And Gold Is Down $500

Let me see if I've got this straight...

In late August and early September of 2011, gold peaked at a price just north of $1900. It is now May of 2013. In the 20 months since, we've seen:

  • Total U.S debt increase by $2,000,000,000,000. And yet gold is down $500.
  • A pegging of the value of the Swiss Franc to the euro. And yet gold is down $500.
  • The collapse of MFGlobal and outright theft of client assets. And yet gold is down $500.
  • Civil war and revolution in Tunisia, Egypt and Syria. And yet gold is down $500.
  • The expiration of "Operation Twist", leaving The Fed's balance sheet with nothing but longer-term treasuries and near-worthless Mortgage Backed Securities. And yet gold is down $500.
  • The re-election of Barack Obama ensured a continuation of his Keynesian-inspired, virtually limitless deficit spending policies. And yet gold is down $500.
  • The Fed announces that it will create from thin air $40B per month in order to fluff the balance sheets of Primary Dealer banks. The Fed will create this $40B and exchange it or near-worthless CDS at a full price, $1:1 rate. And yet gold is down $500.
  • The U.S eked out a measly 2.2% in GDP growth in 2012 and will not likely see even that much "growth" in 2013. And yet gold is down $500.
  • The U.S Labor Force Participation Rate has fallen to the lowest level since 1979. And yet gold is down $500.
  • In December of 2012, The Fed announces that they will resume the direct monetization of U.S. debt, to the tune of $45,000,000,000 per month. And yet gold is down $500.
  • U.S. interest rates have fallen to historic lows, with the 10-year note yielding just 1.63%. And yet gold is down $500.
  • The U.S. Congress voted to suspend their subjectivity to the "debt ceiling". Therefore, they are not currently bound by a single spending constraint. And yet gold is down $500.
  • In Cyprus, bank depositors are informed that, as a matter of fact, their deposits are NOT insured and that they will be subject to losses ranging from 10% to 100%. This clearly sets a template for future eurozone bank insolvencies. And yet gold is down $500.
  • The S&P 500 has rallied over 30%. And yet gold is down $500.
  • China officially imported through Hong Kong 835 metric tonnes of gold in 2012, up 94% from 2011. And yet gold is down $500.
  • The Shanghai Gold Exchange has allocated and delivered over 1000 metric tonnes YTD in 2013. And yet gold is down $500.
  • The Shanghai Commission of Commerce reports that retail gold and jewelry demand is tracking 108% higher over 2012. And yet gold is down $500.
  • China establishes multiple, direct global currency swap agreements and its finance ministers are quoted as expressing approval of a new gold standard. And yet gold is down $500.
  • India imported nearly 800 metric tonnes in 2012 and looks to import another 600 metric tonnes in 2013. And yet gold is down $500.
  • For the first four months of 2013, reports out of London indicate daily allocations and deliveries of 15-25 metric tonnes. And yet gold is down $500.
  • Comex gold inventories have sunk to levels last seen in 2008 and total registered gold is just 65 metric tonnes. And yet gold is down $500.
  • Comex gold deliveries for February and April 2013 exceed the combined total of all six delivery months in 2012. And yet gold is down $500.
  • Germany announces a plan to repatriate some 700 metric tonnes of gold from storage in France and New York. Curiously, it will take over seven years for this plan to be completed. And yet gold is down $500.
  • In April 2013, the U.S. Mint sold 209,500 ounces of gold, more than 10X the amount sold in April of 2012. This is also more than the combined sales of April 2010, April 2011 and April 2012. And yet gold is down $500.
  • Year to date, The Mint has sold 502,000 ounces of gold. This is a run rate of 1,500,000 ounces. This is double the total for 2012 of 753,000. This is 50% more than the total for 2011. And it puts 2013 on a pace to exceed 2009 as the biggest selling year ever. And yet gold is down $500.
  • The Japanese government has set out on a course to significantly devalue the Yen. In just the past seven months, the Yen has fallen in value by nearly 30% when compared to the U.S. dollar. This at a time when the U.S. Fed is actively devaluing the Dollar by creating from whole cloth 85B new dollars each month. And yet gold is down $500.
  • Interest rates on German bunds hover near zero, at times going negative. And yet gold is down $500.
  • The price of a barrel of crude oil is up about 15%. And yet gold is down $500.
  • Yesterday, the FOMC indicated that they were "prepared to increase or reduce the pace of its purchases". This is the first time The Fed has stated that $85B/month may not be enough and that QE∞ may soon "increase", instead of diminishing and ending. And yet gold is down $500.
  • Today, the ECB indicated that they have "an open mind toward a negative deposit rate". This means that, soon, eurozone depositors and savers will have to pay the banks for the luxury of having the banks hold their deposits for them. And yet gold is down $500.

I think I'll just stop there. As you can see, despite this list of overwhelmingly positive fundamentals, the fiat-conversion value of gold has fallen by nearly 25% since August 2011. What happened then and why is that date so important?

  1. The U.S. credit rating was downgraded by S&P to AA+.
  2. The U.S. "debt ceiling debate" demonstrated to the world the complete unwillingness of U.S. politicians to harness runaway fiscal and entitlement spending, guaranteeing continued and endless dollar devaluation.
  3. The pegging of the Swiss Franc to the euro left the world without a single, responsible fiat currency. As such, the only remaining "safe haven" currency became gold and this left gold in final and direct competition to the existing fiat currency structure. 

So, now, you are left with a choice. Are you a thinking person OR are you part of the mind-numbed masses? Do you trust your own accumulated wisdom and instincts OR are you easily persuaded by the bureaucrats and their agenda-toting media accomplices? Will you remain steadfast and recognize these events for what they are OR will you capitulate and succumb to MOPE-induced doubt?

If you are who I think you are, then I look forward to seeing you back here tomorrow. It's BLSBS day again and the action is certain to be volatile. Have a great day.

TF

446 Comments

Istack's picture

Observation

It seems to me that the only people that are really going to put the pressure on this thing are those who are stacking without any intention of selling anytime soon.  Steadfast stackers who only purchase for the longterm.  I am stubborn enough and young enough to wait ten years or more if I have to.  Until then I will try to encourage more and more people to be as stubborn as I am.  Keep Stacking.

Zoltan's picture

Second

Second!

I know it is juvenile but it still feels good.

Z

thesandbox's picture

timing

is

everything

.....opened up this morning just now and what do you know....I had been logged out and had to log in....then had to edit due to no comment and now I end up with Brozne.   Seconds do matter....but so do turds.  ;)

silver66's picture

I won't say 2nd

just a good articlewink

Silver66

edit --or 4th

Bollocks's picture

Nice list Turd

I shall put it to good use smiley.

JimmyTheHand's picture

Thanks Turd

I now have a new printout to put up in my office!  Awesome post!

dgstage's picture

What will be the lows this week

Anyone want to guess?

Mr. Fix's picture

Eight,

Speaking of that,  I'm hungry, it's time for lunch.devil

Until the paper market collapses, the fundamentals will continue to be meaningless.

I absolutely will not sell for dollars, at any price, I believe that is also in the process of collapse.

Now, I will go about being juvenile, and eating my lunch, and educating myself on the world as it is,

while preparing for what will be. 

 By the way, there are plenty of geniuses in "Turdville" who have this well figured out.

The rest are learning quickly. This is an excellent place to be in times like this.

Thank you for the friendship and discussion, some things you just can't put a price on.smiley

TomMack's picture

i thought it was $5000

phew!

Galearis's picture

Up there and juvenile too

Yep.

G.

thesandbox's picture

Negative deposit rates....

Just thinking about the whole negative deposit rate rational going around....sounds like the same thing as Cyprus but worded in a much more pleasant, positive, economically spun way.   We will just keep skimming off the top and you won't even notice it...I promise.

whopper's picture

rigged game

what a corrupt system. Glad I don't pay into it. 

boil_in_the_bag_rice's picture

Top post

Great stuff Turd, that list really brings it home.

Gunrunner's picture

Great info Turd

Just recieved in the last week ten, ten oz bars of AG.  I am enjoying this firesale...:)

Road_Scholar's picture

Head in the sand

Sheeple:

head-in-the-sand1.jpg

Owtovit's picture

FRN or Tax exemption through use of lawful money to END THE FED!

Public money vs private credit http://stormthunder.com

United States Notes v FRN's

Perhaps Cali Lawyer can check the validity of this, folks in the comments section seem to have had success

GuerrillaCapitalist's picture

Frankly I'm Speechless

Anyone who knows me knows, speechlessness is not one of my traits.

It's as plain as the elephant in the room that the system is imploding. Now is not the time to be fearful of one's choice to stack and prepare. Metals are still on sale if you can get them. Stack, prepare and build community, it's our only hope to make it through the shit storm building in Washington, New York and London.

Thanks, once again to our dear mayor, the honorable Turd for standing up and shouting truth to power and allowing the rest of us to feast at this place of refuge and knowledge.

Enough dithering, farm chores call.

ancientmoney's picture

All that, Turd, after Bron Suchecki said this . . .

in previous thread:

"I believe in manipulation but not suppression. One is short term, the other long term."

------------------------------------------------------------------------------

That statement was in response to Tabberto, who stated that Suchecki doubts the manipulation meme.

How can one believe in manipulation, but not suppression?  Your compendium, which I am going to print off to save, discusses gold.

Gold is currently at about 180% of its 1980's all-time, previous high (previous to this bull market since 2000).  So, maybe Suchecki has a case here, since long-term gold is still up, so his non-suppression argument could be defended a bit . . .

But, what say he to defend his argument in silver?  Silver is at about 50% of its 1980's era high.  Billions of ounces LESS useable silver now exist on earth than then.  Inflation indicates a price of $100 should exist today, and that does not even account for the missing billions of ounces.

I just do not know how these self-proclaimed "experts" in the PMs can make such asinine statements when the pure facts make them stupid on their face.

Hagarth's picture

producing at a loss

Author: Paul Burkhardt
Posted: Thursday , 02 May 2013

(Bloomberg)  - 

"Impala Platinum Holdings Ltd., the world’s second-biggest producer of the metal, said more of its shafts are producing at a loss as prices decline and costs rise."

"Average costs increased 23 percent to 15,957 rand ($1,766) an ounce for the nine months through March from a year earlier, Implats said. Output climbed 12 percent to 1.21 million ounces compared with a year ago..."

http://www.mineweb.com/mineweb/content/en//mineweb-fast-news?oid=188625&sn=Detail

ratioarbitrage's picture

@Mr Fix re charting physical

I have given up on the schmaper feeds for silver and now record the cheapest 100 oz bar on comparesilverprices.com. The 'green price'. This I see asthe best proxy for the physical price since it is most easily arbed against 1000 oz inventory. You could chart that. It changes all day but volatility is quite low.

For gold I still review the spot because my LCS maintains a cash premium policy over spot gold for specific coins.

Nana's picture

$500 Reminded Me Of This, LOL

Gold Dog's picture

Seems...

....logical to me!

I too, am very much enjoying this sale on PM's. I do hope that the idiots and HFT systems gives gold another old smasharoo!

Perhaps after tomorows numbers Captain Ferguson can rewrite this with a down $900 tag line.

Dog

Shyte- I'm going to need a bigger truck!

AlexCojones's picture

Brilliant Effing Post, Mr. Ferguson - Gold = Whipping Boy

Turd Sir:
    Had to read and re-read your post today; it was truly THAT good. Wish I had written it myself. Please PM me where I can mail a small contribution to Fergusonia via post, since I possess no CCs. 

And have you noticed (I'm sure you have) all the times "Gold" is scoffed at, derided, laughed at, disdained and impugned by the mainstream media in the past 20 months.  What are they trying to accomplish? One would think Gold is utter rubbish, if one heeded only the MSM.

  Gold has been so completely "Blown Up" that most uninformed people are still in a state of shock. 

  But then the Sudden Collapse looked "So natural," according to all the so-called government experts, media perps and armchair patriots, that nothing more ever need be said. 

   So I had to use this photo to adequately compare what actually happened in a similar case. One need never apologize, for the sake of the truth.

                        AC - Veteran, First Responder, Truther & Constitutionalist

Bill of Rights's picture

Any speculators feeling brave

Any speculators feeling brave today?

Junior mining stocks see record insider buying - The Globe and Mail

FTA:

The gold sector is clearly driving a lot of the buying enthusiasm. The INK Gold Stock Indicator – which tracks insider buying on all Canadian-listed gold stocks and is heavily influenced by junior miners – has now surpassed its March high and is over 1,000 per cent, according to Mr. Dixon. That’s more than 10 stocks with key insider buying for everyone with selling.

Hagarth's picture

Confluence of events

Yes, Unremarkably Mr. Ferguson has been paying attention, pointing out everything that is wrong.

Thanks....indecision

Charles S. Hamlin's picture

The world according to Bix...

It's been a very wild ride in silver as we have been put through an extremely arduous learning process over the past few years but it's now official...
 
The Manipulation of Silver is OVER!!!!
 
Congratulations to everyone who now understands what just happened. The failure of the computer rigged silver pricing mechanism on the COMEX and LBMA has shaken the world AWAKE! The latest market rigging slam was met with massive physical buying around the world and the buying continues unabated. There is NO LONGER anything that can stop physical silver from it's rightful place in our global monetary system. Silver is MONEY first and an industrial commodity SECOND!
 
The total and complete failure of the #1 silver manipulation tool in the hands of the market riggers, the artificial electronic silver pricing scheme, has now made that tool irrelevant. The world is now buying physical silver on the ups, downs and sideways moves in the electronic price and will continue to do so!
 
THE SILVER MANIPULATION GAME IS OVER.
 
So what happens now? With physical silver removed from the bondage of artificial pricing should we expect moves up or down on the electronic exchanges...or does it even matter? Silver pricing in these electronic markets at $0/oz or $1M/oz will be ignored by the awakened silver investors as they won't part with their physical silver at any price. Basically, understanding of the fraud will be the motivator at $0/oz and fear of total collapse will be the motivator at $1M/oz.
 
The electronic price of silver is now irrelevant.
 
I have long said that our global fiat monetary system cannot survive if silver was allowed to be traded freely so I guess that's where we are headed now...THE END OF THE GLOBAL FIAT MONETARY SYSTEM!
 
Bravo to those of you newly awakened and bravo to those of you who have understood it all along.
 
I am now going back to the traditional RoadtoRoota format so no more daily Silver FREEDOM Updates but there are many more battles to be won on this Road.
 
Tomorrow's Friday Road Trip will lay out some of the bigger ones.
 
Feel free to buy physical silver at will now...it is FREE FROM MANIPULATION!
 
May the Road you choose be the Right Road.
 
Bix Weir
John Galt's picture

Rope a Dope

Turd - After reading your post I am reminded of the famous fight between Ali and Foreman, which Ali won by employing what he called 'Rope a Dope'.

In that fight Ali (stackers) held back and remained patient while Foreman (EE) threw punch after punch and won round after round, before tiring himself out and running of ammo.

Although Foreman won most of the early rounds based on punches landed what mattered to Ali was winning the war, not every battle.

Stackers could take a cue from Ali's strategy here, namely be patient, protect your head (stack), stay in the game and be prepared to take punch after punch before this is over.

This PM fight goes 15 rounds, and we're only in round 5 or 6 now.

ancientmoney's picture

@Alexcojones . . . nice comparison . . .

of collapses.

It is truly amazing how the mainstream media in its complete and utter duplicity can fool almost all the people all the time.

Over and over and over. I'm thinking of making up the list of false flags just since 9/11/01 that the media NEVER questioned the authorities about.

meegoreng1's picture

Great post Turd

This proves the EE is in control and will always be except for one exception: SILVER! 

While they can manage the price of all precious metals now, the fundamentals for silver is screamingly in our favor. Not so for gold. Central banks around the world, many of them part of the EE can easily release their thousands of tons of gold reserves over time to control the ascend of gold for the next few years and maybe more than a decade but they can't do so with silver cause they don't have much or any.

The demand for silver has overwhelmed supply for years now. The EE is in a dilemma as they can't supply more of it from their 'totally controlled' silver mines.

SILVER IS OUR ONLY WEAPON AGAINST THE EE!

I can see the price of silver going triple digits and more while gold remain at $2000 and below.

The GSR in my opinion is the most important data we have. Until we see the ratio turning in favor for silver, the EE is in total control of all precious metals!

Gold Dog's picture

At some point...

...along the journey we will likely see some deflation as the shadow banking system tries  to unwind itself.

My opinion is that this will be met with Japan style printing which will blow the seals on everything.

We are currently seeing a sort of schizophrenia with some things increasing and others decreasing in price.

My belief after studying other collapses is that the cat will jump both ways before it is over.

I AM Turd!

Dog

Syndicate contentComments for "And Gold Is Down $500"