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Gold/Silver Plunge-fest

Tyler Durden's picture


Gold down over $100, and Silver down over 15% - someone is liquidating. Rumors vary from very prominent hedge funds to Central European (as in geographically) central banks. Bottom line is, it is a self-fulfilling prophecy at this point and will continue until every last seller is out, and until the margin calls end.

UPDATE: Silver <$30 -17%


Charts: Bloomberg


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Fri, 09/23/2011 - 13:24 | 1702103 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

But who...  


WHO????  (shakes fist at sky)

Fri, 09/23/2011 - 13:25 | 1702123 markmotive
markmotive's picture

Gold 101: How gold performs during a financial crash:

Fri, 09/23/2011 - 13:27 | 1702150 junkyardjack
junkyardjack's picture

That's crazy talk, Gold can only go to $2000.

Fri, 09/23/2011 - 13:31 | 1702195 geminiRX
geminiRX's picture

Once people starting running banks in Europe....then watch the fireworks! This liquidation was FULLY anticipated by Zerohedge about a month ago due to JPMs undercapitalization. I would strongly bet that the Chinese are buying these dips.

Fri, 09/23/2011 - 13:33 | 1702216 What does it al...
What does it all mean's picture

Seriously!  About time!

ZH try to pump up Gold/Silver so hard.... this is the first time that I can remember that they publicize this for what it is!  Liqudation, whom?  I don't really think it matters...

Supply and Demand, Buying and Selling people..... It happens all the time!

Fri, 09/23/2011 - 13:38 | 1702257 Gene Parmesan
Gene Parmesan's picture

I'm beginning to hate Fridays.

Fri, 09/23/2011 - 13:51 | 1702352 jdrose1985
jdrose1985's picture

Your weekends must be lovely

Fri, 09/23/2011 - 14:03 | 1702433 Badabing
Badabing's picture

$50 gold swings –check

Paper market collapses-check

Physical gold goes into hiding- ?

Quote Another

Fri, 09/23/2011 - 14:46 | 1702657 Dr. Richard Head
Dr. Richard Head's picture

Think of it as an EKG This biotch is about to flatline - fiat that is. $100 swings of money measured in fiat indicate the volatility of fiat, not the underlying asset. Back in my college days, dealers didn't measure sativa or kush in fiat, so why should we care about government decreed denominations of money (aka gold and silver)?

Maybe I'm wrong or maybe it's the copeous amount of whiskey talking. What the fuck do I care?

Fri, 09/23/2011 - 16:48 | 1703229 bid the soldier...
bid the soldiers shoot's picture

As I recall you were one of the first to use the lid of a shoe box as a metric.

Fri, 09/23/2011 - 17:43 | 1703566 Ag Star
Ag Star's picture

Too bad we can't buy options in sativa and kush--we would all be rich especially with all the new technology.

Fri, 09/23/2011 - 19:43 | 1703975 IronShield
IronShield's picture

Look Dick, er I mean, Dr. Dick, I mean Dr. Dick Head...  Dealers?  College Days?  Where the f@ck did you go to College?  Cause I really missed all that $hit...  Damn...  And that IS the copeous amounts of 21 y/o scotch talking...  Oh, and BTFD!  At least until $1585 (if we are so blessed).

Fri, 09/23/2011 - 13:39 | 1702262 disabledvet
disabledvet's picture

And of course only banks provide the capital from which to speculate in PM's so which banks get the gold? Hmmmm. Let me guess: JP and HSBC. Just a guess of course.

Fri, 09/23/2011 - 13:44 | 1702301 High Plains Drifter
High Plains Drifter's picture

supply and demand?  oh please. spare me............

Fri, 09/23/2011 - 13:55 | 1702388 What does it al...
What does it all mean's picture

Would you give me buying and selling then?  There are more sellers than buyers today in Gold/Silver.

Fri, 09/23/2011 - 14:34 | 1702610 chinaguy
chinaguy's picture

Uh, the numbers of buyers is exactly the same as the number of sellers.....

Fri, 09/23/2011 - 14:48 | 1702679 blunderdog
blunderdog's picture

Why would you say that?

Fri, 09/23/2011 - 14:59 | 1702738's picture

Who do you think the seller is selling to if not a buyer?

Fri, 09/23/2011 - 15:17 | 1702811 Pladizow
Pladizow's picture

To: ChinaGuy

The # of sellers and buyers do not have to match.

One buyer could purchase from 100 sellers or 100 sellers could sell to one buyer.

For every share sold there is a share bought.

Fri, 09/23/2011 - 16:44 | 1703200 bid the soldier...
bid the soldiers shoot's picture

Soon for every share bought, a loss will eventually be taken (unless you are covering a short position).

Sat, 09/24/2011 - 09:41 | 1704935 What does it al...
What does it all mean's picture

Damn, this board is getting tough...

Technically, the number of buyers and sellers doesn't have have to equal, but the value traded at each txn does.  

But for today, in Silver in particular, the sellers are more willing to hit the bid, clear the next level or two, cross the midpoint and get it done.  (So even High Frequency guys can't fade fast enough, due to desperate, forced, panick or what have you selling.)

How about that... is that fair and technical definition?  

Fri, 09/23/2011 - 16:08 | 1703034 sun tzu
sun tzu's picture

Yeah but the buyers are only willing to buy at lower prices and the sellers are willing to sell at lower prices. To sum it up, there are fewer buyers at higher prices.

Sat, 09/24/2011 - 00:27 | 1704466 automato
automato's picture

That is not necessarily true. If I know you are desperate to sell at any price, then I will low-ball the hell out of you!

Sat, 09/24/2011 - 11:00 | 1705056 WonderDawg
WonderDawg's picture

But he doesn't have to take your offer if another buyer will give him a few pennies more, thus the market is created.

Sat, 09/24/2011 - 00:13 | 1704449 punishmentnotrevenge
punishmentnotrevenge's picture

Only the paper pushers!  Local bullion dealer report:  I stood in line in a coin store and watched four old guys purchase $28,000 (cash and checks) of physical.  First off the fact that I had to stand in line at a coin shop was unheard of.  Secondly at that pace they aren't going to have shit for bullion inventory and us small fries are going to get stuck paying high preimum's on 90% junk.  My dealer was swamped today and when his dealers can't fill the back orders all the paper ETF's won't amount to shit paper!

Fri, 09/23/2011 - 15:15 | 1702805 Imminent Crucible
Imminent Crucible's picture

Snarly Karly is having a good laugh over the PM selloff today:

Probably because--for the first time ever--he's accidentally on the right side of the trade.

For now.

Fri, 09/23/2011 - 16:41 | 1703192 Bicycle Repairman
Bicycle Repairman's picture

Again, Au has crashed all the way back to August 2011 levels.  Karl will have to be right a dozen more times to actually be right.

Fri, 09/23/2011 - 19:45 | 1703978 quark
quark's picture

Karl would need to improve his demeanor to be an asshole..... He would need to expand his mind to be a moron..... He would need to scale back his love of leviathan to simply be a statist.... Karl is a flake and a fake.

Sat, 09/24/2011 - 11:10 | 1705071 WonderDawg
WonderDawg's picture

Karl is doing something. I don't know you, but unless you've got a blog that people talk about, where you get up and rail against the banksters and the government criminals, then you're no better than the playground punk running around calling people names. At least he's trying to do something. Yeah, he's a cunt a lot of times. I doubt I'd sit down to watch a football game with him, but I respect what he's doing. If you call him a statist, you really don't get his message. I guess the fact that he understands that the metals are a market, just like corn, and oil, and equities, and that these markets are subject to rises and falls, must make you uncomfortable. He's not anti-PM, he just recognizes that there is likely to be a pull back in prices if there is a liquidation of assets. So because you disagree with his stance on metals, you condemn all his efforts. He actually offers solutions to the financial bullshit games and rigged markets. Have you done as much?

Critics and hypocrits are a dime a dozen.

Sat, 09/24/2011 - 12:42 | 1705311 quark
quark's picture

Your post illustrates why you venerate Karl, and why Karl is wrong-headed (in addition to being a self-important asshole). You seem to place great value on doing 'SOMETHING', without regard to what the something is and irrespective of whether it is efficacious. Activity is superior to positive results; what matters is not fixing a problem, but having everyone know you care by virtue of being seen doing SOMETHING. Your argument in support of Karl could be adopted to defend the very bankers and central planners you (and he) purport to rail against..... at least they are doing SOMETHING.... no?

Karl's point of view that he calls libertarian is in reality the view of the pure authoritarian. He believes that the problem isn't that the government does too much necessarily - they just need to do it better. The problem isn't, as he sees it, that regulating a gamed system (monopoly fiat currency in a fractional banking model) is inherently problematic and totalitarian..... we just need to enforce the regulations he deems to be necessary. So long as we pull the right levers and punish the right disfavored actors, the totalitarian system hums along fine, in his estimation. The concept of central banking is not the issue for Karl - it is simply that he disapproves of how the powers are used. If he could pull the totalitarian levers, he would find the construct to be virtuous and inherently moral. He believes that we need leviathan to protect us within a system that is centrally controlled, rather than that we should be free to participate in any system we would choose to participate in; in short, Karl just wants a more efficient brand of totalitarianism.

I suspect you would join him in his belief that we just need to punish those who gamed the system.... but god forbid we eradicte the forced participation in a gamed sytem.... I mean - what would we do if people could really have economic freedom where the state couldn't control their financial transactions and actions?

You are free to support anyone you wish..... you can worship at the Denninger altar while he wields his 'Thor Device' (what a frikkin peckerhead!) and pray that you not fall in his disfavor..... but the man is not rational, and the most you can say about him is that he is doing SOMETHING. Even if it is something useless and, ultimately, counter-productive.


For the record.... I am tickled with the takedown in the PM space. I hadn't bought any physical metals since 2008, had liquidated a sizeable platinum holding two weeks ago and was/am underweight miners. I made purchases on both Friday (physical gold/platinum and miners), and plan to accumulate more if we are fortunate enough to see an intensification of the selloff.....

Sat, 09/24/2011 - 14:40 | 1705680 WonderDawg
WonderDawg's picture

No argument from me that he has some superiority issues, but I'll disagree that what he's doing is just "something" that does more harm than good. If the only thing he does is shine the light on the gov't and bankster criminals and ring the bell for prosecution, that's good enough for me. Let him believe whatever he wants about other shit, it won't matter in the long run. It's the attention he brings to the fraud that I applaud. It's more than the critics are doing.

And by the way, I don't venerate him. I respect his efforts to shine a light on the fraud. The rest of it is just noise, like you get pretty much everywhere else. You just have to be smart enough to sift through the noise and find the useful stuff.

Fri, 09/23/2011 - 13:47 | 1702324 pirea
pirea's picture

in paper trades, mine is still the same amount, in the same place and I am not interested to know its value in fiat

Fri, 09/23/2011 - 13:52 | 1702366 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Now is our chance to liberate ourselves from the Global Banking Cartel!  Buy silver!

To have a short position, someone either needs to own the security, or needs to be able to locate it; the latter is when we call it a 'naked short'.  There is not enough gold bullion to locate to justify their short positions.  This mean that their shorts are unqualified.  So if the CFTC ever decided to be a properly run government organization (they won't be) then they would regulate the shorts, sanction JPM et al, and nix the shorts.

Yet, just like in life, reality always descends eventually.  There will be a time when traders understand what is happening, and there will be a panic move to get physical.  I don't think this will happen until gold is in the range of $3300-$5k.  Once it does there is no top on gold.  It could go to $10k, it could go to $40k, it may very well take the dollar under and its price be invaluable.

To put this in context, look at oil.  Who bought the SPR release, and why?  JPM did, so they could locate their shorts.  The oil market is better regulated than gold, and so they needed to prove their shorts.  Thus Obama did another favor for the Banking Houses and greenlighted the release; JPM bought the oil and stashed it offshore, and JPM bought their short positions.

Of course, there is a direct way to go after these measures, and that is by buying physical silver.  Silver trades with oil 1:1 on the long term.  Oil trades inversely 1:1 with the dollar on the long term.  Take a position on silver, and you take the most promising short position against the dollar possible.  Shorting the dollar is the final battle, because it is the dollar that holds the world from reclaiming its prosperity.  The dollar backs the Banking Houses; it is their only weapon in the financial war that has destroyed the America our fore fathers built.  The dollar, and the corporations that back it, is exactly why this great country was founded. 

It funds the war machine, and it is the war machine that is Wall Streets prize possession.  Without it, Wall Street has no power over the oil producing States.  The dollar is soaked in the blood of young Americans who have been stricken by poverty and had little options available.  The catch 22 of the dollar has pitted America against itself.

Victory will be had by real monie, because the dollar has no backing and is an amalgamation of creative thinking.  Alchemy took hold of money after the philosopher's stone failed.  The dollar has no intrinsic value; it has no general worth and is merely an IOU.  The dollar is backed by lies.

Silver is real monie.  This real monie has had the same short positions unjustly levied against it.  Since silver is cheap, it is rather easy for us to target.  It is the belly of the beast.

I will be visiting the coin store today, and I will be buying with both hands.  I believe that our best hope to take the Banking Houses down is to take possession of silver.  This because silver is a very industrial commodity and if we squeeze the physical market the price will rise.  Then, when the price rises due to supply constraints, JPM's shorts will crush their balance sheet- this has already been happening over the course of the last year and a half, since we started our movement.  So please, join me, take down the Banking Houses, take back your monie and wealth, and take back your freedom!


Fri, 09/23/2011 - 14:40 | 1702642 CH1
CH1's picture

I'm with you.

Fri, 09/23/2011 - 15:18 | 1702818 Motley Fool
Motley Fool's picture

I'm not. Buy gold.

Fri, 09/23/2011 - 17:25 | 1703483 FiscalCrater
FiscalCrater's picture

Yep. Freegold, bitchez...

Fri, 09/23/2011 - 15:27 | 1702853 Hook Line and S...
Hook Line and Sphincter's picture

Already converted cellulose for both today. As the beasts belly is sliced, at first, only a foul smell waifs.

Fri, 09/23/2011 - 16:54 | 1703291 StrangerThanFiction
StrangerThanFiction's picture

I bought some today, I couldn't help it.

Sat, 09/24/2011 - 02:05 | 1704560 Shineola
Shineola's picture

Mr. H, that was one excellent post, man!  

Fri, 09/23/2011 - 14:11 | 1702506 Kyron95131
Kyron95131's picture

lol its funny to watch you people whom nay say gold and praise FIAT like its the best thing in the world without any basis of argument.

When everyone knows it isn’t backed by shit sept the idiocy of people whom don’t understand the fundamental mathematics that govern macro economics and just how transparently corrupt the entire system is. 

and don’t use the phrase "supply and demand happens all the time!" like this is a real free market economy you troglodyte, this fascist cleptocratic abortion of a ponzi is far from it. It’s all about adding layers and layers of fucked up spin to an already incomprehensible quagmire of shit to just keep it going a lil while longer.

The fact the banks can do this when it isn’t warranted while the CFTC doesn’t regulate naked short selling in order to artificially suppress the markets and keep prices artificially low should be the greatest indication of just how fucked up the system is without the price of gold having to hit 1700,1800,1900, 2000 or whatever to keep driving the point home time and time again.

Ask yourself this question. What has been fixed to allow this correction?

Answer nothing


Fri, 09/23/2011 - 14:30 | 1702587 Think for yourself
Think for yourself's picture

Tip of the hat to you, my good sir. Truer words have never been expressed with such /b/ style eloquence.

Fri, 09/23/2011 - 15:00 | 1702743 fallout11
fallout11's picture

I'm thankful for another buying opportunity.  <$30 silver I thought was gone for good, glad to see another chance to trade my increasingly worthless paper script for something of lasting value.

Fri, 09/23/2011 - 15:37 | 1702897 Xibalba
Xibalba's picture

Bart Chilton suck Gensler cock!

Fri, 09/23/2011 - 15:49 | 1702950 theotheri
theotheri's picture

It's correcting because it's ridiculous run up was way way way overbought.  It has has value as jewellery and that's at a price of around $1000/oz.  The Fed will end it's easing program eventually and the increase in M3 nowhere near matched the spike in gold.  Get a clue fool.

Fri, 09/23/2011 - 16:12 | 1703050 Kyron95131
Kyron95131's picture

your posts are like reading cancer...

if you think QE is the only reason gold is going up is because of QE, then you need look no further for the "fool" than the mouth breather staring back at your in the mirror...

get a grasp on some fundamentle ecomonic realities of our time before you post here... if your gonna troll, at least be a compelling one... this site isnt fox news... 

Fri, 09/23/2011 - 16:51 | 1703267 goldfish1
goldfish1's picture this is a real free market economy you troglodyte...

...fascist cleptocratic abortion of a ponzi...

...artificially suppress the markets and keep prices artificially low...

Excellent summation.

Fri, 09/23/2011 - 18:00 | 1703643 Ag Star
Ag Star's picture

"Troglodyte", haven't heard that one in a while.  This giant house of cards is right in front of the perverbeal fan-- and the shit is about to fly. Glad I have a silver and gold umbrella.

Sat, 09/24/2011 - 09:10 | 1704887 Town Crier
Town Crier's picture


Fri, 09/23/2011 - 18:23 | 1703741 Zgangsta
Zgangsta's picture

"When everyone knows it isn’t backed by shit sept the idiocy of people"

Well, that seems to be in ample supply.

Fri, 09/23/2011 - 14:17 | 1702525 theotheri
theotheri's picture

Of course this is true.  And, as I have been shouting since the yellow metal crack $1900/oz, it was in a massive bubble.  Gold has no use above $1000/oz.  It's a barberic relic.  You people should have listened to me and stopped being gold monkey cheerleaders for Tyler Hedgehog.

My PHY short is looking so awesome now!  Thanks ZH fools for pumping the metal up so high.  I appreciate your ignorance.

Fri, 09/23/2011 - 14:21 | 1702547 Kyron95131
Kyron95131's picture

self appointed defender of the status quo troll-bot i assume?

Fri, 09/23/2011 - 14:44 | 1702659 CH1
CH1's picture

Troll bot for sure.

My guess is that he's a contractor working for a Fed-owning bank

Fri, 09/23/2011 - 15:14 | 1702802 gmrpeabody
gmrpeabody's picture

My guess is he just relishes getting people riled up. In actuallity, he more than likely doesn't know dick.

Fri, 09/23/2011 - 15:17 | 1702803 gmrpeabody
gmrpeabody's picture

Double post

Fri, 09/23/2011 - 15:52 | 1702960 theotheri
theotheri's picture

No I relish making money and being proved correct. I called it a bubble when it broke $1900 and I my massive shorts have been vindicated.







Fri, 09/23/2011 - 16:09 | 1703033 BungaBunga
BungaBunga's picture

Dear Sir, do you even know what a bubble is?

Fri, 09/23/2011 - 16:16 | 1703073 hawks5999
hawks5999's picture


"No I relish making depreciating fiat and feeling correct."

Fixed that for you.

Fri, 09/23/2011 - 16:24 | 1703101 theotheri
theotheri's picture

Say fiat again motherfucker.  I dare you.  I double fucking dare you!

Fiat is guaranteed by the full faith and cred of the US government

Fiat buys you thinkgs you need, made in America

Fiat has been spiking because it is the only safe haven currency in the world

Your barbaric relic has no use except jewellery and supply/demand tells us that equate to less than $1000/oz.


The US govt will continue to devalue the US dollar. And guess what?  You will continue to buy more goods and services made in the US.  US has everything they need right here except oil and Canada can provide the rest.



Fri, 09/23/2011 - 17:16 | 1703431 fuu
fuu's picture

Fiat bitch.

Fri, 09/23/2011 - 17:34 | 1703518 Lord Koos
Lord Koos's picture

"full faith and cred of the US government"


Your naivete and faith are really touching....

Fri, 09/23/2011 - 19:44 | 1703977 Sokhmate
Sokhmate's picture

I think he intentionally left out the sarcasmatical insignia.

Sat, 09/24/2011 - 02:30 | 1704580 Shineola
Shineola's picture

He may be a fat ass with massive shorts, but he's got a good point there.     Fiat is powerful!    It brought down a whole bunch of tall buildings on 9-11 and shot a rocket though the Pentagon. 


Just try that with a damn silver dollar!

Fri, 09/23/2011 - 17:34 | 1703399 Astute Investor
Astute Investor's picture

Qu'est-ce que c'est "massive"?

Enough to buy a Happy Meal at Mickey D's?

Excluding the uber-wealthy, massive would imply a gain of at least mid-six figures to the left of the decimal point.

Sat, 09/24/2011 - 02:14 | 1704563 Shineola
Shineola's picture

"My massive shorts have been vindicated". 

Taken out of context, I can't tell if he got lucky wid some poontang or just took a huge shit?  But, his massive shorts have been vindicated!




Man, now that's funny shit..... on so many levels. :)    Reminds me of a George Carlin skit.



Sat, 09/24/2011 - 02:25 | 1704578 Shineola
Shineola's picture
Yo mama's shorts so massive, she put on some BVD's and by the time they reached her waist they spelled out boulevard.
Fri, 09/23/2011 - 14:29 | 1702583 Citxmech
Citxmech's picture

Ha!  I'm still laughing.  My stack today is still up over 100% aggregate - and thanks to this leveraged paper sham market, I can now continue to add to my stack.

Go look at Au's trace to get above 1k - this is nothing but shaking loose the weak hands while the race to the bottom for all fiat currancies continues to zero.

Your fiat denominated monopoly "wealth" is transient.  Real assets will win this war my friend.

Fri, 09/23/2011 - 15:33 | 1702887 HurricaneSeason
HurricaneSeason's picture

Gold is up 17% for the year, coming into the good months. The stocks are down 7-10% coming into October. If you've been shorting gold, you should have some tax deductions this year as well as the previous 10 years at 18%.

Fri, 09/23/2011 - 15:53 | 1702965 theotheri
theotheri's picture

I started shorting at $1900 because I knew the top was in.  You morons went nuts.  I haven't touched it since the 1980's when I was buying not selling.

Fri, 09/23/2011 - 16:22 | 1703097 sun tzu
sun tzu's picture

I'm sure you did. You always buy at the bottom and short at the top because you knew it

Fri, 09/23/2011 - 16:25 | 1703112 theotheri
theotheri's picture

No I bought gold in the 80's pretty close to the top, around $500/oz.  I sold at $650 and it spiked past $700/oz IIRC.  I'm not top or bottom caller but I can easily spot a bubble and $1900 was a sure one.

Fri, 09/23/2011 - 18:05 | 1703667 Ponzified Plebe
Ponzified Plebe's picture

The fundamentals that brought Au to 1900 have only further validated the monetary value of your "barbarous relic", and guess what the fundamentals have only continued to develop in the favor of PM's continual rise.

Your fundamental misunderstanding of what constitutes a bubble is staggering indeed? Prove why this is anything less than manipulation of the PM market by TPTB. They stand only to loose as the confidence in the USD falls into the basement on a fast track straight to hell. If the USD was so damn healthy, and the full faith and credit of the US was is such good shape then why they hell are they printing fiat like their hair is on fire.

I am beginning to think that you just can't help spewing your limitless supply of vacuous nonsense. Fiat currency is only propped up by the endless fiat supply of bullshit by its supporters.

Sat, 09/24/2011 - 19:16 | 1706169 theotheri
theotheri's picture

You are a perfect example of the kool aid gold monkey buy at any price crowd.

I agree that it offers somewhat of a hedge against inflation induced by increasing the money supply.  The flaw in that argument is that the price of gold has risen exponentially faster than the money supply, therefore it is hugely overvalued.

A better hedge is prime real estate that generates a return by the way. 

Sat, 09/24/2011 - 10:18 | 1704990 mjk0259
mjk0259's picture

Then why weren's you shorting silver? That was a bigger bubble and would have been more profitable.

Sat, 09/24/2011 - 19:17 | 1706173 theotheri
theotheri's picture

Absolutely agree but not as widely talked about as a safe haven.  I knew silver would eventually crash but it was hard to say when.  But when gold hit $1800-$1900 I realized it was toast.

Fri, 09/23/2011 - 16:25 | 1703109 xtop23
xtop23's picture

 Whatever buddy. The fundamentals cannot be denied. We shall see.

Fri, 09/23/2011 - 17:36 | 1703528 Lord Koos
Lord Koos's picture

So in 2012 gold will be $1000 an oz, right?

Sat, 09/24/2011 - 00:30 | 1704473 punishmentnotrevenge
punishmentnotrevenge's picture

Maybe you should start touching it and release some of those pent up hostilities!  It just aint good to keep it all in, I'm just sayin'

Sat, 09/24/2011 - 02:16 | 1704567 Shineola
Shineola's picture

I haven't touched it since the 1980's when I was buying not selling.     Brotha, are we talking poontang again?

Fri, 09/23/2011 - 16:26 | 1703119 Hopium Dealer
Hopium Dealer's picture

I hope you keep shorting gold all next year, too. I want to see the Pan Asian Gold Exchange and real price discovery tear you a new one in 2012! Keep up the work!

Fri, 09/23/2011 - 17:29 | 1703507 Augustus
Augustus's picture

If we are to have REAL price / discovery,

Then a margin hike would make no difference would it?

The REAL price would be the price that people would pay to actually own it outright and paid for.

Fri, 09/23/2011 - 14:45 | 1702667 CH1
CH1's picture

Troll all you like, the rest of us here will ignore you and BTFD.

Fri, 09/23/2011 - 16:39 | 1703182 Dooud
Dooud's picture

I'm buying hand over fist with a huge strike option coming at 28 which I will buy all I can. This might be a heck of a dip

Fri, 09/23/2011 - 14:00 | 1702418 LookingWithAmazement
LookingWithAmazement's picture

Bankrun in Europe will not arrive. The only run is into bankstocks, now the ECB/G20 appears to have haned over a lifeline. No Armageddon, no gold/silver through the roof. Bye bye crisis.

Fri, 09/23/2011 - 14:16 | 1702524 jdelano
jdelano's picture

Masochistic much?

Fri, 09/23/2011 - 14:46 | 1702675 CH1
CH1's picture

Bye bye crisis.

Yes, of course, just like 2008!

Fri, 09/23/2011 - 15:13 | 1702791 LookingWithAmazement
LookingWithAmazement's picture

A 2nd Lehman will not come: everyone anticipated it and the politicians have bought enough time and loaded enough crap on the ECB sheet, to avoid it. No 2008 part 2. No Armageddon.

Fri, 09/23/2011 - 16:24 | 1703107 sun tzu
sun tzu's picture

Whether a second Lehman happens or not, you have to be an idiot to buy financials. Many companies are saved by TPTB, but the stockholders get porked up the ass anyway. Look at GM, Fannie, Freddie etc

Fri, 09/23/2011 - 15:02 | 1702754's picture

Bye bye crisis.


Dr. Pangloss, is that you?

Fri, 09/23/2011 - 15:21 | 1702828 fuu
fuu's picture

Or Krugman.

Sat, 09/24/2011 - 02:36 | 1704584 Shineola
Shineola's picture

uh, pardon me.   Didn't Europe just have a whole bunch of riots and burn cars in front of the banks?   Nah, bank run will nver happen over there.   Them peoples is calm.  


Stiff upper lip and all.   Jolly good.


Carry on. 

Fri, 09/23/2011 - 14:36 | 1702619 RSloane
RSloane's picture


Fri, 09/23/2011 - 17:11 | 1703404 caconhma
caconhma's picture

Another week with PM prices dropping like today, and silver and gold will worth practically nothing with silver at just $1.70/oz  WOW!

Fri, 09/23/2011 - 13:35 | 1702215 Libertarians fo...
Libertarians for Prosperity's picture



Attention Goons!  Do Not Worry!  The "Cartel" will knock silver down to about $38, but there is "very strong support" there.  According to Turd's 15 minute charts, we really don't have much to worry about.  Besides, if silver collapses, we'll just blame it on "paper games" and pretend the "paper" price doesn't matter, anyway.  Remember....  paper prices matter on the way up, but not the way down.  That way, we're always right!


Fri, 09/23/2011 - 13:38 | 1702236 DormRoom
DormRoom's picture

that's what they told my dad when the nasdaq bubble popped.  That's  the line they told my cousin when the real estate bubble popped.


Fri, 09/23/2011 - 13:44 | 1702295 GFKjunior
GFKjunior's picture

You must have stupid relatives. 

Fri, 09/23/2011 - 13:53 | 1702375 whstlblwr
whstlblwr's picture

He reaks of jealousy, must be from MSM

Fri, 09/23/2011 - 16:06 | 1703030 Diogenes
Diogenes's picture

Everybody has stupid relatives ha ha ha ha ha.

Fri, 09/23/2011 - 13:40 | 1702266 Freddie
Freddie's picture

What is Turd saying?  I guess he is not such a guru anymore.

Fri, 09/23/2011 - 15:02 | 1702756 FreeNewEnergy
FreeNewEnergy's picture

Turd is usually reliable, but who saw this coming? My long term entry point - since correcting (crashing) from $50 back to the high 30s and low 40s has been below $33 and I've been waiting all summer. Guess this is the Autumnal Equinox Get Even Trade.

Here's what I said yesterday after the close on my blog (since so many around here like to do self-promotion, guess it won't hurt):

Quick note on silver. I believe it will go lower, possibly materially lower, as no true support for anything exists in a deflationary environment, of which we are clearly entering. Silver could crash all the way back to the mid-20s, depending on the severity of the overall global crash, so I would advise scaling in at this bargain point, and using dollar cost averaging to keep your basis reasonable. Eventually, silver should top out at well over $100, possibly even more, especially if much of the world finds the wisdom to return to real money.


LINK: Market Crash Alert... Oops, Too Late, Dow Drops 391 Points

Fri, 09/23/2011 - 15:19 | 1702820 NotApplicable
NotApplicable's picture

Paper metal may be crashing, but go see if your local dealer has any inventory for sale at these prices.

To me it just looks like 2008 all over again, complete with talking heads like B. Biggs stating that gold is not a safe haven, trying to keep it all in check.

Fri, 09/23/2011 - 16:14 | 1703065 Think for yourself
Think for yourself's picture

Exactly. Here in Ecuador silversmith supplies store usually have very good prices - I was buying at 1.2$/gram = 37/oz while market price was 38 to 42.

Guess what? As of the close they're still selling at 37/oz and laughing at any gringo that tries to mention today's market price to get some kind of rebate.

Fri, 09/23/2011 - 15:59 | 1702992 A_S
A_S's picture

he is usually reliable because silver and gold usually go up

Fri, 09/23/2011 - 16:44 | 1703202 Dooud
Dooud's picture

I spent a quarter of my dry powder at 32 and will do another quarter or more at 28. Remainder for gold if it dips below 1580. Silver is still the play at least that's my plan and I am sticking to it.

Sat, 09/24/2011 - 11:22 | 1705091 WonderDawg
WonderDawg's picture

So silver's range is somewhere between mid-20's and over $100, possibly even more.

That's very useful. Thanks for your hard work.

Fri, 09/23/2011 - 13:43 | 1702284 fuu
fuu's picture

Aww look even Redneck Repugnicant makes a daylight appearance. Bottom must be coming up fast.

Fri, 09/23/2011 - 16:27 | 1703126 sun tzu
sun tzu's picture

Time for your medications again. Take a double dose

Fri, 09/23/2011 - 18:28 | 1703748 fuu
fuu's picture

Naw he really is Redneck Repugnicant. And that really was the intraday bottom.

Fri, 09/23/2011 - 14:16 | 1702523 GoatETF
GoatETF's picture

The "Cartel" will knock silver down to about $38, but there is "very strong support" there. 

Apparently they forgot to wear their Bros today.

Fri, 09/23/2011 - 14:40 | 1702643 Rhodin
Rhodin's picture

I thought Turd was wrong about that.   I also thought the May-Jun support level would limit the damage to $32.....Wrong!!  That said, i'm now looking for deals at the local coin shops, at any spot price under $32.

Like the avatar, Got goats?

Fri, 09/23/2011 - 13:34 | 1702220 Beam Me Up Scotty
Beam Me Up Scotty's picture

Silver still up 43% YTD.

Fri, 09/23/2011 - 15:04 | 1702763's picture

Don't confuse the trolls with facts.

Fri, 09/23/2011 - 13:44 | 1702296 punxsutawney phil
punxsutawney phil's picture

1200 .....THEN 2000. 

Fri, 09/23/2011 - 15:51 | 1702951 raki_d
raki_d's picture

No- Gold can go to 50K gold-standard $ after Ron Paul wins..
Buy Buy Buy !!!! 

Fri, 09/23/2011 - 13:29 | 1702176 SwingForce
SwingForce's picture

What's crashing besides gold & silver?

Fri, 09/23/2011 - 14:50 | 1702693 r101958
r101958's picture

I personally don't understand why nobody mentions the correlation between the paper PM selloff and the fact that equities haven't crashed even further today. Do we really need to ask what is propping up the markets? I, for one, definitely see the connection. Also, if it is true that Lloyds withdrew all their cash from Eurobanks yesterday then you can certainly guess who might be trying to raise cash quickly.

Fri, 09/23/2011 - 16:36 | 1703165 sun tzu
sun tzu's picture

Platinum, palladium, oil, copper etc

Cotton is down almost 60% since March

Fri, 09/23/2011 - 17:42 | 1703557 Lord Koos
Lord Koos's picture

Let's see, the stock market is back to where it was last November, while gold is back to where it was in July.  Which would you rather be holding?

Fri, 09/23/2011 - 13:33 | 1702209 Quinvarius
Quinvarius's picture

Gold was at all time highs when the S&P was at 666.  That is how it performs.

Fri, 09/23/2011 - 13:43 | 1702290 Nascent_Variable
Nascent_Variable's picture

Nothing goes up forever in a straight line, no matter the circumstances.  This dip was always going to happen, and another will probably happen again later.

Debts are still staggeringly high and devaluation of fiat currency is still the go-to strategy for TPTB.  PMs will make their way back up in the long term.

Fri, 09/23/2011 - 13:32 | 1702143 EscapeKey
EscapeKey's picture

Well, we had the G-20 wow to defend the status quo, we've had Bernanke fail to deliver the expected QE3, and we have banks balancing on a knifes edge all over the planet. The need to eliminate the alternate currency is substantial.

Amusing, really - a few years back I crashed my Porsche. When it happened, as I sat there, for what seemed like an eternity waiting for the inevitable crash, I really wasn't worried at all. The build quality of the car just made me feel safe, regardless of what was about to happen. I sort of have the same feeling owning gold, in a way.

Fri, 09/23/2011 - 13:45 | 1702304 whstlblwr
whstlblwr's picture

Shit, when I get that feeling I lose a lot of money.

Fri, 09/23/2011 - 13:46 | 1702321 EscapeKey
EscapeKey's picture

That sucks, how will you now afford to buy some vowels?

Fri, 09/23/2011 - 15:43 | 1702920 spdrdr
spdrdr's picture

Vowels are for the weak!

Fri, 09/23/2011 - 13:46 | 1702309 whstlblwr
whstlblwr's picture


Fri, 09/23/2011 - 13:28 | 1702144 Deadpool
Deadpool's picture

Paulson has had a very bad quarter (ends next Friday). Redemptions (aka forced liquidations) suck. He is (was?) GLD largest holder. could it be?

Fri, 09/23/2011 - 13:38 | 1702251 falak pema
falak pema's picture

I remember saying this about PAulson...two weeks ago or more.

Fri, 09/23/2011 - 15:29 | 1702864 caconhma
caconhma's picture

Paulson may learned there is no physical gold backing GLD.

Fri, 09/23/2011 - 13:27 | 1702146 trav7777
trav7777's picture

somebody is coughing up blood and GETTING liquidated.

Down 107 now

Fri, 09/23/2011 - 13:28 | 1702155 OrdellRobbie
OrdellRobbie's picture


Fri, 09/23/2011 - 13:30 | 1702172 SilverRhino
SilverRhino's picture

This is one hellaciously high speed liquidation and credit crunch.  A LOT of people went broke today. (or as you said GOT liquidated)

Silver Bid: 30.27 Ask: 30.37 Change:  -6.23


Gold Bid: 1,636.90 Ask: 1,638.90 Change:  -102.80

 It's like someone decided to replay fall 2008 back at high speed.   WOW.

Updated:  F#$% it's even worse

Fri, 09/23/2011 - 13:32 | 1702210 trav7777
trav7777's picture

if bob diabolina stayed short from 1904, that mfer has his own island by now LOL

Fri, 09/23/2011 - 16:14 | 1703063 BungaBunga
BungaBunga's picture

It appears to be an island with internet connection and nothing else to do.

All talk and no balls.

Fri, 09/23/2011 - 13:38 | 1702249 Augustus
Augustus's picture

That should just about finish the talk of the "security" underlying those gold backed bonds from the Russians.

Gold and silver collapsing faster than the Drachma.

Fri, 09/23/2011 - 13:54 | 1702380 Libertarian777
Libertarian777's picture

bye bye weak hands

hello strong hands

Fri, 09/23/2011 - 14:41 | 1702633 Citxmech
Citxmech's picture

This is exactly the reason why I buy physical with cash and do not ever rely on leverage.

Long-term holders aren't worried.

(Also glad I didn't buy Swiss Francs - a bunch of poor bastards got fucked on that one)

Fri, 09/23/2011 - 15:53 | 1702963 raki_d
raki_d's picture

Its all in Bernanke's hands & of course Ron-Paul too :)

Fri, 09/23/2011 - 15:53 | 1702964 raki_d
raki_d's picture

Its all in Bernanke's hands & of course Ron-Paul too :)

Fri, 09/23/2011 - 13:30 | 1702180 mayhem_korner
mayhem_korner's picture

Almost back to...hold for it...the beginning of August.

Weak hands fold.  Back up the truck.

Fri, 09/23/2011 - 13:36 | 1702242 Duffminster
Duffminster's picture

We are seeing a European based liquidity sell off today by funds and banks who are having to cover their calls.  This is of course being orchestrated and by a narrow but very powerful group of central bank operatives, the bullion banks to press their mandate to change people's mind in regard to the idea that gold and silver are real money and the rest is about as reliable as house made out of cards.   I would guess this is also the full court press of every dirty trick that the gold anti trust action committee (GATA) has been discussing for years and from what I can understand they are hammering silver particularly hard because of some likely delivery issues and because the Pan Asian Gold Exchange opens next month and will begin taking physical metal off the market very quickly.  We are also just entering into what is historically almost always a bullish quarter for gold.   They are trying to hammer it down.   The pundits are asking is the bull run in gold and silver over?   I haven't sold a one ounce and plan to continue buying at these super low levels which are given to us courtesy of Operation Twisting in the Wind rather than real Quantitative Easing, which will be announced shortly in my opinion as the ESF will not be able to hold the stock market up much longer today.   Looking at the price of gold we are having a fairly typical Fibonacci retracement, and the longer term trend lines are intact.  I believe that the Powers that be know that they can not allow the liquidity crisis to continue in Europe and will do "whatever is necessary" to support the EU financial system and that means monetization. 

As a long term value preservation investor, I don't believe for one minute that the US sovereign debt and the dollar which relies on it are a safe haven and just as I did in 2008, I am not selling my gold or silver holdings and am stocking up on gold and silver stocks now.

The US sovereign debt situation is really worse than that of Greece and ultimately either the central bank will embark on further QE or the entire financial system is going down in a way that looks 2008 look like a walk in the park.  If that happens, sovereign default all the way around and gold and silver go up.  So whether its monetization and associated currency devaluation or simply across the board sovereign default and the collapse of the global economic system, paper money which backed by bonds (which is debt) which backed by paper dollars, gold and silver are still the real money, despite the US, UK and Swiss central banks efforts to persuade you otherwise of that fact in today's paper manipulations.

I am in Gold and Silver for the long run.  Don't use margin, and I always buy on the dips (and this is the best one yet) and only, if ever, sell on strength.   Its a good day to take a nap and forget about the markets.   Buy on weakness, sell on strength is a general rule I follow in investing.

Gold and silver are the real money and always have been.  Currency is backed only by debt and extremely poor government policies will always become worth less and throughout history, that has always been true and will continue to be so.

Without conviction to the principles of truth, investors routinely get wiped out by their own greed and fear and panic.


Fri, 09/23/2011 - 13:42 | 1702285 nope-1004
nope-1004's picture


Big "event" coming.  EU default, MS default, you name it.  It's all a house of cards and JPM needed to cover before TSHTF.

We'll know soon enough.  I'm buying phyzz now.  Problem I'm finding is some dealers are not lowering price because they feel it will snap back up shortly.


Fri, 09/23/2011 - 14:03 | 1702415 sitenine
sitenine's picture

Bingo! Everyone needs to relax - STFU and BTFD.
Nothing here we didn't already know, and everything we were waiting for. All your PM are belong to us smart enough to just BTFD!

Fri, 09/23/2011 - 14:05 | 1702465 DavidJ
DavidJ's picture

This a buying opportunity for those who are underweight PMs.   Remember folks do NOT put all your eggs in one basket.

Fri, 09/23/2011 - 14:37 | 1702624 medicalstudent
medicalstudent's picture

dollars aren't eggs.



Fri, 09/23/2011 - 14:55 | 1702720 tekhneek
tekhneek's picture

Money is money and paper is paper.

I'm converting all my paper into money.

Did I choose the wrong basket?

I got slaughtered the same as any other PM investor this past few days. I'm still in the green overall, but my recent acquisitions (dollar cost averaging) killed me so I bought again at $35. I just bought again once it hit $30.

Let's talk next year and see if I chose the right basket.

Fri, 09/23/2011 - 14:09 | 1702487 Think for yourself
Think for yourself's picture

Yep, just come back from some coin shops/silversmith supplies stores in Quito, capital of cheap miner's silver if there's one (I usually get bulk fine silver at 1-2$ under paper price) - and the sellers are like, no way I'll sell cheaper than 37$/oz...
These guys know nothing about the markets yet understand very well the games being played... so are we starting to see the physical/paper dislocation, or do you think by monday/tuesday sellers should end up stabilizing physical price at par with paper?

Fri, 09/23/2011 - 16:26 | 1703121 tekhneek
tekhneek's picture

Pretty sure next week it gets slammed into the mid twenties.

Fri, 09/23/2011 - 14:54 | 1702718 augmister
augmister's picture



"The back up the truck" moment is almost at hand... buy and hold is the only way to go.   This separates the boys from the men.   Getting ready to trade the lettuce in for gold... 

Fri, 09/23/2011 - 15:39 | 1702908 sdmjake
sdmjake's picture

I just called about a monster box of Silver eagles and they said the same price they offered Monday is still in effect. Damn, its hard to believe that SLV has dropped about  20%+ and that monster box dropped exactly $0.

(Caveat: It is a 'master box' with one roll for each year 1985-2010 so the collectability factor may be providing some support)

Fri, 09/23/2011 - 13:47 | 1702322 Danielius
Danielius's picture

Ditto, Duffy.  and, whats the big deal?  It has not dropped that much- we knew the job was dangerous when we took it.  Maybe the time for concern is when it goes up a bunch- ease your way into some cash.... and then buy on these nice little political plunges.  

Fri, 09/23/2011 - 13:47 | 1702325 Smithovsky
Smithovsky's picture

thank you, you've made me feel much better about today

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