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Gold Up. Silver Up. USD... Up?

Tyler Durden's picture


Is this the overwhelming exodus of 'real-not-synthetic' Euros finding safety? Or just an aberration? It seems yet another event-risk-driven divergence is occurring as different asset-classes seem to be disagreeing over who will do the printing (when, not if, they print) and whether the mattress or barbarous relics offer most protection.


Chart: Bloomberg


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Fri, 05/25/2012 - 14:44 | 2463271 fourchan
fourchan's picture

run to reality debt slaves and all your debts will be wiped clean and then some thanks to the big printer in the sky.

Fri, 05/25/2012 - 14:46 | 2463290 The Monkey
The Monkey's picture

Just remember, Marc Faber himself was cautious on gold.  If gold and silver break long term trend lines on liquidation, we could get a cascade of selling before putting a floor underneath the PMs.

Fri, 05/25/2012 - 14:48 | 2463301 BeetleBailey
BeetleBailey's picture

.....also remember Faber could be 100% wrong....

Fri, 05/25/2012 - 14:51 | 2463317 idea_hamster
idea_hamster's picture

Blasphemy!  Oh, you'll smoke a turd in hell for that!

Fri, 05/25/2012 - 15:00 | 2463346 nope-1004
nope-1004's picture

Again, referencing a broken paper Crimex game.

I hope we get a paper cascading effect.  Let's get this USD proxy-of-a-reserve-currency-manipulative-tool replaced already.


Fri, 05/25/2012 - 15:07 | 2463385 godgunsandgold
godgunsandgold's picture

.....even as we speak....

Fri, 05/25/2012 - 15:11 | 2463402 Mark Carney
Mark Carney's picture

ZH feeds me with so much information that I can't keep up anymore and there is no room to put this info...brain all full :/

Fri, 05/25/2012 - 15:14 | 2463407 debtor of last ...
debtor of last resort's picture

keep stacking

Fri, 05/25/2012 - 16:46 | 2463685 Think for yourself
Think for yourself's picture

I hope that when the paper price heads to 0, it won't do so too violently - because if it crashes in a way that doesn't make sense the paper/physical dislocation might start way earlier.

I'd be so glad to keep stacking some more at 15-20$ per oz! 

Fri, 05/25/2012 - 17:08 | 2463727 strannick
strannick's picture

Golds risk on just became safe haven. Just in time for raised debt ceilings and ended Operation Twist

Fri, 05/25/2012 - 17:19 | 2463754 Dugald
Dugald's picture

15 to 20  Oooooooooo yes please, pretty please!!!!!!

Fri, 05/25/2012 - 15:04 | 2463371 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

I remember back in the day I bought some smokables on the beach in Spain that turned out to be exactly, I think. I was still in heaven tho

Fri, 05/25/2012 - 15:09 | 2463397 fonzannoon
fonzannoon's picture

They just had Schiff on CNBS and I could not believe my eyes. They had him debate a doorknob and when the doorknob took the usual position the anchors actually backed Schiff. Never seen that before.

Fri, 05/25/2012 - 15:12 | 2463403 bdc63
bdc63's picture

that's because he was talking about a country other than the US.  they only laugh at him when he talks about the crooks at the FED and the ponzi scheme that is the US economy

Fri, 05/25/2012 - 15:24 | 2463440 Papasmurf
Papasmurf's picture

Schiff vs a doorknob is a fairly even match.  I'm sorry to have missed it.

Fri, 05/25/2012 - 16:40 | 2463670 tmosley
tmosley's picture

Why so butthurt?

Fri, 05/25/2012 - 15:01 | 2463361 barliman
barliman's picture


He could star in a remake of "The Jerk" ...

and we would only need to rewrite one scene to make it topical.

"... He hates these gold bars. Stay away from the gold bars."


Fri, 05/25/2012 - 14:50 | 2463313 1100-TACTICAL-12
1100-TACTICAL-12's picture

i hope the floor is far below i need more.

Fri, 05/25/2012 - 21:47 | 2464296 The Monkey
The Monkey's picture

I think the floor is far lower.  The mining stocks really tell the tale to me.  Silver is probably a pretty awesome short at these prices.

Fri, 05/25/2012 - 14:50 | 2463314 rfaze
rfaze's picture

Hedge by shorting Euros and on days like today you will be happy like me.

Fri, 05/25/2012 - 14:51 | 2463318 Kreditanstalt
Kreditanstalt's picture

Tired of that...we've had "a cascade of selling" in gold for MONTHS already....does it have to go to ZERO for the dinosaurs?

Fri, 05/25/2012 - 15:03 | 2463369 barliman
barliman's picture


Not at all!

Personally, once it hits $ 32/oz I am planning on backing up a semi to take my delivery from APMEX.


Fri, 05/25/2012 - 15:30 | 2463462 DosZap
DosZap's picture

Yesterday, the only thing holding Green was Silver,today it went Red,(overnight it hit 27.88) while all else was Green............WHO da hell knows.

Fri, 05/25/2012 - 21:54 | 2464308 The Monkey
The Monkey's picture

Anyone who is a bear on the PMs, which includes me, sees it as a mania (at least at this point).  Gold is awesome & it is good to have some just in case.  But - when the ads are running everywhere, family members are talking about talking about getting into the business and you see lines of people lining up outside the coin shop to sell their gold, you know you have a big problem and potentially the bottom could fall out.

When everybody hates gold, I'll be a buyer.

Sat, 05/26/2012 - 04:55 | 2464822 HungrySeagull
HungrySeagull's picture

Hm. That day may come still.

Fri, 05/25/2012 - 14:51 | 2463319 Bam_Man
Bam_Man's picture

So what?

Who cares if you are not buying it for a quick trade.

Fri, 05/25/2012 - 15:44 | 2463497 Hal n back
Hal n back's picture

Heck--you have to be careful buying names like CAT IBM DELL HPQ TIF XOM MSFT GOOG  APPL


last few weeks have not been so great for these


(or JPM MS FB C)



Fri, 05/25/2012 - 14:55 | 2463337 Ruffcut
Ruffcut's picture

Everybody likes it going up, just like a ho for the more boners the better.

Fri, 05/25/2012 - 14:43 | 2463272 MaxVernon
MaxVernon's picture

Strange days, indeed!

Fri, 05/25/2012 - 14:57 | 2463345 Stoploss
Stoploss's picture

Glad it's not just me.

Dollar / gold strength together is a brow raiser alright. 

Im thinking CB's buying again. The MO seems familiar a la '08 '09 ish.

Fri, 05/25/2012 - 16:09 | 2463551 slewie the pi-rat
slewie the pi-rat's picture

and yet this isn't the first time since the EUR fell off the branch, as i recall

so we have some currencies where gold is goin UP and paper is going DOWN

CAD EUR CHF all are down and their holders may be trading for PMs here, especially on the dips, until things become clearer econometrically, financially, and fiscally

i saw this while i was replying to you, and it is excellent, here, Stoploss {as is this analyst, generally, imo}:

Will Gold Fall All the Way with the Euro?
By: Julian D. W. Phillips

and he agrees with you!  and focuses on the nations and reserves

but, he also has some of my stuff too, seeing india buying being "delayed" by the falling rupee, though, for now...

Fri, 05/25/2012 - 14:44 | 2463277 Race Car Driver
Race Car Driver's picture

Early holiday - no one minding the manipulation.

Fri, 05/25/2012 - 14:51 | 2463316 NotApplicable
NotApplicable's picture

Just those poor, lonely bots.

Fri, 05/25/2012 - 15:00 | 2463355 Ookspay
Ookspay's picture

+ 1

You gotta love Gallows Humor... I laughed until I cried.. USD, the prettiest horse in the glue factory.

Fri, 05/25/2012 - 14:46 | 2463278 Dr. Engali
Dr. Engali's picture

But I was told gold isn't a safe asset. If I want safety I am supposed to buy treasuries. You can count on the integrity of the U.S. gov. ,right? this thing on?

Fri, 05/25/2012 - 14:48 | 2463304 NotApplicable
NotApplicable's picture

I've been counting on their integrity for years and years.

Never had it. Never will.

Fri, 05/25/2012 - 14:53 | 2463327 barliman
barliman's picture


LOL ...

... just because you are talking  does not mean their is ANY intelligence on the other end of the line.


Fri, 05/25/2012 - 15:11 | 2463400 CvlDobd
CvlDobd's picture

"Hello? Hello!" Everybody's there!"

- George Carlin

Fri, 05/25/2012 - 14:44 | 2463283 LongSoupLine
LongSoupLine's picture



Just another day of the man behind the curtain controlling Oz.

Fri, 05/25/2012 - 14:44 | 2463284 the 300000000th...
the 300000000th percent's picture

Any minute now, waiting on the late day rumor rally to push the dow into green territory to end Friday on a happy note

Fri, 05/25/2012 - 14:50 | 2463310 CvlDobd
CvlDobd's picture

I have my new catch phrase waiting in the wings for that moment.

Fri, 05/25/2012 - 15:39 | 2463490 tekhneek
tekhneek's picture

C'mon give us a taste

Fri, 05/25/2012 - 14:46 | 2463294 BeetleBailey
BeetleBailey's picture

FX client accounts:

LONG XAU/USD & XAG(ONC)....I'm are they.

Fri, 05/25/2012 - 14:55 | 2463334 fourchan
fourchan's picture

the build bergz first keystone is the euro, the second the amero, and the third an asian currency.

maybe the destruction of the euro will set them back 50 years or so from raping us.

Fri, 05/25/2012 - 15:07 | 2463380 barliman
barliman's picture


"The raping will continue until morale improves."

I guess lying about Consumer Confidence just won't be enough.


Fri, 05/25/2012 - 14:49 | 2463308 nomorebuyins
nomorebuyins's picture

Oops, took their finger off of the button for a second. Release the ramp!

Fri, 05/25/2012 - 14:50 | 2463312 Bam_Man
Bam_Man's picture

The robots were given the day off.

Their masters are already partying out in the Hamptons.

Fri, 05/25/2012 - 14:52 | 2463321 NotApplicable
NotApplicable's picture

Well, it is International Geek Pride Day, after all.

Fri, 05/25/2012 - 15:07 | 2463384 bonderøven-farm ass
bonderøven-farm ass's picture

Indeed it is.........Gooble Gobble

Fri, 05/25/2012 - 15:27 | 2463449 Papasmurf
Papasmurf's picture

That explains the non-stop flights from boystown to Hamptons.

Fri, 05/25/2012 - 14:53 | 2463329 gimli
gimli's picture

This is an interesting little article on GS price manpulation on PM miners:

Fri, 05/25/2012 - 14:57 | 2463347 ThaBigPerm
ThaBigPerm's picture
They wanna pay my ass with Euros
and I'm like, "no! no! no!"
I know you smoke crack, but take these things back
I'm like, "no! no! no!"
Fri, 05/25/2012 - 14:59 | 2463352 Shock and Aweful
Shock and Aweful's picture

Someone knows something maybe? 

Maybe there is a big "announcement" coming....

And the setup couldn't be any more perfect....just in time to let the muppets marinate in the "good news out of Eurpoe"  over a long weekend! 


// Cynicism off / /

Fri, 05/25/2012 - 15:00 | 2463357 midgetrannyporn
midgetrannyporn's picture

PMs going nowhere fast.

Fri, 05/25/2012 - 15:25 | 2463444 HeNateMe
HeNateMe's picture

Astute analysis Midge. 

Fri, 05/25/2012 - 15:28 | 2463456 midgetrannyporn
midgetrannyporn's picture

$20 up, $20 down. meh

Fri, 05/25/2012 - 15:59 | 2463532 junkyardjack
junkyardjack's picture

Wrong, "soars" $20 up, "manipulated" $20 down

Fri, 05/25/2012 - 16:19 | 2463607 Bay of Pigs
Bay of Pigs's picture

A good example of the attitude these days. A complete lack of clarity and understanding in regards to gold and silver.

FWIW, in the 15-20 years I've been following this sector almost daily I've only seen sentiment this bad once. In the fall of 2008 ($1000+ to $692 for gold and 21 to 9 for silver). 


Fri, 05/25/2012 - 16:30 | 2463638 VonManstein
VonManstein's picture

things have changed since then friend

Fri, 05/25/2012 - 16:42 | 2463677 tmosley
tmosley's picture

Yup, the fundamentals for PMs are much better now, and the can is now the size of Ganymede.  Gonna be hard to kick it much further.

Fri, 05/25/2012 - 17:56 | 2463831 Bay of Pigs
Bay of Pigs's picture

Exactly my point tmosley. Some of these guys will never get it. Who are they kidding around here?

The USD is stuck where it was 7 years ago, and the only reason its up now is the falling Euro.

Fri, 05/25/2012 - 16:00 | 2463538 goldfish1
goldfish1's picture

A couple o' years back, those in the know said when you start seeing $100 swings in gold, you know the wheels are coming off the cart.

Guess we're there, midget ranny porn.


Fri, 05/25/2012 - 15:01 | 2463359 junkyardjack
junkyardjack's picture

Don't worry PMs will be getting hammered again soon.  USD FTW!

Fri, 05/25/2012 - 19:42 | 2464032 Bay of Pigs
Bay of Pigs's picture

Wrong. Gold rose from Aug 05 to May 06 from $430 to $725. USD rose at that time too.

So what's is your point?

Fri, 05/25/2012 - 15:01 | 2463360 Piranhanoia
Piranhanoia's picture

I need a little more time to make up what is left of my mind.

Fri, 05/25/2012 - 15:01 | 2463363 Ineverslice
Ineverslice's picture

Euroflighter is skewing all instruments as it surpasses mach-1.

Fri, 05/25/2012 - 15:05 | 2463375 mayhem_korner
mayhem_korner's picture



Some bank-runners are more discerning than others.

Fri, 05/25/2012 - 15:06 | 2463378 Calidreaming
Calidreaming's picture

Ok last hour  Dow down 80 - How will this end up ?

87%- Dow Even or green- last hour algo buy on euro hope rumour

10 %- Dow  slightly negative -Gets back most of losses.

2%  - Dow ends up in a range where it currently is

1%   - Dow selling accelerates in last hour


Fri, 05/25/2012 - 15:10 | 2463379 tmosley
tmosley's picture

Safety in paper gold and paper silver.  SMART.

I wonder how much of this flow of funds is actually going into PHYSICAL PMs?

Fri, 05/25/2012 - 15:16 | 2463415 VonManstein
VonManstein's picture

i just swapped £1500 sterling for a chunk of shiny metal!

what a sucker

Fri, 05/25/2012 - 15:28 | 2463455 bonderøven-farm ass
bonderøven-farm ass's picture

Swaped some nylon/cotton debt instruments for some Kugerrands last stealing candy from a baby.


*disclaimer:  Although, I quickly lost them in a boating accident...

Fri, 05/25/2012 - 15:32 | 2463471 VonManstein
VonManstein's picture

dang me too.. its a conspiracy i swear it

Fri, 05/25/2012 - 17:39 | 2463799 BooMushroom
BooMushroom's picture

That reminds me, I need to go buy some kind of boat...

Fri, 05/25/2012 - 15:07 | 2463381's picture

My trader just told me they are having a Memorial Day Super Sale on FB stock and I better get in now......

Fri, 05/25/2012 - 15:07 | 2463382 jackinrichmond
jackinrichmond's picture

even the VXX is behaving strangely..  like it has a downward bias

Fri, 05/25/2012 - 15:08 | 2463387 pauldia
pauldia's picture
Wall Street Journal Says Comex Has Been Classified as ‘Too Big to Fail’

by Ed Steer
Ed Steer’s Gold & Silver Daily

Fri, 05/25/2012 - 16:43 | 2463667 JustObserving
JustObserving's picture

Making the world safer for JP Morgan to manipulate.  

Why should my dollars go to bailout the Crimex?  The people had no say in that decision - we get more fascist everyday.

Fri, 05/25/2012 - 15:09 | 2463394 q99x2
q99x2's picture

Look out. I, that is, my best contrarian indicator, now favors gold and silver over canned tuna. But, only after the next confirmation of a rally.

Fri, 05/25/2012 - 15:12 | 2463404 Treeplanter
Treeplanter's picture

Some of my silver and gold miners made new 52 week  bottoms on Wednesday.   Since the bullion bank vultures still have the power to naked short millions of paper ozs., i'm waiting for a strong bottom formation before I get giddy.  I have enough real metal stashed, looking for those bargain ozs. in the ground.  No question the bull has been pushing at the gate. 

Fri, 05/25/2012 - 16:54 | 2463704 Marginal Call
Marginal Call's picture

Gold is a hedge vs the shit hitting the fan.  If the shit hits said fan, the miners and their gold in the ground will be nationalized, especially if it's coming from a place like the congo or south america. 


Your miners and your gold in the ground will become Che's gold as what you thought was phyz gets Corzined.   The miners are a pure paper play and not a hedge vs. TEOTWAWKI.

Fri, 05/25/2012 - 15:14 | 2463409 barliman
barliman's picture


e) All of the above

Under the current circumstances, the inexplicable divergences were are seeing are the only specks of sanity you can hold on to.

If everything "appeared normal" ... It would be time to activate all the perimeter defenses and shoot the first thing that makes a noise.


Fri, 05/25/2012 - 15:23 | 2463438 Bansters-in-my-...
Bansters-in-my- feces's picture


NOT just a breakfast drink.

Fri, 05/25/2012 - 15:38 | 2463486 barliman
barliman's picture



'Not just for showers.'  Paul Krugman


Fri, 05/25/2012 - 15:24 | 2463441 monopoly
monopoly's picture

Sorry, I think the floor is in. And while there may be fits and starts, we are going higher for a long while. That is where my confetti is, and I have my real money safe and sound. Euro so stretched to the down side and that is all they talk about.....Europe. And finally, is that good money from Europe moving into a real safe haven. Gotta luv it.

Fri, 05/25/2012 - 15:31 | 2463464 sessinpo
sessinpo's picture

No surpise here. Like I said before - moderately rising PMs. And that is based upon different world pressures - collapse of euro and strength in the dollar are the main two. The overall theme will be deflation though which means a great need to cover debts. And what is excepted as payment for debts will be the strongest. PMs is at this point not recognized as that medium. But that may change some day. Finally, we may see hyper inflation AFTER the deflationary period and that also bolds well for PMs. But that is still years in the future.

Fri, 05/25/2012 - 15:40 | 2463491 ilovefreedom
ilovefreedom's picture

3 primary mechanisms at play here:


1) gold margins lowered for paper/digital markets

2) Euro- down therefore European demand for precious metals is Up. (in additon to USD demand in Euros up)

3) USD is up (due to Euro/Europe), but since demand for Gold is up this also increases dollar denominated gold prices.

Fri, 05/25/2012 - 15:42 | 2463494 XtraBullish
XtraBullish's picture

Buy the living shit out of the metals - the hedgies with their prime margin accounts at JPMorgue are now liquified through dumping the GLD after getting those big cash calls due to Jamie's fucked-up trade. Could the current environment be any LESS PM-friendly?

Fri, 05/25/2012 - 15:55 | 2463522 Temporalist
Temporalist's picture

That chart is the first real "Green Shoot" I've seen.  ...wait I mean Green Shart

Fri, 05/25/2012 - 16:02 | 2463546 AlamoJack
AlamoJack's picture

Fellers, I got this funny feelin' that sometime in the near future (6 months) we're gonna' see the PM pricing take a bath-AND without the rubber ducky because nobody will probably sell at those down and dirty dollar prices.

Fri, 05/25/2012 - 19:04 | 2463960 HungrySeagull
HungrySeagull's picture

Except the mint and gainesville coins. =)

At least until physical shortages hobble the process.

Paper is a blowfish and it will choke on itself.

Carry on, continue to stack.

FYI, spot has only moved 30 cents, and half of you are losing your hair. Get some pussy and get laid. Stop worrying about a half dollar like a bunch of pensioners.

Fri, 05/25/2012 - 17:52 | 2463827 dbomb12
dbomb12's picture

Its about time that gold and silver decoupled from that worthless piece of eurotrash.

Fri, 05/25/2012 - 18:19 | 2463875 SILVERGEDDON

Fucking boring. Where is Meth MAN, and Robot Trader when you need them ?

Fri, 05/25/2012 - 20:32 | 2464141 fiddler_on_the_roof
fiddler_on_the_roof's picture

u don't want "Master Bates" here.. he was here before mathman

Fri, 05/25/2012 - 18:46 | 2463927 _underscore
_underscore's picture

I really can't understand the debate here. I'm not sure when (..and I'm sorry, I didn't notice it..) all the mal-investments were unwound & all the printed (covering) currency was rescinded - along with all those pesky 'debt' thingies; but perhaps I wasn't paying attention.

I also missed the part where we ("The West") got all that productivity loss back, where we suddenly found we undercut the BRICS with their ludicrously over-priced labour market. Come to think of it, I must be having delusions about my local economy - those closed shops & legions of un- & under- employed compatriots must just be lazy & living of our surplus economic power - sorry once again, my bad,.

I do try to keep up here, but hell - I must have missed that submission ( yesterday sometime?? - typical, I was at the dentist!...) where it explained all those bad effects & consequences of the past 50 years had been sorted - thank God for all those clever people we wisely chose to lead us (actually, deep deep down, I knew they wouldn't flunk it!).

Anyway, mustn't ramble on, just a bit sorry my PM sttrategy didn't pay off (well, you win some, you lose some as they say..), but who needs them anyway, well paying jobs will surely become more abundant as this mess finally resolves itself.. so no worries.

Must go & have a good kip now - good night all! Above all, don't worry now - remember, it's all been sorted.


Fri, 05/25/2012 - 19:04 | 2463962 HungrySeagull
HungrySeagull's picture

It's been sorted alright.

My stack strategy.

Fri, 05/25/2012 - 19:08 | 2463972 KingdomKum
KingdomKum's picture

Robot Trader reared his ugly head earlier today on ZH to everyone's surprise !




we few, we happy few, we band of silver holders  .  .  . 

Fri, 05/25/2012 - 23:42 | 2464469 AE911Truth
AE911Truth's picture

- Outlines a hypothetical Widom-Larsen Theory LENR neutron-catalyzed transmutation network that produces stable gold and platinum end-products from tungsten ‘seed’ scrap metal

- Speculative analysis of the potential economics of future W –> Au ‘transmutation factories’ for production of precious metals such as gold and platinum suggests that, if present relative price relationship of tungsten vs. gold and platinum were to continue into the future, ‘conversion’ of tungsten into precious metals has the potential to become a highly profitable business activity. If such processes can be scaled-up volume-wise and production costs reduced further by riding the “experience curve,” LENRs might compete with conventional mining within 10 – 15 years.

Sat, 05/26/2012 - 10:51 | 2465199 davey
davey's picture

The lines you see outside the coin shop are nothing more then wealth leaving a country. You ave yet to see a gold bubble. I will sell at 2,000 and 2,500 and the last at 3,000.

Sun, 05/27/2012 - 01:38 | 2466735 silverdragon
silverdragon's picture

I'll start selling my silver at 300.

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