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Margin Calls Force Start Of Gold Liquidation
As expected, the massive global rout is shifting to the best performing asset: gold, which courtesy of pervasive repo desk margin calls (which are merely trying to preserve capital for their TBTF holding companies) is seeing liquidations to satisfy collateral margin requirements. It will be interesting if the only real dip worth buying will see buyers come out of the woodwork or if gold will proceed to plunge alongside everything else.
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BTFD! Bitchez.
Good thing. I was beginning to worry that BTFD was a thing of the past.
BTFD was down 12% MoM after they raised margin requirements on OTC BTFD trading.
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.
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.
Interesting that Platinum and Palladium are taking such a beating. Palladium especially.
industrial demand. the crash is coming.
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?
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.....
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.
just keep stacking them away...
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?
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.
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.
I thought that was SOP even when there isn't a crisis.
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!
You're too smart to be happy as an American. Emigrate.
That one has been on my mind alot too... Do you think they will seize gold on my way out?
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
Did somebody new take over the BB persona? Complete change in tone.
nope, still me. How has my 'tone' changed exactly?
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.)
Is that really your picture?
Ah well. Still outperforming the S&P by a pretty wide margin today....
Gold's only off 1.5%. Silver is getting hammered, as usual.
i wonder how much paper had to trade to achieve that result.
Blue light special!
The TBTF's are displaying a level of desperation that we rarely get a glimpse of.
It is a beautiful sight to behold.
Ross Clark says mid-August high:
http://talkdigitalnetwork.com/2011/08/gold-record/
Sell offs usually occur right before options expiry.
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
Grab some popsorn this is going to get interesting.
Welcome to the Apocalypse.
Next Stop, Red Bluff!
http://2.bp.blogspot.com/-pDrlbs9Ybvw/TjXLEBz2XBI/AAAAAAAABZo/YlGzwn0bR40/s1600/Wheel%2BAug%2B2011.JPG
$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.
Hold the fort! Brace the masts! This gail will pass. The cocksuckers are losing control! Gold and Silver will Shine!!
Ponzi Delenda Est!!!!
Yippeee, I have been waiting for a pull back. Very Happy Girl.
http://www.youtube.com/watch?v=sr0gNJ090JA
Surrounded by assholes
http://www.youtube.com/watch?v=9K4CSuKaePY
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.
Dive, dive!
Been waiting for this. Bye-bye stack of toilet paper, hello junk silver.
time for a CME margin hike?
I've been calling it all week. Today is the day. From here on out it's a rout.
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!
seriously! WTF with those fuckin' REITS, like forever & always?? unbelievable
black gold ie oil also week
do we see more EIA stock release ?
Dow -357
Me +357 ammo
It's not just gold, either! This is a rout we haven't seen the likes of since 2008.
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.
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.....
Agreed.
TBTFs selling paper gold and silver for funds to maintain controlled crash of market. Will buy stops and wait for QE3. Little guys will be raped and TBTFs will make money hand over fist.
If silver breaks below $40, i'm picking up another 40 oz of maples.
kablooey
It's probably going down to about $36.
I agree. That's the number I'm looking for in a week or so.
JUST KEEP GOING!
I just called my local guy and has a new load of maples. I've been getting my money together for a week, so all systems go!
I'm loading the gun and heading downtown.
BTFD!
Massive ask quote pulling in SLV 36 puts expiring tomorrow.
This is false, btfd.
Trades not crossing when spread is 0 they are pulling bids so fast across six exchanges. Bullshit manipulation.
Get going Silver Belle. Me too.
Does anyone have an idea of how much paper gold is owned on margin? If so, any hiccup could cause a chain reaction fall, i.e. "gold will proceed to plunge alongside everything else."
You have opinion on gold? Thought you new trader who love ZH and seek advice? Now you remember 2008 market crash from early post and how recover. Asshole.
I was watching in 2008 . . . Who wasn't? I was reading the "end of the world" headlines like everyone else, and I was learning about how margin caused the collapse. I've been reading and doing a lot of homework. Thus my question about margin in the paper gold markets. You are seriously a dick.
Yeah, right. LOL. Previous post not sound like young watcher. You have some kind motive, but if hired, should be fired.
Here previous post for all to see. Fuckhead.
"Guys, remember 2008? We all thought the world was ending. I'm buying pullbacks in gold, as we will likely see short covering/profit taking in ES at some point soon. The Fed is running out of tricks to keep the Ponzi going but the question that has to be asked is this: How many times can a dead cat bounce? And how high? Does anyone think we won't see S&P above 1,350 again in a relatively short period of time?"
Your Engrish sucks compared to his. I can say that for sure!
No Smonking!
"The time of the snack is happy!"
Good, I have almost no silver and can stack that too.
This is great, another opportunity TBTD.
Slap Gold naked......................we all could use a $200.00 drop............Heheheheehehe.
Amazing how fast the paper fks can take this down.
Took a week to gain $50.00...........down is seconds.
The beginning of the end of the TBTF fraud is here. I have a seat in a lifeboat of gold and silver, bitchez!
http://i277.photobucket.com/albums/kk59/Achilles-040/Misc%20Storage/titanic_sinking_atlantic.jpg
Gold dropped 20% in 2008.
Yep, just when you need it, it ain't there for you. PMs only good in certain types of middling bad times. Paper speculators saw to that.
Catch a Falling Star and put in your pocket, save it for a Rainy Day (literally)
http://ransquawk.com/headlines/158100
All join in with Wall Street and sing:
Happy Birthday Mr. President, Happy Birthday to you!!!
Zero Hedge staying in bullish trend.
http://www.google.com/trends?q=zero+hedge
Major litmus test of "what is money." My expectation is that Au and Ag are going to observe nominal margin-hike drops - Au to maybe $1,640, Ag to maybe $39.90 - and then hit an impenetrable wall. Tomorrow they go to new highs.
Where else ya gonna put your FRNs? 0.01% CDs? Under the mattress? Stawks?
Waiting on delivery of a coupla dozen of these: http://www.apmex.com/Product/4/1_10_oz_Gold_American_Eagle___Random_Year...
Nightly Business Report (Monday October 19, 1987)
http://www.youtube.com/watch?v=4pjSlIkNxXg
Ha! Neil Cavuto
I don't think the Berstank wants to proceed with Q3 untill silver gets inline with copper, rbob, oil etc. I'm wondering if equity shorts should be flipped long at the moment the silver/copper spread closes ? I'm holding short for 1195ish /es... or so I'm thinking.
http://2.bp.blogspot.com/-fYUehJCnUPQ/TjrIoxMCA6I/AAAAAAAAA7M/0x0h-Db-Is...
This will be short lived. No other place to go but gold. Whatcha gonna do? Buy dollars? Buy bonds?
Buy the Swiss Franc? No way.
Don't hold your breath. Some moron on *gasp* CNBC said that the Dollar is the ultimate safe haven, not gold.
30 year normalcy bias.
I knew Gold would take a hit when the sell off came but so far it has been incredibly resilient. It will be interesting to see if it can survive the liquidations.
Europe closed and the market came up for one last gasp of air. Guess the close..I say Down:
-373
I say DOW down:
402
Silver 5% down - amazing day
For all those who worship Turd F, I was really surprised to see how wrong he was on gold this summer. It was just a month ago that Turd was preaching the "Summer Doldrums" and how gold wouldn't move much over the summer. Back and forth, back and forth.... but nothing of any significance until the Fall. In fact, on July 6, he cautioned readers NOT to buy into the gold rally.
"As discussed here last week, the doldrums almost seemeddesigned to reclaim from you all of the profits you made during the last run-up in price. I know it is extremely tempting to buy this rally. Unfortunately, anyone buying here will likely get whipsawed....."
http://www.tfmetalsreport.com/blog/1352/beware-whipsaw
That was some pretty bad advice.... LOL
Here, in June, he was saying the same thing: Trust me, you won't miss out on much and you'll save yourself a lot of money if you patiently wait and avoid the temptation brought upon by greed.
http://www.tfmetalsreport.com/blog/1172/chartdaddy
Yesterday, he was warning his readers about an overnight raid on gold. Didn't happen either. Has Turd lost his touch?
Yesterday, he was warning his readers about an overnight raid on gold. Didn't happen either. Has Turd lost his touch?
So he was off by half a day. What sort of calls are you making? Anyone who'se watched this market closely knew the setup was being made.
Even Turd admitted he was wrong today, so I'm not sure why you're trying to defend his call from last night. Today's selloff had absolutely nothing to do with a "raid" during low-volume hours by Blythe-ish bankers who are trying to manipulate prices. It was all about margin calls during normal trading hours, which ZH correctly pointed out.
And what about his call from a month ago where he told readers NOT to buy the gold rally which was setting up? I noticed you deliberately didn't address that point.
The fact remains: Turd was totally wrong on the gold surge this summer. Now, I'm sure you're a doomer goon so presenting these facts to you is a bit like showing fossils to a creationist, but I will continue to point out bullshit when I see it.
I can still think of $14Trillion+ reasons why owning Physical Au & Ag is the only rational thing to do with your FRNs at this point, no matter what the $/Toz might be.
In the very near future, you can probably add at least another $1T in QE to that number.
Duh, you're the one looking pretty foolish here. Taken a look at G&S in the last few minutes? Following his advice and patiently waiting may give you a superb buying opportunity in the next day or so.
You guys that want to jump Turd when he's off make me laugh. He gets it right so often that you should wash your mouth out with soap. He has balls the size of bowlling balls for even trying to predict what is going to happen in a completely manipulated market.
Let's hear some of your predictions?
Making an occassional error is absolutely understandable.
But for someone who has a website specializing in PM commentary and TA analysis.... and for them to have advised their readers NOT to buy this rally from the mid 1400's... well, that was a HUGE miss in a very short period of time.
Free Advice: Get a life
You're really giving credence to folks trying to predict the future? There are an almost infinite number of variables that affect our world in countless ways. You're going to hold some guy to account for trying to predict the future? What does that say about your state of mind?
Keep your focus local. Ensure your closest neighbors and you can survive the hardship that may be on the way. Everything else is magical thinking.
Spalding, we all saw what happened between you and Turd. It would be incorrect to say he humiliated you because in truth you did it to yourself.
For you to come back and malign him *again* with another handle is shameful.
I sold last night @41.73 after reading Turd's blog.
Currently @38.79
Yeah that Turd certainly is a cocksucker.
I sold last night @41.73 after reading Turd's blog.
ummmm.... what exactly did you sell? SLV hasn't been at $41.73 since April. PSLV isn't even close to that. You're full of shit. And don't try to tell me that you ran to your coin dealer at midnight, and he gave you over spot in the middle of the night for your stupid bag of coins.
BULLSHIT.
Any attorney will tell you that a case is beyond winning when witnesses will lie on the stand. When governments and politicians lie about what is going on, there is no way to use TA nor any other standard to predict markets. Turd is a brave soul who can only tell what he sees from where he stands. Wish I were that prescient... and brave.
Ooooooooooooooooops, She's either taking a breather, or slammed the breaks on.
Buyers comeing in......
I've been waiting for this, believe me I'll be LOADING up as those poor bastards liquidate their positions. I be looking for an even better opportunity in silver.
We had a record -1603 TICK at the lows today
Probably the end of the move for now.
Safe havens like gold and Treauries could sell off severly from here.
but yesterday you said was the buying opportunity of a lifetime. so given your strict rules to do exactly as you write - not - i assume you went all in. so is today the buying opportunity - for you - of the afterlife? lol as you bray.
Gold ended up down 12 bucks. Big Yawn here. I consider 12 bucks down on a day like today an indicator of just how strong gold is...
Gentle Reader,
Prepare yourself for what appears to be a contradictory statement. I believe gold will continue to fall against the dollar, but I'm not saying it is less valuable than the dollar. The real value of gold is that it IS the barbarous relic. There is no fiat price for TEOTWAWKI. Gold is not an investing decision, it's SHTF hedge.
The longs are bailing, which is a good thing. Getting the hell out of paper.
Server overload bitchez!
The Gold and Silver market, including the equities, comprise of less than 5% of the world's liquid assets. Why on earth would you "liquidate" 5% of your portfolio to cover margin calls on 95% of your other assets? Wouldn't you liquidate a portion of the other 95% if they are the ones that are falling in vailue? How many times can you sell off 5% of one particular asset class before it becomes 0% of your portfolio? I no longer buy the argument that this is margin call selling. It's more like a hit job than anything else as most gold stocks are down more than your "regular" equity in terms of percentages.
It must have been a massive hit.
Market off it's lows, but Gold now down $20. How can they still call this margin call liquidation? Total BS, and Tyler is still buying into it.
Let's have a 4% dip on gold today too. Then we can buy even more. Idiots rule - not for long.
An Appropriate time for the Feds policies......................and the Soap opera.
http://www.youtube.com/watch?v=NOErZuzZpS8
the 'liquidation' will be transitory
all indexes
red for the year....
well dow just went .a few ticks green
May 1st redux. Max Keiser suggests keeping an eye on the JPM:SILVER ratio, which has been negative for two days now. If they succeed in jamming down silver below the JPM close, they will have won the battle but not the war.
Suck on THAT, Blythe.
Let me venture another guess.....some folks are already privy to the BLS numbers that will be 'publicly' released tomorrow?
Geitner out, Humpty Dumpty in....
It's just a soft patch for PMs.
NFP to be really bad tomorrow, up pops Benny with his QE3333333333333333333333.
Gartman says margin requirements will increase
Well by garsh BananaMerica just gonna hafta buckle down and thieve its way outta this mess.
It is not thieving if the rest of the world leaves their monetary doors unguarded and purposefully looks the other way when the usa walks in.
An ugly truth, but truth nonetheless
It is a shame that the silver I will buy this weekend got lost in a boating accident :(
Silver is getting destroyed.
BTFD!
Silver is where it was two weeks ago.
dp
Ben will not let this crises go to waste.
He needs to wring all inflationary expectations out of the market if he can.
Gold will be fun to watch. So far the market says gold is a risk asset and federal reserve notes and treasurys are the safe haven.
I've been waiting for a decent correction for a long time. Maybe this is it. In that case, BTFD with two hands! In any other case, grow your physical stash gradually and get prepared for the moonshot.
EGC filled gap around 1644-1645 from 8/2
Gold's only down $13 on the day. I'd say that's very bullish. Come on hit it to $1500 if you've got any balls. It won't happen. BTFD.
Wow.. is this one of those dips I keep hearing about?
This was easy to predict. It's a repeat of 2008 all over again, except this time we are entering it from a much weaker position.
Thank God! I just liquidated my retirement just IN TIME! All Aboard!
buying on one phone
selling on the other...
keep em guessing ...
Mr Durden. Any chance of a few updates of that pretty gold chart ??
Budding BTFD buyers want to know...
Those buying metals on this dip beware - look back to May .
Silver lost 30% in days .
The powers that be control metals - not the market repeat not the market
.
BTF PIG = buy the fucking plunge in gold
He's killed the world.
.
This is all still bullish for the trend in PMs.
The sell off and liquidations will just hasten QE3. TPTB can influence prices short term but the long term trend is out of their control. BTFD!!
THE SELLING IS COMING FROM THE CRIMINAL BANKERS
I can't get to a dealer coz of the time difference Fuk U Jamie & Blythe. Buy the physical FUK THEIR EVIL DIGITAL GLD & SLV. I & I http://www.youtube.com/watch?v=C84wtN0L1A4
P.S Bill Murphy 'The Gold Guy' smashed it on CNBC Europe Squeel "Its nice to be at the belly of the beast" GL 4 2morrow, break a leg ;)
Holy shit. Siver is gettng ass raped! I thought my buying was done (due to limited benny buks). Looks like another small acquisition coming up. Hopefully down to $36 or thereabouts. That would work out good to be in a better position when it rocks back up.
If you like 36, you'll love 26. How about 16? So many longs in silver they can't even deliver it. Bloodbath incoming. When you ride a bubble it is getting out that is imporant. Not just riding it. Look out below. Gold is going to go the way of the cliff, but so will silver. When will "siver rock back up" (sic) Not until everyone and I mean everyone cries uncle.
BTFD is for those in bondage to nominal thinking.
BADA is for those who wish to hold the whip on the hickory stump when after the SHTF
(BuyAlwaysDumbAss)
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