Copper prices go up ahead of any expected economic growth. I think this copper price reflects a slow down in economic activity world wide.
Posted on 04/16/2013 6:08:57 AM PDT by blam
Gold And Silver Crash - Don't Be An Idiot
Karl Denninger
April 15, 2013
Don't do it folks.
There's no "reflation" trade. Nor is this "manipulation."
There is one thing to watch, and that is if the physical commodity at real, no-BS volume sources de-couples from the futures price. This is a nightmare scenario as it posits the imminent destruction of the capital market structure, since futures are allegedly deliverables.
That is, if I own a gold mine and know I can dig gold out of the ground for $1,200 an ounce "all-in" I will short whatever I'm sure I can deliver over the next year or two into the market so long as the price is over that amount, as it guarantees my profit.
I'm not interested as a miner in speculating on the price. I make my money digging the stuff out of the ground -- doing real work and getting paid in real money. I am singularly uninterested in the speculative fervor or the "gold bug hard money" mania; it means nothing to me at all.
If this relationship changes then -- and only then -- do you get panicky. But then you get panicky about everything, because as soon as you lose the fungible nature of financial products with their underlying assets the market is telling you that the electronic representation of all such assets are about to be marked down dramatically and quite possibly to zero.
The reason is simple -- that fungible nature of cash and financial price means that as soon as one moves there is money to be made by arbitraging the two. If the price of "cash" gold is higher than that of "futures market" gold you buy the futures and notice it for delivery, locking in a guaranteed profit because you can immediately sell it at a profit. Likewise, if the other happens you short the futures and buy the physical, and you pocket the difference when you deliver the gold against the contract. So long as this relationship holds all claims of "market failure" or any sort of conspiracy nonsense are crap.
Today, here and now, despite all the screaming from various people who are trying to fend off the margin clerk such claims are unsupported as there is no such spread of material consequence and thus are utter crap.
Instead, what you're being told today (and have been for a while, if you have been watching the charts, particularly for copper) is that central bank "money printing" doesn't work.
That is, all of that "QE"ing and "printing" has done is inflate financial asset prices in the expectation of actual economic growth. But now, five years into this garbage, we are seeing that exactly as I predicted it has factually done nothing for the broader economy, such as the jobs market, which means that the central banks have done is blown another bubble!
You just heard a "pop."
Ignore it at your own peril.
Copper prices go up ahead of any expected economic growth. I think this copper price reflects a slow down in economic activity world wide.
http://news.goldseek.com/GoldSeek/1365969600.php
“How the gold market was crashed.”
By Bill Downey
Best and most plausible explanation of how the gold price was taken down in a planned “beehive attack.” Very interesting read, and a window into the world of real gold trading. Once again, the physical gold market network/system “froze” and prevented buying back in long after the price had broken support at 1525, triggering automatic stop-loss orders taking it down under 1475. Then the physical gold window slams shut, what a coincidence! Great read.
THX
You bet.
Repost I: Essay on Market Decoupling
(note to those who may happen across this days or weeks after this posting - her postings scroll down continuously as she adds posts - look for the April 14, AD 2013 8:33 PM MST timestamp)
For no particular reason(save the fact that I’m waiting for my car after a recall, at the dealers):
buy low sell high. if the supplies are low, the demands will be high. “you cant cheat an honest man...never give a sucker an even break, or smarten up a chump” WC Fields
That is all. Have a nice day.
Bfl
Yea, the stock markets a way better place to put your money (eye roll).
APMEX is out of us silver eagle one ounce. Physical PM markets are strong as peasants here buy tangible gold and silver. Margins on US Silver Eagles are quite high. Gold coin margins are steady from what I see.
You better believe the Chinese Roooskies Hindus and other are buying tons of physical gold at these bargain prices while Cyprus, Spain and other might be selling off their physical gold which is moving from weak European hands to strong Asian hands
Eagles have been in short supply for a long time.
Just buy another 99.9% silver coin, there are plenty.
You might check out mulligan mint.
I’ll go with manipulation.
The demand in the physical silver market is through the roof.
There is no excess supply of physical silver. With no excess supply, prices should go up and not down.
To me, this is a deliberate pricing blowout to clear the decks, orchestrated by JP Morgan and Goldman Sachs. It tanks the price so the powers that be can load up on physical metals while the price is tanked, in preparation for the next rise.The price of silver and gold is set in London by a very small group, and JP Morgan does the policing.
Look folks, there is no mathematical way out of the debt bubble at this point, nor a way out of the dollar no longer being the reserve currency of the world, because of the former.
Even Stevie Wonder can see which way the wind is blowing.
The rest of the world, the banks and the elites are NOT going to stop buying gold and silver because the price tanked. The paper market has been so manipulated in silver and gold that it does not have any correlation to the physical market.
When you have every major central bank on the planet printing paper to beat the band, there is no safe paper, period. Only hard assets will hold any kind of value.
Don’t be distracted.This is a tremendous opportunity to do so, at much less expense than last week.
Very nice essay. All this stuff is based on the paper gold market (gold ETF whose name I forgot) that’s much more volatile than delivered physical. The Fed’s job is to turn those people into day traders or bankrupt them (most likely both). The ETF gold market has little resemblence to reality where I went last Sunday. Plenty of physical lying around but no firesale prices, just people ordering more physical.
What do you think of 1 oz Silver Canadian Maple Leaf? I consider them just as good since Canada is a next door neighbor. 1 oz Gold Canadian Maple Leaf always go for $20 less than US Gold Eagle
Anything that the guy you’re trying to buy something from will recognize the value of...
Maples would work great.
I’m more into silver coins than gold, though.
I don’t have enough $$ to tie up in “end of the financial world” insurance of gold.
I’m more into the “I’ll need some sort of currency that has value after the crash” mode.
JPM and the Fed are very happy to see thousands of gold and silver longs get get cleaned out in the last few days. This will tamp down the PMs markets for a while partly beacuse people have lost big and are out of betting money
Did JPM and The Fed have a hand in this route? Yes, it would not have been as bad without them. JPM has special trading programs (algorithms) that amplify downward trends/panics in gold and silver. JPM is the Feds agent here. JPM “owns” the NY Fed or let’s just say it has lots of influence on the NY Fed money machine
Latest best rumor (truth?) being there is a tunnel inbetween the JPM and NY Fed Reserve subterranean gold vaults. The ones in that Die Hard movie
Hey Boss..... What I read from Eric Sprott is he likes to query the retail coin shops. They always tell him they sell 50/50 on gold and silver bullion coins. If they sell $10,000 gold coins on Monday they also sell $10,000 silver coins on Monday
rout not route
I’m just telling you the position that I’m in personally.
I’ll give you a general opinion, though, on the respective metals...
Gold is insurance, silver is currency.
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