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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ForWhomTheTollBuilds's picture

But who...  


WHO????  (shakes fist at sky)

junkyardjack's picture

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

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.

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!

jdrose1985's picture

Your weekends must be lovely

Badabing's picture

$50 gold swings –check

Paper market collapses-check

Physical gold goes into hiding- ?

Quote Another

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?

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.

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.

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).

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.

High Plains Drifter's picture

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

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.

chinaguy's picture

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

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

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.

bid the soldiers shoot's picture

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

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?  

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.

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!

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.

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!

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.

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.

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.

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.

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.....

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.

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

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!


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.

StrangerThanFiction's picture

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

Shineola's picture

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

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


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.

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.

Xibalba's picture

Bart Chilton suck Gensler cock!

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.

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... 

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.

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.

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.

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.