GOLD PLUMMETS - SPOT CHART

http://www.kitco.com/charts/livegold.html ^

[Fitzcarraldo]

Source: www.kitco.com

[StriperSniper]

Duh! See POST#9

[pabianice]

Stock market popped-up upon seeing several telecom pirates being led away in chains on TV this morning...

More than coincidence?

[Consort]

No problem.

[Frumious Bandersnatch]

No, they had it up to over $40.00 per ounce.

[Fitzcarraldo]

Look at those price oscillations during the New York window on the 22nd, as if someone was
establishing the control parameters.

[Mr. Jeeves]

The Powers That Be are trying very very hard to save JP Morgan and Citigroup. Once gold hits $332, JP Morgan will likely have to default on its gold derivative (short) positions, meaning they will need the biggest bailout in world history to stay alive.

[monkeyshine]

Yep, and the Hunt Brothers nearly lost all their money trying it.

[steve50]

Not sure hutch. Think it was in the early 80's or so. I was way to busy then to pay alot of attention to it.

They were pretty big players in several markets tho IIRC, so I doubt if they did any real time for it

[Travis McGee]

It looks like the PPT did manage to swing the gold market yesterday to save the banks, (for the moment), as we discussed last night.

[Fitzcarraldo]

Once gold hits $332, JP Morgan

Can we figure out who is selling all this gold? If JPM is doing it, how much do they have left to manipulate the price from going over $332?

[steve50]

Didn't see the thread this morning but I think Citibank is one of the players the rumors say could get hurt in this.

[weaponeer]

was the amount of gold value stored in vaults at WTC and now ash have any significance these days?

I read somewhere that the gold in the WTC was recovered (under heavy guard) and somewhat melted! Actually it couldn't turn into ash, as it is an element. It's pretty hard to destroy gold, unless it is actually vaporized and dispersed. That's one of the reasons it is so regarded as a store of value

[Procyon]

$16 Trillion? I think not. How much gold has been mined in the whole history of the world?

To get at some kind of estimate, let's figure that the world has been producing gold at 50 million ounces a year for 200 years. That number is probably a little high, but when you figure that the Aztecs and the Egyptians produced a fair amount of gold for a long time, it's probably not too far off. Fifty million ounces * 200 years = 10 billion ounces.

Paragraph above came from a Google.com search. 10 billion times $300 = $3 trillion. And not all of it is for sale.

[Mr. Jeeves]

Can we figure out who is selling all this gold?

I expect foreign governments and corporations, some of which are taking profits, some of whom are acting because the Fed is calling in favors. A JP Morgan collapse would signal the start of another Great Depression, so many surprising entities might act to prevent it.

[Poohbah]

The penalty was that they lost their shirts. Some big investment houses that backed their play managed to lose money (the total was in the billions of dollars).

[Mr. Jeeves]

$16 Trillion? I think not.

JP Morgan has over $23 trillion in total derivative exposure. They are leveraged 700-1 against their equity. I'm not sure how much of that is gold, but their gold exposure is many times the value of the total amount of gold in existence in the world. That's the game they've been playing over the years, and it has caught up with them.

[aristeides]

I think leveraging can result in your having a debt that is much larger than corresponds to anything in reality. And a lot of derivatives are highly leveraged.

[joesnuffy]

That's a "plummet"?...

[aristeides]

If Morgan and Citi bet all this money that the price of gold would not go too high because they believed the market was rigged, who would take the other side of the bet? If the bet was one that could only be won if Morgan and Citi went down (and probably not even then,) why make the bet?

[steveegg]

I guess the market is reacting to the news that all is being cooked according to the RAT plan.