Gold Stop Hunt Goes Full Retard

Tyler Durden's picture


Did a BIS gold trader just spill coffee on his keyboard not once but twice, or did we just have another ye olde algo trick of stopping the hunts (get it?) out of all marginal players? We will never know. What we will know is that paper prices of physical objects are becoming increasingly more meaningless.



It is shaping up to be one of those before one of those weekends as we see FX, equity, and now precious metals markets gapping up and down as if they forgot that you never go full-retard as the rip-and-drip stop hunt round-trips for $14 up and cliff-dive back down. As the world becomes more and more bifurcated by the fail of reality and hope of intervention, liquidity is sucked out of the system from a bid-offer perspective. We can only imagine what FX will be like at the close.


Charts: Bloomberg

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Fri, 06/15/2012 - 09:05 | 2528845 LULZBank
LULZBank's picture

Stay away from the Gold threads Bitchezz!!

Fri, 06/15/2012 - 09:16 | 2528903 BandGap
BandGap's picture

My philosophy is that if you are going to go retard, go full retard. Damn the retarded torpedos, full retard ahead.

I'm going to ask that woman to marry me today.

Fri, 06/15/2012 - 09:21 | 2528933 SeverinSlade
SeverinSlade's picture

Sometimes going full retard pays off.  Just ask George W. Bush, Barack H. Obama, Ben Bernanke, Paul Krugman, etc. 

Fri, 06/15/2012 - 09:23 | 2528944 MillionDollarBonus_
MillionDollarBonus_'s picture

Amazing! The ten year is trading at a yield of 1.59%! And there's a lot more to come during the Greek elections. The market has made a bold statement over the last few months. Namely that US treasuries are the true safe-haven, and that gold is not only NOT a safe-haven, but it is a RISK ASSET.

Fri, 06/15/2012 - 09:25 | 2528954 SeverinSlade
SeverinSlade's picture

You're right, gold IS a risk asset.  You're risking a hell of a lot if you DON'T OWN IT.

Fri, 06/15/2012 - 09:47 | 2529035 malikai
malikai's picture

I don't know where this is all going tonight, but I know that in the end, we'll be seeing infinite spreads.

Fri, 06/15/2012 - 09:49 | 2529043 economics9698
economics9698's picture

MDB, nothing like negative interest rates in the bond market to hit you upside the head and tell you this is a big mother fucking bubble about to pop.

Fri, 06/15/2012 - 09:52 | 2529056 strannick
strannick's picture

why have a 'stop' when golds so go?

It is 1939 and we are all Austrians now

Fri, 06/15/2012 - 10:32 | 2529236 RafterManFMJ
RafterManFMJ's picture

Well then, I'll just go throw another shrimp on the barbie!

Fri, 06/15/2012 - 10:38 | 2529264 AgShaman
AgShaman's picture

Nice work...I like it....I like it alot!

Fri, 06/15/2012 - 09:38 | 2529001 ArrestBobRubin
ArrestBobRubin's picture

Yes, I mean who on earth would not sense the mightiness of the dollar and the underlying economy it's built on!

The yield is NOT a result of a flight to safety. Morons think that.

It's primarily due to chronic over-utilization of the interest rate swaps in place btwn the fed and ECB in the effort to prop up the euro. All at US taxpayer expense. Trillions more in debt that goes on our account

'Cause we're so wealthy and prosperous you see.

Fri, 06/15/2012 - 09:44 | 2529026 No Euros please...
No Euros please we're British's picture

m$b, I guess your sarcasm is lost on most folk, but keep up the good work, it really made me laugh.

Fri, 06/15/2012 - 12:17 | 2529613 Bananamerican
Bananamerican's picture

Some people don't grasp parody??

Is that true?

....taking EVERYTHING literally??

Spooky shit....

Me? I think MDB is a droll muthatrucka...

Cue someone who's not really sure if MDB is satire or not but wants to "hedge" with, "not your best work MDB"  3..2..1...

Fri, 06/15/2012 - 09:52 | 2529059 Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck Off MDB....


Fri, 06/15/2012 - 09:55 | 2529069 CPL
CPL's picture

Your mother was a hamster and your father smelled of elder berries.

Fri, 06/15/2012 - 10:07 | 2529129 tocointhephrase
tocointhephrase's picture

And must have been conceived in a mistaken experiment when messing with a petri dish!

Fri, 06/15/2012 - 13:06 | 2529772 Miffed Microbio...
Miffed Microbiologist's picture

Any Monty Python reference gets a greeny from me! I jestingly fart in his general direction.


Fri, 06/15/2012 - 10:26 | 2529218 BKbroiler
BKbroiler's picture

MDB is one of ZH's finest.  Quiet down.

Fri, 06/15/2012 - 10:55 | 2529313 Raymond K Hessel
Raymond K Hessel's picture

Can you provide some proof?  A link or citiation maybe?  Otherwise, SHUT YOUR FUCKING PIEHOLE.  

Life is way too long to put up with screeds of the insane.  I don't know who MDB is, but I think you went full retard on your reply. QED

Fri, 06/15/2012 - 11:51 | 2529518 Jack Sheet
Jack Sheet's picture

MDB is a program

Fri, 06/15/2012 - 11:11 | 2529372 TheCanimal
TheCanimal's picture

Mr. Bansters:  Name calling helps nothing and detracts from any comment you might offer.

Fri, 06/15/2012 - 10:50 | 2529296 BandGap
BandGap's picture

Damn right, sir. You are a general in the retarded army.

Fri, 06/15/2012 - 11:10 | 2529367 TheCanimal
TheCanimal's picture

As a holder of gold and silver physical and stocks, i sadly have to agree that the metals are risky.  There is circumstantial evidence that JPMorgan and the Central Banks manipulate prices and can do so virtually indefinitely.   We have to deal with current prices the way they are.  Since i don't know what asset class will blow up next, I'm forced to accumulate and hold these risky assets as well as other risky assets like stocks, bonds, trust deeds, real estate and treasuries.

Fri, 06/15/2012 - 11:41 | 2529478 ATM
ATM's picture

You seem to be measuing risk in terms of Fiat and not measuring the risk of Fiat in real asset terms. That's a fatal mistake that will cause you to make unwise decisions.

It is Fiat that carries all the risk because it is created from nothing, backed by nothing and carries the illusion of being stable in value. It is until it isn't. The illusion is physical assets are risky because you are conditioned to view them in Fiat terms.

You have to turn that thinking upside down. View Fiat in hard asset terms and you will see that the risk is all in paper, especially as central banks all must print to oblivion to ward off disaster but the bring disaster by their very existence.

Fri, 06/15/2012 - 15:41 | 2530480 Panafrican Funk...
Panafrican Funktron Robot's picture


I like to point out a recent example of the game Diablo 3.  Diablo 3 just went live with their real money auction house.  This auction house allows you to sell virtual "gold pieces" for US dollars.  US dollars are directly convertible with a number string representing "gold pieces" accumlated by a video game character controlled by a person.  The typical reaction I get is "Wow, that's fucking absurd!", and they would be right to a point, but the real absurdity is that you can then trade in those US dollars for actual, real gold pieces you can hold in your hand.  The US dollar is a distribution proxy for converting video game gold into real gold.  Blows my fucking mind everytime I think about it.  

Fri, 06/15/2012 - 12:35 | 2529671 akak
akak's picture

Boldly stated!

Fri, 06/15/2012 - 12:47 | 2529701 LostAtSea
LostAtSea's picture

"When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor – your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money..."

Fri, 06/15/2012 - 09:03 | 2528846 Ray1968
Ray1968's picture

Hmm.... my gold bars didn't feel a thing.

Fri, 06/15/2012 - 09:07 | 2528859 GubbermintWorker
GubbermintWorker's picture

Neither did my gold coins.....and....they carry a very special calming effect when held :-)

Fri, 06/15/2012 - 09:11 | 2528878 CommunityStandard
CommunityStandard's picture

I prefer mine sewed into my clothing, for that 'all-over' good feeling.

Fri, 06/15/2012 - 09:18 | 2528910 SeverinSlade
SeverinSlade's picture

Forget voting for "Gold bug" Ron Paul.  I'm voting for Goldmember 2012.  That guy fucking loves the shiny barbarous relic.  We'd have sound money in no time!

Fri, 06/15/2012 - 10:57 | 2529318 viahj
viahj's picture

and the return of disco!

Fri, 06/15/2012 - 09:21 | 2528934 tocointhephrase
tocointhephrase's picture

Is the label a 'Munger'?

Fri, 06/15/2012 - 09:42 | 2529020 GubbermintWorker
GubbermintWorker's picture

I think MillionDollarBonus just junked us! LOL!

Fri, 06/15/2012 - 10:01 | 2529101 IAmNotMark
IAmNotMark's picture

I carry three coins: a Austrian Taler, a Morgan dollar, and a Mexican Onza.  It's good to have real money in my pocket. 

Recently a cashier at the grocery store saw them while I was getting change.  She asked about them so I said what they were...3 ounces of silver.  She asked if they were worth anything.

Fri, 06/15/2012 - 11:42 | 2529482 ATM
ATM's picture

Proof that it's a bubble! Lol

Fri, 06/15/2012 - 12:02 | 2529560 Temporalist
Temporalist's picture

Many times I've ever put a silver coin into someone's hand they've said independently "feels like real money."

Fri, 06/15/2012 - 10:11 | 2529152 CPL
CPL's picture

My physical is up 113% from purchase three years ago when it was being thrown away by banks and governments.  I didn't feel anything either, then again, if owning gold or any PM other than


The sale is on silver now.  Once it throws the rock through the 40 dollar window.  Then all PM's rise on the short's saving their asses on a valuable and limited commodity.  Bad place to be with the infinite loss and all.

Sat, 06/16/2012 - 00:15 | 2531396 Unique Snowflake
Unique Snowflake's picture

I doubt the shorts will be required to cover. Rules will be changed. JPM is TBTF remember?

Fri, 06/15/2012 - 09:58 | 2529086 eclectic syncretist
eclectic syncretist's picture

Right now the value of all the gold in the world is ~8.2T, US GDP is 14.6T, US deficit is 15.7T

Guess we won't be paying the deficit off with gold.

Fri, 06/15/2012 - 10:40 | 2529268 BigJim
BigJim's picture

Sure we could... just revalue gold @ $15,000 an ounce and we'd have plenty left over, too.

Fri, 06/15/2012 - 11:44 | 2529486 ATM
ATM's picture

I think the number is 30k/oz. I think that then backs the paper currency. (Probably low now. I did that calculation a couple years ago so probably has to be 50k/oz now)

Fri, 06/15/2012 - 09:04 | 2528847 Cdad
Cdad's picture

Nice markets.  Way to go Wall Street!  And thank you Ben Bernanke for bailing out all of these sick banks so that we could all live in this wasteland of your creation. 

Fri, 06/15/2012 - 09:11 | 2528875 HelluvaEngineer
HelluvaEngineer's picture

"Market?  You keep using that word. I do not think it means what you think it means."

Fri, 06/15/2012 - 09:51 | 2529053 ghengis86
ghengis86's picture


Fri, 06/15/2012 - 10:08 | 2529135 tocointhephrase
tocointhephrase's picture

That should have been MDB!

Fri, 06/15/2012 - 10:57 | 2529321 Raymond K Hessel
Raymond K Hessel's picture

My name is Raymond K Hessel.

You killed my economy.

Prepare to blathe.

Fri, 06/15/2012 - 09:17 | 2528891 Everybodys All ...
Everybodys All American's picture

It's a sick world when a guy like Bernanke get Time's Man of the Year. Could there be a bigger fool. Yeah. Cramer and all the dunces on CNBC but you would not expect them to be the Fed chairman. Imagine now fours years later our interest rates are still near zero. Now, without question Bernanke is bailing out and exposing the US tax payer to the mess in the EU with his currency swap lines.

What a total failure Bernanke has been. Will anyone in the financial world call out this joke of a man? The line that things could have been worse is just not a reason to keep the man employed in that role.

Fri, 06/15/2012 - 10:04 | 2529117 IAmNotMark
IAmNotMark's picture

Obama got a Nobel Peace prize.  That's much better than Bernanke getting Man of the Year.


Fri, 06/15/2012 - 11:46 | 2529494 ATM
ATM's picture

I forget, was that Peace Prize for the judicious use of drone attacks?

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