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What Does Gold Know That All Other Asset Classes Don't?

Tyler Durden's picture





 

Presented with little comment as it appears Gold (and Treasuries) are not as ebuliently following the 'Hilsenrathian' path of most ignorance  to NEW QE - as GDP beats, stocks near multi-year highs, and housing recovering on its own just does not seem like the recipe for extreme Bernanke action.

Paradoxically, it would seem any extreme monetary action from the Fed now would mean they absolutely do not trust the macro data that is being spewed to the market every day and surely is the signal that things are a lot worse than anyone thinks.

 

The USD is weaker, stocks are stronger; but Treasury yields are revrtingh higher and Gold is at the day's lows...

 

 

Charts: Bloomberg

 


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Fri, 07/27/2012 - 10:44 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Gold calling Bernanke's bluff?  What's the pot at?

Fri, 07/27/2012 - 10:46 | Link to Comment Deo vindice
Deo vindice's picture

Gold doesn't "know" anything. It just naturally consistently does what it has always done, which is to be a safe store of wealth through all the natural and manipulated changes of this world.

Fri, 07/27/2012 - 10:50 | Link to Comment BaBaBouy
BaBaBouy's picture

GOLD is one of the Last Honest Financial Assets available...

We are now Riding On the GOLD $50K Train...

Fri, 07/27/2012 - 10:53 | Link to Comment Biggvs
Biggvs's picture

10-yr yield rising, gold underperforming (in the chart above). Doesn't sound like imminent printing to me. Where is the frontrunning of Fed purchases? What is Hilsenrath up to? Jawboning Europe? More Fed swap lines coming?

Fri, 07/27/2012 - 11:02 | Link to Comment gmrpeabody
gmrpeabody's picture

"ebuliently following the 'Hilsenrathian' path of most ignorance.."

Ebuliently....? Tyler, you may sit at the front of the class if you wish.

Fri, 07/27/2012 - 11:10 | Link to Comment malikai
malikai's picture

There's definitely a rat somewhere. Both of my crude, all FX, and index models are solid locks right now, only gold and eurusd are on the other side of the moon, for now. And it looks like gold and eurusd are beginning to converge again.

Unless something significant fundamentally has changed in the last couple days, only affecting gold and the eurusd cross, look out below folks.

Fri, 07/27/2012 - 11:14 | Link to Comment ACP
ACP's picture

The cocksmokers are just running the stops (with our money) in all the indices.

Fri, 07/27/2012 - 11:40 | Link to Comment Jack Napier
Jack Napier's picture

We ought to all know by now that the market moves on insider information before we ever get wind of why. This is just more rumor mill. There is no anticipating the next QE. It will happen before we get a chance to react, and it's not going to happen for as long as cheap talk does the job.

Fri, 07/27/2012 - 11:50 | Link to Comment flacon
flacon's picture

I have no idea why, but people are piling in on VXX calls.... curious that... :)

Fri, 07/27/2012 - 11:56 | Link to Comment Turd Ferguson
Turd Ferguson's picture

C'mon, Tyler, this is bullshit. You know better than this.

Gold is week today because The Gold Cartel is attempting to take it back under 1600 before the close. They may still succeed.

Fuck em either way. They're doomed in the end. 

Fri, 07/27/2012 - 12:27 | Link to Comment flacon
flacon's picture

Turd, don't forget that Bernanke, when asked what tools he has left, said that his only remaining tool was "his voice" (paraphrased). (and by the way, Draghi and Bernanke are the same in that regard). Are they going to print to oblivion next week? Perhaps, but perhaps not. Nobody knows, but given that Ben said that his voice is his only tool left... I don't think they will QE next week.... But in the end you are right... there is still the final tool - debt monitization en masse. But is NOW the time? 

Fri, 07/27/2012 - 13:19 | Link to Comment The Luftwaffe
The Luftwaffe's picture

Exactly, the Cartel has been whacking gold and silver all day. They are no longer even trying to hide their now almost daily interventions. I smell desperation and looming comex defaults, but we will need to wait a bit longer for that show to begin.

Fri, 07/27/2012 - 16:01 | Link to Comment LongBalls
LongBalls's picture

Just remember. It does not matter what the price of gold does. HANG ON TO IT. Are we returning to a gold standaard? Not the people. But the Central Banks are. Don't let price manipulation move your conviction. THIS IS A FACT. SEEK THE TRUTH AND YOU SHALL FIND.

Fri, 07/27/2012 - 11:07 | Link to Comment markar
markar's picture

treasury yields went up during QE. Look at the charts.

Fri, 07/27/2012 - 11:16 | Link to Comment 1000pips
1000pips's picture

Gold is overpriced.  Better watch out.  Their about to run this market through the roof!

Fri, 07/27/2012 - 11:48 | Link to Comment flacon
flacon's picture

What is the PRICE of gold measured in? What is price anyway?

Fri, 07/27/2012 - 12:24 | Link to Comment silvermaister
silvermaister's picture

It is truee BUY SILVER !!!

Fri, 07/27/2012 - 12:54 | Link to Comment lasvegaspersona
lasvegaspersona's picture

I find it difficult to believe anyone who does not know the three their, there, they're ers.

Sat, 07/28/2012 - 02:27 | Link to Comment 1000pips
1000pips's picture

u must teach english?  gold has gone No Where for the last 10 months...it's not a religion, it's a metal.  Only good for trading daily now.

Fri, 07/27/2012 - 11:12 | Link to Comment Anne Ominous
Anne Ominous's picture

Silence.

Fri, 07/27/2012 - 10:42 | Link to Comment Paul Atreides
Paul Atreides's picture

You didn't build that chart

Fri, 07/27/2012 - 10:45 | Link to Comment SilverTree
SilverTree's picture

The PPT & ESF did.

Fri, 07/27/2012 - 10:57 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

If one did not succeed in their business on their own, can we blame the failures of companies on the government too?  Works both ways if the Obama theory is true, no?

Fri, 07/27/2012 - 11:40 | Link to Comment PiratePawpaw
PiratePawpaw's picture

"If you build a better mousetrap, the world will beat a path to your doorstep"

 

Obama Translation: "Because the world beat a path to your doorstep, You built a better mousetrap"

Methinks Obama is Bass-ackwards.

Fri, 07/27/2012 - 13:13 | Link to Comment TheAntiBen
TheAntiBen's picture

"You didn't dig that gold.  Shoot, you didn't even make that gold worth more money.  The government [uh, uh] the government made your gold worth more when I printed more money.  And now... And now, [audience cheers]... That's right, and now it's your turn to give some of 'dat gold back, to pay your fair share back, back to the government for helping you [uh make [uh] your-gold-worth-more-money..." [Obama - future speech.]

Fri, 07/27/2012 - 10:45 | Link to Comment Dr. Engali
Dr. Engali's picture

Gold knows it's being suppressed.

Fri, 07/27/2012 - 10:55 | Link to Comment EscapeKey
EscapeKey's picture

The Fed only manipulates the FX markets, sovereign bond markets, asset based securities markets, and have equity market "protection" mechanisms in place to PROTECT YOU - see, it's for YOUR OWN GOOD!

All talk of them manipulating precious metals is CLEARLY CONSPIRACY THEORY, and you label yourself as a TINFOIL HAT WEARING LUNATIC by even suggesting it!

Fri, 07/27/2012 - 11:02 | Link to Comment Dr. Engali
Dr. Engali's picture

Gold lined tin foil hat...thank you very much.

Fri, 07/27/2012 - 11:13 | Link to Comment malikai
malikai's picture

I may be mistaken, but weren't the Apollo spacecraft lined with gold foil?

IT WAS A CONSPIRACY!#@

Fri, 07/27/2012 - 11:08 | Link to Comment Ghordius
Ghordius's picture

+1 protection at no price! -> progress!

Fri, 07/27/2012 - 11:26 | Link to Comment Al Huxley
Al Huxley's picture

Imagine - the very thought tha gold price could be manipulated!  Sure, it turns out they did manipulate LIBOR, but I believe that was all shown to be altruistically motivated, just to 'protect the system', and I believe there was some issue around concealed and under-reported losses by JPM related to some CIO or other, but I'm pretty sure that was just oversight, and anyway they're going to get it back so it's all good.  And granted there's been some confusion around the whole mark-to-market concept in the financial industry and their 'assets' but other than these little tiny discrepancies (oh, and a few odd 'flash-crashes' from the whole HFT thing) the financial industry, governmenta and central banks have been paragons of virtue and honesty.  So given the evidence, I don't see how ANYBODY could suspect that gold is manipulated. I mean, why bother manipulating gold, what could possibly be in it for the FED, the Central banks, the FIs, etc...?

Fri, 07/27/2012 - 13:00 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Al Hux

Last week fofoa spent some time discussing the way the very exixtence of a paper gold market supresses the gold price. Good read even if you are not a full, "all in" freegolder. As long as the paper market exist we will have gold that is not at its full economic potential. Eventually, once we have a physical only market gold will resume its role of wealth preservation over time. We will see then that it has always done so. The gold in European castles and in the bowels of the BIS will still just sit there....being gold...

Fri, 07/27/2012 - 11:29 | Link to Comment FeralSerf
FeralSerf's picture

Volcker must be a tinfoil hat wearing lunatic too.

"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake." -- Paul Volcker, Nikkei Weekly 2004

Fri, 07/27/2012 - 10:46 | Link to Comment fonzannoon
fonzannoon's picture

Either gold is just getting hammered down just for fun or it knows the truth. QE ain't coming.

Fri, 07/27/2012 - 10:49 | Link to Comment LULZBank
LULZBank's picture

Where does the Gold's fundamentals fit in?

Fri, 07/27/2012 - 11:56 | Link to Comment Ghordius
Ghordius's picture

gold's fundamentals? easy: it's the greatest and oldest of all ponzi schemes, since it's introduction in what was called Asia Minor (modern Turkey) by a King called Midas, son of Gordius (careful there, lots of myths aroud this) that just found out that meteoritic iron was too valuable for tools and weapons to be wasted as money. He stood on top of a very good gold mine (this makes him a classic liar) and propagated that he would exchange gold against iron at a fixed term (the first monetary market maker). So he was able to leverage his valuable iron (that wasn't mined - the technology was not yet there) with gold. The first (leveraged) Central Banker. Of course, being the first ponzi scheme, chances are very, very good that it will be the last to fall.

by the way, this had several consequences, including the modifications to the economy of Sparta (that continued to use iron even after you could mine it, making is quite worthless) and the first currency war between Asia and Europe, when Athens started to use it's silver mines.

in short: gold has no fundamentals, it's just money since quite a while...

http://en.wikipedia.org/wiki/Midas

Fri, 07/27/2012 - 12:55 | Link to Comment Likstane
Likstane's picture

nice random boldface

Fri, 07/27/2012 - 13:10 | Link to Comment Jim in MN
Jim in MN's picture

That would be a great user name: Random Boldface.

Sat, 07/28/2012 - 05:07 | Link to Comment Ghordius
Ghordius's picture

eh? don't get it. random thoughts? Rand O.M. Boldface

Fri, 07/27/2012 - 11:36 | Link to Comment HD
HD's picture

This is why my chest hurts. You can no longer trust any metric. Does gold know there is no QE? Is gold being openly manipulated down in front of QE? You can't base decisions on price action at all - it only about a constant state of "what if"...

The central planners may have beaten me here - if Ben announces an open ended QE, I'm out. Won't be able to short or go long - only algos will play in a tighter and tighter range until...

Fri, 07/27/2012 - 11:48 | Link to Comment Jack Napier
Jack Napier's picture

Why even bother with metrics? We all know the end game. If everybody on this site would stop humping derivatives all day, paper chasing ever devaluing currency and giving play money to the manipulators, and instead buy physical gold and silver this charade would be over already. Stackers FTW.

Fri, 07/27/2012 - 11:42 | Link to Comment PiratePawpaw
PiratePawpaw's picture

I just asked my gold...

It said "Patience Grasshopper"

Fri, 07/27/2012 - 11:44 | Link to Comment scatterbrains
scatterbrains's picture

Gold knows the truth. They don't dare print 3 months ahead of the elections and trigger new all time highs in gasoline prices just as folks are jumping in their cars heading to the ballot boxes.. not going to happen.

Fri, 07/27/2012 - 11:53 | Link to Comment Jack Napier
Jack Napier's picture

zactomundo

Fri, 07/27/2012 - 12:12 | Link to Comment Moe Howard
Moe Howard's picture

I concur.

Fri, 07/27/2012 - 10:47 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

BS pump continues. Must. Get. To. Olympics. (so MA and Pa Fourohonekay will be distracted for a month)

Fri, 07/27/2012 - 10:48 | Link to Comment akak
akak's picture

And this blinkered, ultra-short-term analysis means exactly .... what?

Is RobotLemming now submitting articles on ZH?

Fri, 07/27/2012 - 10:50 | Link to Comment SWCroaker
SWCroaker's picture

Next "round" *must* have some sort of surprise factor.   Simple print of money, and given to....????..... banks again?  Holders of junk Treasuries???   ... simply isn't worth the effort.   Must have SHOCK leading to AWE.

 

Perhaps something coordinated, between most of the major CBs?  A pan-western stabilization "fund" that provides low-interest loans to members in need (EU countries, US states, systemically significant pension funds and entitilement plans?) for decades to come?  Something that moves closer to a CFR-ish collective world financial body?

 

Interesting to see whether the non-club members, non-Western countries, will sit idly by; or what behind the scenes price was/is being paid for their complacency.

Fri, 07/27/2012 - 10:52 | Link to Comment Dr. Engali
Dr. Engali's picture

You mean a world currency. Not yet, not till it all falls apart.

Fri, 07/27/2012 - 10:50 | Link to Comment LULZBank
LULZBank's picture

Whatever Gold is doing, its not doing it enough.

Fri, 07/27/2012 - 10:51 | Link to Comment -1Delta
-1Delta's picture

and we wonder why corn futures are higher....

 

http://commodmarkets.com/2012/07/27/corn-abandoment-more-than-just-yield...

 

food inflation will be a problem

Fri, 07/27/2012 - 11:16 | Link to Comment malikai
malikai's picture

A problem for who? The little people?

LOL

Fri, 07/27/2012 - 11:22 | Link to Comment -1Delta
-1Delta's picture

actually the refining industry.... talk about turning in the RIN credits...

 

 

Fri, 07/27/2012 - 10:51 | Link to Comment Ratscam
Ratscam's picture

Any comments on this pair trade "long platinum - short gold"?

The ratio is at 1.15, last reached back in 1985. A delta of USD 206.

Fri, 07/27/2012 - 10:57 | Link to Comment adamas
adamas's picture

be cautious.... it appears an easy play BUT, platinum is increasingly industrial (negative) and Gold is increasingly monetary (positive) , if mega QE is foisted on the world Gold will be the primary beneficiary, ahead of other PM's 

Fri, 07/27/2012 - 11:04 | Link to Comment Ratscam
Ratscam's picture

thanks, what I do not get is that it is much more rare than gold and 70% is produced in South Africa where all companies have shut down several producing plants. Then again these markets are fuxxed up. I agree on mega QE giving gold a better advantage than the other PMs. The heck I'll just go long 10% PLT.

Fri, 07/27/2012 - 11:27 | Link to Comment magpie
magpie's picture

I only buy it because it leaves a tax trail.

Fri, 07/27/2012 - 11:58 | Link to Comment Jack Napier
Jack Napier's picture

Gold beat the pants off of platinum in 70's bull market. Platinum is rare, should be worth more, but gold is money, and nothing else. As in, gold is nothing but money (and jewelry, JPM isn't omniscient or anything). Silver is money too as a dual role industrial metal, but platinum is strictly industrial.

Fri, 07/27/2012 - 11:38 | Link to Comment Arcturus
Arcturus's picture

The GSR is an often looked at indicator. The higher it goes the more bearish on the PM's generally. The gold/platinum ratio is one I know little about but it seems upside down to me and may turn out to be an excellent play in the long run,

Fri, 07/27/2012 - 10:57 | Link to Comment fuu
fuu's picture

Trav was a fan of it.

Fri, 07/27/2012 - 11:34 | Link to Comment Al Huxley
Al Huxley's picture

It looks like a bad version of the 'long gold miners short gold' trade.  Not that I'm advocating 'long miners short gold' per se, but if you look at the platinum to hui ratio its near the top of a long-term trading range and trending down. 

Fri, 07/27/2012 - 11:56 | Link to Comment FeralSerf
FeralSerf's picture

If you like platinum because of its price ratio to gold, you should love silver.

Fri, 07/27/2012 - 12:02 | Link to Comment Jack Napier
Jack Napier's picture

Indeed. Silver is the investment of a lifetime. It's been used up at an alarming pace, and even the historical GSR of 17:1 pales to the mining ratios we have today, only 7x more silver than gold now. That's aside from the above ground supply of which silver is more rare than gold. If gold is remonetized silver will follow, but if the paper manipulation ends silver will lead.

Fri, 07/27/2012 - 10:53 | Link to Comment Stuart
Stuart's picture

powers to be cannot let gold make a run, not now, not ever.  They will eventually lose, but not for a lack of trying. 

Fri, 07/27/2012 - 10:55 | Link to Comment johnQpublic
johnQpublic's picture

housing recovering on its own....ha!

i was in the poconos yesterday looking for a (foreclosed and cheap) lakefront house

and i can tell, the poconos is turning into a ghetto

30-50% of the houses are abandoned or in foreclosure and are in serious disrepair

cars with broken windows in the drives, some with blankets over the broken windows ,just for a start to that ghetto look

formerly middle class vacation mecca looks like downtown philly, or buffalo ny, just with more trees

a testament to the broken dreams of middle america

cheapest i found was 6k

wasnt worth it

when you kill the power in a damp area....no sump pump equals black mold coating every exposed surface

banks still need to take huge mark to market hit, and there needs to be a demolition and rebuilding of not only the housing overhang but the policies that created it

Fri, 07/27/2012 - 12:06 | Link to Comment HarryM
HarryM's picture

Years ago , low income families from Brooklyn fled to the Poconos where they could actually afford to buy something, and to escape their crime-ridden ghettos.

In the end ,ironically, the ghettos were moved from Brooklyn to sections of the Poconos.

Many sections of Brooklyn that were ghettos, have now regentrified .

Rents go up, forcing more lower income people out, and what was once a death spiral , reverses.

I remember when corrupt real estate agents would engage in the practice of what was known as "Block Busting".

They would place low income (prererably black) families in solid white neighborhoods, which back then would immediatley lower the home values, in order to stimulate sales of homes.

The Realtors reaped huge profits as entire neighborhoods changed hands.

The whites then moved to the suburbs to escape the crime taking plave in their old neighborhoods.

Hence the expression "There goes the neighborhood"

The lessons are painful and plentiful.

 

Fri, 07/27/2012 - 12:18 | Link to Comment francis_sawyer
francis_sawyer's picture

That's horrible!... I think we all need to learn how to live together... The first step is to completely IGNORE these types of things that have happened & focus on skittles, unicorns, & unity...

Let's all join hands & pray that we can find the right leaders to shepherd us towards this noble goal... I'm pretty sure that politicians, bankers, & media are the best places to look for capable leadership... It's time to throw 100% support into that arena while stifiling any dissent...

Fri, 07/27/2012 - 12:29 | Link to Comment silvermaister
silvermaister's picture

retard

 

Fri, 07/27/2012 - 12:45 | Link to Comment francis_sawyer
francis_sawyer's picture

sho nuf!

another confirmed exercise in 'bi-polarity'...

Fri, 07/27/2012 - 13:31 | Link to Comment Arius
Arius's picture

"Let's all join hands & pray that we can find the right leaders to shepherd us towards this noble goal... I'm pretty sure that politicians, bankers, & media are the best places to look for capable leadership... It's time to throw 100% support into that arena while stifiling any dissent..."

@ Francis_sawyer

you did not built (scratch) come up your self with that idea ... i am all for it ... VIVA the media!

Fri, 07/27/2012 - 14:39 | Link to Comment francis_sawyer
francis_sawyer's picture

If it weren't for the media & their agenda, I wouldn't even have a clue how to think... I might have to refer back to all the things I was taught in the public education system ~ surely therein lies all knowledge that a good citizen needs to function in today's free society...

Fri, 07/27/2012 - 12:19 | Link to Comment moondog
moondog's picture

Downtown Buffalo is slowly digging out of the post-industrial hole through biomedical and life sciences.

http://www.bnmc.org/about/

http://www.buffalonews.com/editorial-page/buffalo-news-editorials/article956058.ece

....and the Bills signed Super Mario!!

Fri, 07/27/2012 - 14:59 | Link to Comment francis_sawyer
francis_sawyer's picture

Yeah ~ what the world surely needs more of right now are biomedical PHd's, life science gurus, & defensive ends... & less corn & rice growers, or migrant workers...

Fri, 07/27/2012 - 10:56 | Link to Comment GERxit
GERxit's picture

"Maybe" Gold's manipulated down ?!

Keep on buyin while it's still low :-)

Fri, 07/27/2012 - 10:58 | Link to Comment LoneStarHog
LoneStarHog's picture

July 26 Comex August gold options expiry
July 26 Comex August copper options expiry
July 27 Comex August miNY gold futures last trading day
July 27 Comex July gold futures last trading day
July 27 Comex July silver futures last trading day
July 27 Comex July copper futures last trading day
July 27 Comex August miNY gold futures last trading day
July 27 Comex August E-mini copper futures last trading day
July 31 Comex August gold futures first notice day
July 31 Comex August copper futures first notice day

Fri, 07/27/2012 - 11:00 | Link to Comment Haager
Haager's picture

My theory would be that EUR/USD will be pushed higher and that gold, silver are suppressed to follow that way. And I assume that fits - to some extend - to oil as well.

Fri, 07/27/2012 - 11:00 | Link to Comment lsbumblebee
lsbumblebee's picture

Unfortunately for the Crime Families, gold is not dependent on hints of more QE for a high. Fiat currency is continually debased anyway.

It must be really tiresome manipulating the Comex day after day after day. But I guess they have nothing else to do.

Fri, 07/27/2012 - 11:03 | Link to Comment GERxit
GERxit's picture

I like that kind of manipulation as I can keep on buying at depressed prices... who needs more?

 

Fri, 07/27/2012 - 11:24 | Link to Comment lsbumblebee
lsbumblebee's picture

Wouldn't you rather have a free market? How about an even playing field?

Fri, 07/27/2012 - 12:00 | Link to Comment FeralSerf
FeralSerf's picture

I would rather have honest politicians and leaders too.  But I don't think I'll live long enough to see it happen.

Fri, 07/27/2012 - 11:03 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold knows that fiat is inflating ad infinum due to the fact that it has, and never has had, any intrinsic value.  Fiat does not store wealth, and is in a constant decrease in price for that reason.  Add tens of trillions ctrl + P every year, and you can see why asset prices are deflating.

Bears say deflation is right around the corner.  Lest they forgot we saw some of the most massive inflation in '07-'09 culminating in the Fall of '08.  And then what did the Central Planners do?  They bailed the sinking ship out and they are still bailing to this day. 

They have been "printing" and rehypothecating on leverage unimaginable for four years now!  Four years!  Factor in the fiat currency and that it is the weakest "asset" and what do you get?  You get a constantly increasing price to all other asset prices in nominal terms.

This does not mean asset prices will not hit bumps in the road, nor does it mean some assets aren't over valued.  But it does mean that in the end, price will rise until price can not be determined, because fiat is not a measure of value and therefore nothing can be measured by it.

Fri, 07/27/2012 - 11:07 | Link to Comment GERxit
GERxit's picture

Gold / fiat = price; with fiat going to 0...

Where is this shitty "I LIKE" button when you once need it???

Fri, 07/27/2012 - 11:11 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Mr. LH, I bought 10 1oz NZ silver turtles on your day of atonement.  Trying to teach my 2-year old son what money is, and the coins with animals on them are also useful in that regard. 

Then we went boating, and I lost them all.

Fri, 07/27/2012 - 11:16 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Your boy will grow up to be like you - a smart man.  As for the boating accident, it happens to the best of us.  Why PM bulls like to go boating with their silver, lord knows, but we do.

Fri, 07/27/2012 - 11:27 | Link to Comment fuu
fuu's picture

Playing pirate?

Fri, 07/27/2012 - 11:47 | Link to Comment Karlus
Karlus's picture

There has always been a strong coorelation between boating accidents and gold. Sometimes, in order to prevent boating accidents, pirates would take pre-emptive action to bury their gold in great secrecy (you never want to be the guy to get selected to "help" the pirate captain) and create a map. This created a 2nd type of accident, but just as impactful, of the lost pirate map accident.

It seems like mere men like us were never meant to possess gold, but we cannot halt our compulsion with buying it.

<Sigh> All gold seeks to return to the bottom of the lake.

Fri, 07/27/2012 - 12:23 | Link to Comment francis_sawyer
francis_sawyer's picture

Rumor has it that if you buy the ones with the turtles on them & lose em in a boating accident, they'll swim back to shore...

Fri, 07/27/2012 - 12:56 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

thx - will look out next time I'm in the Pocono's. 

Does that mean I CAN eat the ones with buffalos on them?

Fri, 07/27/2012 - 11:47 | Link to Comment PiratePawpaw
PiratePawpaw's picture

Thats how I lost mine.....and the guns.

Fri, 07/27/2012 - 11:35 | Link to Comment malikai
malikai's picture

On my daughter's first birthday, we put her on the bed, placed a british soverign, some yuan notes, a laptop, a little guitar, and some other things I can't remember on the bed (the theory is that the kid will choose his/her life passion this way). I am proud(scared) to say she went right for the gold.

She got to keep the soverign, and I use them as her "future savings".

Well, I did use them as her future savings, until I tried to teach her how to fish recently, and we too had a most unfortunate boating accident.

Fortunately we're both very good swimmers.

 

Fri, 07/27/2012 - 11:04 | Link to Comment tuttisaluti
tuttisaluti's picture

I think gold had 5 waves up und is now consolidating before the next up move to about 1670

Fri, 07/27/2012 - 11:05 | Link to Comment kito
kito's picture

look at the almighty dow....a hair under 13g................qe fools will be slammed soon enough..................

Fri, 07/27/2012 - 11:07 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

One last monkey hammer before hopping in the Merc and heading out the Long Island Expressway (locally known as the LIE) to the Hamptons, to jerk off on the beach for a spell. 

Fri, 07/27/2012 - 13:14 | Link to Comment Jim in MN
Jim in MN's picture

What kind of spell do you cast that w--oh.  Never mind....

Fri, 07/27/2012 - 11:08 | Link to Comment dwdollar
dwdollar's picture

U-S-A!!!

U-S-A!!!

U-S-A!!!

Fri, 07/27/2012 - 20:39 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

Outbreaks of paatriotic fervor usually precede the comments of my most trusted financial advisor, the Robot Trader. Mister reverse psychology master of disaster. I always wait for his words of wisdom - and just do the exact opposite ! Robot Trader for President ! Has a nice ring to it...................

Fri, 07/27/2012 - 11:09 | Link to Comment RobotTrader
RobotTrader's picture

King World News "acclaimed experts" got it totally backasswards.

 

Gold looks like it wants to tank, mining stocks blowing up all over the place, and U.S. stocks are in the midst of an Epic Meltup.

No wonder Jim Rickards bailed out of that blog early, he was the only smart one who knew those KWN headlines were getting ridiculous.

Fri, 07/27/2012 - 11:13 | Link to Comment Ratscam
Ratscam's picture

How are your Facebook shares doing?

Just saying .

Fri, 07/27/2012 - 11:15 | Link to Comment akak
akak's picture

You mean Faceplant?  Or Faceberg?

I think they might be the same stock.

Fri, 07/27/2012 - 12:24 | Link to Comment francis_sawyer
francis_sawyer's picture

It's blobbing down at the moment...

Fri, 07/27/2012 - 11:13 | Link to Comment akak
akak's picture

Careful lemming, I hear that driving while constantly fixated on the rear-view mirror can be bad for one's car insurance rates.

Oh, and do tell us all again about the blowtorching your favorite stocks of Netflix, Lululemon and Faceberg have gotten this year.

Fri, 07/27/2012 - 11:45 | Link to Comment Al Huxley
Al Huxley's picture

Yep, gold getting 'blowtorched' only up .1%.  And meanwhile, FB and SBUX are 'well off their lows, well off their lows'. 

Fri, 07/27/2012 - 12:06 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Nothing wrong with gold at all Robo. The miners have been decimated, so what you say on that is accurate. 

Avoiding to address your own bad calls while ripping others makes you the worst hypocritical cherry picking motherfucker I've ever seen.

Fri, 07/27/2012 - 11:12 | Link to Comment sschu
sschu's picture

Paradoxically, it would seem any extreme monetary action from the Fed now would mean they absolutely do not trust the macro data that is being spewed to the market every day and surely is the signal that things are a lot worse than anyone thinks.

The conundrum of the monetarist is front and center.  How do we "ignite" this economy which has a dead battery, empty gas tank, faulty brakes and missing tires.  We can fill the tank, but we tried that before and it all leaked out and the car has not moved an inch and continues to rust.  

There are no good options right now, we are politically paralyzed and the only hope is a change in leadership in January ... and this change is not certainly and maybe less reassuring.  Political stalemate seals our doom.

Thanks Bam and Bennie, you had a chance to really make a name for yourself, but made it all a lot worse.  Your departure could not happen too soon for me, even if the options are what they are, pretty lame.

sschu

Fri, 07/27/2012 - 11:20 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

What gold knows is that it is manipulated constantly.  T. D., I think you posted an article a while back regarding how shorting gold on the U. S. open was a great trade.  Apparently, things have not changed.  When they finally do QE3 "at an emergency fed meeting" for effect, Osama will be killed yet again and gold and silver will tank.  Book it Danno!

Tuco Benedicto Pacifico Juan Maria Ramirez

Fri, 07/27/2012 - 11:14 | Link to Comment Venerability
Venerability's picture

And once again: Some entity, this time almost certainly in the Citi Nexus, is in precarious straits with an over-leveraged Short Euro and probably Short Gold position.

But Gold's proponents are by this time both antsy and angry.

The World needs a coordinated growth initiative, with the US participating alongside Europe, Japan, and China.

Euro and Gold Shorts - let alone, Silver Shorts, which essentially means JPM - are being told to scurry into hiding over the next very few trading days.

Meanwhile, I would expect some sort of fortress is being built around the Citi-linked baby fund in trouble, because they really do not want another Peregrine so close to the last one.

 

 

 

Fri, 07/27/2012 - 12:17 | Link to Comment avidtango
avidtango's picture

The last thing the World needs is "Coordinated growth".   That implies a common ground  between nations with opposing goals.  The West & Japan must have a system that allows unending debt buildup without consequences.  China & friends want a system in which other will buy their goods with real money.  The others - poor SOBs -  wants  a system that allows them to live beyond their means forever like the West. World planning is simply another form of central planning with economic decisions replaced by political ones.

Planned schemes (gov't programs) are always costly, poorly managed, inefficient and eventually bankrupt because decisions are made for political and not economic reasons. No one is allowed to fail - company or nation - so no one ever learns the timeless moral:  You can't live beyond your means forever.

Fri, 07/27/2012 - 11:15 | Link to Comment sablya
sablya's picture

The market used to be "forward-looking" but now it is simply myopic.  It only looks forward to the next fix.  Earnings, debt, none of that stuff even matters any more.  The market can't even see past the immediate to the fact that QE is like caffeine for a man who hasn't slept.  It works well when you missed a little sleep, but it does less and less the longer you haven't slept.  Eventually you get to the point where it does nothing at all.  And finally, when you're so exhausted from lack of sleep, caffeine can kill you because your heart can't take the stimulation.  Doesn't anyone running this show have the least bit of common sense?

Fri, 07/27/2012 - 11:25 | Link to Comment akak
akak's picture

Beautiful analogy!

Fri, 07/27/2012 - 11:41 | Link to Comment malikai
malikai's picture

I think they've realized that when caffeine doesn't work, methamphetamine does. This explains a lot about the market.

Have you ever seen the movies "Spun" or "The Salton Sea"?

Fri, 07/27/2012 - 11:55 | Link to Comment Winston of Oceania
Winston of Oceania's picture

I hear you can get a bargain on a lot with gas/water/sewer already installed... Good fishing too!

Fri, 07/27/2012 - 11:59 | Link to Comment avidtango
avidtango's picture

The situation you described is inevitable in an increasingly political economy.  More and more, political pronouncements, FED action and rumor are drivers instead of value. (The enormous BETA correlation.)  The old self-correcting, throwing out the trashh mechanisms that require time to work through the system are seen as politically unpalatable. LOL  I remember in the Bush days when the market topped and the MSM whined that it was a jobless recovery...at 5%!  W

What gets me are the business folks who freely admit that QE leads us further on the road to perdition but turn around and call for FED and EU action.

Fri, 07/27/2012 - 11:16 | Link to Comment Jim in MN
Jim in MN's picture

What gold knows is that is is up 400% since 2005....and these paper 'whatsits' are not.

Fri, 07/27/2012 - 11:17 | Link to Comment doc_in_the_house
doc_in_the_house's picture

has gold peaked @ 1630?

its now @ 1621...i hope its not signaling that the peak in casino has been reached @ spx 1375...i hope there is a lag-phase and spx peaks @ 1385 next week on the draghi news = me short !!

i short covered my spx 1370 shorts (from 2 weeks ago) this Tu = @ 1332 = I FEEL GOOD...been in cash since then..i covered my EUR 1.265 shorts @ 1.2058 on Tu..POSTED HERE IN REAL TIME !! Now EUR is @ 1.236 ....i KEPT my EUR 1.31+ shorts

gimme spx 1385+ and EUR to 1.24 and change = me shooOOOORT !! short on the draghi news next week !!   i covered my shorts this past Tu when i read zero hedge's biderman's GOES SUPER BEARISH....sorry!! LOL !!

Fri, 07/27/2012 - 11:48 | Link to Comment avidtango
avidtango's picture

I was a daytrader before returning to consulting and still remember the emotions of  options.   I'm older, playing it safer but still spend 1-2% on hedges (QQQ, etc). I'm 80% hedged. I bought Dec QQQ when the market topped and still think it will be a good payoff.   You are playing it correctly - buy NEAR the lows and sell NEAR the highs.  O', convinced that by leap puts on the DOW will pay off big time. Then again, I may be forced to give half to the feds. 

Good Luck

;;

Fri, 07/27/2012 - 12:10 | Link to Comment johny2
johny2's picture

demo trading accounts are fun aren't they?

Fri, 07/27/2012 - 11:20 | Link to Comment Hannibal
Hannibal's picture

Paper gold shorts must be sweating bullets!

Fri, 07/27/2012 - 11:44 | Link to Comment TideFighter
TideFighter's picture

Gold tanked over $300. It is amazing to see bugz thinking TPTB can't do it again, while bitching about constant money printing. They can and will do it again and again, until your end of your timeline, thus your survival rate, drops to zero. 

Fri, 07/27/2012 - 11:53 | Link to Comment jimmyjames
jimmyjames's picture

Gold tanked over $300. It is amazing to see bugz thinking TPTB can't do it again, while bitching about constant money printing.

***************

If you actually had even half a clue-you would understand it's not about money printing and it never has been--it certainly has to do with increasing the supply of money though-but first you need to do some study and find out-

What is money?

Fri, 07/27/2012 - 12:32 | Link to Comment TideFighter
TideFighter's picture

First of all, my comment was directed at bugz (not me). I read your posts, you haven't a fucking clue about anything, so why comment, troll.  Your timeline will undoubtedly be defined as a "first rounder", a deer-in-the-lights. And...I don't learn from (1) beginners, (2) pretenders, or (3) trolls.

Fri, 07/27/2012 - 12:36 | Link to Comment jimmyjames
jimmyjames's picture

And...I don't learn from (1) beginners, (2) pretenders, or (3) trolls

*************

Try me and find out what it feels like to get your nose dipped in your own shit-

Fri, 07/27/2012 - 13:37 | Link to Comment TideFighter
TideFighter's picture

I'm laughing so hard I almost puked. You...knowing what money is?

hahahahahahahahahahahahahaha. Still laughing. Keep trying. #1 Troll Bait is a long way off and

your amazingly short on skills. 

Fri, 07/27/2012 - 13:40 | Link to Comment jimmyjames
jimmyjames's picture

I'm laughing so hard I almost puked. You...knowing what money is?

**************

I knew you had nothing to backup you're drivel-

 

Wed, 08/01/2012 - 10:06 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Agreed - you have drivel and shit spilling from your lips - you know nothing.

Fri, 07/27/2012 - 11:53 | Link to Comment Arcturus
Arcturus's picture

Less than a 20% drop is tanking? It sounds more like a correction to me. It has now consolidated and is back on its trajectory.

 

ToDaMoon!!

Wed, 08/01/2012 - 10:05 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Gold didn't tank over 300. I think you can't read a chart.

Fri, 07/27/2012 - 11:51 | Link to Comment Peter K
Peter K's picture

The only reason now for QE is to juice up the Obamadisaster's re-election hopium:)

Fri, 07/27/2012 - 11:53 | Link to Comment bhakta
bhakta's picture

I still trust gold over and above all other so-called assets. 100% the price is being manipulated by the banksters, but what isn't?

Fri, 07/27/2012 - 12:03 | Link to Comment Red Heeler
Red Heeler's picture

Gold knows it was here before all of those other asset classes and it knows it will be here long after they're all gone.

Fri, 07/27/2012 - 12:04 | Link to Comment fonzannoon
fonzannoon's picture

Next week when Bernak passes on QE and Merkel says Germany won't commit it should be a good week in the markets.

Fri, 07/27/2012 - 12:08 | Link to Comment miker
miker's picture

They can't let Spain default.  The cascade in Europe would be so huge it would take the Euro down.  They don't give a shit about Spain per se, they care about it's effect on the rest of European debt.

I still say a coordinated CB effort is in the works.  The general consensus is that Europe is pulling down the world.   Actually, a better way to look at it is that most economies are near stall speed and thus Europe's drag is risking everyone stalling out.

Europe has to print (however they disguise it) to support Spanish debt.  Yea, yea, I know Italy is bad and Portugal too, but first they deal with Spain; front and center. 

With a coordinated easing, the German's will have to accept the ECB move.  THey will be told to shut up and eat it or risk the entire currency collapsing.  That really is what we're talking about here.  Not some nice clean default.  Once Spanish debt is left unsupported, the whole system goes down. 

 

Tue, 07/31/2012 - 22:38 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

2011 sep 06 gold flash crash full overlays | Flickr - Photo Sharing!

Central banks collaborate to steal, not save people. Everything you see that's not stealing is just illusion or accidental side-effects.

Fri, 07/27/2012 - 12:20 | Link to Comment Moe Howard
Moe Howard's picture

Do you that there are some automobiles out there that only lose 54% of their value after you buy them? Shelby GT for example. Sort of like facebook.

I stick to gold and silver.

Fri, 07/27/2012 - 12:39 | Link to Comment Never One Roach
Never One Roach's picture

My house is down 38% and still falling...the GLD I bought several years ago is now up over 200%.

 

How Barbaric is that!

Fri, 07/27/2012 - 13:50 | Link to Comment Haager
Haager's picture

Could someone please take a look at NZD, ISK, PLN compared to USD, EUR, JPY? Explanations?

Fri, 07/27/2012 - 14:01 | Link to Comment SAT 800
SAT 800's picture

A one day chart has no meaning; Therefore it cannot be commented on. Disclosure; Long Dec. '12 Silver from $27.0875.

Fri, 07/27/2012 - 15:33 | Link to Comment W10321303
W10321303's picture

Does gold float? The Narciscistic Sociopaths know that B*LL**IT and Funny Money float.....

Severe U.S. Thunderstorms Threatening Ozone Layer  A new study is warning intense summer thunderstorms are posing a major threat to the ozone layer. Scientists at Harvard University found strong thunderstorms are sending water deep into the stratosphere, setting off ozone-depleting reactions with chemicals that remain from the now-banned cooling gases known as chlorofluorocarbons, or CFCs. The study warns that the ozone layer could suffer more damage should global warming unleash ongoing intense storms. Ozone is key to survival on earth, protecting people, animal and crops from the ultraviolet rays of the sun. The study is said to be one of the first to draw a deep link between ozone loss and climate change. On Thursday, a fierce storm tore through areas of the northeastern United States, knocking out power to more than 200,000 homes and businesses.  (www.democracynow.org) This SCIENTIFIC evidence was first spoken about by Dr. Jeff Masters at www.wunderground.com last year. "Climate Change's FIRST nasty little surprise. http://www.worldwildlife.org/climate/Publications/WWFBinaryitem14354.pdf 3. Tipping elements and risks of greatest significance within
early 21st century time-scales
3.1 Key impacts of tipping points within 21st century
3.1.1 Identification of key impacts .................................................................................26 3.2 Impacts of projected sea level rise associated with tipping
elements
3.2.1 Sea level changes and scenario definition ...........................................................26
3.2.2 Estimates of population and assets exposed to global sea level rises of
0.15 and 0.5 m.....................................................................................................27
3.2.3 Impact of NE USA Regional SLR Anomaly ..........................................................33
3.2.4 Insurance and finance implications in NE USA ....................................................34 Can you melt the stuff down and eat it? "So Remember, Remember, REMMBER!, when the weather gets ROUGH, you may say to yourself, What is happening to my skin?, where is that protection that I needed.....Talking Heads
Fri, 07/27/2012 - 19:41 | Link to Comment BigInJapan
BigInJapan's picture

Yawn

Tue, 07/31/2012 - 22:06 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

well, in all fairness it has come back before. Not that humans will survive a severe loss. ON the other hand CFCs have been out of production for some time. My worry-level on this is maybe 3 of 10, 10 being "aw shit we are just so damn fucked"

Sat, 07/28/2012 - 01:12 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Gold knows Bernanke is a FuckTard.

Sat, 07/28/2012 - 14:24 | Link to Comment Temporalist
Temporalist's picture

Gold doesn't know how to swim.

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