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Spot Gold $1700

Tyler Durden's picture




 

Earlier we noted Gold's seeming clairvoyance with regard the expansion of the Fed and ECB balance sheets over the last few years. It seems the EUR strength overnight (or stop-run) has provided just enough USD weakness impetus to nudge spot Gold (not futures) back over $1700 for the first time since March 13th.

Spot Gold breaks $1700...

 

and leads Fed/ECB balance sheets higher on expectations of more printing...

 

Charts: Bloomberg

 

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Thu, 09/06/2012 - 02:17 | 2767160 Mongo
Mongo's picture

Not money $1700... BITCHEZ!

Thu, 09/06/2012 - 02:21 | 2767165 Pete15
Pete15's picture

Glad I have my Gold but really getting freaked with how bad this inflation is going to get gas prices at this level are no good but they still are gonna print. Madness. 

Thu, 09/06/2012 - 02:24 | 2767169 Gief Gold Plox
Gief Gold Plox's picture

I've got mine too and have been happy about my "investment" since day one; now if it could just drop for a few minutes so I could offload some paper I've got, that'd be grand.

Thu, 09/06/2012 - 08:06 | 2767552 Clint Liquor
Clint Liquor's picture

The reality that they will still give you Gold for paper is astounding.

Thu, 09/06/2012 - 02:38 | 2767192 takeaction
takeaction's picture

What I am viewing right in front of my eyes is like living in the bizarro world.  I have people paying for their car stereo systems again  with their EBT card.  They go to the ATM in our store, withdraw $400 and we put the new Kenwood in.  What is up with this.  At the convienince store that I get an Iced tea at, I see people buying beer and cigarettes using their EBT.  THe fucker is ringing it up as FOOD.  What a fucking scam. 

  My friend who earns his money in Costa Rica just got a check from Obama (Child subsidy becuase he is under the poverty level...HAHAHAHAHA)  for $7600.  Becuase he earned less than $20,000 in the USA.  He has 2 kids.  HE EARNS $250,000 a year in Costa Rica.  I just got audited by the IRS.  I helped to start a country band financing  a friend as a business venture,flew to nashville, recorded a CD, bought all of the stage gear lots of gigs..... and the IRS said it was a HOBBY.  $28,000 in penalties.  AND I HATE Country music.  Shall I continue.   I walk around all day....and just look at the poor fools who have not prepared for what is coming.  My sister even teases me and says "Why do we need to prepare, we will just come over to your house....ha ha."  We will see about that....becuase little do they know that this house has nothing.  They will walk into a shell when it goes down.  Then that guy gets arrested from Facebook posts?  Are you kidding me?  And I jump over to my facebook account (Have to have one for our company account) and all I see is dumbass pictures of peoples food.  People take photos of their dinner and post it?  And they say shit like.."Getting a haircut now".  Who gives a flying F*&^.  That facebook thing is a turd.  If you are Short Faceturd...you will win.  The new timeline thing they forced on everyone sucks.  Is this enough of a rant?  My only security is that my fiance gets it...will stand behind me, and I come here to Zerohedge and enjoy the site sooo much.  Thanks Tyler.

.

Wow...while I was typing this little rant...Metals just went way up......what is going on? (Gold up another $5 in 8 minutes)

Thu, 09/06/2012 - 02:46 | 2767214 JLee2027
JLee2027's picture

Epic post.

Yeah, the whole system falls down...now or 18 months from now...and life is going to change a lot. Can't wait personally. It not about vengenance, but I will take great satisfaction in being proven right.

Thu, 09/06/2012 - 02:53 | 2767224 Campagnolo
Campagnolo's picture

I hear you Lee, many folks have being calling for the collapse of the system for years...but in the last PM's correction they were bashed, now things will take course. I hoped you bought in TFD!

Thu, 09/06/2012 - 03:14 | 2767252 Western
Western's picture

Y'all folks may enjoy watching this educational video.

 

"Urban Danger" (http://www.youtube.com/watch?v=g23ox-XUtH0) was a 1.5hr documentary on Youtube until it was removed for copyright claim just recently.

 

Trailer on googlevideo: http://video.google.com/videoplay?docid=4747693416853972231

Thu, 09/06/2012 - 06:32 | 2767389 Black Markets
Black Markets's picture

Americans,

If you want to free your politicians from the bankers it is really VERY SIMPLE.

Make political campaigning illegal, and simply host a series of live televised debates in the run up to the election.

Suddenly the resources of your backers are out of the equation and it's all about the individual.

Cost to US taxpayers... Zilch.

Campaigning = resources = corruption

Thu, 09/06/2012 - 07:53 | 2767501 ParkAveFlasher
ParkAveFlasher's picture

That'll work.  {/sarc}

Thu, 09/06/2012 - 08:37 | 2767651 CH1
CH1's picture

If you want to free your politicians from the bankers

Free them!!??? They sleep together on purpose - eagerly! Both groups are vigorous, happy thieves.

 

 

Thu, 09/06/2012 - 03:02 | 2767237 SunBlaster
SunBlaster's picture

Pic of food is to let everyone know that even though peeps are broke they still manage to eat well. Same with haircut announcement, he might be broke, but still has money to cut the hair, or maybe he is not cutting the hair at all, but posting it on facebook makes it so. It's not a lie as long as you belive it.

Thu, 09/06/2012 - 06:46 | 2767400 Bicycle Repairman
Bicycle Repairman's picture

@ takeaction, I'm still not voting for Romney.

Thu, 09/06/2012 - 08:01 | 2767528 Vooter
Vooter's picture

...And they say shit like.."Getting a haircut now"...

LOL...and they don't even know how right they are!

Thu, 09/06/2012 - 09:21 | 2767802 midtowng
midtowng's picture

1,700 has removed any last doubts about gold breaking out of its consolidation. Next stop: 1,900

Thu, 09/06/2012 - 02:25 | 2767161 Colonel Klink
Colonel Klink's picture

Looks like someone has the playbook before everyone else.  Ctrl-P in 3....2....1....

 

Gentlemen, start your engines! It's gonna be a bumpy fuckin' ride!

-NPH

Thu, 09/06/2012 - 02:34 | 2767182 vast-dom
vast-dom's picture

i don't think CNTL+P as QE grand announcement will even work at this stage. they haven't stopped printing since 2008 and the only thing it achieved to date was worsening fundamentals more and more unemployment (not official bs #s) and levitating on shit fumes markets = no way to avoid utter disaster.

Thu, 09/06/2012 - 02:38 | 2767194 Colonel Klink
Colonel Klink's picture

Money for Europe has to come from somewhere and it always seems to get fed from the Fed.  Even though Bukkake Ben lies that it doesn't happen.  Proof has shown otherwise.

The revolution and stealth QE won't be televised.

I don't anticipate it happening before the elections.  Traditionally Au/Ag rise prior to any monetary movements.  Remember, you've gotta let the insiders get positioned first.

Thu, 09/06/2012 - 07:15 | 2767423 Papasmurf
Papasmurf's picture

They transferred a lot of wealth from savers to the banksters.  That was the goal, and it was a resounding success.

Thu, 09/06/2012 - 02:34 | 2767189 Colonel Klink
Thu, 09/06/2012 - 02:39 | 2767199 Dr Benway
Dr Benway's picture

Indeed. The closer we get to the singularity of hyperinflation, the greater the volatility.

 

Surprisingly, this is the first time it dawns upon me that B/S means Balance Sheet as well as Bullshit. Coincidence?

Thu, 09/06/2012 - 03:28 | 2767265 dwayne elizando
dwayne elizando's picture

Don't forget (B)en ($)halom!

Thu, 09/06/2012 - 07:35 | 2767462 Overflow-admin
Overflow-admin's picture

Uh, I tought that meant just "bullshit". Do I have to re-read years of articles? (sarc!)

Thu, 09/06/2012 - 02:21 | 2767164 mjorden
mjorden's picture

Long fishing pole and bow bitchez

Thu, 09/06/2012 - 02:30 | 2767177 Colonel Klink
Colonel Klink's picture

Long freak boating accidents!

Thu, 09/06/2012 - 02:23 | 2767166 Kiwi Pete
Kiwi Pete's picture

Yup, insiders all positioned. Let 'er rip!

Thu, 09/06/2012 - 02:44 | 2767208 ClassicCommodity
ClassicCommodity's picture

Follow the big boys to riches!

Thu, 09/06/2012 - 02:24 | 2767171 xtop23
xtop23's picture

game fucking on.

Thu, 09/06/2012 - 02:28 | 2767174 Hangfire
Hangfire's picture

Holding double eagle up to the moon right now!    

Thu, 09/06/2012 - 02:37 | 2767193 SunBlaster
SunBlaster's picture

Holy wow SILVER is @ 32.85, Quickly, someone grab a ruler and extrapolate the price in 2 weeks!

Thu, 09/06/2012 - 02:39 | 2767198 takeaction
takeaction's picture

This is awesome...cause it is only $5 to get it out of the ground. 

Thu, 09/06/2012 - 02:40 | 2767203 Colonel Klink
Colonel Klink's picture

If only it were that easy and true.  Fundamentals and TA died long ago.

Thu, 09/06/2012 - 02:44 | 2767207 SunBlaster
SunBlaster's picture

Looks like a liquidity rotation to me, finally, it's been 5 months now!

Thu, 09/06/2012 - 02:44 | 2767210 xtop23
xtop23's picture

Tough to say. Depends on how much damage the incoming margin hikes do.

Thu, 09/06/2012 - 02:45 | 2767211 SunBlaster
SunBlaster's picture

Was lowered 4 weeks ago :)

Thu, 09/06/2012 - 02:50 | 2767216 JLee2027
JLee2027's picture

It was? Silver margins were lowered? It's just a bear trap then...suck the stupid in, raise the margins and crash the price. Pocket your money. Like they did in '11.

Just get physical. That's the only thing you can trust.

Thu, 09/06/2012 - 02:50 | 2767220 SunBlaster
SunBlaster's picture

All good, we are 'GOLDEN' till end of October, as long as there is no collapse in stocks in next 3 weeks this should take us well beyond $35

Thu, 09/06/2012 - 08:03 | 2767519 ParkAveFlasher
ParkAveFlasher's picture

I wonder what kind of margins are allowed on the Shanghai Exchange, and I wonder if the COMEX assclowns have to, now, be competitive and actually allow a high level of action in price.

[edit] From the Shaghai Exchange website:

http://www.shfe.com.cn/docview/docview_279452.htm

August 2, 2012

All members?

It is decided upon deliberation that the Exchange will make the following adjustments to the transaction fee standards for each variety since September 1st, 2012.

1. The transaction fee standard for copper futures contract will be lowered from 0.08‰ of turnover to 0.05‰ of turnover;

2. The transaction fee standard for lead and wire rod futures contract will be lowered from 0.05‰ of turnover to 0.04‰ of turnover;

3. The transaction fee standard for steel rebar futures contract will be lowered from 0.05‰ of turnover to 0.045‰ of turnover;

4. The transaction fee standard for natural rubber futures contract will be lowered from 0.05‰ of turnover to 0.045‰ of turnover;

5. The transaction fee standard for fuel oil futures contract will be lowered from 0.035‰ of turnover to 0.02‰ of turnover;

6. The transaction fee standard for gold futures contract will be lowered from RMB 20/lot to RMB 10/lot;

7. The transaction fee standard for silver futures contract will be lowered from 0.08‰ of turnover to 0.05‰ of turnover;

8. The transaction fee standard for zinc and aluminum futures contract will be lowered from RMB 4/ lot to RMB 3/lot.

 

...

 

Looks like there's a new casino in town.

This doesn't change my personal strategy.

Thu, 09/06/2012 - 02:49 | 2767217 xtop23
xtop23's picture

Yep.They were."Sauce for the goose, Mr. Savvik?"

Thu, 09/06/2012 - 02:49 | 2767218 XenoFrog
XenoFrog's picture

They're down to just wrapping this bus with duct tape hoping to keep it together until after November 4th. I don't know if they can make it.

Thu, 09/06/2012 - 02:55 | 2767223 SunBlaster
SunBlaster's picture

As long as we keep the sentiment positive, and cross our fingers for no news or better some bad news, hitting $35 should be piece of cake!

Thu, 09/06/2012 - 03:32 | 2767256 devo
devo's picture

Precisely

Probably a great idea to buy January puts

Thu, 09/06/2012 - 02:40 | 2767202 ClassicCommodity
ClassicCommodity's picture

"Gol" Bitchez! 

Thu, 09/06/2012 - 02:56 | 2767228 PhattyBuoy
PhattyBuoy's picture

That second chart is golden !

Thu, 09/06/2012 - 02:58 | 2767230 Munkey
Munkey's picture

Lol @ ClassicCommodity.

According to Bloomberg, that would be about right!

Thu, 09/06/2012 - 03:00 | 2767233 Zgangsta
Zgangsta's picture

So...when TSHTF and hyperinflation sets in as we expect, what will be the proper protocol for using gold and silver towards procuring needed goods and services?  I imagine there will be lots of gauging going on in the Black Markets, but I don't imagine that governments will be of much help either.

Thu, 09/06/2012 - 03:14 | 2767246 Temporalist
Temporalist's picture

It would be better to own stuff too, hard assets, like ammo and guns as many mention but tools, batteries, medicine (even simple stuff like aspirin/nsaids, rubbing alcohol, gauze, bandaids, antibiotic ointment, idodine, etc), toilet paper and soaps and detergents, two generators and multiple solar panels and inverters, propane tanks, matches and lighters, food of course but durable food like grains vacuum packed and beans and nuts, jars for jarring and preserving food, warm clothes, hats and blankets, lots of alcohol...anything that will be of value to you will be of value to someone else and barterable.

 

And on the note about the medicine I have linked this before but people just aren't knowledgable enough:

Drug Expiration Dates - Do They Mean Anything?

"What they found from the study is 90% of more than 100 drugs, both prescription and over-the-counter, were perfectly good to use even 15 years after the expiration date."

http://www.health.harvard.edu/fhg/updates/update1103a.shtml

Thu, 09/06/2012 - 09:40 | 2767884 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Thank you Temporalist!

 

Tuco

Thu, 09/06/2012 - 09:27 | 2767822 pyrat
pyrat's picture

"So...when TSHTF and hyperinflation sets in as we expect"

 

How you gonna get hyperinflation in a depressed ecenemy?

 

Thu, 09/06/2012 - 09:43 | 2767898 CrockettAlmanac.com
CrockettAlmanac.com's picture

Return of dollars from overseas as reserve status deteriorates. Increased government payments to anyone except the middle class. Other.

Thu, 09/06/2012 - 03:03 | 2767240 mt paul
mt paul's picture

the number 2

over in China 

cancled meeting with the hilary ..

Asia buys gold and silver..

be here now..

Thu, 09/06/2012 - 08:02 | 2767535 toothpicker
toothpicker's picture

I'd rather meet up with a barbarious relic than just a relic too

Thu, 09/06/2012 - 03:06 | 2767243 zilverreiger
zilverreiger's picture

.2% EUR.USD move pushed it through, hope it has momentum, weak euronews will make it nosedive again

Thu, 09/06/2012 - 03:12 | 2767249 caerus
Thu, 09/06/2012 - 03:41 | 2767283 devo
devo's picture

Bernanke is all in holding a pair of duces. Market just has to call his bluff and chips go a flyin'

Thu, 09/06/2012 - 05:59 | 2767361 Dr. Engali
Dr. Engali's picture

Douchebag.

Thu, 09/06/2012 - 07:00 | 2767408 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Go away, Draghi. No one here is dumb enough to buy your shit.

Thu, 09/06/2012 - 04:00 | 2767291 devo
devo's picture

You can't eat polo shirts.

Thu, 09/06/2012 - 04:12 | 2767300 Temporalist
Temporalist's picture

I only vote these shills up because of their limitless value to ZH. 

Thu, 09/06/2012 - 04:47 | 2767319 bigdumbnugly
bigdumbnugly's picture

true you can't eat polo shirts but those polo ponies are gonna be delish.

Thu, 09/06/2012 - 09:46 | 2767915 CrockettAlmanac.com
CrockettAlmanac.com's picture

A string of poloponies?

 

http://www.youtube.com/watch?v=rbJNyGbFNRo

Thu, 09/06/2012 - 04:05 | 2767295 Irelevant
Irelevant's picture

All my gold, on the botton of the lake, very sad boating incident.

Thu, 09/06/2012 - 04:23 | 2767306 Colonel Klink
Colonel Klink's picture

Long deep water metal detectors and 3 tine claws!

Thu, 09/06/2012 - 04:35 | 2767317 ivars
ivars's picture

For anyone interested in what silver will do next, pls  have a look at this forecast I made yesterday.

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=2420#p39376

Will not take much time.

Thu, 09/06/2012 - 05:20 | 2767333 dadoody
dadoody's picture

I own a bunch of gold. Fished it out from some lake. 

Thu, 09/06/2012 - 06:02 | 2767362 Dr. Engali
Dr. Engali's picture

SNB just cut rates and gold gets a boner.

Thu, 09/06/2012 - 06:07 | 2767372 goldenbuddha454
goldenbuddha454's picture

you're right and when the israel-iran situation blows up gas will go much higher.  There's already a silent inflation at the grocery store.  You can't go in and buy much at all with that $100 anymore.  You get a few packages of meat, some condiments, milk, eggs, the basics and its all gone.  The fed and the central banks are killing the middle class with their money printing.  When they print, everything goes up at the grocery store and the gas station.   Anyone who still has a job and is paying in feels the crunch.  The poor are still getting their free-food stamps so they don't care.  Its the middle class that's being crushed and amongst them, the savers, who at 1.6% yield on a cd are losing a percent or two adjusted for inflation.  Central banks are really the problem, not the solution.  

Thu, 09/06/2012 - 06:37 | 2767392 disabledvet
disabledvet's picture

wrong reasons...right facts tho. Expansion of the WAR effort...not the balance sheet. http://en.wikipedia.org/wiki/Velocity_of_money as you can see by the chart on the right there "there's never been a bigger collapse of money velocity in history." freedom ain't free as they say folks. and of course gold reflects "the price that must be paid for that." you'd be surprised how few actually heed the call. sorry but still not a buyer...clearly the euro is in the realm of the "fantastical!" don't even get me started on Japan and China. the only fact that matters right now is that interest rates on Treasury debt have plunged to record lows...what has occurred as a consequence (massive expansion of the war effort by people who have no clue what this conflict is like...nor continues to be i might add) is only a surprise to willfully ignorant...or poetic among us. (how many of those are left?) of course if you believe "the path to recovery is to see who can bill the larger number of Cadillac Escalades" be my guess. My money is still on oil...and "supply chain management solutions" as a consequence. ain't no gold in that...unless of course you're arguing there's a balance of payments crisis out there somewhere. sure is in the EZ of course...http://www.dbresearch.de/PROD/DBR_INTERNET_DE-PROD/PROD0000000000279906/...

Thu, 09/06/2012 - 12:15 | 2768546 beachdude
beachdude's picture

Huh?
The velocity of money will increase once people realize its value is vaporizing, and the move into PM's will become truly staggering.
As in epic, OMG, panic driven, have-to-have-it... MANIA!

Thu, 09/06/2012 - 07:16 | 2767419 orangegeek
orangegeek's picture

The Euro is rising - because Europe has staved off economic collapse and their unsolveable debt crisis is over.

 

Consequently, the US Dollar is falling.

 

http://bullandbearmash.com/chart/usd-index-daily-september-05-2012/

 

And - consequently, the Euro markets and commodities are up - long the Euro markets everyone!!  Dax is up 1.25% this morning.  What a joke.

Thu, 09/06/2012 - 07:17 | 2767425 HungrySeagull
HungrySeagull's picture

I believe Silver is on a march now.

 

I have watched it with a mixture of... here we go again, been there done that and also a bit of awe.

 

Puts a whole new meaning to the command used in battle...

 

HOLD.... HOLD...... HOOOLLLLDDDD......

Thu, 09/06/2012 - 07:32 | 2767454 Silversem
Silversem's picture

Silver is the ultimate commodity for trading because of it's volatility. I use cfd's for trading it.

Thu, 09/06/2012 - 07:42 | 2767478 proLiberty
proLiberty's picture

Fed + ECB Balance Sheet (in USD) vs. Gold (in USD) correlation?  Nothing to see here, move along.  Relic!  (maybe the real relic here is Keynes and his magic money-printing unicorn)

 

Thu, 09/06/2012 - 08:52 | 2767709 EmileLargo
EmileLargo's picture

I bought a LOT at $1635. So that "trade" is up by at least $70 as we speak.

These paper money calculations are pointless. When this is over, your gold will buy you something (at least as much as it did back in 2000 or 2008 or 2012). Your dollars (no matter how many Trillions you have) will buy zilch.

Thu, 09/06/2012 - 09:05 | 2767750 Uncle Remus
Uncle Remus's picture

Booyaaaaahn.

Thu, 09/06/2012 - 09:45 | 2767904 The Continental
The Continental's picture

It's really very simple: the US dollar is slowly being immolated on the altar of socialism-crony capitalism. The government is a bloated money pump. The private economy which adds value to money is dying. The population of dependency is growing. The United States is massively disinvesting, consuming it's seed corn as gold moves east. All the FED can do is feed the ever growing government deficits and spending on social welfare through continuous currency dilution. Monetization of Treasury debt never stopped since 2008. There is no positive net foreign ownership of Treasury debt in the last several years. The FED is buying al of it. This will continue and inflation will rage in the US. If you do not hold hard assets such as physical gold, silver, food and medicines, you will be financially slaughtered. Gold is no merely for profit - it is a means of survival.

Thu, 09/06/2012 - 10:23 | 2768058 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

In Poland 1 oz gold costs $1984 if you divide the official price of physical 1 oz coin by the price of $1 in local currency. I had to pay $1700 two years ago if I wanted physical. Americans, they have it so cheap!

http://nbp.pl/home.aspx?c=/ascx/bielik.ascx

The coin is beautiful, though:

http://www.numistat.pl/artykuly,2035,orzel-bielik-polskie-zlote-monety-b...

Thu, 09/06/2012 - 16:52 | 2769416 HungrySeagull
HungrySeagull's picture

Last night I explored the world for some computer parts. When I figured the exchange rate for the current asking price versus equivilant parts that I bought new....

I am being asked to pay double or damn near triple. When you figure the exchange.

 

No wonder everyone wants to sell to America. Profit!

 

I cannot afford gold... however if the ratio falls from 56 to one down to 14 to one... sure.

 

It would give me great pleasure to flip a few ounce coins down and pay the student loan off instead of enduring 10 more years with the interest and all.

Thu, 09/06/2012 - 11:43 | 2768425 NRGIsFree
NRGIsFree's picture

GATA Chairman Bill Murphy's appearance today on the Russia Today television network's "Capital Account" program, hosted by Lauren Lyster, has been posted at YouTube here:

http://www.youtube.com/watch?v=sxVsosT3GAw

Do NOT follow this link or you will be banned from the site!