 2000. So plain and simple to see.


Another dim wit who thinks gold has been reacting to printing-

When are you going to explain why your M2 theory blew up in your face?

Thu, 06/07/2012 - 14:06 | 2504690 kito
kito's picture

hey jimmy boy, perhaps you can explain why gold peaked a bit after qe2 ended? perhaps because the gold diggers realized no more printing was on its way? and how has gold fared since bens balance sheet has been shrinking and the worlds deleveraging tsunami picks up speed? its right in front of your eyes....and please dont tell me gold has been up for the past x years...blah blah...there was nothing holding it back at that point.....the headwinds of deflation are becoming increasingly palpable.....nothing will stop it...................

Thu, 06/07/2012 - 14:13 | 2504721 Bay of Pigs
Bay of Pigs's picture

oh headwinds....well, thats different. LOL.

forget the 12 year run. TOP CALLER kito has spoken.

Thu, 06/07/2012 - 14:28 | 2504778 kito
kito's picture

didnt call a top, told you very clearly that until there is another large scale asset purchase by the fed, gold will not hit 2,000. and that there would be no further qe until after the elections. and yes, you did not call for hyperinflation, so i will make that clear................

Thu, 06/07/2012 - 14:45 | 2504810 TWSceptic
TWSceptic's picture

CLearly you don't understand why gold has been going up for the last 12 years, no it's not just money printing. Do some research and you'll find out why.

Thu, 06/07/2012 - 15:22 | 2505015 jimmyjames
jimmyjames's picture

hey jimmy boy, perhaps you can explain why gold peaked a bit after qe2 ended? perhaps because the gold diggers realized no more printing was on its way?


QE 1 happened in december 09-

Printing never started until 09 and in fact was declining to that point-

So perhaps yo can explain how or why the price of gold increased 400% up to 09 with no printing and no QE?

Show me where the Fed or any other CB balance sheet is contracting-lets see some data-

You are so US centric that you forget there's a world beyond the end of your street-


Thu, 06/07/2012 - 12:22 | 2504226 Al Huxley
Al Huxley's picture

Bullshit.  Gold correlates to the US debt, and last I checked it's going nowhere but up.  These moves are setup by the bullion banks to transfer their short positions over to the spec side as much as possible, before the real delivery crunch issues start to happen.

Thu, 06/07/2012 - 12:53 | 2504349 Panafrican Funk...
Panafrican Funktron Robot's picture

"Gold correlates to the US debt"

In part, yes.  To me it seems like it is a combination of supply/demand for gold and FRN's, as far as the FRN exchange rate with gold.  That involves supplies of competing currencies as well.

Thu, 06/07/2012 - 14:08 | 2504696 kito
kito's picture

the debt has been going up since the dawn of time......reagan did a nice job adding to the debt fighting the iron curtain, gold was in a bear market already.....bullshit on your debt/gold relationship..........

Thu, 06/07/2012 - 12:00 | 2504099 Mark123
Mark123's picture

I guess it just goes to prove that the ONLY investment asset class in the entire world that is NOT supported by the banking cartel is gold and silver.  Makes you wonder how these will behave when the system finally falls apart....I would hazard a guess that on relative terms a gold coin would buy a lot of bank shares.


Of course, since the banker cartel have the greatest store of physical gold in the world, guess who wins again once the fiat world collapses.  It makes you wish you were a dog....just happy to be alive and chasing sticks.

Thu, 06/07/2012 - 12:15 | 2504186 Temporalist
Temporalist's picture

The banking cartel does NOT have the greatest store; people do.  50% is in the form of jewelry and 40% in investment.



Gold hits new high of 30,400 in Delhi market


Thu, 06/07/2012 - 11:59 | 2504101 Kreditanstalt
Kreditanstalt's picture

And wouldn't we have thought the threat of printing would send gold higher...?

Thu, 06/07/2012 - 11:59 | 2504102 Confundido
Confundido's picture

Come on, didn't expect this to happen? It was an exact replay of Feb 29...I had anticipated it in earlier comments in other articles. But nobody listened...not even I listened to myself, and bought on yesterday's dip....sooo sad....


Look, we are going to the 1,300s. Believe me. We are going there.

Thu, 06/07/2012 - 12:02 | 2504118 Canadian Dirtlump
Canadian Dirtlump's picture

A co worker of mine was balking at buying friday because of rising prices (yesterday). I told him to wear his helmet tomorrow (today), we'll be fine.


This morning he walked into my office and said "you're starting to scare me" before I had a chance to even see the carnage..

Thu, 06/07/2012 - 12:04 | 2504130 Cdad
Cdad's picture

What asset do you think The Street will be buying ahead of the Greek elections on June 17? 

Thu, 06/07/2012 - 12:08 | 2504154 Canadian Dirtlump
Canadian Dirtlump's picture

roll shutters for their store fronts presumably.

Thu, 06/07/2012 - 12:22 | 2504222 ParkAveFlasher
ParkAveFlasher's picture

I'm in kerosene, lighters, gas masks, and bits of shattered concrete.

Thu, 06/07/2012 - 12:08 | 2504156 Mark123
Mark123's picture

If you have a system, then why are you not a trillionaire by now? The gangsters that run the casino will always confound you....always.


They control the currencies, they control the market, they control the media, they control the government.


You, on the other hand, play "find the pattern".


Good luck with that.

Thu, 06/07/2012 - 14:37 | 2504813 LULZBank
LULZBank's picture

You, on the other hand, play "find the pattern".

The irony is, even the ones who are trying to find a pattern, dont see the real pattern in the bigger picture.

Thu, 06/07/2012 - 12:00 | 2504103 Unbezahlbar
Unbezahlbar's picture


Thu, 06/07/2012 - 12:00 | 2504104 Canadian Dirtlump
Canadian Dirtlump's picture

Thanks for the BLOWTORCHING Bitches..


Tomorrow is Payday. I'm getting loaded, then buying some silver, then sending some emails to exes that I'll regret.



Thu, 06/07/2012 - 12:08 | 2504152 Tortuga
Tortuga's picture

Do you need to have an intervention on the email thing?

DON'T do it.

Listen to some Roy Orbison or Nine inch Nails instead.

Thu, 06/07/2012 - 12:26 | 2504239 Al Huxley
Al Huxley's picture

You should probably buy the silver first, put it away somewhere safe, THEN get loaded.

Thu, 06/07/2012 - 17:08 | 2505392 Canadian Dirtlump
Canadian Dirtlump's picture

No it's fine. I'll just end up with some tchatkis along with it ( like a juice tiger and a food dehydrator ).

Thu, 06/07/2012 - 12:01 | 2504107 monopoly
monopoly's picture

Absurd that so called investors buy and sell on what the head inmate babbles in front of a large group of clones. Does not faze me one bit. 

Thu, 06/07/2012 - 12:01 | 2504110 americanspirit
americanspirit's picture

No wonder gold is being sold off - nobody needs the stuff anymore now that Europe is fixed, US banks are solvent, the US dollar is stronger than ever, everybody who wants a job, a home, or food has what they need, and our great leader will be re-elected and give us four more years of change we can believe in. What's not to like?

Thu, 06/07/2012 - 12:27 | 2504246 Al Huxley
Al Huxley's picture

Exactly.  A few words out of the mouth of an economics professor, and all the problems of the world are resolved.  What amazing power he has.

Thu, 06/07/2012 - 12:59 | 2504381 LULZBank
LULZBank's picture

There's a very good reason you have Professors who have done years of PhD conditioning and spent time in academia, passing exams, writing papers. After all that they will be the last ones who will want to realise that all their efforts and education was a phony worthless propaganda.

They will also be the only ones who can tell you porkies with a straight face.

Anybody else would'nt be able to help burst out laughing ...

Thu, 06/07/2012 - 14:00 | 2504669 robertocarlos
robertocarlos's picture

A PROFESSOR went to a group of students to warn them about diabetes and he tested all the students using ONE testor unit. He changed the needle for each test. Now all the students are being tested for HIV, and hep B and C.

Thu, 06/07/2012 - 12:05 | 2504135 walküre
walküre's picture

Germany's Handelsblatt is saying it like this

Bernanke zeigt Bereitschaft zum Gelddrucken

Translated ad verbatim:

Bernanke shows readyness to print money


Printing money is a DEATH SENTENCE. Hyperinflation MUST COME NEXT.


Thu, 06/07/2012 - 12:19 | 2504138 reader2010
reader2010's picture

American Relic untill it's not.

Thu, 06/07/2012 - 12:09 | 2504143 miguel991
miguel991's picture

Can't wait for the breaking Marketwatch headline detailing the dangers of holding PMs.

Thu, 06/07/2012 - 12:06 | 2504145 Kina
Kina's picture

Well with the SEC and CFTC and Fed and Cartel banks you can be sure there are No markets.  Just coruption and manipulation according to the will of the free money printer.

You have no markets, until suddenly you do.


They will have to keep pushing that string, the will still have huge budget deficits to cover....the more the hold reality back, the more they supress gold and silver the greater the recoil when their efforts collapse and cease.



Thu, 06/07/2012 - 12:07 | 2504146 FieldingMellish
FieldingMellish's picture

Only the path is unknown, the destination is certain. Enjoy the sights along the way.

Thu, 06/07/2012 - 12:08 | 2504151 youngman
youngman's picture

The reason this action is so because they DO WANT THE GOLD...its just they have the computers to take it down so they can get it at a lower price...remember goldies are smart..they don´t sell...they are buying to protect themselves from the these takedowns are to shake out stop losses and the big boys can buy up those shares...where they were not able to at retail prices....its a should be illegal..but no one goes to jail anymore...

Thu, 06/07/2012 - 12:38 | 2504290 DosZap
DosZap's picture

but no one goes to jail anymore...

Except you and me.

Thu, 06/07/2012 - 13:32 | 2504553 Conax
Conax's picture

What? Why, our illustrious CFTC has just put a stop to a paper ponzi scheme for us-

I'm sure they are planning a move against the cartel any day now!

derp derp

Thu, 06/07/2012 - 12:58 | 2504337 CPL
CPL's picture



I'm waiting until tuesday for my discount, shake out the weak hands that don't manage their money.  Give it a three day window.

Thu, 06/07/2012 - 12:09 | 2504160 Unbezahlbar
Unbezahlbar's picture

China's rate cut will make all those Walart GeeGaws and DooDads much cheaper...the strong dollar will do wonders for our exports....

Watch the GDP plunge next measure.....

Thu, 06/07/2012 - 12:23 | 2504229 walküre
walküre's picture

horray!! allot more thingymajiggies for $3,000!!!!

Thu, 06/07/2012 - 12:12 | 2504162 ArrestBobRubin
ArrestBobRubin's picture

The Street was looking for CTRL-P too... and yet that pile of shite is actually UP 75 points after the same BS BS blamed for taking pms down. Of course, that's just the excuse for this latest exercise in Free Market price discovery.

Golly, I guess this no-QE malaise must be a pms-only thing... what total bullshit. Today's lower <paper> PM prices don't concern me. Not at all. This level of market rigging and systematized bankster crime DOES.

It should concern everyone: it's a mile marker on the Road to Oblivion the international banksters put us on in 1913.

Thu, 06/07/2012 - 12:11 | 2504171 geminiRX
geminiRX's picture

I am not an Armstrong mouthpiece, but keeping gold's price muted this year (i.e. not making new highs) is the best outcome possible as it sets 2013 and beyond a thrill ride up in price (it appears that the high in gold will occur in 2017). If this is so, it will make for a long year - however I have been reading his materials for years and he is very accurate. I keep staring at large cap gold mining stock prices and my jaw hits the floor on how cheap these stock prices are!

Thu, 06/07/2012 - 12:13 | 2504182 SUPERIOR BULLION

Gold and Silver are real money. The Banking Cartel does not like real money, and is doing all it can through the sale of fraudulent ETFs and Futures to drive the price down, through it's proxies JPMorgan and HSBC.

In the short term, we will continue to see continued see-sawing between the $1500 and $1800 price levels, as a result of rampant paper manipulation. As the global economy begins it's implosion in earnest, however, the collapse of highly leveraged trading houses such as JPMorgan seems inevitable. This will be the trigger event which will propel Gold and Silver towards $10,000 and $1,000 per ounce, respectively.

Thu, 06/07/2012 - 12:22 | 2504225 walküre
walküre's picture

This didn't make sense to me 4 years ago. It sounded outlandish then. It makes sense and it will happen. We will probably not have the same Dollar we are printing today though. So yes, adjusted to 2012 Dollars the price of gold will be around 10,000 but at that time they will have started a new currency that is backed by a basket of commodities and goods.

For shits and giggles, take the Italian Lira ca. 1960 and price it in gold today.

Thu, 06/07/2012 - 12:57 | 2504348 CPL
CPL's picture

Same here.


Five years ago, silver and gold were only a hedge, that changed in 2009 when it started to mirror Forex exchanges...then snuck past them.


Anyone else get the feeling that there is going to be a massive curency re-evaluation?  Like in Peru in the 90's when the Sol turned into the New Sol.  Basically they knocked of six zero's on 100k currency.  Something like the USD.


With China building it's PM reserves, it's going for the reserve currency status.  Too bad it'll fail horribly since China is MORE crooked than the US.  We are talking about the same assholes shipping cement as baby food here.

Thu, 06/07/2012 - 13:03 | 2504403 RiverRoad
RiverRoad's picture

The Banking Cartel is driving the price of gold down right now so they can scoop it up cheap for themselves.  And Bernanke knows exactly how to help them do it.

Thu, 06/07/2012 - 12:14 | 2504185 Nawaralsaadi
Nawaralsaadi's picture

"pricing out hope of a 'New QE' anytime soon."

I don't gree with the above, Ben kept the door wide open for QE; he basically said his most important factor is the rate of growth in the labour market, this rate is far below what is needed to guarantee full employment, the fed will print in full force in a couple of weeks, but rather than have his QE rally now, he probably want to have it after the Greek elections results are out, if the right wins in Greece he gets a double upside, if the left wins, he gets to respond to their exit and further stimulate US growth, two birds with one stone.

Never underestimate Ben ability to manipulate the stock market.



Thu, 06/07/2012 - 12:18 | 2504203 Bansters-in-my-...
Bansters-in-my- feces's picture

The USA ESF hard at work today I see.

Thu, 06/07/2012 - 13:03 | 2504405 Lord Blankcheck
Lord Blankcheck's picture

Treasury's Econonmic Stabilization Fund,The Bernanke is a sweetheart compared to them.

Thu, 06/07/2012 - 12:18 | 2504204 tocointhephrase
tocointhephrase's picture

$1600 + before the close.

Thu, 06/07/2012 - 12:24 | 2504230 Money 4 Nothing
Money 4 Nothing's picture

Never happen, wait till the blood letting tommorow after the close. Why does everyone think PM's will be the devine saviour when they will drop the floor in mid July? mark my words. Go long on Food and guns and grave stones. 

Thu, 06/07/2012 - 12:20 | 2504215 Money 4 Nothing
Money 4 Nothing's picture

Oh! Buy the dip! then get your balls kicked into your throat again. Old gamers have it made, new to the game? you just got owned again.

Thu, 06/07/2012 - 12:27 | 2504244 ParkAveFlasher
ParkAveFlasher's picture

You have city hands, Mr Hoopah.

Thu, 06/07/2012 - 12:35 | 2504278 tocointhephrase
tocointhephrase's picture

counting money? 

Thu, 06/07/2012 - 12:27 | 2504249 Talleyrand
Talleyrand's picture

 Your thoughts on "buy the dip, sell the rip (most important), stack the diff"?

Thu, 06/07/2012 - 12:33 | 2504271 tocointhephrase
tocointhephrase's picture

I didn't get owned, the Gold and Silver that was sitting in the coin shop just did!

Thu, 06/07/2012 - 13:30 | 2504536 ArrestBobRubin
ArrestBobRubin's picture

Stop it Jamie, just stop it. Don't you have a zombie bank to finish running into the ground?

Now get lost, and get busy.

Thu, 06/07/2012 - 14:08 | 2504695 The Swedish Chef
The Swedish Chef's picture

I was told the same thing when I first got in to gold but lo and behold, I could sell now at a profit. 


Those taking your advice and refraining to buy some shiny protection will be sorry.

Thu, 06/07/2012 - 12:25 | 2504237 Herbman
Herbman's picture

Bendalf has spoken on the Hill. O'froddo is rubbing his ring at the white house. But Chi-ruman knows its all unsustainable. 

Thu, 06/07/2012 - 12:26 | 2504240 ebworthen
ebworthen's picture

"Tank you belly much Missa Bernanke!"

Thu, 06/07/2012 - 12:33 | 2504260 ArrestBobRubin
ArrestBobRubin's picture


Thu, 06/07/2012 - 12:27 | 2504247 Sutton
Sutton's picture

Did people really think The Bernank was going to announce more printing on live tv, in front of some congressman who would to strangle him?


The Bernank prints through the Committee.

Thu, 06/07/2012 - 12:33 | 2504269 fuu
fuu's picture

He said it right there on camera. ZIRP through at least late 2014.

Thu, 06/07/2012 - 12:30 | 2504255 JR
JR's picture

The Fed, applying constant pressure coupled with monetary disarray, is sinking all the economic ships of the world; and if they aren’t sinking it’s because the cartel is lying about it.

As Darryl Robert Schoon puts it, “Money is no longer a store of value. It’s a trap for the unsuspecting that has already been sprung.”

As for the remarkable rise in the stock market, it was built on “the greatest credit and monetary expansion in US history.” Schoon explains: “The correlation between the rise of China’s GDP and the rise of the Dow is unmistakable. It’s also the reason why China’s growth is unsustainable. China’s rapid growth was fueled by the unprecedented expansion of the US money supply – an expansion directly responsible for America’s exploding appetite for consumer goods from China and the US stock market bubble in the 1990s.”

IOW, the very foundation of the stock market rests on the Ludwig von Mises’ crack-up boom that’s already been set in motion. Wrote Paul Craig Roberts yesterday,The Treasury bond market is…helped by the fear individual investors have of the equity market, which has been turned into a gambling casino by high-frequency trading.

“High-frequency trading is electronic trading based on mathematical models that make the decisions. Investment firms compete on the basis of speed, capturing gains on a fraction of a penny, and perhaps holding positions for only a few seconds.  These are not long-term investors. Content with their daily earnings, they close out all positions at the end of each day.

“High-frequency trades now account for 70-80% of all equity trades. The result is major heartburn for traditional investors, who are leaving the equity market. They end up in Treasuries, because they are unsure of the solvency of banks who pay next to nothing for deposits, whereas 10-year Treasuries will pay about 2% nominal, which means, using the official Consumer Price Index, that they are losing 1% of their capital each year.  Using John Williams’ ( correct measure of inflation, they are losing far more.  Still, the loss is about 2 percentage points less than being in a bank, and unlike banks, the Treasury can have the Federal Reserve print the money to pay off its bonds.  Therefore, bond investment at least returns the nominal amount of the investment, even if its real value is much lower.” 

Thu, 06/07/2012 - 12:30 | 2504256 caimen garou
caimen garou's picture

look how long it took for gold to go from $300 to where it is today, i bitched when I paid $250@ ounce. which by the way was in the summer of 1999 for some who was not buying back then. price is down,you don't have to buy! The chinese are doing a damn good job of pulling inventories from US andUK.

Thu, 06/07/2012 - 12:44 | 2504314 Missiondweller
Missiondweller's picture

I covered this in January: "China takes advantage of US Fed stupidity"


I can't believe this stupid shit is still going on.



Thu, 06/07/2012 - 17:58 | 2505495 skank
skank's picture

Wealth transfer, eh... believe it, bitchez

Thu, 06/07/2012 - 12:56 | 2504368 FunkyOldGeezer
FunkyOldGeezer's picture

It went up what, $70 odd on the fragile belief that QE3 was about to happen? What else was Bernanke going to do, but suppress any notion of QE3 anytime soon?

Long-term Gold has to go up, short-term they can manipulate it any which way they want to. I agree with someone who posted a week or so back. Central bank buying by most of the G7 countries AND China is currently about suppressing price. G7 'cos it shows up how bad everything really is, China 'cos they want to buy it as cheaply as they can. A new world order is trying to emerge, based on a Russian/Chinese axis.

I find it interesting that Greece and Portugal both have over 80%, Italy 73%, Spain 40% of their reserves in Gold, over 3,300 tonnes in total. With France and Germany, the Eurozone has far more than the USA. China and Russia less than 2,000 combined, but growing relatively fast, but still a comparative minnow. Gold's surge may just take an awful lot longer than anyone here wants it to, assuming all the figures are vaguely accurate. Of course, the best part of a 2 billion + Chinese and Indians holding a few ounces each might make the picture a lot less one-sided.

With everything that's happened since last September, Gold and Silver should be much higher, as the fear factor of the whole house of cards crashing down must have easily doubled since then, but hey, if I can't convince my wife and close friends, it shows me that the fear hasn't really hit home yet.

Thu, 06/07/2012 - 13:27 | 2504514 Venerability
Venerability's picture

First of all, utterly contrived and utterly silly action, due entirely to derivatives. The kind of day that makes every veteran of the PM sector roll his/her/its eyes and laugh at the Fast Ninnies and others who have no clue about this sector.

But second, yet another proof that those who think they are supporting PMs by talking about them in "Classical Dow Theory" terms - including some of those at Zero Hedge - are either being naive or are actually anti-PM people in disguise - apprentice Princess Dennises, if you will.

So once more:

Pitting the PMs "against" anything whatsoever - whether the General Market, Emperor Dollah, dethroned Emperor Euro, or Mom's Apple Pie -is absolutely the WRONG way to look at Gold and Silver and the PM stocks!

Now that the PM Universe is rapidly moving AWAY from the Gold-Haters - the US and UK - and into the hands of the Asians and others who love and respect the Monetary Metals, it is time to embrace a Gold Is Growth attitude.

Gold - and Silver - represent two major Growth scenarios.

They represent the rapid and inexorable diversification of the World's Currency Reserves, away from ANY one "Empire" Currency, and towards fair, neutral, and balanced Baskets of Currencies representing the realities of World Trade.

The Monetary Metals, being Stateless, mediate this transition.

Even more important, Gold and Silver represent the rapid and inexorable growth of a true Bourgeosie - a Consuming Middle Class - in that one-half of the World which has not had one until recently.

That one-half of our planet corresponds very closely with those countries and regions which have loved and respected the Monetary Metals since the days of the Cavemen: China, India, the rest of Asia, the Middle East, Africa, and Latin America.

(Print out this post and keep it close at hand, in case you are tempted to start thinking like Marc Faber - or worse, like Charlie Munger.)


Thu, 06/07/2012 - 13:29 | 2504531 robertocarlos
robertocarlos's picture

Nothing HAS to go up. You must be thinking "real estate always goes up".

Thu, 06/07/2012 - 13:34 | 2504557 ArrestBobRubin
ArrestBobRubin's picture

True. But the "value" of fiat paper HAS to go.... down.

Always has. Always will.


Thu, 06/07/2012 - 13:43 | 2504590 silverserfer
silverserfer's picture

I work with international college students and had a converstion with two chinese students here studying economics, they were oblivious to any iminent economic colapse on the horizon in Europe and US, they said inflation was real bad back home, I brought up gold and they got all mystical and said in a lower vioce ' yes many wealty families in china buy physical gold" he emphasized physical bullion. These kids were from wealty families and one  caried around at $2000 numismatic old chinese silver coin in his pocket for luck. College students with $60 Mercedes SUV's. Must be nice! 

Thu, 06/07/2012 - 14:45 | 2504844 Bastiat009
Bastiat009's picture

Gold doesn't even protect you against the fall of the US$ which is now losing ground again against the mighty euro.

I know, it's funny. The euro is doomed and the US$ is not very strong but gold is crashing (again) nonetheless.

Thu, 06/07/2012 - 14:50 | 2504877 Bastiat009
Bastiat009's picture

Narrative: Gold should go up. China is buying.

Facts: gold is crashing (has been for months). China is buying gold just like Americans are buying houses.


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