Gold and silver down?

[kpitcher]

I know the attention has been on bitcoin but why are gold and silver taking a hit? Someone must not like alternative currencies.

 

[Keith and stuff]

Partly because the USD is so strong lately. Blame Japan and Europe for causing people to lose faith in their currencies.

 

[Original_Intent]

BT*D

 

[Brian4Liberty]

It might be this press release from Goldman Sachs. Headlines actually have the exclamation point.

When the big manipulators can't short enough on their own, it helps when they can get everyone to do it.

Goldman Sachs: Short Gold!

Goldman Sachs is chasing gold to the downside.

With the precious metal inching closer to a bear market, the firm tells clients that now’s the time to short gold.

Goldman slashed its short- and long-term gold forecasts, a move that comes about six weeks after the firm had already turned even more bearish on the metal.

http://blogs.wsj.com/marketbeat/2013/04/10/goldman-sachs-short-gold/

 

[Original_Intent]

Lol, I am gonna love to see how this plays out in the 3 to 6 month range. Thanks for the link, Brian!

This is just like the opposite of the housing bubble, it will be interesting the day that conventional wisdom runs into reality.

 

[ronpaulfollower999]

Lol....$6 premium if I want to buy an ASE from APMEX.

 

[Zippyjuan]

Gold has been heading fairly steadily down since last September.

http://www.kitco.com/charts/techcharts_gold.html

 

[ronpaulfollower999]

Mario Draghi Orders Cyprus To Sell Gold To Cover Bailout "Shortfall"

 

[dannno]

Gold has been heading fairly steadily down since last September.

http://www.kitco.com/charts/techcharts_gold.html

So you're saying gold is in an anti-bubble?

 

[jclay2]

I don't really give a hoot about the $ price of my gold and silver anymore. I have my ounces as an emergency. Hopefully, I will get to pass them on to the grand children without having to use them.

 

[ILUVRP]

i see lots of margin/maintance calls going out today , also GLD etf dumping to send out money to people getting out.

as far as the charts , the big move in gold started at about $800/oz and went to about $1800/oz , a $1000 move , cut that in half and its $500 , add that to $800 and that sets gold at $1300 .

spot gold prices

jmo

 

[Seraphim]

Yes this is true.

Japan/JGB/YEN are volatile to the Nth degree right now - that has been an international safe haven for 2 decades. Liquidity is REFUSING to sell JGB (counter intuitive and the opposite of what people like Kyle Bass and myself think will ultimately play out).

Instead of selling JGB to get rid of some of that volatility, they are selling other assets to create cash buffers to meet future (and current) margin calls that are the result of this particular volatility.

This is a lot like Cyprus (potentially) selling it's gold to garner more bailout funds.

It may put downward pressure on gold NOW but it places even more downward pressure on the future of the Euro and the balance sheet of Cyprus.

How can it possibly make sense for a bankrupt entity to take on more debt at the behest of selling one it's most stable and liquid assets?

Now the debtor has more debt and less collateral.

Japanese money markets are in the process of making the same sort of mistake.

Why part with your strong unleveraged assets to fund short term needs in debt saturated and structurally damaged assets like JGB?

Irrational as far as I am concerned.

I have not been a buyer of PM's for a while (numerous reasons)...

But if gold/silver start dipping into the 1300/20 range I am a buyer with both fists and as much in each fist as I can.


More on the Japan point:

http://www.zerohedge.com/news/2013-04-12/japanese-bonds-vs-gold-why-commodities-are-selling

This sort of volatility out of Japan is extremely rare and general signals that we're not in Kansas anymore.

i see lots of margin/maintance calls going out today , also GLD etf dumping to send out money to people getting out.

as far as the charts , the big move in gold started at about $800/oz and went to about $1800/oz , a $1000 move , cut that in half and its $500 , add that to $800 and that sets gold at $1300 .

spot gold prices

jmo

 

[Jordan]

The fear trade is over.

 

[devil21]

Contract expiration is approaching. This happens right before expiration every time. They beat down metals to avoid people taking delivery and to cover shorts. Fwiw, other commodities are also taking a beating.

 

[devil21]

Metal dealers sure haven't reacted much. Prices haven't budged, just higher premiums.

Also, there has been more jawboning from the Fed recently about ending all QE by years end. That's bearish for metals in short term. Who really thinks they'll actually stop QE though?

 

[Jordan]

Also, there has been more jawboning from the Fed recently about ending all QE by years end. That's bearish for metals in short term. Who really thinks they'll actually stop QE though?

Me. Not by year-end, but they'll start slashing it sooner than you think.

 

[dannno]

Also, there has been more jawboning from the Fed recently about ending all QE by years end. That's bearish for metals in short term. Who really thinks they'll actually stop QE though?

I wouldn't bet on it, personally.

 

[devil21]

Me. Not by year-end, but they'll start slashing it sooner than you think.

Who then is going to finance the federal deficit? You know the Fed is basically monetizing the entire deficit right now on a month-to-month basis. What do you foresee that would change this?

 

[P3ter_Griffin]

Who then is going to finance the federal deficit? You know the Fed is basically monetizing the entire deficit right now on a month-to-month basis. What do you foresee that would change this?

They will continue buying bonds to keep rates near zero but the $85Bln/month will dry up.

I do think they will end it before this year is up. US banks are sitting pretty with their reserves and they've been able to unload their non-performing MBS on the fed already. Other than pushing markets higher there isn't much left to accomplish with QE.

 

[enoch150]

Oil is also down 3% today. I don't believe that is a coincidence and any theory you have about why gold is down had better also be able to account for the drop in oil.