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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LULZBank's picture

Stay away from the Gold threads Bitchezz!!

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.

SeverinSlade's picture

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

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.

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.

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.

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.

strannick's picture

why have a 'stop' when golds so go?

It is 1939 and we are all Austrians now

RafterManFMJ's picture

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

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.

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.

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...

Bansters-in-my- feces's picture

Fuck Off MDB....


CPL's picture

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

tocointhephrase's picture

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

Miffed Microbiologist's picture

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


BKbroiler's picture

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

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

TheCanimal's picture

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

BandGap's picture

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

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.

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.

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.  

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..."

Ray1968's picture

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

GubbermintWorker's picture

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

CommunityStandard's picture

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

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!

viahj's picture

and the return of disco!

GubbermintWorker's picture

I think MillionDollarBonus just junked us! LOL!

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.

ATM's picture

Proof that it's a bubble! Lol

Temporalist's picture

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

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.

Unique Snowflake's picture

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

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.

BigJim's picture

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

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)

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. 

HelluvaEngineer's picture

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

Raymond K Hessel's picture

My name is Raymond K Hessel.

You killed my economy.

Prepare to blathe.

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.

IAmNotMark's picture

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


ATM's picture

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