Is This Why Gold Is Outperforming?

Tyler Durden's picture

Gold is significantly #winning today - well ahead of stocks and the USD after being closely synced with them since the lows last Friday pre-ramp. The question is why? We have an idea. Gold and stocks have been closely correlated on the back of expectations of Fed/ECN unsterilized printing - as gold has taken on the appearance of a risk asset - and rightfully so given the nature of these markets dependence on CBs. However, stocks have outperformed in their own manipulated manner as whatever magic pressure has held gold down continues (as they both rise as simple proxies for more money flooding the system). In a very similar echo of 2009, the last 6-9 months have seen the value of the S&P 500 priced in Gold dip aggressively and then surge back. At current levels we are getting 'rich' in terms of equities priced in real stores of value. And perhaps, just as in 2009, we are about to see real stores of value catch up to equity valuations and continue this outperformance...Gold rallied 23% relative to stocks in the preceding three months.

short-term Gold outperformance...


2009 S&P 500 priced in Gold...

and 2012...

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RacerX's picture

Lol.. It's the "Invisible Hand" in the PM market.

malikai's picture

Here's how we see gold today:

As usual, running on the public console:

Mark Carney's picture

wow this place is a ghost town compareed to this time last year....I'm sure once we get a dive in equities this place will be the happening bar again.



Turd Ferguson's picture

I'm sorry but this is inaccurate. 

Gold rallied as paper metal was bought following a a series of large physical orders in London.

malikai's picture

...preceeded by a large stop hunt at about 8:30 london time. Great buy.

Turd Ferguson's picture

To whomever gave me a down arrow...Why don't you dial up Barclays and check to see if I'm right...

malikai's picture

Downvotes are votes of confidence to a good contrarian. Embrace them.

They Tried to Steal My Gold's picture

AS money is flowing out of US bonds and into riskier assets, GOLD is one of the beneficiaries. Particularly the Miners!


tmosley's picture

Everyone knows what is going on.  This is just the hushed silence as we wait for the knives to come out.

BandGap's picture

And we get the hand job.

yabyum's picture

Gold is winning because it is gold.

whaletail's picture

C'mon now: that transitory 10+ year bull market in gold will fade any day now.-MDB


EL INDIO's picture

Either PMs will rally or Stocks will plunge or a bit of both.

No one knows.

WestVillageIdiot's picture

I'm 100% certain that you could be right or wrong. 

old naughty's picture

Since one doesn't cancel the other, you are two times 100% certain?

bigdumbnugly's picture

And perhaps, just as in 2009, we are about to see real stores of value catch up to equity valuations and continue this outperformance.

that's the word on the street

Mr. Fix's picture

Ya can't hold it down forever...............

Abraxas's picture

Over the long run, gold will always be going inversely to the dollar (or whatever other currency people have). Equities and bonds, not so much. It's not that gold is outperforming, but that dollar is underperforming.

LMAOLORI's picture




So more printing can be expected.


I am wondering if there is a behind the scene's battle brewing again I am not a Gold Bug my preps have just gone another direction. Romney said he would get rid of ben.

A Gold Bug as Secretary of State in a Romney Administration?

Game Changer for Gold


Bay of Pigs's picture

Robert Zoellick? Give it a rest.

XitSam's picture

Robert Zoellick? Former head of the Wold Bank, former managing director of GS, that Robert Zoellick?

4horse's picture

Robert Zoellick
                        is the Crème de la Crème of Washington's elite

the scum also rises

like stinking effete stank behind Monsanto and its GMO cheeesytoes till bubblingup from whatever lafite mouton rothschild which works its way into the upper echelons of every shadowy body and organisation of thinkers and power-brokers you can think of__

the complete stinktanker, he is the ultimate intel-op, agitprop and just complete all-around mission creep 

__4such ratfuck apparatus as Goldman Sachs, PNAC, Bilderberg, CFR, Trilateral Commission, asstReaganTres, Asspender, Enron Energizer, FannyMayor, NAFTAmaster, CAFTAdrafter, Bush2Brain, asstSec2every1worlder, Bank Prez sino-sneaker  Belfer-Petereater of BigIdeas everywhere he's there to brand and saythename sayanim evil*


ZoellickZelikowZackheim all-the-way-back-to Zwack Anthrax manufacturing facts,on-the-ground even dr.philip zack
                                                                           a rothschild utility infeeler tagteammate and freetraitor whose many positions belie the greatest significance of a commission which dare not speak its name peachy keen hamilton










*evil in the world—...People driven by enmity or by a need to dominate will not respond to reason or goodwill. They will manipulate civilized rules for uncivilized ends.”

whaletail's picture

We changed the curtains in our house when we moved in, too. 

Long-John-Silver's picture

GOLD Bitchez!


Sorry! I just had to do it.

Anne Ominous's picture

Warning: Keep safe distance from jet fuel fire to prevent vaporisation.

Dr. Engali's picture

Barbaric relic. Civilized people invest in productive companies.

Doubleguns's picture

If this is a repeat of 09....we are getting QE.

GERxit's picture

It's going up because they can't manipulate it forever!


HardAssets's picture

Yep - - - like driving down the freeway with a busted speedometer. Just because it reads 0, doesn't mean youre not really acceleratiing.

slewie the pi-rat's picture

tyler mentioned this dynamic a day or two ago and he may have nailed it!

keep drinking, tyler!

Money By Trading's picture

I am looking to buy GDX soon.  Charts here:

Unbezahlbar's picture

The PMs have been good to me as has oil (USO, SLV and GLD).  They are all up quite a bit (GLD & SLV over 200% for me) while my house is down 32%.   As purchasing power continues to sink across all currencies, seems that hard assets will continue to rise in response. Sadly, I'm afraid my house is in for 20% more drop...but then again, I bought long before the Bubble Peak and put 50% down so I am simply back where I started.  The zero downers, NINJAs and Flippers are feeling the correction -- i.e., regression to the mean-- the most.


BTW, where is that dapper fellow Mozillo?

loveyajimbo's picture

Here is a news flash:  GLD and SLV are total FRAUDS and you will soon be cleaned out.  Try GTU and PSLV instead.  you are welcome.

Snidley Whipsnae's picture

Here is a news flash for you: if it has counter party risk it isn't gold or silver... it's just more bs paper.

Getting Old Sucks's picture

Like I tell my son who owns GLD.  You own what you're holding.  If it's physical gold, it's gold.  If it's shares in a trust holding gold, it's paper.  He figures he'll get mine.  LOL, it's going to his son. 

Confundido's picture

I don't follow you, Tyler....hmmm the article is simply a tautology, while its title makes one believe that a good explanation will be given.

Snidley Whipsnae's picture

explanation = all mkts now manipulated by central banks, including libor

what is it that you don't understand about this?

...and, no tautology needed.

articles like this are a waste of bandwidth and time.

next up: some jack off hauling out a bunch of bs backward looking charts attempting to convince us that he/she knows what is coming next. Hey, the CBs are making it up as they go so how can some jack off with an arm load of charts know a damn thing?

Money 4 Nothing's picture

Gold *should be at $3,200.00 right now, so techincally, it's underperforming via supression locked in a Bot pre-determind trading range. $1,570.00 - $1,610.00

I still bought 20K of Gold this morning and turned in my Silver holdings ready for SHTF.

Good luck and buy a shovel and a six pack.. 

Snidley Whipsnae's picture

Congratulations! You have just attracted all the drones in your area. Consider yourself surveiled.


smiler03's picture

+1 for the interesting link.

vincent's picture

If you purchased metal on Monday, played golf Tue, Wed, and Thur, and sold today...congrats.