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It's Precious Metals Smack Down Time

Submitted by Tyler Durden on 06/14/2012 09:44 -0400

It would appear the BIS gold trading team is back from their cappuccino break.

Chart: Bloomberg

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Thu, 06/14/2012 - 10:17 | 2525457 Monedas

If Bernie Madoff had a printing press....he'd still be flying his ponzi kite ! It's just good business to dedicate a trillion or two to your manipulation team....to protect a 600 trillion ponzi ! BBB ! Monedas 1929 Comedy Jihad Applying Sound Business Practices To Protect Your Fraud Engine

Thu, 06/14/2012 - 10:21 | 2525468 youngman

If he had a printing press why would he need clients....just thinkin..

Thu, 06/14/2012 - 10:18 | 2525461 davinci7_gis

I would like to see Silver Spot hit $26.75! For me, that is the magic number.

Thu, 06/14/2012 - 10:23 | 2525480 GrinandBearit

Aren't you Mr. Bitcoin from YouTube?

Thu, 06/14/2012 - 10:44 | 2525584 tocointhephrase

I would rather see it at $28000 per oz but hey we dont always get what we wish for!

Thu, 06/14/2012 - 10:22 | 2525470 RobotTrader

Can't wait to hear the latest "excuse" for the PM slam from all the gloomers over at King World News.

Or better yet, another series of sensational headlines proclaiming the "End of the World is Near!"

LOL....

Thu, 06/14/2012 - 10:26 | 2525489 fuu

RobotTrader's Theme: http://www.youtube.com/watch?v=TT9VXxuc0LE

Thu, 06/14/2012 - 15:49 | 2526970 SILVERGEDDON

I'm thinking Robo's theme is a little more Wagnerian. Ride Of The Valkyries. As God's harpies swoop down from the clouds, and tear his fiat stock certificate ass into bloody confetti. Coulda had a silver shield, and a gold helmet to go with ni - metal spear and sword, Robo. Your paper suit and brief case aren't gonna buy you shit. Tell you what - I got one can of Dinky Dog that I'll trade you for a Facebook IPO share personally autographed by your bad old self, with the caption " I shoulda stayed in commodities ". I think it will be a collectable some day.....................

Thu, 06/14/2012 - 18:38 | 2527253 fuu

Well ok then, there are some strings in the chorus.

Didn't you have a poem about silver being a stake against the vampires or something? I'll have to check. I started working on something for that, I liked the lyrics, but I got distracted.

Thu, 06/14/2012 - 10:28 | 2525499 GrinandBearit

Hey idiot... go back to your forum of bipolar buddies who are suffering major sellers remorse.

Thu, 06/14/2012 - 10:51 | 2525613 CCanuck

Hey Robot, how many FB shares does it take to make an oz. of pure paper? Take that multiply by 16 to make a lb.

Paper re-cycler pays about 6-7 cents per lb. I will cash you out into PM's when your done weighing it up.

All your paper should get you a shiny new 1oz. American Silver Eagle.

Let me know when your ready.

Thu, 06/14/2012 - 11:19 | 2525775 Temporalist

The Real RoboTrader is dead! Long live RoboTrader!

Thu, 06/14/2012 - 12:02 | 2525932 fuu

There is no RoboTrader. There is a Robo Trader at 1 year 36 weeks which is too new. Pretty sure this is the original.

http://www.zerohedge.com/search/user/robo

RobotTraders Mom, RobotTraders Sister, RobotTraders Brother, RobotTraders Mom Mom, and RobotTraitor are my personal favorites.

Thu, 06/14/2012 - 14:30 | 2526559 DTCC 1999

Over 4000 volume in 4 minutes, just after 9:30, on the silver futures contract I had up. Dunno; but the paper markets might keep taking whacks even after most bullion dealers are sold out.

$3.50 to $14 per oz. downside possible (strong support at 20-21 IMO), with three digit upside seemingly inevitable, is how some people are looking at the situation. Four year trend line holding. Could that be a 40 year cup and handle formation? ::eek::

I enjoyed RT's POV - he was a good sport too :-)

Thu, 06/14/2012 - 13:50 | 2526363 SILVERGEDDON

Well, Robo, at least your tits are up - but, so is plastic. I like naturals. Going with the metals. Plastic and paper are transitory. Real is forever.

Thu, 06/14/2012 - 10:23 | 2525477 theTribster

Damn, serious smack down today. I'm pretty much all in for now, I'll be moving the last bit of cash into PMs a little later in the summer or early fall I suspect. I'll pay the higher prices then but it will be on a much smaller volume. I never dreamed I would end up with so much Silver and Gold, started buying back in 1998 but ramped it up in every year since.

They could this way down still, let's face it the Euro situation is going to do some of the work for Bernanke in that the investor migration will continue to keep bond yields low, equities high. I think PMs will struggle to rise with a rising dollar, at least not until another event that confirms PMs as the safe trade/store of value.

I think this will take until late August or September before Europe finally collapses into chaos, this will be the time to make my last purchases of PMs and minimize my cash holdings - enough to get me through December. Then it just a matter of waiting and watching, I won't have any skin in the game at that point. Only remaining debt can be paid off if cash or in PMs - whatever.

The PMs will be at all time highs by year's end. The event that ties PMs back to the safe haven trade will probably be the pending debt ceiling debacle, this will surely be played out with as much drama as is possible by both parties. Since neither party cares about the country only their re-election so we are likely to see this generate more downgrades and generally be as bad as last year's version (or worse). By then Europe will be in full failure mode and the problems will be moving into Japan, China, Great Britain and here - this will be the beginning of the end - heading towards the reset sometime early next year.

This whole thesis is constantly being adjusted based on ZH and other inputs. Timing is the tricky part, it is amazing that things can be sustained as long as they are. I'm still confident in the timing, end of summer for the european collapse, end of year for global collapse, early next year global reset. I think PMs will generally go lower between now and the debt ceiling debacle. I don't think we'll get more QE until after the election.

My two cents. Good luck to all ZHers navigating this shit storm.

Thu, 06/14/2012 - 10:32 | 2525525 GrinandBearit

$10/oz is a serious smackdown?

Thu, 06/14/2012 - 10:38 | 2525555 youngman

Don´t forget about the middle east..........a few problems there

Thu, 06/14/2012 - 10:43 | 2525581 Crumbles

Serious Smackdown ???? WTF, get real. Oh well, headline junkies must have their fun, even over a 0.11% fall in GLD. Looks like a bounce from here ??

On the other hand, your post provides an excellent analysis of the linkage between the EU, BRICs and of course the US, IMHO.

Pretty well follows the scenarios in a number of recent books such as The Fourth Turning. Or it could play out in an instant as in One Second After.

Flip an Eagle and be as correct as any so-called Expert or Analyst.

Anyway, thanks for the intelligent post. Arrows Up.

BTFD

Thu, 06/14/2012 - 10:25 | 2525483 CitizenPete

Hold.

Thu, 06/14/2012 - 10:24 | 2525484 Oso

10 am is the London pm fix, they LOVE taking it down into there. If u are gonna be long, buy at 10am.

http://www.caseyresearch.com/gsd/sites/default/files/Gold%20-%20Intraday%20Average.gif

Thu, 06/14/2012 - 10:25 | 2525485 Downtoolong

The pair trade of the century. Mortgage you house to the max, buy gold and silver with the proceeds, then default on your mortgage.

The only challenge is to find someone else's back yard to bury the gold in so that you don't have to give it up when the bank forecloses.

Thu, 06/14/2012 - 10:29 | 2525503 EBR MOD 0

BTFDs

Thu, 06/14/2012 - 10:34 | 2525545 MFL8240

The Jewish banking circus is back at it. Jobless claims up, foreclosures up, stock up (hilarious) and Gold down! I have never seen such corruption and we have the audacity to make fun of Mexico. Look no further than the liar who was on capital hill yesterday while the politically bought off politicians played to the king of Gold and Silver fraud!

Thu, 06/14/2012 - 10:47 | 2525592 tocointhephrase

Nothing to do with Jews, but by all means, continue spewing your bigoted bull shite

Thu, 06/14/2012 - 10:38 | 2525559 Venerability

Whenever there's a Three Treasury Note Auction week, the Ninnies act totally by rote.

Generally, on the third auction day - today! - things begin to improve for the PM stock indices at 11 Eastern US time, first in Canada, then in the US. The metals usually follow the stocks.

Yes, sometimes this doesn't work out. But since the entire production is by rote, it generally does.

Thu, 06/14/2012 - 10:43 | 2525577 sudzee

PM's down hard of news that Spain"s banks are saved. Only needed 80b of that 125b that was only 40b 1 week ago. Oh and Spanish housing prices only fell another 12% y/y comparred to an expected 20%.

Thu, 06/14/2012 - 10:46 | 2525589 razorthin

Fundamentally, this would only mean that there is no QE. In which case everything is fukked.

Thu, 06/14/2012 - 10:50 | 2525602 TWSceptic

What evidence can anyone here show that PM prices are manipulated? You can claim this all you want but without evidence it sounds like any other unproven conspiracy theory.

Thu, 06/14/2012 - 10:53 | 2525621 Temporalist

GATA

Thu, 06/14/2012 - 13:56 | 2526388 TWSceptic

Nope sorry no evidence found. And FYI Doug Casey shares my opinion.

And sorry caimen just because gold goes down doesn't mean manipulation.

Thu, 06/14/2012 - 10:57 | 2525636 caimen garou

dow up metals down on bad economic news, you right no minipulation here

Thu, 06/14/2012 - 10:53 | 2525616 Divine Wind

My spider sense is tingling.

Be careful people. Have it all in one sock. Lots happening this weekend.

Elections problems in Egypt?

http://www.washingtonpost.com/world/egypts-high-court-keeps-shafiq-in-
race-suggests-partial-disbandment-of-parliament/2012/06/14/gJQA0h2GcV_story.html

Elections in Greece (oh shit), followed by Euro exit next week?

Spain is doomed.

And reread this short post from yesterday:

http://www.zerohedge.com/news/due-extreme-volatility-some-market-analysts-foresee

Something is up and it stinketh.

Thu, 06/14/2012 - 10:52 | 2525617 caimen garou

get your beer!popcorn! hotdogs! sodas! for the greatest show on earth! hurry hurry hurry step right up with an all star cast jpm gs bend us all over bernake and the spin cast starring liesman,varney and betty l!

Thu, 06/14/2012 - 11:01 | 2525651 Temporalist

Thanks for the reminder, I'm out of popcorn.

Thu, 06/14/2012 - 11:22 | 2525795 youngman

Raid over.......lol...I wonder how many weak hands fell to this tactic today

Thu, 06/14/2012 - 11:24 | 2525805 Bastiat

Nice bounce back to 1725.

Thu, 06/14/2012 - 11:41 | 2525869 Bam_Man

New Zealand Dollars?

Thu, 06/14/2012 - 11:25 | 2525812 denny69

What 'smackdown'?

Thu, 06/14/2012 - 11:37 | 2525848 Bam_Man

The bankrupt PIIGS and their zombie banks are almost out of "paper" collateral to pledge in return for future bail-outs.

Very soon, they will be forced to pledge their Gold reserves as collateral.

Within this context, it is not difficult to see why the price of Gold is being suppressed. (The creditors will get to claim more PIIGS Gold in a future collateral call)

Thu, 06/14/2012 - 11:41 | 2525858 Youri Carma