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Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012

Tyler Durden's picture


A very noisy gappy day with much larger volume than in recent days (which all dried up in the afternoon session until the close - for the heaviest volume day in a month) in US equities. European comments lifted us early in a correlated-risk-on manner until Bernanke's speech which hit markets like a meteor - stops were run up and down - but by the close equities and the USD ended fractionally lower from pre-Ben (notably up on the day to save the month for the Dow), Gold considerably up from pre-Ben, Treasury yields down notably from pre-Ben. Near six-month highs in Gold and five-month highs in Silver were the real movers today - with their largest gains in two months. VIX ended marginally lower at 17.5% (-0.3vols); credit was very thin today and tracked stocks in general (though less volatile); USD ended the week -0.5% which matches Oil's +0.5% on the week as Copper underperformed. Silver has overtaken Stocks as the Year-to-date winner once again...

Gold vs Stocks vs USD vs Treasury yields... (arrows from pre-Ben to close)...7Y closed under 1%


left Gold and Silver at multi-month highs...


Leaving Silver the winner YTD...


Stocks were a mess all day post-Ben - especially the afternoon noise...but closed at VWAP - amid very heavy volume (month-end and all) but seemed to echo the last Friday buying. We closed at the low volume node (left hand distribution) of the recent range - having auctioned up early on, suspect we test back down by Sunday night...


It's month-end and the need to exit sizable positions was clear above but the last few minutes were quite fascinating in terms of the Algos In Action. Someone needed to dump a lot so they emplyed the 'tickle' algo to lift on low volume but higher block size, gradually wiping out the stack of orders encouraging a trend, getting followers to buy-in (as the crowd sees rising block size into and above VWAP - though not massive volume we should note), then flush their big block well above the start of the startegy - with any luck somewhere around VWAP...


Dow Transports end the month down 1.6%, The Dow managed to creep off unch todayt to make another green month but the NASDAQ was the big winner (thank you AAPL) as it ended the month up almost 5%...


Charts: Bloomberg


Bonus Chart: Facebook Is Barely Legal...


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Fri, 08/31/2012 - 16:32 | 2753765 Abraxas
Abraxas's picture


Fri, 08/31/2012 - 16:33 | 2753771 TrillionDollarBoner
TrillionDollarBoner's picture

Relic hunters!

Fri, 08/31/2012 - 16:53 | 2753806 camaro68ss
camaro68ss's picture

Wheres RoboTrader? hows your FB, Netflix and Groupon doing?


I thought it only cost $10 to dig silver out of the ground. hahaha

Fri, 08/31/2012 - 17:00 | 2753831 WestVillageIdiot
WestVillageIdiot's picture

I think he was last seen at Chipotle eating their LULU burrito. 

Fri, 08/31/2012 - 17:05 | 2753839 MillionDollarBonus_
MillionDollarBonus_'s picture

The bull trap phase in silver is almost complete. After the last of the silverbug lemmings have been sucked in, the capitulation phase will begin. This will be the last test of resistance before the final plunge below $20 and into the teens. Gold is a similar story, with industrial supply set to soar given the historically high turnover by gold miners. I feel sorry for goldbugs and silverbugs. They’re so naive – it’s like watching a car crash in action, but there’s nothing you can do to stop them. 

Fri, 08/31/2012 - 17:07 | 2753848 jomama
jomama's picture


Fri, 08/31/2012 - 17:21 | 2753898 NotApplicable
NotApplicable's picture

He's sure got quite the reactionary vote for such a seemingly weak troll.

Sat, 09/01/2012 - 10:39 | 2754896 MarcusLCrassus
MarcusLCrassus's picture

His posts are so formulamatic I wouldn't be surprised if that profile is also just one of those algorythim used by TPTB to try to sway message boards. 

Fri, 08/31/2012 - 17:11 | 2753859 fuu
fuu's picture

"This will be the last test of resistance before the final plunge below $20 and into the teens."

Whatever you say there Math Man, maybe your sub $20 will work out next summer.

Fri, 08/31/2012 - 19:47 | 2754178 akak
akak's picture

"Only $5 to dig from the ground!"



Fri, 08/31/2012 - 17:13 | 2753869 Beam Me Up Scotty
Beam Me Up Scotty's picture

With Face Book at a new all time low, go all in MDB. I'll go down with my gold and silver in a bad boating accident I am sure. You will be rich and dry.

Fri, 08/31/2012 - 17:14 | 2753876 falak pema
falak pema's picture

You have just done it by giving it your "red" light; which means "green" when translated from "bogus" to "bonus"!

You can't shadow box all the people all the time!

Fri, 08/31/2012 - 17:17 | 2753886 SilverNoob
SilverNoob's picture

Thanks MDB.


Your check from the Fed is in the post.

Fri, 08/31/2012 - 19:35 | 2754159 cynicalskeptic
cynicalskeptic's picture

At ten cents a word, that post makes it clear how desperate some people are for ANY income.....

Living in their parents' basement loaded up with all that student debt, a shining future working for Wall Street turned into an ironic nightmare serving as a paid poster working as part of the MOPE machine all too aware of the mess you're paid NOT to acknowledge....   too bad booze and drugs are unaffordable.

Fri, 08/31/2012 - 21:59 | 2754410 GoinFawr
GoinFawr's picture

one times ten to the first power cents per word you say? Damn it all to hell, where is my thesaurus?!

Fri, 08/31/2012 - 17:17 | 2753887 EnglishMajor
EnglishMajor's picture

Suck this in, MDB, 8===D

Fri, 08/31/2012 - 17:34 | 2753917 slaughterer
slaughterer's picture

Gold/silver, like MDP said, is a ticking time bomb  Only a few months until silver is below $20.  

Fri, 08/31/2012 - 17:46 | 2753943 DosZap
DosZap's picture

Gold/silver, like MDP said, is a ticking time bomb Only a few months until silver is below $20.

Only way this happens(even remotely) is if the Market tanks.

Something tells me, this TIME, unlike '08,folks are not going to let go of Phyzzzzzzzzzzzzz.

IF they do, they are S_T_U_P_I_D.

Fri, 08/31/2012 - 20:38 | 2754288 Theosebes Goodfellow
Theosebes Goodfellow's picture

Yup, tha' 'splains why Russia, China, Mexico and everyone else is buying the livin' crap out of it. Because it's going to tank. Makes perfect sense to me. At least it will minimize my boating accident loses.

Sat, 09/01/2012 - 12:57 | 2755105 nathan1234
nathan1234's picture

Guess you are part of Jamie's testicles!

Or is yours being by Blythe's ?

Fri, 08/31/2012 - 17:43 | 2753936 duo
duo's picture

Suppose it takes $30/oz to mine and refine silver.  What is the incentive for the mines to continue producing?  sub $20 silver means all the mines go on holiday (the ones that haven't been nationalized or shut down by OSHA).  How is that for price discovery? 

Fri, 08/31/2012 - 17:44 | 2753940 grid-b-gone
grid-b-gone's picture

I used to agree with Louis Rukeyser when he would make snide comments about flat-lined gold during his year-end review show - but that's also back when the Birinyi ruler was on a winning streak.

The huge difference today is that countries continue to print far in excess of their underlying growth, which is currently typically contraction.

Central banks used to expand money so as not to choke off growth due to a tight money supply. Now they use it as a competitive tool, keeping their currency artificially weak and excessively liquid to prop up exports, prop up reckless banks, and other non-core chores for these critical mediums of exchange.

Central bankers are too focused on what fiat manipulation can do and not preserving the core duties of a currency that it has done 'most-excellently' for many generations. I think CBs will exceed the tipping point at some point.

For only about $3K, most middle-class Americans can protect themselves with enough PMs to live safe and small for a few years.

That, and a good boat repair contact is about all one needs to put the outside chance of a total meltdown to one side and get back to living life.

Either that, or you can hope the politicians and bankers will eventually make everything like it used to be. For a small sum, I'll bet bankers and insiders can't lay off the crack, even knowing they'll lose everything if they lose control. 

Human nature. It's that simple.


Fri, 08/31/2012 - 18:33 | 2754027 Papasmurf
Papasmurf's picture

You are severely lost in the thick woods without a compass.  Three thousand in gold will protect you worth three thousand worth of living expenses as goods extrapolated into future costs.  How long can you live on 3K at today's cost of living?  Do you think 3K of gold will make you rich in the future?  You think currency manipulation is about propping up things, but the truth is currency manipulation is about stealing the life savings (past productivity) of past producers.  The future was already stolen through the roll-out of the credit bubble.  It has nothing to do with choking off demand, because demand is gone.   Pretty much, demand is gone forever.

Fri, 08/31/2012 - 21:30 | 2754378 grid-b-gone
grid-b-gone's picture

I am talking about a complete reversion to the pre-fiat mean  if CBs lose control. That is, if paper is viewed as worth only the paper it is printed on. I agree, all pensions, annuities, basically every future promise or anything priced in fiat (past productivity) will be obliterated, except where it exists as something real, like PMs, land, food, oil, and real estate.

I am talking about prices deflating maybe nearly back to 1950's or 1960s as people scramble to convert anything real into something that gets them through the next day, week, or month.

I am talking about personally entering the reset debt-free so as not to be forced to liquidate. 

I am talking about what many bloggers say is impossible because "there is not enough gold in the world" to reprice everything in gold."

I am talking of PMs being repriced even higher than most believe because attempts to confiscate will curtail available PMs even more than expected. 

I'm talking of the Joad's trading valued objects for enough gas to get to the next rumored town where the chance for a new start might exist.

I'm talking of Wang Lung considering trading all the land he worked a lifetime to acquire for just a few coins.

I am talking of a couple pre-'64 quarters buying groceries for a week.

Yes, if this happens, it will take more than $3K of today's PMs to be wealthy, but I'm not talking of betting everything this will happen. I'm talking of being able to cover food and shelter expenses, from a debt-free beginning position, and not ending up with pneumatic tires as a dwelling foundation.

And because it is unlikely most people can not accumulate PMs today without leaving an electronic record, I'm talking of a hoard not worth waterboarding anyone to fully understand the details of the boating accident.

I still hope the CBs chose their fellow citizens over their member banks, but they have not yet indicated this through their modus operandi. The european austerity attempt is probably the closest we've gotten to sanity returning. In the end, the market solution, reset, will be the likely solution. I think they understand fiat=conficence and conficence has a limit that once breached, leads to flooding. I'm just not sure they are capable of making a decision that favors the greater good over their own benefactors.



Fri, 08/31/2012 - 18:00 | 2753968 DosZap
DosZap's picture


Dude?,Dudette?, I so hope your correct.........................

But, I think your into the fairy dust yet again.

There will not be  ONE ounce of physical available if it turns out the way you say.

ONE billion dollars would wipe out the entire above ground known supplies here.

Reasoning for your prediction pls,as the state of the US of A's fiscal house, and the World is SO far down the drains, this will not be a repeat of '08.

Paper whores, sure................holders, hell no.

It will be a free for all to get all you can get your hands on,at those prices.

I feel sorry (no I really don't, they played the game, and have not prepared)  the paper whores that will be left with bloody arses and a pocketful of IOU's.

Fri, 08/31/2012 - 18:09 | 2753986 Roandavid
Roandavid's picture

I voted you down MDB ..... out of respect.

Fri, 08/31/2012 - 18:29 | 2754024 turnus68
turnus68's picture

I really hope that Silver will keep plunging for the next 10 years as much it plunged for the last 10 years.

Fri, 08/31/2012 - 19:17 | 2754123 Dugald
Dugald's picture

Golly gee....I do so hope you are right....I still have a bunch of paper to get rid of....fingers crossed!

Fri, 08/31/2012 - 19:48 | 2754181 agent default
agent default's picture


Show us your gold and silver short positions then.  Either that or go fuck your mother. Shill.

Fri, 08/31/2012 - 19:59 | 2754210 knowless
knowless's picture

correct, before the value of the dollar is reassessed in comparison to it's counterparts. silver will hit $12. maybe even $0.12 an ounce.


the huge convex build in both gold and silver going into the labor day weekend is not a metaphor lost on me... lol, manipulation.


i can't imagine they let this last more than a week or so before dropping it like a bag of assholes. that being said, if shits real, then the earlier moves in today (parabolic) make me think i might need to start looking more seriously into concealed carry.

i'm still waiting for the low/mid twenties.. romney really put forward some good points recently, his rhetoric is unmatched by even the most sophisticated change.. hope.. .. ....

Fri, 08/31/2012 - 21:19 | 2754364 yogibear
yogibear's picture

Lol, Benny will keep on printing to buy up treasuries or US defaults. Either way anything other anything other than the dollar will do well.

Look at Zimbabwe or Argentina if you want some examples. What happened with their currencies?



Fri, 08/31/2012 - 22:21 | 2754438 CompassionateFascist
CompassionateFascist's picture

Someday soon, an urban Congoid/gangbanger is going to be extracting the gold from MDB's teeth. 

Fri, 08/31/2012 - 17:08 | 2753851 Cult of Criminality
Cult of Criminality's picture


That was $5.00 according to mothman,mathman you know ,the one with the shovel ready ........(job)? lol

Fri, 08/31/2012 - 19:14 | 2754115 Moe Howard
Moe Howard's picture

I took his advice and picked a bunch off the ground.

Fri, 08/31/2012 - 19:54 | 2754192 akak
akak's picture

Typical US Citizenism citizen, parangongs of blobbing-up resources (unlike the monkish, non-resource-using Chinese) in order to continue farming the poor, throating their US Citizenism ideas, and monolizing the speeching means.  Make me laugh!

Fri, 08/31/2012 - 20:11 | 2754234 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak said:

Typical US Citizenism citizen, parangongs of blobbing-up resources (unlike the monkish, non-resource-using Chinese)

That's because production is consumption and, as everyone knows, the Chinese do not produce anything. Very simple to understand when you stop listening to the televised talking mouths of US citizenism.

Fri, 08/31/2012 - 20:20 | 2754253 akak
akak's picture

And Chinese roadsides are full to overflowing with nightsoil, so ....

Fri, 08/31/2012 - 20:30 | 2754271 TheFourthStooge-ing
TheFourthStooge-ing's picture that represents the accumulated savings, the crustiest bits, of Chinese citizenism citizens.

Fri, 08/31/2012 - 20:48 | 2754311 Theosebes Goodfellow
Theosebes Goodfellow's picture


pair o' gongs?


Fri, 08/31/2012 - 16:53 | 2753812 Dr. Richard Head
Dr. Richard Head's picture

With facefuck being barely legal one would think that would be popular.

Fri, 08/31/2012 - 17:04 | 2753837 WestVillageIdiot
WestVillageIdiot's picture

I think the most surprising thing about FB, for me, has been the lack of massive short squeezes that have been so predominant in high profile stocks the past 5 years. 

Just put your money in house builder stocks and you will be fabulously rich.  I guess it is 2005 once again.  Facebook might not be fixed but housing cetainly is. 

Fri, 08/31/2012 - 16:56 | 2753822 falak pema
falak pema's picture

the lost legions of Rome; their eagles in silver. No wonder Augustus was so pissed off. He had read ZH ! Tyler must be the original illuminati. They called him Argentus Maximus...He always said Ave to what Princeps wanted! 

Fri, 08/31/2012 - 17:43 | 2753935 DosZap
DosZap's picture

Rome need not have fallen, the Barbarian hordes took it down because the Roman rulers would not give them ONE ton of Silver.

Had they agreed, they would have left. 2000#' save ROME.

Obviusly they did notmhave even that.

Ain't it a bitch.

Fri, 08/31/2012 - 19:20 | 2754128 Moe Howard
Moe Howard's picture

Shaving denarius brought down Rome, that and overpaying the Praetorian Guard.

Inflation always takes down TPTB in the end. Barbarians are always at the gates, waiting.

Fri, 08/31/2012 - 19:40 | 2754164 cynicalskeptic
cynicalskeptic's picture

When the Republic turned into Empire - and took on the costs of acquiring and holding onto that Empire, Rome sealed its fate.  The US has done the same, with far less sensitivity to those it aspires to 'conquer and control'.  

The cost of control using sheer military force is ultimately unaffordable and bankrupting.

Fri, 08/31/2012 - 17:04 | 2753836 EnglishMajor
EnglishMajor's picture

Silver, bitchez!

Fri, 08/31/2012 - 17:29 | 2753878 Daily Bail
Daily Bail's picture

Bring The Gold

If you can handle a little profanity, this might be the funniest shit of all time:

Bring The Gold & Keep The Cash To Line Your Panties


Fri, 08/31/2012 - 18:45 | 2754046 tenpanhandle
tenpanhandle's picture

always after me lucky charms.

Sat, 09/01/2012 - 03:07 | 2754643 LikeClockwork
LikeClockwork's picture


Sat, 09/01/2012 - 10:55 | 2754922 MarcusLCrassus
MarcusLCrassus's picture

Reminds me of the one he did on George Washington:


He'll save childred but not the British children...

Fri, 08/31/2012 - 17:28 | 2753912 GraveyardSpiral
GraveyardSpiral's picture

What's old iz new again. How long do u think until this strategy is tried again? Another jump like today's and it'll be here before you can finish saying: Fuck Ben Berna........

Fri, 08/31/2012 - 16:31 | 2753766 Red Heeler
Red Heeler's picture

You ain't seen nothin' yet.

Fri, 08/31/2012 - 16:36 | 2753776 SheepRevolution
SheepRevolution's picture

Damn right! We will be dreaming of these prices once silver hits three digits.

Fri, 08/31/2012 - 16:39 | 2753785 exi1ed0ne
exi1ed0ne's picture

When it comes to that, we'll be pricing silver in food and fuel rather than USD.

Fri, 08/31/2012 - 16:54 | 2753815 Red Heeler
Red Heeler's picture

Two votes down from the sour-grapes losers that don't own any.

Fri, 08/31/2012 - 17:06 | 2753840 WestVillageIdiot
WestVillageIdiot's picture

Silver has been very volatile the past 18 months.  It could easily be back to $28 next week.  Anybody that wants to buy can still buy.  They shouldn't have to use those little red arrows.

Fri, 08/31/2012 - 18:22 | 2754014 stocktivity
stocktivity's picture

It could be back to $28...but what if all this gossip about a huge short position by JP Morgan ain't gossip.

Fri, 08/31/2012 - 21:07 | 2754337 blunderdog
blunderdog's picture

The best part is: the volatility we've seen so far is still all prelude.  Silver could hit $5 at any moment...according to "the market." 

You'll just never be able to buy it for less than $15. 

Fri, 08/31/2012 - 19:16 | 2754119 cranky-old-geezer
cranky-old-geezer's picture



We will be dreaming of these prices once silver hits three digits.

Be careful what you wish for.  When silver passes $100 / oz the dollar will be crashing, the financial system will be crashing, and what's left of the economy will be crashing.

It won't be a pretty sight.


Fri, 08/31/2012 - 19:44 | 2754173 cynicalskeptic
cynicalskeptic's picture

And unfortunately your paper $ savings will be worthless.....   even in a BEST CASE scenario  (where the existing system holds on, and the figurative can is kicked down the road forever) the goal is INFLATION and a devalued dollar.......the Fed ADMITS that this is the goal, the only way to pay off the massive debt accumulated.  Your dollar today buys half of what it did a decade ago and will buy even less a decade from now.

Fri, 08/31/2012 - 19:52 | 2754191 DanDaley
DanDaley's picture

Exactly.  When silver gets way up there, everybody's metric of what something is worth is going to go through a radical adjustment, since dollars will be sooo passe.  

Fri, 08/31/2012 - 16:53 | 2753814 lakecity55
lakecity55's picture

great panther, endeavor, all the rest- up!

winning at last?

Fri, 08/31/2012 - 17:40 | 2753930 thatthingcanfly
thatthingcanfly's picture

About bloody time EXK caught a bid! Did you notice SSRI and SVM were both up around 8% as well? Nice day for silver (and gold) investors.

Fri, 08/31/2012 - 16:33 | 2753770 yabyum
yabyum's picture

God what a pleasure to make a few pesos on some miners, first time this year.

Fri, 08/31/2012 - 16:36 | 2753773 Dead Canary
Dead Canary's picture

Boat, check:

Skuba gear, check:

Wench, check:

Time to visit the site of that tragic boating accident.

Fri, 08/31/2012 - 17:07 | 2753849 WestVillageIdiot
WestVillageIdiot's picture

It is a smart man that brings his own wench to the party. 

Fri, 08/31/2012 - 17:11 | 2753868 Rakshas
Rakshas's picture

What's the wench for........ i thought the idea was to protect and keep your silver????




Fri, 08/31/2012 - 17:31 | 2753914 Dead Canary
Dead Canary's picture

You guys are mean an stuff.

Fri, 08/31/2012 - 18:48 | 2754053 tenpanhandle
tenpanhandle's picture

someone has to don the scuba gear.

Fri, 08/31/2012 - 18:50 | 2754059 Henry Hub
Henry Hub's picture

He means "winch". You need a winch to winch your silver into the boat.

Fri, 08/31/2012 - 19:23 | 2754139 Dugald
Dugald's picture

What's with youse guys do you all lisp...??

It's Wrench... Wrench! 

Fri, 08/31/2012 - 19:48 | 2754179 cynicalskeptic
cynicalskeptic's picture

He likely meant WINCH - silver is heavy.... but a busty lusty wench is far more fun......

however after he finds that silver he can play pirate and buy all the wenches he wants

Fri, 08/31/2012 - 16:37 | 2753779 Munkey
Munkey's picture

I smell blood, the blood of slaughtered short positions.

Fri, 08/31/2012 - 17:08 | 2753850 WestVillageIdiot
WestVillageIdiot's picture

Except in FB.  When is that going to happen? 

Fri, 08/31/2012 - 16:39 | 2753782 Vincent Vega
Vincent Vega's picture

Let's give credit where credit is due. To the man who has single handedly given rise to PM prices; we say: Fuck You Bernanke!

Fri, 08/31/2012 - 17:09 | 2753856 WestVillageIdiot
WestVillageIdiot's picture

I'm pretty sure that was a team effort.  Even Michael Jordan had Scottie Pippen, Bill Wennington, BJ Armstrong, Steve Kerr, Horace Grant, etc.  And Bernanke is no Michael Jordan, not on monetary matters or anything else. 

Fri, 08/31/2012 - 21:58 | 2754416 gtb
gtb's picture

If not for Will Perdue we'd probably all be asking, "Michael who?"

Fri, 08/31/2012 - 16:39 | 2753787 apberusdisvet
apberusdisvet's picture



You aint seen nothing yet


war drums beating

Euro defaults?

martial law?

suspended elections?

DHS purchase of millions of rounds of illegal hollow points----WTF!

Fri, 08/31/2012 - 16:59 | 2753830 ParkAveFlasher
ParkAveFlasher's picture

1. war drums haven't stopped since 1917.

2. it's only a default if ISDA calls it a default

3. all nations with central banks reserving dollars are under de facto martial law while US citizens have been under martial law more or less since 1917

4. what are elections?  the POTUS is an ordainment, not the result of a general election.

5. ya got me there! +1!

Fri, 08/31/2012 - 17:04 | 2753834 Rakshas
Rakshas's picture


Fri, 08/31/2012 - 17:07 | 2753843 Rip van Wrinkle
Rip van Wrinkle's picture

100% capital gains tax?

Fri, 08/31/2012 - 17:44 | 2753937 thatthingcanfly
thatthingcanfly's picture

A minor point, but: hollow points are not illegal. In fact almost every law enforcement agency in the country (world?) supplies its officers with hollowpoints for their service pistols. They are less prone to overpenetration.

Fri, 08/31/2012 - 19:51 | 2754190 cynicalskeptic
cynicalskeptic's picture

Legal for use at home against your own populace.  ILLEGAL according to inernational law for use in warfare.   So you can infer that the intended use is domestic (though W and Uncle Dick had few reservations about violating international law).

Sat, 09/01/2012 - 11:14 | 2754954 thatthingcanfly
thatthingcanfly's picture

Partially correct. There was a Hague Convention article passed in 1899 that imposed a prohibition on "dum-dum" rounds in warfare BETWEEN PARTICIPATING NATIONS. This is not read expansively; therefore war between one participating nation and a non-participating nation is not subject to this restriction. It is important to note that the discussion centered around the .303 British rifle, and not a handgun. And the prohibition only applies to international warfare.

Far be it for me to endorse anything this government does; but we need to get our facts right here. For non-warfare related purposes, hollowpoint handgun ammo is preferred due to its propensity to mushroom upon hitting its target, thereby transferring all the energy to that target, rethar than passing through and hitting an unintended target downrange (granny). Mushrooming is also desirable when dropping a deer - for the same reason. 

No inferences may be made as to any government intentions to wage war against the populace at home from the simple fact that DHS is ordering standard-issue hollowpoint ammo for its agents and officers.

Fri, 08/31/2012 - 16:40 | 2753788 Itch
Itch's picture

Facebook reminds me of my penis....hilarious and heartbreaking at the same time.

Fri, 08/31/2012 - 16:45 | 2753797 lemonobrien
lemonobrien's picture

sorry about that.

Fri, 08/31/2012 - 16:49 | 2753805 HardAssets
HardAssets's picture

too much information

Fri, 08/31/2012 - 16:52 | 2753809 adr
adr's picture

There are pills for that, they make the same promises as QE Ben.

Fri, 08/31/2012 - 17:07 | 2753844 Brazillionaire
Brazillionaire's picture

So, yer not gettin' many "likes", eh?

Fri, 08/31/2012 - 20:18 | 2754245 Jena
Jena's picture

Does that have anything to do with your name?

Fri, 08/31/2012 - 16:44 | 2753795 lemonobrien
lemonobrien's picture

i call bullshit; no QE until after the fiscal cliff has been resolved; and not a day before the elections.

NOTE: I like golds, and silvers.

Fri, 08/31/2012 - 16:56 | 2753823 Thought criminal
Thought criminal's picture

Yeah it's really strange nobody else calls BS when precious metals rise on pure speculation. Gold is the endgame instrument and is bound to drop significantly until they do the next QE for real. But at least today was a good display what will the market do when FED starts printing again - limited gains for equities and explosion in precious metals.

Fri, 08/31/2012 - 17:35 | 2753918 lemonobrien
lemonobrien's picture

i'm already hearing from traders how they gonna dump by tuesday.

Fri, 08/31/2012 - 17:58 | 2753954 GoinFawr
GoinFawr's picture

wait, when did you say the FED had stopped printing again? Next you'll be telling us ZIRP's off...

Fri, 08/31/2012 - 19:19 | 2754122 Thought criminal
Thought criminal's picture

By saying "printing again" i meant another round of QE of course and I think it's pretty clear from the context. But let's just give me a few kicks in the groin just because I don't promote precious metals after they were momentarily stimulated by more QE hopium.

Fri, 08/31/2012 - 20:56 | 2754236 GoinFawr
GoinFawr's picture

That was 'a few kicks in the canoe' to you? Man, are you sensitive. I was just kidding around, don't take it so personally; I didn't even give you the -1.

No offence, I just find it mildly amusing that these surreal days a dule of doves is considered a kettle of raptors.

You see me doing any promoting today?  Hmmm, you're right; I'm lagging:

fossickers' beaches! (h/t PeterB)

Fri, 08/31/2012 - 21:03 | 2754330 Thought criminal
Thought criminal's picture

I'm exaggerating of course. It's just that almost every time one starts talking bearish about PMs here, there's a negative response to that.

Fri, 08/31/2012 - 21:24 | 2754353 GoinFawr
GoinFawr's picture

Well on a Friday when many ZH'ers (I'm sure) speculative positions rose a walloping ~6%, you're gonna have to expect a little sub rational over exuberance mixed with a healthy dose of very little patience for weekend party poopers.

 Try to bear in mind that as a group GoldBulls have been scoffed at and mocked for more than a decade, even as their wealth, er I dunno, dodecahedron'd. PM bears are a kind of running joke to them.

No, if you came on this thread to blow raspberries at honest money on a day as satisfying as today has been, you're going to need some thicker skin.

Fri, 08/31/2012 - 16:48 | 2753800 HardAssets
HardAssets's picture

Sunday night theyll be hammering the hell outta the PMs.

BTFD baby !

Fri, 08/31/2012 - 16:51 | 2753807 adr
adr's picture

From the charts you would have thought Ben announced QE3.

From the headlines you would have thought he announced QE 3,4,5, infinity.

I didn't hear or read anything that wasn't centered around we'll QE if we need to QE, and sadly that is all the market needed. The monkey threw another pile of shit at the zookeeper and he said keep it coming monkey.

Fri, 08/31/2012 - 16:51 | 2753810 Cult of Criminality
Cult of Criminality's picture

Shining happy people  Gold and Silver shine

And a happy song imagine  it.   (or listen while you read)

How can you not like REM and Kate of the B-52S


Fri, 08/31/2012 - 17:09 | 2753855 Midas
Midas's picture

It's very easy for me not to like REM.  I retune the radio almost as fast as if U2 is on it.  Kate's a sweetheart though...

Fri, 08/31/2012 - 17:13 | 2753872 Cult of Criminality
Cult of Criminality's picture

U2 or Bono are tased If I even listen to the radio which is not very often

Fri, 08/31/2012 - 16:54 | 2753819 ebworthen
ebworthen's picture

Those tangibles just keep spanking the intangible cotton candy markets.

Fri, 08/31/2012 - 16:59 | 2753824 JPMorgan
JPMorgan's picture

I really missed the train today, I was holding out for a larger pull back and it just didn't happen.

Oh well back on the sidelines for now, we will see how next weeks price action progresses.

Fri, 08/31/2012 - 17:11 | 2753866 Midas
Midas's picture

I have tried to play the game of timing.  It is a frustrating, humbling, maddening experience.  You know what works though,  BTFD! AND KEEP STACKIN'

Fri, 08/31/2012 - 17:14 | 2753877 WestVillageIdiot
WestVillageIdiot's picture

You didn't miss any train.  If you are accumulating as part of a long-term plan you can buy now and then pick two future points, maybe 1600 and 1800, at which you will buy more.  The world did not end today. 

Fri, 08/31/2012 - 16:58 | 2753826 Global Hunter
Global Hunter's picture


Fri, 08/31/2012 - 17:07 | 2753846 dragoneyes74
dragoneyes74's picture

Silver to $38 and then $19.  If anyone can figure out how that can happen, let me know because that's what I think will happen.  I just don't believe it.  

Fri, 08/31/2012 - 17:14 | 2753875 cameldojo
cameldojo's picture

I'm not sure if you are as confused as you think I am.

Fri, 08/31/2012 - 17:15 | 2753879 ThirdWorldDude
ThirdWorldDude's picture

You missed the zero(s) after 19...

Fri, 08/31/2012 - 18:45 | 2754047 Papasmurf
Papasmurf's picture

If silver drops to $19, a happy meal will contain beef.

Fri, 08/31/2012 - 19:33 | 2754158 Dugald
Dugald's picture

Silver to 19 bucks..Oh frabjous day..Calloo Callay,

bring it on and still my beating heart.

Fri, 08/31/2012 - 20:37 | 2754279 HardAssets
HardAssets's picture

When silver goes back to $19, gas will go for a dollar, and you'll actually be able to buy penny candy again.

Sat, 09/01/2012 - 04:04 | 2754660 egam
egam's picture

With Chinesse govt intending to make silver as a backing reserve at the year end??? No way man.

China will buy at any price. Prepare for fireworks in silver and gold.

I guess many countries will do the same as china, just look central banks buyings last months... more than 100% rise.

But, guys, think whatever you want. Fiat currencies seem to be very healthy, mostly Dollar. ;-)


Fri, 08/31/2012 - 17:10 | 2753858 Cult of Criminality
Cult of Criminality's picture

Most here knew Facebook would Faceplant. Why the surprise to the sheep...Eyes wide shut ?

Fri, 08/31/2012 - 17:11 | 2753864 Cult of Criminality
Cult of Criminality's picture

Thanks to Stanley for the heads up

Fri, 08/31/2012 - 17:11 | 2753867 Ted Baker
Ted Baker's picture


Fri, 08/31/2012 - 17:18 | 2753881 Cult of Criminality
Cult of Criminality's picture


Thanks, Mothman , AKA MDB

Now it all makes sense

Fri, 08/31/2012 - 17:40 | 2753931 Arnold Ziffel
Arnold Ziffel's picture

"There's never been a better time then now to buy gold," my advsior said this week.

Fri, 08/31/2012 - 17:44 | 2753939 Frastric
Frastric's picture

Big long-squeeze coming up... All those overleveraged long positions... Think October 4th 2011 just reversed...

Or if DOW 15000 then the next great bear market.

Fri, 08/31/2012 - 18:13 | 2753994 Lost Wages
Lost Wages's picture

I was on CNN Money just now. They mentioned stocks went up 1.5% or whatever, but no mention of silver. But they did have GLD in the "trending" column. Derp.

Fri, 08/31/2012 - 18:51 | 2754062 Winston of Oceania
Winston of Oceania's picture

If you were on why didn't you ask?


Fri, 08/31/2012 - 18:42 | 2754041 Hangfire
Hangfire's picture

Stacks 5th avenue Bitchez!

Fri, 08/31/2012 - 19:19 | 2754086 mrfreeman
mrfreeman's picture

This is a very bizaare situation and it could go either way.  On the one hand, we are clearly overstretched and overbought here (with RSI over 70, soon to be 80+ ).  And I dread to think how huge the commercial shorts are now, oh wait the COT report is out soon so we will see.

However, this being an election year, it is obvious 'they' are propping up the markets come what may.  And it is a bullish time of year for Asian buying etc.  So maybe gold/silver will hang in there and continue rising now they have broken their overhead resistance?  There is still considerable upside possible.  But do you want to take that risk?

Ah, here we go:

Gold commercial shorts increased by 32402 contracts.

Silver commercial shorts increased by 6097 contracts.

Hmmmm, I think that answers 1 of our questions...?

Actually, THESE charts visualise things more clearly:

Tyler, do you agree with the correlation between peaks on the commercial shorts, preceding smackdowns?  Just look at the 28/2, it is clear as day.  I hope this isn't leading up to a similar thing.

Fri, 08/31/2012 - 20:42 | 2754297 HardAssets
HardAssets's picture

Where to you draw in manipulation on the charts ?

Fri, 08/31/2012 - 19:11 | 2754106 Hohum
Hohum's picture

Guess how the indices have fared:

Dow 7.2% YTD

S & P 11.9%

NASDAQ 17.7% (we have a winner!)

Silver  14.2%

Gold  8.7%

Everyone's a winner, baby!  Except oil, down about 2.4%

Fri, 08/31/2012 - 19:20 | 2754129 silverserfer
silverserfer's picture

technicals bitch!

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