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Gold Welcomes Its New CTRL+Ping Overlords

Tyler Durden's picture




 

After days and weeks and months of pounding, gold reacted like a stung dog, soaring over $20 upon the realization that following the Philly Fed confirmation that the "recovery" is now officially dead that, gasp, the Fed really has no other choice than to CTRL+P.

 

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Thu, 05/17/2012 - 10:25 | 2435282 harry555
harry555's picture

GOLD Bitchez!!!

 

Thu, 05/17/2012 - 10:26 | 2435288 idea_hamster
idea_hamster's picture

AU-rgasm, baby!

Thu, 05/17/2012 - 10:31 | 2435328 Pladizow
Pladizow's picture

That which is unsustainable, will not be sustained.

Thu, 05/17/2012 - 10:41 | 2435392 idea_hamster
idea_hamster's picture

Maybe it's that Japanese pension fund buying -- I bet it's been so long since they bought anything other than the JGB, they don't even have the phone number for a good broker.

They probably just called AMPEX and said "We need 10T yen worth!"

Thu, 05/17/2012 - 11:18 | 2435637 tdogg
tdogg's picture

what's the japanese word for "Pronto"?

Thu, 05/17/2012 - 11:23 | 2435663 Quintus
Quintus's picture

"Plonto"?

Thu, 05/17/2012 - 11:33 | 2435711 Shitters_Full
Shitters_Full's picture

I down arrowed you while laughing.  Is that a hedge against my conscience?

Thu, 05/17/2012 - 12:34 | 2435966 j0nx
j0nx's picture

Racist! I still up arrowed you.

Thu, 05/17/2012 - 10:31 | 2435330 GetZeeGold
GetZeeGold's picture

 

 

Move over OWS....make way for the barbarians.

 

Thu, 05/17/2012 - 10:47 | 2435447 tocointhephrase
tocointhephrase's picture

If only the Occupy movment joined us barbarians we would totally overwhelm the Crimex

Thu, 05/17/2012 - 11:53 | 2435812 silverserfer
silverserfer's picture

they would but the cant afford the shinny. Thus their ill tempers.

Thu, 05/17/2012 - 10:51 | 2435468 Dr. Richard Head
Dr. Richard Head's picture

I believe I have found a new trade to take part in during the collapse - Seamstress.

I think gold is a great thing to sew onto your garments if your a Jewish family in Vienna in 1939 but I think CIVILIZED people don’t buy gold."  Charlie Munger, the Vice Chairman for  Warren’s Berkshire Hathaway

Thu, 05/17/2012 - 10:26 | 2435300 slaughterer
slaughterer's picture

This too will be faded. Prepare for "THE PLUNGE" across every asset class.

Thu, 05/17/2012 - 10:29 | 2435319 idea_hamster
idea_hamster's picture

OK, then how about, "AUrgasm!  Zzzzzzzzzzzzz...."?

Thu, 05/17/2012 - 10:31 | 2435335 GetZeeGold
GetZeeGold's picture

 

 

Missed the boat huh?

 

Thu, 05/17/2012 - 10:46 | 2435441 Spitzer
Spitzer's picture

He is a deflationist. You know... the guys who have been shorting the DOW for the last 3 years.

Thu, 05/17/2012 - 10:54 | 2435489 5880
5880's picture

Gold isn't the only fiat defense, copper, aluminum etc. are still shite.

a lot of goofs are long gold and silver creating some craziness

Thu, 05/17/2012 - 11:06 | 2435508 GetZeeGold
GetZeeGold's picture

 

 

Yeah.....for about the last 11 years. Why do you think they call them goofs?

 

Thu, 05/17/2012 - 11:16 | 2435626 5880
5880's picture

I pick my long and short points

put your cheerleader skirt and pom poms down Alice

Thu, 05/17/2012 - 13:07 | 2436128 sullymandias
sullymandias's picture

Pt Pd

Thu, 05/17/2012 - 23:35 | 2438394 dogbreath
dogbreath's picture

I am always impressed by anyone who from the shelter of anonymity, calls others  GOOFS

you are less than nothing

Thu, 05/17/2012 - 10:49 | 2435410 Floordawg
Floordawg's picture

As much as I like to see the gains, I'm placing my bets on the same beliefs Slaughter... it's looking like prices are going to correct a bit lower from here (short term that is).

Good luck everyone.

Thu, 05/17/2012 - 10:45 | 2435429 Eclipse89
Eclipse89's picture

Worry not, more accumulation on lower prices.

Thu, 05/17/2012 - 10:27 | 2435302 tocointhephrase
tocointhephrase's picture

Silver Bitchez and Jon Nadler you can't buy God but you can aquire God's money, you scum bag, government drone!

Thu, 05/17/2012 - 10:31 | 2435331 slaughterer
slaughterer's picture

QE crack junkies have to wait until June 20th for their next handout.    By then, Grexit will be mission accomplished.  Prepare for "THE PLUNGE" (TM).

Thu, 05/17/2012 - 11:52 | 2435394 HarryM
HarryM's picture

They do QE now and Grexit turns ugly, they will be out of matches.

So slow slide or crash and burn

In the meantime they'll buy a month on QE rumors and whispers befor they actually hit the button

Thu, 05/17/2012 - 10:28 | 2435307 battle axe
battle axe's picture

GOLDEN RULE: He who has the gold makes the rules.....

Thu, 05/17/2012 - 10:33 | 2435343 fuu
fuu's picture

Trav?

Thu, 05/17/2012 - 11:06 | 2435571 slewie the pi-rat
slewie the pi-rat's picture

tMosle.e to the white phone in the powder room?

Thu, 05/17/2012 - 13:46 | 2436304 tmosley
tmosley's picture

It's not Trav.  He hasn't said a word about the inferiority of dark skinned people in this thread.

Thu, 05/17/2012 - 12:24 | 2435921 Silver Bug
Silver Bug's picture

Gold will win the day.

http://ericsprott.blogspot.ca/

Thu, 05/17/2012 - 10:25 | 2435285 Doubleguns
Doubleguns's picture

Ground control to major Tom.....

Thu, 05/17/2012 - 10:28 | 2435306 Janice
Janice's picture

Your circuit's dead, there's something wrong
Can you hear me, Major Tom?
Can you hear me, Major Tom?
Can you hear me, Major Tom?
Can you....

Thu, 05/17/2012 - 10:25 | 2435290 EscapeKey
EscapeKey's picture

What happens once Uncle Ben's P key gets stuck?

Thu, 05/17/2012 - 10:28 | 2435310 Frastric
Frastric's picture

Hyperinflation!!!

Thu, 05/17/2012 - 10:29 | 2435318 CPL
CPL's picture

This time it will have to remain on 24/7.

 

I wish everyone luck in the future.

Thu, 05/17/2012 - 10:35 | 2435351 Doubleguns
Doubleguns's picture

Might need to increase that to 25/8.

Thu, 05/17/2012 - 10:42 | 2435403 CPL
CPL's picture

OH yeah...forgot about the group of people running it.  25/8/423 it is then

Thu, 05/17/2012 - 11:05 | 2435564 Doubleguns
Doubleguns's picture

Now it might work.

Thu, 05/17/2012 - 12:00 | 2435838 blunderdog
blunderdog's picture

Aw, fuck, they're devaluing TIME now?

Thu, 05/17/2012 - 10:30 | 2435324 bdc63
bdc63's picture

to the moon alice!

Thu, 05/17/2012 - 10:26 | 2435291 whopper
whopper's picture

Duh ! But not soon enough for my Call options. sigh

Thu, 05/17/2012 - 10:33 | 2435339 CH1
CH1's picture

Please remember that trading paper is to rely on the regulated casino to deliver your payment.

Remember MF Global.

Thu, 05/17/2012 - 10:35 | 2435356 tocointhephrase
tocointhephrase's picture

DOH!

Thu, 05/17/2012 - 10:37 | 2435363 harry555
harry555's picture

Regulated?  Hmm...I admire your faith in the powers that be!

 

Thu, 05/17/2012 - 10:26 | 2435292 A_S
A_S's picture

did the same some months ago

Thu, 05/17/2012 - 10:26 | 2435294 GeneMarchbanks
GeneMarchbanks's picture

'CTRL+P'

What a formula for success...

Thu, 05/17/2012 - 10:26 | 2435295 Cognitive Dissonance
Cognitive Dissonance's picture

It is clear that Gold is overcoming the blatant CB manipulation. At least for the moment.

Thu, 05/17/2012 - 10:36 | 2435359 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

The sad reality is that the entire equity market is "blatant CB manipulation."

Thu, 05/17/2012 - 10:47 | 2435446 EscapeKey
EscapeKey's picture

Not just equities. Bonds as well. And currencies.

Every asset class is being manipulated by our central planners.

Thu, 05/17/2012 - 10:27 | 2435305 1835jackson
1835jackson's picture

What a fucking joke this economy is. 

Thu, 05/17/2012 - 11:08 | 2435581 1835jackson
1835jackson's picture

The fact the BofA is not below the 7 handle right now is proof that fundamentals don't matter. All aboard the crazy train!

Thu, 05/17/2012 - 10:29 | 2435312 Jason T
Jason T's picture

Reading Martin Armstrongs latest.. in recent previous write up he talks about gold too..

 

http://armstrongeconomics.com/693-2/2012-2/manipulating-the-world-econom...

Thu, 05/17/2012 - 10:33 | 2435346 Pladizow
Pladizow's picture

Preferred his type writer prison work.

Thu, 05/17/2012 - 10:29 | 2435315 DeadFred
DeadFred's picture

What a random coincidence that this ramp comes the day after the metals plant their faces into support and turn around. I'm sure no one is behind that curtain jerking prices around.

Hope everyone bought their weekly call options when they hit bottom.

Thu, 05/17/2012 - 10:29 | 2435317 midgetrannyporn
midgetrannyporn's picture

dead cat bounce.

Thu, 05/17/2012 - 11:51 | 2435803 Chaffinch
Chaffinch's picture

What did the cat die of - helium poisoning?

Thu, 05/17/2012 - 13:06 | 2436121 TWSceptic
TWSceptic's picture

I suspect a lower bottom too, depends on euro crisis and the fed.

Thu, 05/17/2012 - 10:29 | 2435321 whopper
whopper's picture

POG decoupling with the us dollar , finally.

Thu, 05/17/2012 - 10:37 | 2435364 Winston Churchill
Winston Churchill's picture

I'm waiting for it to de couple from the paper assets(credit).

Might be game on.

Is it time to go all in ?

Or wait till after the Flopbook IPO?

Answers anyone ?

Thu, 05/17/2012 - 11:53 | 2435809 Chaffinch
Chaffinch's picture

And de-coupling from share prices ; )

Thu, 05/17/2012 - 10:30 | 2435322 BurningFuld
BurningFuld's picture

And all this even with the US Gov essentially injecting a TRILLION dollars a year into the US economy with it's prolificate spending habits. I smells a collapse coming.

 

Thu, 05/17/2012 - 10:32 | 2435336 gold-is-not-dead
gold-is-not-dead's picture

I'm not dead, I feel fine! :)

Thu, 05/17/2012 - 10:32 | 2435337 Auburn
Auburn's picture

IMF: More ECB unconventional easing may be needed ... just in from MarketWatch.  Yippeeeee

Thu, 05/17/2012 - 10:33 | 2435342 mantrid
mantrid's picture

and when is gold about to recall "no printing till obamney reinstalls at DC"?

Thu, 05/17/2012 - 10:35 | 2435347 ActionFive
ActionFive's picture

Lots o' volume at JPM today.

Thu, 05/17/2012 - 10:37 | 2435365 Redneck Hippy
Redneck Hippy's picture

Gold SOARS!!!  Up a whole $30.00 an ounce now after being down several hundred bucks an ounce, and having significantly breached the $1600 an ounce level.  

Try to understand this.  Gold is a commodity.  The dollar is rising because the euro is dropping, the yen, though still defying reality, is starting to crack, and the yuan is a joke.

Gold will keep falling.  The dollar, you say is just paper.  $93 of that paper will buy you a barrel of oil.  A month from now, $85 of that paper will buy you a barrel of oil.  

ZeroHedge has been a valuable source of info, particularly as regards the European debacle.  But it is full of crazed gold-bugs and conspiracy theorists.  Give it up.  Your precious metals fascination is gonna cost you. 

Thu, 05/17/2012 - 10:41 | 2435393 gold-is-not-dead
gold-is-not-dead's picture

anti barabarian, a?

Thu, 05/17/2012 - 10:52 | 2435479 jez
jez's picture

Charlie Munger would call him civilized.

Thu, 05/17/2012 - 11:09 | 2435590 GetZeeGold
GetZeeGold's picture

 

 

Full tilt retard : FAIL

 

But at least he knows which salad fork to use at the proper time.

 

Thu, 05/17/2012 - 11:10 | 2435594 WonderDawg
WonderDawg's picture

Sounds to me like he's stating the obvious. It's hard for many to see through their emotions, though. I thought gold was supposed to be like $5000 by now? I would think people would be hoping for lower prices to buy. I know I am. I've been celebrating the dropping prices as a chance to acquire. And like Slaughterer, I expect better prices are yet to come.

Thu, 05/17/2012 - 10:44 | 2435420 GOSPLAN HERO
GOSPLAN HERO's picture

In 1930, one could buy breakfast, lunch, and supper for less than $1 paper dollar.

Can you do that today, skippy?

Thu, 05/17/2012 - 11:01 | 2435543 Hulk
Hulk's picture

Hell, a jar of Skippy is  bucks!

Thu, 05/17/2012 - 11:22 | 2435659 5880
5880's picture

Island of Niihau bought for 1,000 oz of gold 120 years ago. that gold is worth 1.6m and Niihau worth 1b

Next year they bought a huge chunk of Kuai for the same amount and made it into the most profitable sugar farms. I'm sure it's worth at least 1b and then add back all the farming profits

learn NPV

Thu, 05/17/2012 - 11:29 | 2435695 tmosley
tmosley's picture

Not sure that is a valid comparison, as they were buying totally undeveloped land at a time when there was a great deal of undeveloped land everywhere.  Today, it has infrastructure and commerce (presumably).  Similarly, there is a difference between virgin jungle and productive sugar plantationland.

Thu, 05/17/2012 - 11:43 | 2435752 5880
5880's picture

maybe

but inflation compounds against us. 3% a year isn't just 3% after 10 years. gold has to rally by at least a comparable investment to stay even.

1 ton of gold at $300 in 2000 was 9.6m, call it 12% annualized. now add that back in to all the years it was crap

I don't even give a shite about the 12%. I did take delivery on gold and silver in 1999 when the russians were just trying to feed people. but unless it goes to 20,000 fast it's just another trading vehicle that only works in 1 of three scenarios and has a clock ticking against it.

I just think too many fools are long it

 

(and you said "virgin Jungle", giggity)

Thu, 05/17/2012 - 10:46 | 2435437 Quinvarius
Quinvarius's picture

Gold is money.  America has been on and off the gold standard many times.  Inflation loving thieves vs a working economy.  Bankers vs farmers.  Corruption vs honesty and equality.  It is always paper vs gold.  Gold always wins. 

http://www.youtube.com/watch?v=Q8e-e9xtFWA&feature=list_related&playnext=1&list=SP6D09BB9900764D5F

If you don't know the history of money you will be destroyed.  Paper money always lies and always dies.

This cycle has happened many times in America.

Thu, 05/17/2012 - 10:46 | 2435439 Zero Debt
Zero Debt's picture

This is interesting. Can you point to some of your past public predictions for reference?

Thu, 05/17/2012 - 10:47 | 2435448 pyrat
pyrat's picture

GOLD is money....if you ain't got it yet (gold) or a clue I do feel for ya!

Thu, 05/17/2012 - 10:49 | 2435454 EscapeKey
EscapeKey's picture

http://ftalphaville.ft.com/blog/2012/05/02/983171/marginal-oil-production-costs-are-heading-towards-100barrel/

The marginal cost of the 50 largest oil and gas producers globally increased to US$92/bbl in 2011, an increase of 11% y-o-y and in-line with historical average CAGR growth

Thu, 05/17/2012 - 11:26 | 2435683 Broccoli
Broccoli's picture

Holy shit, stop the presses. You mean marginal cost of production mimics the market value of a good over time!!!!!!! That is freaking revolutionary. Someone should write a textbook on that.

Oh wait, go take Econ 101 - Microeconomics in any high school or college. You know what is stunning, if oil prices went to $45, *gasp* the marginal cost of producing oil would lower to about $45 over time, as expensive production was taken offline. And if oil went to $250, the marginal cost of oil would rise to about $250 given enough time as expensive production was added. This happens in every product eventually, once market distortions are removed (like patents, subsidies, etc.)

Thu, 05/17/2012 - 10:58 | 2435522 jimmyjames
jimmyjames's picture

Try to understand this.  Gold is a commodity.  The dollar is rising because the euro is dropping, the yen, though still defying reality, is starting to crack, and the yuan is a joke.

*****************

Yes gold is a commodity and so is the dollar which means money is a commodity-

How smart do you have to be to understand-

When you put gas in your car-the oil company sells you their gas for dollars and you sell your dollars for gas?

So what's your point about commodities and trying to separate the dollar and gold as being somehow different?

Thu, 05/17/2012 - 11:01 | 2435536 Spacemoose
Spacemoose's picture

you obviously think in terms of months.  true gold bugs think in terms of years. 

Thu, 05/17/2012 - 11:03 | 2435550 AmCockerSpaniel
AmCockerSpaniel's picture

Your too late. Gold has already cost me (average of $900/ oz), but if I can get out of AGQ @ $51 that average will be going up.

Thu, 05/17/2012 - 11:39 | 2435745 Jim in MN
Jim in MN's picture

In 1932 gasoline was $0.10 per gallon.  Gold was $20 an ounce.  Therefore an ounce of gold bought you 200 gallons of gasoline.

Now an ounce of gold will buy you....in the neighborhood of 500 gallons (assuming for simplicity $1500 an ounce and $3.00 gas).

In other words in the most basic terms, gold has held and increased value for the last eighty years of chaos. Also, gas isn't that expensive if you have real assets to pay with.

Try to understand, mon cheri.  It is not so terribly difficult.

Thu, 05/17/2012 - 13:09 | 2436132 TWSceptic
TWSceptic's picture

In about a year you will regret not buying gold and you may also regret owning the dollar for too long.

 

How is it a conspiracy, they're printing and will keep printing, simple.

Thu, 05/17/2012 - 16:35 | 2437186 LongBalls
LongBalls's picture

If gold is worth nothing but a necklace and a nice ring then why will not the Fed return the US gold hoard back to the people for shiny "American" Federal Reserve lapel pins?

Are we not wasting millions protecting it at Ft. Knox? It does nothing but sit there and stare at the guards anyway right?

Thu, 05/17/2012 - 10:40 | 2435383 Kreditanstalt
Kreditanstalt's picture

DELAY THAT IPO!!!!!!!!!!!!!  Emergency...

Thu, 05/17/2012 - 10:40 | 2435389 juwes
juwes's picture

What the sale of all assets to buy facebook means to the market:

The fire sale is over, and with a circular motion of money out of n and into f, the shift to undervalued, high growth, high value, story investments will syphon money from the bloated, like banks and aapl, into the gassy: amazon, google, food, gold, silver, oil.

the stuff everyone values or uses.

Good investment strategy for this year will be: buy whats useful or valuable in the present day i.e, no credit, low wage, stagflationary, bank running environment.

Thu, 05/17/2012 - 10:41 | 2435397 El Oregonian
El Oregonian's picture

Fantasy= Banksters/Feds

Reality= Us

"What we have hea, is a failyuh to communicate"

Thu, 05/17/2012 - 10:44 | 2435412 Kina
Kina's picture

Love the entertainment from the gold is a commodity shills. Just makes me smile, and feel a little sorry for them.

Thu, 05/17/2012 - 10:43 | 2435414 Appleseed
Appleseed's picture

I BOUGHT THE FUCKING DIP!!!
AHHAAHHAHAHHAHAHHA
1 silver in the hand is worth 10000 paper siver in the bush

Thu, 05/17/2012 - 11:10 | 2435570 toady
toady's picture

Catching the falling knife always stresses me out, but I usually get lucky.

3 gold maples @ 1545 yesterday, maybe I timed it right this time ...

Thu, 05/17/2012 - 11:31 | 2435708 tmosley
tmosley's picture

Don't worry about knives or spikes.  Just cost average every month.  It takes the stress out of the transactions.  If it goes down and stays down, you will get some for that price next month.  If it goes down temporarily, who cares?

Thu, 05/17/2012 - 13:11 | 2436152 TWSceptic
TWSceptic's picture

You may have bought A dip, but did you buy the bottom? It's very doubtful.

Thu, 05/17/2012 - 10:44 | 2435415 giovanni_f
giovanni_f's picture

gold will rise if and when the jamie morgue is done with its current operation of positioning itself for the subsequent move. With a CFTC like this it is pointless to wait for a short squeeze, a fair price or whatever action one would expect a "free market" to display. Amen.

Thu, 05/17/2012 - 10:50 | 2435463 FranSix
FranSix's picture

It should not come as a surprise on the heels of JP Morgan's trading loss, that derivatives are at risk of becoming illiquid, so more QE is in store.

Dr. Berni

http://www.youtube.com/watch?v=sBCvQCS8UBI&feature=youtu.be

Thu, 05/17/2012 - 10:54 | 2435491 JustObserving
JustObserving's picture

Look at the facts:

 

"The entire global gold demand in the first 3 months of 2012 was just $59.7 billion and all the investment demand for gold in the world was just $21.2 billion in the same period."

Meanwhile in the US of A, debt and unfunded liabilities increase by $23.13 billion every day. And in the world as a whole, debt and unfunded liabilities increase by about $80 billion everyday.

How they have managed to suppress gold, real money, with paper promises speaks to the power of the central bankers.  But with debt now at unsustainable levels and the barabaric nations buying precious metals with increasing vigor, the central bankers are about to lose control.  

 

Thu, 05/17/2012 - 10:55 | 2435501 sudzee
sudzee's picture

This may be behind golds move :

http://www.cnbc.com/id/47461419

 

Thu, 05/17/2012 - 10:57 | 2435516 soopy
soopy's picture

Ctrl+FTMFW

Thu, 05/17/2012 - 11:04 | 2435554 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

anybody else think this big bounce up in Gold is a head-fake?  I am not too sure we won't continue lower on PM's.  I was hoping for a shot below 1500 to load up...

 

...doing GOD's work...GS-DickinDaMuppets

Thu, 05/17/2012 - 11:46 | 2435774 Jim in MN
Jim in MN's picture

Short term the currency fluctuations play a large role.  Panic and fleeing from one burning boat to the other.  Not a head fake exactly.  The USD index just paused in the midst of its longest rally in a generation, which in turn is mainly fear-based (i.e. Euro panic).  Hot money amplifies the moves either direction.

As we all know, greed and fear lead to mistakes in investing.  The thing is, if the Euro crashes and burns, will it just remain as a more limited participation currency, possibly a stronger one?  What to make of the potential new currencies, or say the 'light blue' sub-Euro for the periphery?  A second regional currency, weaker.  Is the net any different vs. USD when it all shakes out?  Arguably not.  The long view ignores the turbulence around the 'pricing in' of actual information.  

Other than actual sovereign defaults, which are positive for gold, most of this is probably meaningless.  Unless you're day trading.  In which case, consult your Magic 8 Ball and have another drink.

Thu, 05/17/2012 - 11:07 | 2435578 Inthemix96
Inthemix96's picture

You hear that bernankisize?

Your going down you horrible little fucking shit stain on humanity. Let's be hoping its a long drawn out affair you interfering imbicilic little cunt.

And while I'm on it, here dimon you satanic country wrecker, you will get yours as well you fuck stain.

Thu, 05/17/2012 - 11:10 | 2435600 walküre
walküre's picture

Is Warren Buffet shorting gold? Either this is a squeeze or this is THE final chapter where GOLD is recognized as the only safe haven.

Gold miners will be better capitalized than banks and when everyone needs gold to survive, even AAPL will become obsolete.

Gold is winning!

Thu, 05/17/2012 - 11:22 | 2435609 Convolved Man
Convolved Man's picture

Oh, Come on.  

Do I have to explain how the virtuous circle works, again?

I, as the FED stand here, the big banks form a ring around me and consumers, well you wander about aimlessly just outside the ring.  Now, I provide liquidity to the big banks by giving them money in exchange for their pocket lint.  Then the big banks, with money in their pockets, will turn around to face the consumers and...

Hey!  I saw that.

Stop that right now!

Quit picking each others' pockets.

Thu, 05/17/2012 - 11:14 | 2435613 Frank N. Beans
Frank N. Beans's picture

If gold is going up because of a new QE coming, then stocks should go up too.  But they're not.

 

 

Thu, 05/17/2012 - 11:22 | 2435662 Bazinga
Bazinga's picture

Stocks go up as a result of the inflation brought about by QE. The liquidity bolus takes time to give the desired effect... Gold goes up on the anticipation of QE (and afterwards) because gold is a reflection of DEBT. They will both go up as a result of QE, but not necessarily simultaneously.

Thu, 05/17/2012 - 12:15 | 2435876 FranSix
FranSix's picture

Actually mining stocks are going down because there is no requirement to mark a short sale any longer on Canadian exchanges, only if the asset is either a hedged or arbitrage position.  This favours delta hedging strategies, which first sell the mining stock, then parry the monies into the rising trend of 30-year U.S. treasury prices.  Basically, you sell the miner, and buy the option in long dated treasuries.

So what that means is, that stock will decline on a rise of treasury prices.  The accumulated short sales, which have no requirement to be marked as a short sale, are considered a debt and form the underlying asset, or hedged position called an equity swap.

So any of the money coming in to mining stocks is directed into hedged positions to buy the long dated treasury.  The delta hedged position, or the equity swap, or derivative, saps the value from stocks.

Thu, 05/17/2012 - 11:15 | 2435618 jimmyjames
jimmyjames's picture
Backwardation in Gold And Silver

On Monday, May 14, something happened that hasn’t happened since Dec of 2008.  Two successive near-month precious metals futures contracts were in backwardation at the same time.

http://www.acting-man.com/?p=16928#more-16928

Thu, 05/17/2012 - 11:20 | 2435647 LULZBank
LULZBank's picture

Speaking strictly from an environmentalist point of view, being a true conservationist at heart, I think fiat is not even good enough to wipe your ass off with.

Gold is much better. Wipe it, rinse and then repeat ...

Thu, 05/17/2012 - 11:26 | 2435680 HurricaneSeason
HurricaneSeason's picture

Gold went up because of the pending contagion in Greece et al defaults and the Boehner/Obama battle to raise or not raise the debt ceiling. The punch bowl has left the building.

Thu, 05/17/2012 - 11:28 | 2435692 TradingTroll
TradingTroll's picture

Fibonacci retrace.

 

Wake me up when its over $1625 if you want to go long. Below  that its short meat.

 

(I am a big gold bug, but you still have to trade it)

Thu, 05/17/2012 - 11:44 | 2435760 walküre
walküre's picture

FED won't let PM prices run away. We've been here before exactly this time last year.

POG was down in the 1520s overnight. That must have freaked a few players right out. The bounce so far is actually over $50 /oz and meeting resistance.

Just the mere mention of a possible QE3 in the last FED minutes from late April (!) which happened to be released yesterday is what got the buzz started.

If you happened to buy some oversold miner or paper gold yesterday, well done. How much further is the rumor mill going to take it?

 

Thu, 05/17/2012 - 11:28 | 2435691 Confundido
Confundido's picture

Wait until 3am tonight....then you'll see who is in control here. I would just sell into this strength.

Thu, 05/17/2012 - 11:47 | 2435782 Jim in MN
Jim in MN's picture

Pssst...got a secret for ya....the cocaine just makes it FEEL like you're in control....

Thu, 05/17/2012 - 11:34 | 2435714 WhiteNight123129
WhiteNight123129's picture

Mes chers amis, VIVE THE GOLD! (Almost sounds like "De Gaulle" in French). Charles de Gaulle and Ron Paul are the same type of people, both advocate of sound money, see De Gaulle famous speech that you probably all know too well back in February 1965.

Thu, 05/17/2012 - 17:50 | 2437524 WhiteNight123129
WhiteNight123129's picture

There was apparently a guy pointing to small backwardation yesterday on both Gold and Silver on both month. At the same time if you check the CRB FOOD Index on Bloomberg you noticed that the CRB Food index bounced exactly two days ago in a very similar move to today´s Gold move. Looks like Food commodities should outperform Gold for a while, as Gold and food commodities are joined at the hip historically.

 

Thu, 05/17/2012 - 12:05 | 2435843 Stock Tips Inve...
Stock Tips Investment's picture

When a stock or commodity has a downward trend, usually shows a higher volatility. It isvery common that these jumps occur. This is not to say (yet), that gold resumes its bull run. Beware anticipated.

Thu, 05/17/2012 - 12:25 | 2435923 Bagbalm
Bagbalm's picture

I can only hope in the collapse Charlie Munger finds himself at the border trying to flee and has no gold to bribe the border guard.

Thu, 05/17/2012 - 12:51 | 2436053 FeralSerf
FeralSerf's picture

Is CTRL+Ping the same as urinary continence?

Thu, 05/17/2012 - 14:29 | 2436515 devo
devo's picture

They have to raise the price as people empty their bank accounts into metals on dips.

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