The Global Financial Markets Are Getting Annihilated (No Safe Havens Anywhere, Not even Gold)

Business Insider ^ | 06/20/2013 | Sam Ro

[SeekAndFind]

The entire global financial markets are selling off sharply today.

U.S. stock markets are getting slammed early in the trading session. The Dow and the S&P 500 are down by over 1.5%. This follows major sell-offs in Europe and Asia earlier today, and it extends yesterday's U.S. market sell-off.

Globally, investors are digesting two big headlines:

Fed Chairman Ben Bernanke suggested that strengthening economic data could enable the Fed to start tapering, or gradually reducing, its stimulative bond-buying plan. China reported that manufacturing activity was decelerating at a higher clip than expected in June.

China is the world's second largest economy and it is also a key source of global economic growth. The first headline seems to be fueling strength in the dollar, while the second could be exacerbating the rout in commodities.

Oil is down 2.6%

Gold is down 5.2%

Silver is down 6.3%

Treasury rates are rallying, which means U.S. bonds are getting slammed too. The 10-year yield is at 2.40%, up 5 basis points from yesterday's close. It was as high as 2.47% earlier today.

In fact government bonds are selling off around the world:

French 10-year yields are up 12 basis points to 2.22%

German 10-year yields are up 9 basis points to 1.65%

Swiss 10-year yields are up 18 basis points to 0.90%

Swedish 10-year yields are up 14 basis points to 2.13%

Indonesian 10-year yields are up 56 basis points to 4.76%

Russian 10-year yields are up 46 basis points to 4.14%

Turkish 10-year yields are up 46 basis points to 4.60%

Mexican 10-year yields are up 17 basis points to 3.76%

Brazilian 10-year yields are up 14 basis points to 4.11%

[agere_contra]

Don’t feel sorry for us Gold and Silver-bugs.

I am 20 Kg richer than I would otherwise have been, thanks to the shenanigans at the COMEX.

If silver stays this low I will buy more of it on payday.

[cicero2k]

But, but, but the guy on the radio said silver was gonna double.

Reminds of 1980. Gold hits $800 per ounce. The talking heads said it was a temporary pullback and the $800 level would be eclipsed.

They were right.

Eventually.

If you lived long enough.

[Windcatcher]

The safe havens will have to have intrinsic value. Earlier this year I took a hunk of my savings and bought a house—for cash, fully paid-for. We all can see where Bernanke’s printing will lead and it was time to get out of cash.

[John W]

Down 297.37(1.97%) 2:50PM EDT

[John W]

Down 349.48(2.31%) 3:00PM EDT

[Neidermeyer]

Reminds of 1980.
**********************
Sure gold fell after 1980/81 ,, we had Reagan and stellar economic growth , interest rates falling from 17/18% for a 30 year mortgage down to 7% ,, taxes cut , exports zooming ...

Sounds a lot like today huh?

Gold will always be a good store of wealth because it is convertible into ANY other currency,,, does anyone really care if your coins originated in South Africa or Austria or the USA ? nope .. it’s all GOLD.