Margin Calls Force Start Of Gold Liquidation

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Thu, 08/04/2011 - 12:10 | 1524047 GeneMarchbanks
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BTFD! Bitchez.

Good thing. I was beginning to worry that BTFD was a thing of the past.

Thu, 08/04/2011 - 12:21 | 1524144 urbanelf
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BTFD was down 12% MoM after they raised margin requirements on OTC BTFD trading.

Thu, 08/04/2011 - 14:41 | 1524331 caconhma
caconhma's picture

My take:
- The FED and WallStreet desperately need Q3.

Consequently, fearing a hyperinflation, they are trying to "kill" commodities prices before starting with Q3.

- Finally, the FED is closing control of the economy. They are running out of ammunition.

Thu, 08/04/2011 - 12:23 | 1524155 Forward History
Forward History's picture

FINALLY. Please bring silver down to below $30 for a while and gold below $1400 (I can dream). Let me back the truck up before the slow ascent upward resumes to $2k.

Thu, 08/04/2011 - 12:25 | 1524164 Buckaroo Banzai
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Interesting that Platinum and Palladium are taking such a beating. Palladium especially.

Thu, 08/04/2011 - 12:38 | 1524194 spiral_eyes
spiral_eyes's picture

industrial demand. the crash is coming.

Thu, 08/04/2011 - 14:41 | 1524234 narapoiddyslexia
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It looks like 1118.25k shares of GLD changed hands at 12:36pm for $159.91.

Is that almost $180 million? In five minutes.  

Who moves those quantities?

Thu, 08/04/2011 - 12:50 | 1524224 DavosSherman
DavosSherman's picture

Italy has over 2,400 tonnes of gold.

What is that? Service on their debt for x years (2) at the current price of gold....

Just sayin.....

Thu, 08/04/2011 - 15:26 | 1524478 CompassionateFascist
CompassionateFascist's picture

This is just a practice run for the Real Thing: this time, next year. As such, an excellent opportunity to lay in PMs and other necessities: food, water, weapons, ammunition.

Thu, 08/04/2011 - 20:31 | 1525137 Short_phlogiston
Short_phlogiston's picture

just keep stacking them away...

Thu, 08/04/2011 - 12:00 | 1524048 baby_BLYTHE
baby_BLYTHE's picture

Benocide is a very dangerous man right now.

This deflation scare has got to have him up in the wee hours of the morning. Of course "Gold is not money" yet somehow it is surging to the moon, now only taking 6.9 ounces to buy the DJIA. What is the smart money trying to say?

The slightest hint of more money printing, let alone the actual implementation of QE3, will have devastating consequences and they will be global.

World leaders might just have finally had enough, Russia's defacto dictator has called the United States "A parasite" on the global economy that abuses it privilege as world's reserve currency. Why might he say that? Perhaps because Russia happens to be, along with the house of Saud, the largest exporter of oil (which is priced in US dollars). Putin also called the Libyan fiasco "A crusade" against a nationstate. What was Libya really about? Nothing other than controlling both China and Russia via resource exploitation, when both nations have increasing interests in that region of the world.

So what is it going to come down to? All I know is we are very close to an inflection in terms of global economic and political stability. If the dollar collapses and oil shoots above $200 a barrel, we will have riots here in the United States. Is it worth saving a few criminal banks and an out of control government, to bring this about?

Thu, 08/04/2011 - 12:12 | 1524110 MachoMan
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I thought the world would turn to shit if we didn't save the banks (or that's what they told me)...  I'm so confused.

Thu, 08/04/2011 - 12:14 | 1524114 wombats
wombats's picture

Remember, any gov't's first priority in times of crisis is self preservation.  Saving the TBTF banks is just part of the self preservation equation.  They will not hesitate to set aside considerations of law, morality or the interests of the country as a whole if it serves the greater purpose of self preservation and self enrichment.

Thu, 08/04/2011 - 12:42 | 1524202 Hobbleknee
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I thought that was SOP even when there isn't a crisis.

Thu, 08/04/2011 - 12:15 | 1524121 PaperBugsBurn
PaperBugsBurn's picture

Spot on!

Can I be the executioner during the revolution? Pleaasseee!

Let's burn CONgress, the white house and Wall St. Then we go after Rockufuker and Rothschild.

Yaaay!

Topcallingtroll, you're going down!

Thu, 08/04/2011 - 12:38 | 1524193 IQ 145
IQ 145's picture

You're too smart to be happy as an American. Emigrate.

Thu, 08/04/2011 - 15:36 | 1524514 Alpha Monkey
Alpha Monkey's picture

That one has been on my mind alot too...  Do you think they will seize gold on my way out?

Thu, 08/04/2011 - 15:16 | 1524431 Oh regional Indian
Oh regional Indian's picture

Well said BB. I was writing about this, feeling all this strange energy. Post my post, come here to the Hedge and find the world is imploding!

http://aadivaahan.wordpress.com/2011/08/04/many-drafts/

ORI

Thu, 08/04/2011 - 15:22 | 1524462 Escapeclaws
Escapeclaws's picture

Did somebody new take over the BB persona? Complete change in tone.

Thu, 08/04/2011 - 22:08 | 1525369 baby_BLYTHE
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nope, still me. How has my 'tone' changed exactly?

Fri, 08/05/2011 - 11:19 | 1526932 Escapeclaws
Escapeclaws's picture

When did you suddenly learn to write more analytical prose that takes into consideration geopolitical forces? (I will grant that you have a very pretty avatar.)

Thu, 08/04/2011 - 17:23 | 1524792 paleofartus
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Is that really your picture?

Thu, 08/04/2011 - 11:59 | 1524049 Greater Fool
Greater Fool's picture

Ah well. Still outperforming the S&P by a pretty wide margin today....

Thu, 08/04/2011 - 12:18 | 1524134 chet
chet's picture

Gold's only off 1.5%.  Silver is getting hammered, as usual.

Thu, 08/04/2011 - 12:55 | 1524236 dogbreath
dogbreath's picture

i wonder how much paper had to trade to achieve that result.  

Thu, 08/04/2011 - 11:59 | 1524051 TaxSlave
TaxSlave's picture

Blue light special!

Thu, 08/04/2011 - 12:00 | 1524056 alien-IQ
alien-IQ's picture

The TBTF's are displaying a level of desperation that we rarely get a glimpse of.

It is a beautiful sight to behold.

Thu, 08/04/2011 - 12:00 | 1524057 FranSix
FranSix's picture

Ross Clark says mid-August high:

http://talkdigitalnetwork.com/2011/08/gold-record/

Sell offs usually occur right before options expiry.

Thu, 08/04/2011 - 12:24 | 1524157 cynicalskeptic
cynicalskeptic's picture

Employment numbers out as well.   Gold gets pushd down before bad news.  

 

MOPE - management of perspective economics.  Push Gold down when there's bad news or if its heading up - don't want people to think of it as a safe haven.....

This smack downis definitely designed to take out as many stops as possible for a big cascade.  You're seeing big volume spikes in GDXJ and GDX  and SLW volumes as well....

bet there's a lot of naked shorting going on- to be covered further down 

Thu, 08/04/2011 - 12:00 | 1524058 Pickdog
Pickdog's picture

Grab some popsorn this is going to get interesting.

Thu, 08/04/2011 - 12:02 | 1524063 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Welcome to the Apocalypse.

Thu, 08/04/2011 - 12:03 | 1524067 Hugh G Rection
Hugh G Rection's picture

$40.39

Silver's falling off a fucking cliff.  Thanks assholes, might buy you a day or so.  Shake out the weak hands, who gives a fuck.  

Thu, 08/04/2011 - 12:05 | 1524072 Hearst
Hearst's picture

Hold the fort!  Brace the masts!  This gail will pass.  The cocksuckers are losing control!  Gold and Silver will Shine!!

Thu, 08/04/2011 - 12:24 | 1524156 Hugh G Rection
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Ponzi Delenda Est!!!!

Thu, 08/04/2011 - 12:03 | 1524069 ReallySparky
ReallySparky's picture

Yippeee, I have been waiting for a pull back.  Very Happy Girl.

Thu, 08/04/2011 - 12:12 | 1524109 ocmsrzr
Thu, 08/04/2011 - 12:05 | 1524073 Doyle Hargraves
Doyle Hargraves's picture

Margin call, then buy the dip, gold bugs take physical delivery and those bastards (TPTB) are even worse off then when they started the manipulation. Some tough days ahead to slog through, but our victory is in sight now.

Thu, 08/04/2011 - 12:05 | 1524075 TaxSlave
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Dive, dive!

Been waiting for this.  Bye-bye stack of toilet paper, hello junk silver.

Thu, 08/04/2011 - 12:05 | 1524077 EasterBunny
EasterBunny's picture

time for a CME margin hike?

 

Thu, 08/04/2011 - 12:05 | 1524078 malikai
malikai's picture

I've been calling it all week. Today is the day. From here on out it's a rout.

Thu, 08/04/2011 - 12:06 | 1524080 Archimedes
Archimedes's picture

I wish they would sell off the REITS! They have a long way to fall. Oh well, at least that dip in Gold I was looking for is here! better for me!

Thu, 08/04/2011 - 12:24 | 1524154 cosmictrainwreck
cosmictrainwreck's picture

seriously! WTF with those fuckin' REITS, like forever & always?? unbelievable

Thu, 08/04/2011 - 12:06 | 1524082 campag
campag's picture

black gold ie oil also week

do we see more EIA stock release ?

Thu, 08/04/2011 - 12:06 | 1524083 Doyle Hargraves
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Dow -357
Me +357 ammo

Thu, 08/04/2011 - 12:07 | 1524087 sbenard
sbenard's picture

It's not just gold, either! This is a rout we haven't seen the likes of since 2008.

Thu, 08/04/2011 - 12:09 | 1524088 Quintus
Quintus's picture

Thank fuck for that.  Been very hard waiting for a tradeable dip this week.

I think it's fair to say that the permashort Bullion Banks will be all over this pullback and will try their best to push gold down to at least the $1,640s and more likely $1,620 - $1600

Whether they actually can achieve that or not is another matter.  I guess it depends on what else blows up over the next few days.

Thu, 08/04/2011 - 12:08 | 1524089 jkruffin
jkruffin's picture

Bank of America is going to be the first TBTF that is going under, and it will be soon.....JPMorgue may not be far behind them....but BAC will fail and fast.....

Thu, 08/04/2011 - 12:09 | 1524098 r101958
r101958's picture

Agreed.

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