Thread: “Watch The Metals, When They Dip. Its An Indication That Things Are About to Happen

Flashback: Warning: “Watch The Metals, When They Dip. It Will Be A Good Indication That Things Are About To Happen.”

Mac Slavo
April 15th, 2013
SHTFplan.com
Comments ( 88 )
Read by 6,743 people

As of this print the price of gold is reaching fresh two year lows, down nearly 25% from its all time high just six months ago. Though uninformed onlookers and financial pundits may see this as the popping of the proverbial gold bubble, the velocity and scale of the take-down in precious metals suggests that there is a massive assault in the works. According to former Assistant Treasury Secretary Paul Craig Roberts, last Friday’s price drop was the result of some 500 tons of gold being dumped onto paper markets, an amount equal to about $25 Billion dollars worth of the metal. Likewise, silver saw a similar dump and price drop. Moreover, the very same thing is taking place this morning, suggesting that some very large and influential market makers are involved.

Who has that kind of money and can afford to lose it in naked short positions? According to Paul Craig Roberts, “only a central bank that can print it.”

Thus, one must assume that this is not a natural effect of the free market, but rather, a coordinated attack on the global precious metals exchange orchestrated by our very own Federal Reserve, an organization run by a board of directors that includes representatives from some of the world’s largest banking institutions.

What’s most alarming about the collapse of gold and silver is that it was predicted in December of 2012 by a Department of Homeland Security Insider. In an interview with Doug Hagmann at the Northeast Intelligence Network, the insider warned that life for the average America would change drastically, and soon, and that this change would be preceded by various events, one of which is a major dip in precious metals:

They already are in motion. If you’re looking for a date I can’t tell you. Remember, the objectives are the same, but plans, well, they adapt. They exploit. Watch how this fiscal cliff thing plays out. This is the run-up to the next beg economic event.

I can’t give you a date. I can tell you to watch things this spring. Start with the inauguration and go from there. Watch the metals, when they dip. It will be a good indication that things are about to happen. I got that little tidbit from my friend at [REDACTED]

(full interview)

If we were to assume that this 25% dip amounting to some $50 billion just over the last two days could be the the precious metals “dip” referred to by the DHS Insider, then we must likewise assume that some very serious events are on the horizon.

To what end?

That remains to be seen, but if the US government’s war-gaming of economic collapse and civil unrest is any guide, we may be looking at the worst case scenario many have feared – an engineered collapse of our financial and economic systems leading to the centralization of control through implementation of martial law across America.

Sound far-fetched?

Perhaps. Unless of course you’re part of the Congressional membership that was explicitly warned of this very possibility at the height of the 2008 crisis:

Many of us were told in private conversations that if we voted against this bill on Monday, that the sky would fall, the market would drop two or three thousands points the first day, another couple thousand the second day, and a few members were even told that there would be martial law in America if we voted no.

House Representative Brad Sherman (D-California)
Debate on the House Floor, October 2, 2008

[video source]

http://www.youtube.com/watch?feature...&v=HaG9d_4zij8

Do you really think they saved the system back in 2008?

According to SGT Report, those involved in the take-down of gold and silver may not been done yet, as the unrelenting push against precious metals proves once again that the arrogance of criminal cartels behind global financial market manipulation continues.

We once opined that you should expect exactly such an event - a mega drop in precious metals – to take place and that you’ll hate your gold so much you’ll want to spit on it.

But consider that in the 1970′s, as gold assailed to its eventual all-time highs, it washalved in price at least once over the ten year period that it rose from double digits to over $800 per ounce.

During times of uncertainty, irrational events will occur. This is inevitable.

Don’t let the hype and manipulation change your long-term preparedness plans.

Consider what is money when the system as we know it collapses, and continue to acquire those hard assets that will retain value and barterability.

The worst is yet to come.

http://www.shtfplan.com/headline-new...ntent=FaceBook

http://drudgereport.com/

DOW skids -266...



GOLD PLUNGE...

Investors Bail Amid Collapse...

'PANIC EVERYWHERE'...

Worst two-day loss since 1983...

LIVE...

FOREIGN HOLDINGS OF US DEBT TO $5.7 TRILLION...

We Have A Hindenburg Omen Sighting

Submitted by Tyler Durden on 04/15/2013 18:19 -0400

Remember when the last time a cluster of Hindenburg Omens nearly toppled the market in August 2010 and the only saving grace was Ben Bernanke's QE2 announcement at Jackson Hole which sent risk soaring? Today, nearly three years later, we got the first instance of the Omen again. Will it be a one-off fluke, or a cluster, which is needed to confirm this dreaded technical formation? Stay tuned in the coming days to find out...

The last cluster was Aug 2010 (and was only saved by Bernanke), the previous cluster was Oct 2007 and we know what followed...(red bars are Hindenberg Omens)



Full details of construction here.

http://www.zerohedge.com/news/2013-0...-omen-sighting

bttt

What Happened The Last Time We Saw Gold Drop Like This?

Submitted by Tyler Durden on 04/15/2013 11:59 -0400

The rapidity of gold's drop is impressive, concerning, and disorderly. We have seen two other such instances of disorderly 'hurried' selling in the last five years. In July 2008, gold quickly dropped 21% - seemingly pre-empting the Lehman debacle and the collapse of the western banking system. In September 2011, gold fell 20% in a short period - as Europe's risks exploded and stocks slumped prompting a globally co-ordinated central bank intervention the likes of which we have not seen before. Given the almost-record-breaking drop in gold in the last few days, we wonder what is coming?




This is what it looked like in Q3 2008...


and in 2011...


and now...



and it seems safety is bid dramatically elsewhere as 2Y Swiss rates plunge 4bps to -7bps - their lowest in 4 months...

Charts: Bloomberg

http://www.zerohedge.com/news/2013-0...-saw-gold-drop

Gold Crush Started With 400 Ton Friday Forced Sale On COMEX

Submitted by Tyler Durden on 04/15/2013 09:41 -0400

On The Forced Sale...

Via Ross Norman of Sharps Pixley,

The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.
Two hours later the initial selling, rumoured to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.

The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".



Futures trading is performed on a margined basis - that is to say you have to stump up about 5% of the actual cost of the gold itself making futures trades a highly geared 'opportunity' of about 20:1 - easy profit and also loss ! Futures trading is not a product for widows and orphans. The CME's 10% reduction in the required gold margins in November 2012 from $9133/contract to just $7425/contract made the market more accessible to those wishing both to go long or as it transpired, to go short. Soon after we saw the first serious assault to the downside in Dec 2012, followed by further bouts in January 2013 - modest in size compared to the recent shorting but effective - it laid the ground for what was to follow. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As baddies go - they fit the bill nicely.

The value of the 400 tonnes of gold sold is approximately $20 billion but because it is margined, this short bet would require them to stump up just $1b. The rationale for the trade was clear - excessively bullish forecasts by many banks in Q4 seemed unsupported by follow through buying. The modest short selling in Jan 2013 had prompted little response from the longs - raising questions about their real commitment. By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie ; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still.

This now leaves the gold market in an interesting conundrum - the shorter is now nursing a large gold position and, like the longs also exposed - that is to say the market is polarised between longs and shorts and they cannot both be right. Either the gold bulls - like in a game of tug-of-war - pull back and prompt the shorters to panic and buy back - or they do nothing, in which case the endless stories about the "end of gold" will see a steady further erosion in prices. At the end of the day it is a question of who has got the biggest guns - the shorts have made their play - let's see if there is any response from the longs to defend their position.

On Inventories...

Via Mark O'Byrne of Goldcore,

Gold futures with a value of over 400 tonnes were sold in hours and this is equal to 15% of annual gold mine production. The scale of the selling was massive and again underlines how one or two large banks or hedge funds can completely distort the market by aggressive, concentrated leveraged short positions.

It may again be the case that bullion banks with large concentrated short positions are manipulating the price lower as has long been alleged by the Gold Anti Trust Action Committee (GATA). The motive would be both to profit and also to allow them to close out their significant short positions at more advantageous prices and possibly even go long in anticipation of higher prices in the coming weeks.

Those with concentrated short positions may also have been concerned about the significant decline in COMEX gold inventories.

The plunge in New York Comex’s gold inventories since February is a reflection of increased demand for the physical metal and concerns about counter party risk with some hedge funds and institutions choosing to own gold in less risky allocated accounts.

Comex gold bullion inventories have slumped 17% already in 2013, falling to just 286.6 metric tons of actual metal on April 11, the lowest since September 2009.

This means that futures speculators on Friday sold a significant amount of more paper gold, in an hour or two, then the entire COMEX physical gold bullion inventories.

Interestingly, the drop in Comex inventories would be the biggest for a whole year since 2001, when bullion began its secular bull market.

Absolutely nothing has changed regarding the fundamentals of the gold market and bullion owners are advised to again focus on the long term and the vital diversification benefits of owning gold over the long term.

Although some Federal Reserve policy makers said that they probably will end their $85 billion monthly U.S. bond purchases sometime in 2013. The key word is ‘probably’ and it remains unlikely that the Federal Reserve will stop their debt monetisation programmes any time in 2013 or even in 2014.

Even if the Fed did end them, ultra loose monetary policies and negative real interest rates are set to continue as are competitive currency devaluations and currency wars - two other fundamental pillars supporting the precious metal markets.
Buyers are now presented with another very attractive buying opportunity. We always caution against trying to “catch a falling knife” and buyers should hold off until we get a few days of higher closes or a weekly higher close. Alternatively, they should consider dollar, pound or euro cost averaging into a position at these levels.

Sellers should consider holding off as if contemplating selling they may have missed their opportunity and if they have to sell they may be best placed holding off until prices bounce or recover. Sellers are now disadvantaged both in terms of price but also in terms of premiums that have spread on some physical bars such as one kilo bars.

In the course of gold’s bull market, vicious sell offs like this have often presaged material weakness in stock markets and this may occur again.

Gold’s ‘plunge’ is now headline news which is bullish from a contrarian perspective. Less informed money is again selling gold or proclaiming the end of gold’s bull market.

The smart money such as certain hedge fund managers, high net worth individuals, pension funds, family offices, institutions and creditor nation central banks and will see this vicious sell off as an absolute gift and will accumulate again on this dip.

A long term allocation to physical gold bullion to hedge systemic and monetary risk remains vital.

http://www.zerohedge.com/news/2013-0...ced-sale-comex