Panic Resumes: Gold To New Highs, Treasury Yields To New Lows, WTI About To Break $70 And Futures Sliding

Tyler Durden's picture

The "panic" trade had a few hours to eat dinner, and now it's back to business. As Asia opened, the kneejerk reaction to Europe closing is that, naturally, Europe will open in a few short hours, this time however with fresh fears of what the SNB might be cooking if it needs Fed assistance to sustain its local banks' dollar margin calls. The result: gold hits new all time record highs, bonds drop to intraday lows, crude is about to reenter the critical 70's, so very necessary for QE3, and ES, well, you get the picture.




and ES:

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brew's picture


NewThor's picture

Some dirty puked up douche on CNBC just said "I don't like Gold. It has no industrial uses and IT IS A FIAT CURRENCY."


So i guess this guy didn't notice the 1200 to 1836 run up in the last year?

I wonder if asshats like Buffet and the like bag on gold so they can keep the little people away from the "secret".



scatterbrains's picture

Some times I wonder, these banker fuckers must be smart enough to see the destruction that's coming, if they know there is going to be a reset on a global scale why not choose a bank.. maybe BAC to naked short the shit out of the paper gold markets timed so they can be there on the side lines picking up physical at the lower bounds of the parabolic range in gold, knowing full well that in the end the bank is going to explode anyway.

NewThor's picture

I've never shorted before....

I want to short now. NOW. NOW. NOW.

Before the short bans come in.

Anyone got any suggestions on some good retail stocks to short?

Or any shorting advice at all?

I'll look for $8.00 burritos, $100 dollar sweat pants or $200 dollar yoga mats.

ROBOT. talk to me buddy. I actually love you shtick, and believe you're Tyler Durden's secret identity.



delacroix's picture

I've had shares that I sold short, recalled, before the decline put me in the money. had to buy to cover, at a higher price. the corruption, permeates the whole system. only risk, what you can afford to lose.  margin, is a double edged sword.

Flakmeister's picture

I hear you... going short is not for the little guy, better off puying puts....

I Told YOU So's picture

Learn the safest trade of all "vertical option spreads" long and short. lots of info available online. just make a commitment to learn it.


CrashisOptimistic's picture

Y'all just do not understand.

The Brent spread just hit $25.

No one cares what WTI is.  The world doesn't use it.  The US doesn't use much of it.  60% of US oil consumption is imported and it's not imported at WTI prices.  It comes in at Brent prices.  

WTI is an obsolete benchmark and it is corrupting a lot of thinking.

brew's picture

errr...just a soft patch

WestVillageIdiot's picture

My wife hates when I have that. 

MayIMommaDogFace2theBananaPatch's picture

Uhhh, this has never happened before...

chump666's picture

WTI is more liquid than Bent, hardly traded compared to WTI  -  thus being a benchmark oil price.  Brent is cornered by major players, playing the spread between WTI and Brent. 


CrashisOptimistic's picture

Guy, your car doesn't trade oil.  Refineries don't care what goes on in a trading pit.  They have to pay the rate of the imported black stuff.  

Think about it.  Why would you sell Nigerian oil to Houston refineries at WTI prices when you can get Brent prices from someone else (China).

Your car doesn't trade oil.  It burns it.

Stax Edwards's picture

Bullshit you have no f'n clue what you are talking.  These are "spot" prices of different grades of crude. Brent is more valuable as it is light sweet crude and easiest to refine.

Flakmeister's picture

WTI is higher grade oil than Brent... Check out the price of Tapis or Louisiana Sweet

unum mountaineer's picture

it would be silly to not expect a full line of obfuscatory measures when we're talking oil. its the same as a basket of consumer goods minus the food'll get shitfor it and people like roubini get their fifteen minutes. ftmtw

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, and the price of gold and platinum will never cross either.

Man Bear Pig's picture

60% of US oil consumption is imported and it's not imported at WTI prices.  It comes in at Brent prices.  

this makes a lot of sense. can you link to the 60% imported at brent prices data?

Flakmeister's picture

Go to the EIA website and educate yourself

sheeple's picture

Gotta get out my gold 1900 hat


WestVillageIdiot's picture

The gold price has me scared.  Many of the people I have spoken to for 5 years on this subject (yes, I was a little late) are now seriously looking into buying AU.  These people sat with their thumbs up their Bernankes for 5 years.  Now they feel they have to get in.  Isn't that a scary event?

Gold is currently at $1,836.  Or I should say the dollar is now at 1/1836 ounces of gold. 

I hate when the market is going down and I know it is going to go down.  I have been burned by those god damn options so many times that I can never get it right.  Just when you have the deer lined up in your sites somebody like Bernanke or Obama flaps their gums and Bambi goes sailing away.  The next thing you know Leo Getz fucked.

I really let one get away today.  I doubt I'm the only one.

I hope one of you maniacs made a freaking killing off of CMG today.  And LULU.  Somebody needs to shove it up the rear-ends of those obnoxious longs that were acting like they were doing something fundamentally right, instead of just chasing some momo piece of shit. 

Good luck tomorrow.  There is lightning over Wall Street.  Why can't it hit something, say on Maiden Lane, right down the hill from the Pound and Pence. 

Yes_Questions's picture

They fuck you at the drive-through!

Argos's picture

"Thumbs up their Bernankes", Ok, that's the best use of Bernanke that

I've ever heard.  It's positively golden!



WestVillageIdiot's picture

I have a gold $2,000 speedo.  Something tells me humanity would be better off if I kept that in the drawer. 

Bullionaire's picture

I have a "Gold $10,000" speedo.  My wife loves it.



Manthong's picture

If you've got it, flaunt it.

Mine matches my Rolex President.  :)

Problem is, no pockets for the AGE's.

eftian's picture

My Speedo Hyperinflates when I get excited!

WestVillageIdiot's picture

My experience has shown me to always expect a period of deflation after a bout of hyperinflation.  As I get older the deflationary periods get longer and longer. 

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Ha, ha.  Yeah, I remember when now deceased Mark at CNBC had his Dow 14,000 hat on as the Dow approached that number.  Funny, the hat was conspicuosly absent during the retrarcement:)

Ponzi Unit's picture

CNBC Mark was overtly hostile to non-cheerleader guests -- always looked like we was going to bite them.

drink or die's picture

Looks like I picked the wrong week to stop sniffing glue.

WestVillageIdiot's picture

Just drink a shitload of Robitussin.  You'll be alright. 

Creepy Lurker's picture

Damnit, you guys made me spew. LOL

jesse livermoore's picture

have you ever slipped in the mud and get kicked in the face with an iron boot?................   no forget it, thats dumb, that never

RobotTrader's picture

Crashing oil prices + world record low interest rates+ skyrocketing gold prices = giant profits for the gold mining companies.

Yet the GDX/GLD ratio has plunged again to new 2011 lows.

Theta_Burn's picture

Hedge agreements biting them in the ass thats for sure....who knew? there has to be piles of undeclared nug somewhere.

GoinFawr's picture

What hedges? Even Barrick wizened up to that one, what, 8oo fiatscos or so ago? MB they lied about closing that book, again? Ashanti learned their lesson years back too. The only companies hedging these days haven't even started producing yet, or aren't producing much, and need the banks' teats to get themselves off the ground.

No, looks to me more like naked shorters dousing themselves in gasoline and praying that nobody lights a match before their pocketed policy makers can force the bamboozle to stick (bonne chance this time, effers). Hell, they've even got their puppet regulators putting up 'No Smoking' signs, for all the good that will do in the long run. In short: discouragement, but that won't last forever. Are you tall enough to be on this ride?

Some miners are struggling to secure financing for expansion (now I wonder why that would be; seeing as they are so obviously lucrative) and are pissing off their shareholders with PP's and other dilutive ways of raising capital, actions the naked shorts simply adore exploiting.

OTOH, other companies are going the other way and buying back shares with all the money they're pulling out of the ground, and those are the ones that will never make RT's myopic radar because they don't support his point.

Short version: don't pay attention to RT (moot, I know), look at the green on your screen. Some of those shorts may be sporting brown stripes in the near future.

Alternately, just buy physical and sleep like a baby.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

As you know if a particular gold mining company is fully hedged they have capped their profits and by proxy their stock price.

Boston's picture

And what did GDX do in 2008, after staging a valiant recovery in July of that year?

Flakmeister's picture

The first week of Nov 2008 was the greatest buying oppurtunity for gold miners.... GDX was ~16 or so. 

DormRoom's picture

It's more an indicator of a physical gold bubble.  There's an arb opportunity here.. buy GLD put options when gold prices hit 2000, and hedge by buying undervalued gold producers.

Man Bear Pig's picture

A physical gold bubble would imply that sometime in the future gold will become easier to aquire. Is that what you're saying? I think you'd be better off skipping the whole casino game and just buying gold while you still can. Play time is over, it's time to get serious.

Baptiste Say's picture

What makes you think there is a physical gold bubble? Also if you expect a pullback in gold price then why would YOU buy gold producers?


Thanks in advanced.

DormRoom's picture

if you look @ the chart comparing percentage gains of gold producers and physical gold, you'll see a growing spread.  So either gold producers will rise, given lowering energy cost, or physical gold prices will correct.


So you buy put options on GLD, and you hedge by buying undervalued gold producers, until the spread narrows.  I would also buy far out of the money put options on GLD, if gold climbs above 2000.  There are very few phenomena that can sustain exponential growth for an extended period of time.   I'm looking for the right entry point to complete this trade. Likely around when the SPX hits 1070; it's July 2010 lows.

phaesed's picture

A name I remember and respect.... glad to see you still here RT.

DavidJ's picture

many sheeple should be. They are busy watching some moronic tv show or playing some game by Zynga!

Two Towers AU AG's picture

Its XBOX and HALO reach for me..