John Ward June 20, 2013 GOLD COLLAPSES TO FULFIL YESTERDAY'S SLOG PREDICTION

BREAKING – GOLD COLLAPSES AS SLOG PREDICTION FULFILLED IN 24 hrs

Precious metal plummets through $1300

From yesterday’s Slog:

‘Gold is still due at least one more big fall while the manipulators and hedge funds get their post-Armageddon ducks in a row….Two weeks ago, gold was gyrating around in the $1380-90 apartment. It’s now on the floor below at $1350-70. Some time very soon, I expect to see it fall through $1330 and keep going down to the reception area.’

Stay tuned. Let’s see what it does when New York opens.

Earlier at The Slog: Why did everyone miss Osborne’s bailin Weasel at the Mansion House last night?

42Comments

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1

wearedoomed on June 20, 2013 at 11:37 pm

What physical stocks? Where the eff are they? Still in the ground and costing more to extract than their current value?
Question: do gold miners hedge?

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2

supafeckinmingster on June 20, 2013 at 9:45 pm

On top of all of the above……….

http://www.zerohedge.com/news/2013-06-20/greek-coalition-verge-collapse-snap-elections-scenario-returns

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3

KJH on June 20, 2013 at 8:24 pm

@ Mark,
You may have read this but I can’t remember where I referenced it from -it may well have been off this blog:
“In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999: George said “We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.” (GATA, 2003)

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4

kfc1404 on June 20, 2013 at 7:18 pm

No, my friend there is nothing wrong with the ammo market, it is nothing more than the establishment introducing gun control by the back door. (IMHO) After all, the guns are useless without the ammo, aren’t they?

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5

Mark on June 20, 2013 at 6:46 pm

@KJH – Thanks for the interesting link, as regards gold and the Potsdam treaty I did read it somewhere that the 3 victorious western powers as per a secret annex to the treaty would be the custodians of Western Germany’s gold reserves. This was done as a sort of security should Germany rise once again. I cant remember where I read it now (I will try and find it) but it does sort of make sense given that until relatively recently nobody was aware that Germany’s gold was not actually at the Budesbank in Frankfurt. It only became public knowledge after Max Keiser went poking about in Frankfurt in 2008 and a careless bank employee let it slip that it was mostly parked in New York. Its all very interesting and very murky.

@Westmorlander – As regards Brown’s gold fire sale he said at the time that he used the proceeds to buy Euro’s the value of which did initially rise and there really wasn’t that much interest. Only one MP brought the subject up in the House of Commons. Its only subsequently since the financial crises broke and gold’s sharp rise in value (until 2011) that everyone has realised what a colossal mistake it was. Its only since Browns departure from office that he’s really taken any flak for this along with his many other financial crimes. As regards his gold sale it may not have been quite so utterly stupid as has been initially reported.

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6

walrus on June 20, 2013 at 6:27 pm

How low will it go? As low as central banks can push it before the muppets can get their cash together and reach the gold shops to buy physical. My guess is that it will bounce back tommorrow and Monday as the muppets clean out physical stocks.

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7

GREEK LESSON: Never try to reason with rats on the Titanic | The Slog. 3-D bollocks deconstruction on June 20, 2013 at 6:15 pm

[…] ← BREAKING – GOLD COLLAPSES AS SLOG PREDICTION FULFILLED IN 24 hrs June 20, 2013 · 6:15 pm ↓ Jump to Comments […]

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8

KJH on June 20, 2013 at 5:43 pm

Mark,
You wrote: “It would appear that as a part of the reunification of Germany the Potsdam treaty was amended and in the final settlement Germany got the right to reunification, hold her own bullion reserves and ceded all rights to her lost eastern territories.”
Do you have any reference on this? I don’t know of any relevance the Postdam treaty has to your theory. It was concerned about the repatriation of Nazi looting.
This may be of interest though: http://www.globalresearch.ca/where-is-germany-s-gold/25835

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9

Mark on June 20, 2013 at 5:39 pm

That would certainly appears to be true this afternoon gold is taking a bit of a hammering. How low will it go before it bottoms out?

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10

wearedoomed on June 20, 2013 at 5:35 pm

@H
All that glisters is not gold…
…ancient saying yet still true but now complicated by the diametric…
WAD

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11

Bill Casso on June 20, 2013 at 4:19 pm

KFC I have to agree with ZH
I cannot understand how our local stores cannot keep ammo on the shelves the buyers have been demanding more for months. Why hasn’t supply adapted to the demand over this period of time? Why haven’t new manufactures of ammo sprung up? Something is wrong with the ammo market.

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12

Hieronimusb on June 20, 2013 at 4:14 pm

His latest poetic effort gives a clue:

The sprouts are green
And so am I
It is time to go

(:-/

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13

Westmorlander on June 20, 2013 at 4:09 pm

@Mark I’m not wedded to the Telegraph explanation; personally I prefer yours and it makes more sense to defend the BofE rather than a US bank (which presumably would have been looking to US government for help).

Whatever he subsequently did, your explanation of Brown’s motives make commercial (rather than political) sense.

I guess at the time he felt that he could take the political heat for an apparently nonsensical series of actions; however, unfortunately, now it just adds to the mythology of his “incompetence”.

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14

Mark on June 20, 2013 at 3:43 pm

@Westermorland – There are 3 major theories but the only narrative that makes any real sense is what was discussed by Max Keiser and George Galloway. As per usual the MSM are wrong Brown didn’t squander 60% of our gold bullion reserves in order to bail out a foreign bank, he did it to save the Bank of England. It would appear that as a part of the reunification of Germany the Potsdam treaty was amended and in the final settlement Germany got the right to reunification, hold her own bullion reserves and ceded all rights to her lost eastern territories. The BOE did subsequently transfer 1,000 tonnes of gold to Frankfurt following the Brown bottom.

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15

John Ward – BREAKING – Gold Collapses As Slog Prediction Fulfilled In 24 Hrs – 20 June 2013 | Lucas 2012 Infos on June 20, 2013 at 2:43 pm

[…] http://www.hat4uk.wordpress.com / link to original article […]

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16

westmorlander on June 20, 2013 at 2:33 pm

An alternative reason for the selling of the gold at a rock bottom price is given here: http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/

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17

Mark on June 20, 2013 at 2:07 pm

@Matt, – That narrative was discussed at some length by Max Keiser and George Galloway at their public meeting in the House of Commons which is on You Tube. Though it pains me to say (because I truly detest the man) given the circumstances Gordon Brown may have been more sinned against then sinner as regards the 400 tonne gold fire sale. It perfectly explains the otherwise total stupidity of pre announcing the sale and crashing the price in order to get the lowest possible return.
Gordon Brown was getting the Bank of England off the hook.

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18

Matt on June 20, 2013 at 1:55 pm

A covered call: this strategy is the definition of fragile – you have maximum losses of the stock price minus your call premium here if it tanks! Which it more than likely will do if the sell-off you are talking about materialises. It’s down 3.5% today alone.

Why not just buy a call if you think it’s going up? Your downside risk is then limited to the cost of the option, whereas your potential upside is unlimited.

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19

MaxC on June 20, 2013 at 1:44 pm

A question asked in all innocence … where does this leave Van Rumpoy and his assurance that the Euro’s “existential crisis” (whatever the hell that means) is over?

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20

Matt on June 20, 2013 at 1:20 pm

Er… buy? Not sure what “delivery costs” etc. get added to your bill on that..

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21

Matt on June 20, 2013 at 1:19 pm

Quite so – the price of 100g gold bars here appears to be approx $1200 /oz.

http://www.bullionstore.co.uk/gold-bars.php

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22

william on June 20, 2013 at 1:18 pm

@TRG.’The party is about to begin,The sell off, if it happens,will be short and sharp.Stand buy for the best buying opportunity since 1982′.Tell Matt he can buy at 1416p and sell a December 2013 £16 call at 37p.The world is not coming to an end:the Chinese banking system is, on the other hand,’kaput’.

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23

The Real Gemz on June 20, 2013 at 1:08 pm

The party’s over.
Worse to come.
Stand by for the last buying opportunity of the decade….

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24

Matt on June 20, 2013 at 1:03 pm

Interesting narrative you got there..

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25

Hieronimusb on June 20, 2013 at 12:54 pm

A+greed, and the exponential acceleration in manipulative behaviour made possible by new technology brings us to where we are now – up turd creek with no visible means of delivery.

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26

maxter on June 20, 2013 at 12:43 pm

+1

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27

Chris Loughrey on June 20, 2013 at 12:32 pm

EQUITIES ARE A FREE MARKET, WITH NO MANIPULATION AT ALL. COME ON IN, THE WATERS FINE!

NB: this comment has been moderated by your friends at the federal reserve and the NSA. Have a nice, law abiding day!

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28

Chris Loughrey on June 20, 2013 at 12:30 pm

They pledged their souls to satan and spent 100 years committing financial atrocities in every nation on earth. That’s how they got there. By being utter turds and spilling blood through economic manipulation.

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29

Chris Loughrey on June 20, 2013 at 12:26 pm

Market manipulation, heavens forfend. Surely not from our central banking masters, glistening man-gods that they are!

Paper is all it is at this stage. I double dare anyone to actually buy the real stuff, privately, for anything close to these prices.

Bernanke’s double speak (or to use its technical name: “bulls**t”) from yesterday seems to have pushed the world into full on liquidation mode. Everything’s being sold, though I wonder if the S&P will finish magically green today! ;)

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30

Richard Dickson on June 20, 2013 at 12:26 pm

Maybe gold will fall to a level when perhaps The UK can partially replenish it’s Gold Reserves so depleted by Gordon Brown – even at a “premium” price and less bullion replacing that which the stupid idiot sold .

Who of you have forgotten that what goes up comes down? Every cycle comes to an end just as night follows day. It is the wise man who knows when to take a profit. As that very wise Mr Rothschild said,’no one ever went broke taking a profit.’ That was back in the 1870’s, look where his family are now.

Richard Dickson

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31

Mark on June 20, 2013 at 11:59 am

Most of our gold ended up in the Bundesbank in Germany which is hardly surprising given that the real reason for the fire sale in the first place was the fact that the Bank of England had been storing 1,000 tones of German Gold which in 1999 they demanded back (This arrangement of German Gold being stored overseas appears to have been part of the original Potsdam treaty, gold also being stored in France and the USA).
It would appear the Bank of England didn’t actually have it so crashed the gold price in order to buy it to fulfil their obligations. German gold has also been repatriated back from France. The USA now finds itself in the same position with the Germans demanding the return home of their US stored gold holdings as the central banks no longer trust each other. Anybody detect a little bit of history repeating?

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32

Matt on June 20, 2013 at 11:42 am

More on pairs…

http://www.investopedia.com/articles/trading/04/090804.asp

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33

songsofadoration on June 20, 2013 at 11:41 am

http://www.stevequayle.com/index.php?s=33&d=383

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34

Robin Banks on June 20, 2013 at 11:39 am

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/20_Stunning_Volume_On_Gold_%26_Silver_Smash_In_Suspect_Trading.html

Interesting take on gold market moves. We know that JPM had about 4 tonnes of physical gold left at the beginning of the week.
I would like to see gold below $1200 an ounce because this becomes the point at which it becomes unviable to mine. Now the Chinese government mine 300 tonnes a year. Why bother when it becomes cheaper to buy it straight from COMEX. The only problem is they have only 240 tonnes left which isn’t much use when China brought 1000 tonnes of physical in the first 5 months of the year.

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35

Matt on June 20, 2013 at 11:37 am

I don’t trade stocks tbh, but I wouldn’t be a buyer, just from looking at the chart alone – not much to go on for the bulls.

But you could perhaps look at some kind of pair trade (the original hedging) – buy STAN.L and sell an equal amount of RBS.L or similar donkey – if you were so inclined.

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36

Matt on June 20, 2013 at 11:31 am

Everyone?

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37

satyrikon on June 20, 2013 at 11:27 am

Reblogged this on ΝΕΑ ΧΩΡΙΣ ΦΙΛΤΡΟ ΦΕΛΛΟΥ.

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38

ralfellis on June 20, 2013 at 11:22 am

Despite the precipitous fall, Gordon Brown could still have done better at these levels.

Did anyone find out who bought our gold, and made such a killing on it?

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39

kfc1404 on June 20, 2013 at 11:08 am

Chris, as ZH reported yesterday, there are no free markets anymore.

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40

william on June 20, 2013 at 11:07 am

At 1416p,Standered Chartered,no balance sheet problems,strong presence in the right areas,geographically,are a steal compared to gold.

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41

Matt on June 20, 2013 at 10:52 am

Reading the latest Taleb, Antifragile, atm.

Recommended reading – or as he would have me say, utter tosh that you would better not waste your time & money on.

One of his central points – and indeed the successful philosophy behind his investing thus far – is that we are very bad at predicting things, especially when it comes to the economy and financial markets.

Therefore the only logical thing to do is to be robust to shocks – or volatility in market parlance – or, better yet, be anti-fragile – someone or something that benefits from volatility.

He goes into the details of how to achieve this, but in essence it’s all about exploiting asymmetries: define your downside, while exposing yourself to much larger potential upside. One financial example of this would be buying options, so long as you don’t overpay for them.

N.B. the banking system is most definitely fragile and will in the fullness of time implode – but then you knew that anyway.

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42

chris loughrey esq on June 20, 2013 at 10:42 am

It’s the fundamentals. Apparently.

Not bare faced manipulation during the London AM fix. Not at all.

So tired of these “free markets”. I’m practically cheering for the apocalypse at this stage.

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