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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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

WestVillageIdiot's picture

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

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. 

NotApplicable's picture

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

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. 

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.

akak's picture

"Only $5 to dig from the ground!"

 

;-)

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.

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!

SilverNoob's picture

Thanks MDB.

 

Your check from the Fed is in the post.

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.

GoinFawr's picture

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

slaughterer's picture

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

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.

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.

nathan1234's picture

Guess you are part of Jamie's testicles!

Or is yours being by Blythe's ?

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? 

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.

 

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.

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.

 

 

DosZap's picture

MillionDollarBonus_

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.

Roandavid's picture

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

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.

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!

agent default's picture

Good.

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

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.. .. ....

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?

 

 

CompassionateFascist's picture

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

Cult of Criminality's picture

Camaro68ss

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

Moe Howard's picture

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

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!

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.

akak's picture

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

TheFourthStooge-ing's picture

...so that represents the accumulated savings, the crustiest bits, of Chinese citizenism citizens.

Dr. Richard Head's picture

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

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. 

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! 

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#'s..........to save ROME.

Obviusly they did notmhave even that.

Ain't it a bitch.

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.

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.

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

 

tenpanhandle's picture

always after me lucky charms.

LikeClockwork's picture

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MarcusLCrassus's picture

Reminds me of the one he did on George Washington:

 

http://www.youtube.com/watch?v=l7iVsdRbhnc

 

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