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Is The Takedown Of Gold A Sign That The Entire Global Financial System Is About To Crash?

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The Collapse Of GoldSomebody out there is sure getting prepared for something really big.  We have just witnessed a takedown of gold and silver unlike anything that we have witnessed in decades.  On Monday, the price of gold had fallen by more than 10 percent at one point.  It shocked investors all over the globe, and overall what we have just seen was the largest two day decline in the price of gold in 30 years.  The price of silver dropped even more rapidly on Monday.  It was down more than 14 percent at one point.  There was an atmosphere of “panic selling” as investors and financial institutions raced to liquidate their holdings of silver and gold.  But was this exactly what someone out there wanted?  As I wrote about the other day, big banks and news outlets all over the world have been boldly proclaiming for weeks that gold is entering a “bear market” and that now is the time for all of us to sell our gold.  In particular, Goldman Sachs reportedly told their clients earlier this month that they “recommend initiating a short COMEX gold position“.  Was that just a “good guess” on their part, or was something else going on?  Were they actually trying to help create a “selling frenzy” that would drive the price of gold much lower?

What we witnessed on Monday was absolutely jaw-dropping.  Just check out this chart of the price of gold over the past 10 years.  The takedown of gold on Monday sticks out like a sore thumb…

The Price Of Gold

And that chart does not even show the full extent of the collapse.  As I write this, the price of gold is sitting at $1355.20.

But this is just the beginning for gold and silver.  As I have warned repeatedly, the price of gold and the price of silver will experience wild swings in the years ahead.

For example, the following is what I wrote about gold and silver on August 7th, 2012

I like precious metals myself, but if you are going to invest you need to get educated so that you know what you are doing.  If you go in blindly you are likely to get burned at some point.

In addition, you need to be prepared for wild fluctuations in price over the coming years.  There will be times when gold and silver absolutely soar and there will be times when they drop like a rock.

So if you are going to play the game you need to be able to handle the ride.

Monday was an example of what I meant when I said that “you need to be able to handle the ride”.  There are going to be a lot more days like Monday (both up and down) for gold and silver in the years ahead.

The foolish people are those that are scared out of their wits and that are selling off all of their gold and silver right now.

Sadly, there was reportedly a tremendous amount of panic selling of gold and silver during this collapse.  The following is what Dennis Gartman told CNBC on Monday

“There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere,” Gartman said in a “Squawk Box” interview on Monday. “I’ve never seen anything like this. I mean it.”

It just shows that there are a lot of stupid people out there.  The following is an excerpt from another CNBC report about the panic selling that was happening on Monday…

“I think the last $20 has been margin selling. The market is falling like a knife. People are saying, ‘Get me out now,’ ” Phoenix Futures President Kevin Grady said. “You’re also seeing people selling energy profits to pay for metals losses. You’re seeing a tremendous amount of gold liquidation today.”

According to Dr. Paul Craig Roberts, Assistant Secretary of the Treasury under President Ronald Reagan, all of this panic selling is the result of an orchestrated takedown of gold and silver…

This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.

Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold. So what they are trying to do is scare the individual investor out of bullion. Clearly there is something desperate going on…

So who is behind all of this orchestration?  Well, according to Dr. Paul Craig Roberts, it is actually the Federal Reserve

The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.

In fact, Dr. Roberts says that former Goldman Sachs trader Andrew Maguire is reporting that the Fed orchestrated the dumping of 500 tons of naked gold shorts into the market on Friday…

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

If any of the allegations above are even remotely true, then a whole lot of people need to be criminally investigated.

Meanwhile, many are considering this takedown of gold to be an ominous sign that another major financial crisis may be heading our way.

Just remember what happened back in 2008.  As Zero Hedge noted on Monday, the price of gold suddenly plunged 21 percent in July 2008.  That was just a couple of months before the U.S. stock market crashed in the fall…

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.

Is this collapse in the price of gold a harbinger of another major stock market crash?

Time will tell.

Meanwhile, many average Americans are wondering if they should dump their gold and silver while they still can.

As I mentioned above, gold and silver are going to experience wild fluctuations over the next few years.  When the next stock market crash comes, gold and silver are probably going to go even lower than they are today for a short time.  But in the long run gold and silver are going to soar to unprecedented heights.

Investing in gold and silver is not for the faint of heart.  If you cannot handle the ride, you should sit on the sidelines.  We are entering a period of tremendous financial instability, and holding gold and silver is going to be like riding a roller coaster.  The ups and downs are going to shake a lot of people up, but the rewards are going to be great for those that stick with it the entire time.

  • 007

    The price of producing an ounce of gold is approximately 1,100 an ounce. The price of producing silver is approximately 22.00 an ounce. What you saw today is a massive market manipulation by the FED and the banksters.

    Ironically, this may lead to gold and silver exploding in price. It is easy to short paper gold and silver. It is impossible to cover and buy physical gold and silver to cover these short positions.

    This manipulation may well expose the obvious difference between the scarcity and necessary price differential between the two. The FED just manipulated the price of gold and silver to allow these metals to go on sale at a tremendous discount.

    I believe they are terrified people will flee paper gold and silver and try to buy up the physical metals at these prices. I for one will be buying all the gold and silver coins I can at these prices.

    When too many people do this the FED’s goose will truly be cooked.

  • Motor Trash

    This is fascinating to watch…meaning the economic changes/news. At first, I would try to explain this to close friends and family, but everyone seems to be wrapped up in their own lives, so now I just keep it to myself and operate under the radar. Things are better off that way, I really don’t want to be “that” guy who has everyone in the neighborhood on his doorstep the minute they find out their grocery store shelves are empty. Would I deny anyone in my family a meal? Probably not, but what I don’t want is everyone to enjoy the fruits of my labor and time when they didn’t take the time to look after themselves. On the subject of gold/silver dropping, I don’t own any PM’s, but perhaps now would be a good idea to buy some silver.

    • Keywee

      Normalcy bias should be a certifiable condition, treated not with copious amounts of drugs, but prepping lessons instead.

    • JustanOguy

      I’m not “in their face” with my neighbors about what could easily happen but most of them pretty much agree and have taken steps to prepare for the zombies that are going to hit when the checks in the mail end…

      Your best bet for survival is a strong community. Inner cities are going to be the first to burn…

      Good thing the majority of my family is prepared… Ranches, Farms, Guns and Ammo.

  • d2arace

    the only metal that will stop all the thieves is lead…imho

    • kfilly

      Copper plating also works!

    • Keywee

      Silver apparently works to kill vampires, maybe it will work on the banksters 😉

      • jsmith

        That’s exactly what the banksters are. Parasitic vampires!

  • 007

    I agree. What a gift to everyone to be able to buy physical gold and silver. Silver coin production is being rationed as we speak. Let’s see how long these prices last.

    But why are they so desperate to try such an obvious market manipulation.

    God help the banksters if they have to cover their naked short positions with physical gold.

    • Bob

      The banksters tell us to sell, but if you want the actual physical PMs, nobody has any to sell you. Not too hard to fugure out this one.

      • Lennie Pike

        I should have read your post first before repeating what you said in mine.

        You are correct obviously, and I agree – “It’s not to hard to figure out” which is exactly why so many can not figure it out – it is too obvious and simple.

        Many huge events including 9/11 have to do with repressing gold and silver – after all, if it ever again is used as the world’s money, the power of the powers that be, evaporates immediately.

    • Steve3

      I think its just a scare tactic, as well as allowing the insiders and Govts to buy physical at cheap prices. Those that have the gold rule.

    • Lennie Pike

      Bankters having to cover with physical is exactly the reason the PAPER price was taken down. No one is selling their physical so the price of gold was not taken down. Just try buying the amount of paper ounces which were naked shorted in physical.

  • Keywee

    Seriously? People have been hurt and that’s all you can say? Sounds like you are obsessed with playing the victim.

    • Das

      Your right. Your comment was much better

    • Das

      What would you like me to say. Yes I feel bad that my fellow Americans have been killed, and hurt. So if I say my heart goes out to these people, will it change things. I am not a victim. You are and you don’t even know. Open you eyes and see things for what they are.

      • markthetruth

        By worrying about what the other side is going to say means you have succumb to their agenda and they have you brainwashed.

        the end…

        • Das

          Do you even know what there agenda is? I didn’t think so

        • Keywee

          Thank you, you put it into words better than I could. 🙂

      • Keywee

        What exactly am I a victim of?

      • Keywee

        Yes, I would like you to say you feel bad and leave it at that. Otherwise you are just another pawn playing along with the elite’s plan to turn people against each other.

    • 007

      Kudlow suggested this tonight

    • winniekate

      yah. seriously. they already have made the suggestion of the culprit being right-wing extremists. CNN Peter Bergen, Chris Matthews so far that I know of.

      still sounding obsessed?

      • markthetruth

        Why are you watching those shows !

        No need to listen to any of these bozo’s on either side, they are expert at Trying to get Ratings Period . And you are supporting them by Watching.

        the end…

        • winniekate

          I don’t watch these shows, silly. I saw the article along with the video clips on Breitbart website.

      • Keywee

        Yes, and Fox news has mentioned Muslims as usual. Left and right both have their bogeymen they use to control the masses with fear. The fact that Das has used other people’s tragedy to take a shot at his perceived enemy seems to be lost on so many people.

        • Keywee

          And yet I am the one who is accused of having my eyes shut, go figure. Cling to your partisanship if you must, personally I detest all government.

        • winniekate

          Fox mentioned muslims; ..and?

          For the sake of speculating, what group (world wide!) fits this modus operandi?

          • Keywee

            I think my comment went right over your head, dear. Snap out of your partisan way of thinking and you will understand it.

          • winniekate

            and what party would that be?

          • winniekate

            So-called “Boogeyman” and “Perceived Enemy” culprit after all!!!
            to quote someone who thinks they know it all:
            “Snap out of your partisan way of thinking and you will understand it.”

          • Keywee

            Still don’t get it do you? Your real enemy is the elite. Thanks for the credit but I never said I know it all. I would say I probably know more than you though, considering how you fail to see your own bias and gullibility over and over again. You are actually proud to be used as a pawn for the elite, good luck with that.

          • sean

            While you are correct that the elite (wealthy and politically connected.) are in fact the enemy, it is also true that Muslims want to dominate the world and kill all those that disagree with them. Why, because its codefied in the Quran, the Haddeiths ect. You can read them for free or $1 on kindle, so to just parot the sentiment that these are just extreamist perverting a normally peaceful religion will be take as a sigh of iwillful ignorence

          • sean

            Or plain dishonesty

          • sean

            And as it turns out the 2 men were in fact Muslims.

    • We are ALL victims nowadays.

      • Keywee

        Speak for yourself. I choose not to be a victim by not playing into the left vs right game.

  • Mark

    When the price of gold dropped on Friday I decided to visit my local coin shop Saturday to buy the yellow stuff. I found it rather fascinating that they had to look around the coin shop and was able to buy the only ounce of gold that they have left.

    • You can get a better deal at the local Zales or Kay.

      • Rodster

        You are a tool and a fool. Now stop spamming the message boards Krugman.

  • Washington76
  • 59LesPaul

    “The foolish people are those that are scared out of their wits and that are selling off all of their gold and silver right now.”

    There’s “paper” gold and physical gold. Paper gold is being sold in the US in massive quantities. Meanwhile massive amounts of physical gold is being bought in China, India, the rest of Asia except Japan and the Middle East.

    If these banksters are stupid enough to push the “paper” gold price down too far the credibility of these fake western paper metal markets will be completely destroyed. Also they will put the gold producers out of business as real cost of production is $1300 an ounce which will exacerbate the physical shortage even more.

    • TooLittleTooLate

      That’s right…. By the time that everyone catches on that a paper ETF isn’t the same as physical supply. When folks rush out to get their hands on physical metal, there won’t be any to get. Don’t get caught in that trap.
      The price is coming down now on metals but, they’re getting in shorter and shorter supply. Esp. silver.
      It’s just like if you waited too long to get ammo. Now you want some and, it’s almost impossible to get in any quanity at all.
      Don’t wait too long to get your money out or stock your pantry.
      If you’re going for silver, it may be best to stay away from most bullion…. much of it is tracked at the time of sale for taxing purposes. Old coins are better. If you travel for example, you only have to claim the value of the coins you possess and, nobody tracks the movement of them.

    • Tomburst

      I gotta ’09 murphy aged R9 tea burst called Daisy. Perfect. Rock n roll!!

  • drbuzzsaw

    I buy silver dimes pre 1965.
    I figure if silver goes to $1000 an ounce my silver dimes will be easier to barter with than a $1000 coin especially since the value of a single coin will be about $80. I only buy what I can afford and I only buy junk silver dimes. Everyone recognizes them as silver, so their is no question as to, if it’s real or the value of it. If you only buy gold ounce coins – good luck trying to barter/buy anything with them after SHTF. Most people have not even seen a gold coin. (And, NO ONE fakes a silver dime). But they fake will gold and Silver Dollars! After SHTF these old silver coins will be the only currency worth ANYTHING!
    Pray Hard / Prep Fast / Time is oh so Short

  • drbuzzsaw


    George Soros is now selling his $88 Million in gold to buy stocks – – (( I DON’T THINK SO )) Even if it hit $500 an ounce he would just buy more GOLD. He knows what’s coming and it wont be pretty… And the ONLY way he can even have a hope and a prayer of salvaging (saving) any of his money is by buying all the gold he can lay his hands on AT ANY PRICE. If you run in a panic with the rest of the sheep you will end up getting slaughtered with the rest of them…

    Hold the course, keep buying gold and silver and stacking it safe, you’ll be awfully glad you did

    • wandakaterobinson

      He won’t be eating the gold or silver when there is no food on the shelves at the local market. Food and water seem to me to be more important than gold or silver any day, anytime of the year. They think they can barter or trade it, but who will want it when they can’t eat it? When we’re hungry and thirsty what good will the gold do? Trade it for food, they say, but who would want to give up their food for gold or silver when they stomachs are growling? Just food for thought…

  • TooLittleTooLate

    I believe they are re-inflating the housing bubble in order to cover all those bad loans out there on the books that aren’t marked to market anymore.
    If all those loans were marked to market, all the big banks would have closed their doors already.
    Much of the QE is going directly into bailing out those bad loans… That’s also the reason that we’re not seeing more inflation. Much of the money is parked.
    When the housing bubble popped, that vaporised all of that money that was created by the debt of the housing boom. The FED is simply printing it up to prop up the banks.
    I’m worried. The market is not and has not moved on fundamentals is a very long time. We know this won’t end well. The truth is that we could have a collapse at almost any time now and I would not be surprised.

  • 007

    Inflation is not appearing. I will tell that to the checker at the grocery store. That solves everything.

  • mleblanc138

    I’m holding my physical Silver through all of this. Most of it was obtained at face value of the coins anyway and I will continue to search 6 boxes of Half Dollars a week. I wish I would have bought some of the DSLV ETF a week ago. It’s an ETF that represents a short position on paper Silver with triple leverage. USLV is the same but on the long side.

  • 007

    Bring back cash for clunkers!

    • markthetruth

      cash for a clunkers for a new money pit .

      the end…

  • bobcat

    The spot price may be getting pushed down but the premium on coins nearly doubled in the past several years. Today, it’s $75-$80 on a 1 oz coin. Seven years ago, I remember seeing $40 premiums on the same coins.

  • I’ll tell ya, there is a whole lot of selling going on in gold paper certs around the globe. But everybody I know is BUYING physical gold and silver with abandon. The premiums on top of spot are thru the roof! The dealers are hanging on by a thread at the counter and taking a beating while they stand there.

    So why the divergence in the two markets? My gut says those holding gold certs are attempting to clear to cover positions. Nobody knows how bad the spread is on paper vs physical position. The fear of the margin call has to have many a paper holder sweating it. The physical buyers on the other hand smell a bargain.

    • 007

      My local coin shop was sold out of all gold and silver coins and had no reasonable way to buy more at the current price. What a surprise.

      Unfortunately this is just another lesson that paper gold and silver are crap. The physical price for the metals is doing fine.

  • 501st

    Well, I am not selling…I am buying! I don’t follow a market that is corrupt.

  • BlackDog

    Just don’t play the game. Buy tangibles. Gold & Silver are exceptionally overrated, when you consider that you can barter tangibles for just about anything. And gold and silver play into the hands of the Fed and the IMF. Why play their game? I pay my bills in dollars, but that doesn’t mean I have confidence in the currency. It’s convenient today. Tomorrow, you say gold and silver. I’d say food, water, lead (a precious metal today), tools, community — ALL much more important than gold and silver.

  • Mondobeyondo

    Looks to me like gold and silver are both doing the “Thelma and Louise” plunge off the Grand Canyon lately. Now is a great time to buy precious metals because of their lower price. I’ve had to sell mine, to be able to eat, etc. But that’s my problem, not yours…Once things turn around in my personal financial situation (and they will), I’m getting my silver back. And my gold too. Pawn shop – I fear you not!!

    Wanna be risky? Wait a few months, and watch the price go lower. Then head to the precious metals flea market. Woo-hoooo!! Or maybe the price will go higher. It’s a risk. But don’t sell unless you have to. (I’ve had to.)

    If you have “cash in your stash” (i.e. Federal Reserve Notes),my advice is, scoop up as much gold and silver as you can. I have no money, otherwise I’d do the same.

  • Mondobeyondo

    And please don’t try to make it political.
    They were running a race. An ordinary race of 26.3 miles. Nobody cares if they were Republican, Democrat, Libertarian, etc…

    • Keywee

      I wish more people would understand this, thank you.

  • Mondobeyondo

    Re: The Boston Marathon explosion which apparently may be a bombing, possibly by terrorists, although the Irish Republican Army, Red Brigades, Hamas, Hezbollah, etc have been excluded from any potential involvement.*

    Okay. There’s been no absolute, undeniable proof of terrorism, domestic or foreign. So there.

    #2. “The media says it was terrorism.”
    Of course it does. The media will tell you anything to get you to watch their news broadcasts and shows. BTW, celebrity media (TMZ, etc) – ABSOLUTELY THE WORST!! Just Mondo’s opinion of course.

    *NOW do I win the 2013 Award for Longest English Language Run-on Sentence? No? Oh darn.

  • Blair MacRae

    Zero Hedge is a phys-ops operation, or..?

  • jokyjo

    Keep stacking and don’t look back. You will thank yourself one day soon.

  • Ralfine

    It doesn’t matter whether gold prices are rising or falling, it is always bad talking about gold as “investment”.

    The only acceptable way of talking about gold is when we talk different thickness of contact plating or bonding wire diameters.

    Can we replace gold with other composite materials?

    Ditch the banks and financial institutions and casinos. It’s a waste to give them your hard earned money.

    Use your money to buy something useful. Invest your savings in infrastructure. If you have left-over money, get proper clothing, fix your furniture, wax your leathers, fill your pantry, fix your teeth, train your muscles, including your heart muscle, etc.

    In the Philippines, college is not paid from savings but by relatives. The Aunt in Australia transfers money to her niece in Manila for college. The niece then pays it back by helping to finance school for the grandchildren of her aunt in Australia, or her cousin in America. This family thing is really amazing. They don’t need to live in the same house to be a close-knit family. And with facebook it is now much easier to stay in contact and share all their lives.

  • jokyjo

    And I will hold on to my gold and silver and you can have your fiat money.

  • Richard

    As a large-scale bullion trader in he 80s I can say that anyone who lays down the law about what you “should” do and “shouldn’t” do and preaches knowledge, knows NOTHING. NOBODY, I repeat – NOBODY – knows why the market fell, neither “Dr” Roberts nor anyone else. Do not be fooled by the know-it-alls. they’re just making it up to look good.

  • Michael

    I originally thought that they would blame your patriots, then i heard it was a Saudi. But, later on while i had the news on, some U.S. “expert” said he believed it was “homegrown”.
    I am here is Australia, & most people here don’t know about what Obama is doing to destroy the U.S.

    • Keywee

      Obama isn’t doing anything to destroy the US. He is a puppet of the elite, same as GW before him. You can’t give them any more credit than a hollywood actor reading a script.

    • JustanOguy

      Most Americans don’t know about Obama destroying the U.S. either.

    • Orange Jean

      I do not consider a foreigner (any, whether they are here legally or not) who came to this country intent on doing harm to be “home grown” – but the media apparently does.

      I’m not surprised to hear most people in Australia don’t understand the BHO agenda… it seems the prevalent attitude in Europe also.

      • vuk sandy

        @Orange Jean,
        Tin foil hat a little tight there guy?

  • Tom Dockery

    As I said last week,the price of gold will not recover until the Philadelphia Phillies begin winning again.Fortunes of the two have moved in tandem since legalization of gold in 1974.

  • Walter Sobchak

    I work at the largest mine in Nevada. We have been steadily and continually mining less and less gold as a percentage (per ton hauled) for the past 12 years. There has been NO great strides in mining technology except that the haul trucks are a lot bigger because we have to move much more land in order to get the same amount of gold and silver out of the ground. What are you smoking?

  • Jodi

    Yesterday we had a stock market slide, Gold takedown & a ‘TERRORIST ATTACK’ all on the same day. Trouble ahead? I would say so.

    • Jodi

      By the way my thoughts and prayers go out to the victims of the ‘TERRORIST ATTACKS’ yesterday.

  • WarriorClass3

    Brandon Smith over at AltMarket says, “Boston authorities and witnesses on the scene admit that bomb sniffing dogs and roof spotters were employed before the race even began.

    “The local bomb squad was also coincidentally running a “controlled explosion drill” only one mile away from the attack:”

    Sound familiar?

  • AK

    Hey Michael,
    Good summary of what transpired. One thing that is important to point out is that the panic selling was happening only on the Comex and LBMA by the margined speculators who were squeezed out of their positions. In the physical world, buyers exceed sellers by a 50 to 1 margin and there are physical shortages all around. Ultimately the paper exchanges will be limited to how far they can push down the prices when there is no more physical inventory available. At this point an outright default due to lack of physical inventory is imminent in my humble opinion.

    • TooLittleTooLate

      Lots of folks have said that. I’m really jaded at this point and am not sure that the FED will allow that to happen. I mean, it may happen and metals may go up at some point but, as long as they ( the FED )can influence markets, they will.
      I have a position in Silver and, I got slammed this week but, I own physical silver and, I’m not selling or going to panic. There will be a limit on the manipulating they can do one day and, I think we all can agree that won’t be too long from now.
      Like Michael has suggested and a few have written, if the FED orchestrated a takedown of metals, they may have been trying to avert exactly what you describe above…. too many standing for delivery on the COMEX…. they get the dumping of all of that metal but, now that they’ve done that, they face another problem….. The prices is low now and folks are buying physical again and in large amounts.
      Go and check any bullion dealer and look for silver… there are shortages everywhere I look.
      I don’t think the FED is done though… I’m not naive in that way anymore. If they can keep this thing going, they will. We know the banks have to keep the price of metals down to make the dollar look good.
      What is truly scary is that by pushing so many out of metals, they’ve made an already fragile economy where they’ve pushed our seniors into the stock market since they’ve initiated ZIRP and now, they’ve pushed many out of metals.
      As far as they’re concerned the market must go up at all costs…. doesn’t matter what fundamentals do. The problem is that it will go up all right…. until it doesn’t.

    • TooLittleTooLate

      After thinking about it more….. there are two things here…. IF the FED did slam metals like many here suspect including me… what’s to stop them from doing it over and over? Shorting and dumping large supplies onto the market to manipulate the price? There have been players doing this for a long time… we all know that.
      The thing is that now the market is so volitile that they may have overplayed their hand on this one. We’ll just have to see how many stand for delivery but, even if they do stand for delivery… I have to wonder if they’re just left standing there waiting with no enforcement of laws or, they’ll just create some way for the market to have as much time as it needs to deliver. ( kind of like mark to market did to keep the banks floating along after the housing crash )
      How can we expect our laws to be enforced by a lawless cartel? How can we expect anything but to get treated how Corzine treated his customers?
      The alternative is to allow the market to default and, I’m not sure if they’ll allow that to happen. They have to keep the illusion that the dollar looks good against PMs. Call me crazy but, I’m not sure they’re done.

  • Gold and silver would be far more valuable if those commodities (and others) hadn’t been securitized and thereby turned into just one more option for speculators, day traders, hedge funds and options traders. The fluctuation in the prices of the ETFs and mining stocks have had a major impact on the price of physical PMs artificially propping or dropping their prices. If the prices of gold and silver increased realistically in direct proportion to our inflated dollar — as they had prior to their becoming just another trade — they would be priced well above their current artificially deflated values. Would prices have been able to drop as they did on 4/15 if people had to cart their physical PMs to dealers to trade them for cash?

  • John Williams

    In the late 80’s, I bought a book “The Great Depression of 1990”; never did read it. Not that I don’t think there are tough times ahead, but frankly it is getting tiring listening to the constant gloom and doom predictions that never come to fruition.

    While a teenager my life was nearly ruined because of prophets of doom predicting the world was going to end by one or more worldwide catastrophe. “What’s the use of doing well in school if there’s no future” I said to myself. Since there is no future, why bother with college or striving to work my up the ladder of life in the work arena.

    That was 1976. I turned 18 in 1980 and the world was still intact, the sun was still rising, we still had food, the ice age didn’t happen, the air was still breathable, water drinkable, and I secured my first job but still had a very negative outlook on life.

    The planets were going line up in 1982 wreaking havoc, earthquakes, pestilence, running out oil, drought, nuclear war was all but certain…..same old garbage. Surely we lived in the last days.

    After all that, I was still alive, made it through some college and began working my way up in the job world. Hmm, maybe life is better than I’d been told.

    In 1987, the S&L crisis was surely the straw that breaks the camel’s back, and one day at the book store while on vacation I bought ‘The Great Depression of 1990’. Wow, it’s going to be really bad in just a few years.

    1990 came and went, no Great Depression, and Desert Shield was in place. I was working in aircraft at the time, and in Sept. was in Scotland when the Gulf War build up was ensuing. War with Iraq was imminent, then the prophets of doom came out and warned of Saddam Hussein having such a mighty military with secret weapons and the sort. It was going to be a blood bath for for the Coalition forces we were told. Saddam would unleash chemical weapons and wipe out our troops, blah blah blah. I recall one famous preacher saying Saddam was spared in order to fulfill prophecy during Armageddon. The rest is history. Ten years after I graduated from High School and the world is still functioning, I was prospering, bought my first new car and actually enjoyed life despite all the horrors. Imagine that. I even got married.

    It was becoming clear what I was told growing up was BS.

    In the 90’s we were told The End would surely come. Global warming (which I believed in for a few years) was going to destroy the world within 10 ten years, and if that didn’t do it, Bill Clinton’s re-election in 1996 would, and if that didn’t do it, something else would. I detested Clinton, but the country survived, and by 2000 it was clear to me the ‘Greenhouse Effect’ wasn’t working as advertised.

    Enter the 2000’s. By then the prophecies of doom I allowed to influence my childhood had long been removed from memory. 911 was terrible time in our history, as well as the subsequent Afghan/Iraq wars. Yet, I had two children and was determined to not allow them to be exposed to ‘End of the World’ scaremongering. Today one is in college pulling A’s, the other in junior high, is on the equestrian and track team. Both have a positive outlook on life.

    I digress.

    After the 2008 crash, which fortunately I pulled my 401k out of the market beforehand, I thought it was all over. Maybe the doomsdayers were right after all. Every year since everything was going to crash; the whole thing, BOOM, gone. Well guess what. I’m still working, my wife is working. Yes, things are bad, but the world is still turning.

    Instead of investing in the stock market in 2009, in 2010 I listened to the “experts” and bought a large sum of gold. Buy gold! Buy gold! Buy gold! It would protect the otherwise “worthless” dollars from inflation, so I believed. Had I rode the market out after the crash, I would be sitting on some nice gains right now and could have used for something productive like buying land. Now I’m stuck with a bunch of coins that cannot be used for anything today without losing my shirt. So now what, I have to wait another 10 years? And please don’t tell me gold is not an investment; if it doesn’t keep ahead of the dollar, it is a loss no matter how it is spun. Protecting from inflation is an investment!

    The bottom line is, the gold bugs were wrong. If it sounds too good to be true, it probably is. I fell for it, but never again. Blame it on the Feds, blame on Goldman Sachs, blame it on the weather; it doesn’t matter why, gold is not going to $2500 anytime soon.

    The world may end tomorrow, I don’t know, but I’m not going to expose my kids to the endless predictions of doom that I’ve been waiting my whole life for to happen. What I tell them is they need to be the absolute best at what they do and no matter how bad things get they can prosper. I think it is wise to have food stored for emergencies etc., but at 51 years of age I look back and wonder how much further ahead I’d be today had I not focused on the negative things in life when young and impressionable.

    Prepare for rainy days, but still enjoy life. Yes our country is in decline morally and fiscally, however it is the only country we have. Life is still good, and as long as I have my faith and family will enjoy it.


    • Tomburst

      Hey,that covers just a few decades. So what. The making of history is like that,slow while its happening but swift when its looked back on. Has everything gotten slowly better? A more secure world? Less global threats? See the big picture. It might be happening slowly on your timescale but it sure is happening. The mills of god grind slowly. But they sure do grind,and the sand is running out in the hourglass. If people can’t see that this ship is sinking with ever greater speed then they are blind,or its wishful thinking on their part. I know,let’s ignore it all and maybe it’ll go away……….
      No,it’s not going away,we are stuck with it.

      Apart from that everything is ok.

    • Kyla

      What an excellent post. People love doom and gloom. They feed on it. Use it as an excuse not to get on with the business of living. I say control what you can in your little corner of the world and leave the rest alone. If everyone focused on their immediate area and tried to get something done (such as getting flouride out of their municipal water systems) the world we be a much better place. Instead people dwell on things they have no control over. Things such as the stock market, price of gold, housing crash, etc.

    • Jeremy

      Outstanding post. Thank you.

    • Orange Jean

      Interesting… I never heard of the book until you mentioned it. I’m not too familiar with economics overall (to argue what is a depression vs. recession); but I was affected by something that was at least a bad recession that started around that time. That was the only time I got laid off, and I ran out of unemployment before I found a job. A LOT of other people I knew were getting laid off too.

      Wikipedia has some info that they call “The recession of the early 1990s describes the period of economic downturn affecting much of the world in the late 1980s and early 1990s.”

      It’s true some people are always overly negative and others overly positive… time will tell.

  • MichaelfromTheEconomicCollapse

    For those that are interested, the following is an interview that I did on Prepper Broadcasting the other day…


    • winniekate

      enjoyed it, Michael. Thx

  • wandakate robinson

    Gold and silver may have its place, but another thought is this: When it gets bad and the Walmart shelves are empty and there is no gas, and people have lost their jobs, thus no paychecks, can they eat that gold or silver or their rare coins, or whatever? No I would think that Water and food would be the main gold and silver of the day.

    • JustanOguy

      They can’t eat it but they can buy the food I produce at the ranch and farm with it because I’m not going to be taking worthless paper for payment unless I need some toilet paper.

      • Keywee

        I would let people with skills help on my ranch in exchange for food as well.

        • JustanOguy

          Absolutely. My friends with guns and ammo also know where to go if the SHTF.

          It’s not a time to be an isolationist… it’s a time to build solid relationships with good like minded people that understand that when the checks in the mail end, it’s going to get hairy.

          • Orange Jean

            I’m working on it! Making some plans to get to know my neighbors better, it seems to be working.

            We all live on a smallish (500 acre) farm, kind of like a very small town (8 adults, 2 part time kids… and a herd of at least 40 deer).

    • It’s a good point you make Wanda. I am buying a bit of silver coinage just as a backup to my bartering. We are striving to get all the supplies and know-how to be as completely self-sufficient as possible, so that having and using currency of any sort is unnecessary, but we have things we can barter in the Aftermath.

    • Steve3

      No but you can barter it as it has real value in bad conditions.

    • Lennie Pike

      Just maybe that when that happens, gold and silver will be used as money – since money is a necessary tool and there is nothing better (for many very real reasons) than PM’s for use as money. Thousands of years of history bear that out.

    • Dstacker

      Wandaket you are a troll. Anyone that say’s “you can’t eat gold” is a moron! Gold and silver is real money that will allow you to get the items you need when the SHTF. Try eating your greenbacks or using them to buy things once the system collapses and people wake up to the fact that fiat currency is a scam.

  • JustanOguy

    I’m right with you… I was buying gold / silver back in 2008 and have not bought any since then. I’m going to keep a close eye on what is going on and get ready to buy more physical gold / silver.

    i don’t really care what the sheeple are doing.


    WHILE YOU WORRY ABOUT YOUR GOLD AND YOUR MONEY JESUS TELLS US A GOOD PLACE TO STORE OUR TREASURES!!!!Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: 20But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: 21For where your treasure is, there will your heart be also

    22The light of the body is the eye: if therefore thine eye be single, thy whole body shall be full of light. 23But if thine eye be evil, thy whole body shall be full of darkness. If therefore the light that is in thee be darkness, how great is that darkness!

    24No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.WHICH ONE ARE YOU SERVING???WHERE IS YOUR TREASURE??

  • Washington76

    Buy low and sale high. It is not complicated!

  • markthetruth

    AAA: Car ownership costs on the rise .

    I guess this isn’t Inflation.

    everything rises except pay checks. Third income is credit card .

    the end…

  • Gay Veteran

    On Ebay you’ll pay at least 20% about spot to buy 2013 American silver eagles (1 ounce)

  • well it is Troy, 14 oz. to a lb. so it is 14 million ounces. not 16, million when we start talking in astronomical numbers, every one gets silly

  • jsmith

    Now Michael, do I trust the banksters like Goldman-Sachs and their chosen puppets and the main stream media, or do I pay attention to Paul Craig Roberts who I respect and trust? Duh!

  • Jason7189

    Ezekiel 7:19 “”They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD’s wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin.”

  • Steve3

    Interesting as the latest news is that certain billionaires are selling up their banking and consumer based stocks

  • Every trade where someone was selling there was someone on the other side buying. I think rumors were strated so that someone could buy massive amounts for less.

  • 007

    My local coin stores are sold out of all their gold and silver coins. The prices they were charging was much greater than the spot price for the metals. They do not know when they will receive any more coins. I checked eBay and was only able to buy silver coins at 37.00 an ounce. I have bid on gold and have yet to get any coins under 1,700.00 an ounce.

    This gold knock down is an absolute scam. Buy any gold or silver coins you can at these prices if you can even find them.

  • piccadillybabe

    I think I would rather be invested in gold and silver even if it does take a roller coaster ride. It’s a tangible asset, a precious metal. It will come back unlike the risky stock and bond market that could fizzle right out. Goldman-Sachs were telling people to get out of gold and get into natural gas as that is where the future is. I think they just want to drive the price down for themselves as they are getting nervous and want to stock pile gold. If nothing else, it makes you feel better if you are diversified and have some good tangible assets on board.

    Funny how gold fell in value and then the DOW plunged 300 points and then we had the Boston Marathon massacre all within a matter of 24 hours or so. Things seem to come in 3s.

  • 007

    The price for gold and silver coins has not changed at all that I can see since the great gold sell off. I tried to load up on gold and silver coins at my local coin stores but they are all sold out.

    This gold takedown is an absolute scam.

  • hillbillyhustle

    When I saw the metals market decline….I drove as fast as I could to the coin shop to buy more!! Soon will be prime time to buy and stock up on everything as we will see deflation before inflation.. Always buy during a recession/depression and save during easy money years.

  • TooLittleTooLate

    Yeah, I’m curious to see if the Kennecott landslide will affect the physical market….. I’ve visited some bullion dealer’s websites and, there’s nothing on the shelf now… It will get interesting if a few more on the COMEX stand for delivery and there isn’t anything to deliver.
    Lots of folks think that would spur a market crisis and force a true price discovery of metals… I’m so jaded at this point that I just wonder what they criminals will do to keep that from happening….. maybe slam metals? Yeah, that may force a lot of investors out of the market and flee into the stock market.
    OH wait…………..

  • “The criminals who are purposely crashing the system have become very bold.” The Attorney General himself gave them his blessing and said prosecuting bankers would cause a meltdown in the financial system.. How’s that for encouraging criminal behavior..

  • Patriot Alice

    It’s justa normal correction, after months of increases…

  • A Mosley

    I find it incredibly interesting that the bombing occured in the exact same day of the gold and silver crash. I find that to be a rather large coincidence.

  • Rogoraeck

    Listen you putz! There was panic selling of PAPER gold & silver!
    But a rush on physical metal!

  • Clinton Fernandez

    I live in Melbourne, Australia and happily paid $10 over spot for one ounce Silver (Perth Mint) coins because I bought the last they had on Thursday. Yes, they have stock available again for the moment but I see more shortages and further un-pegging of the paper spot price from the real physical price. I would not advise anyone to go all in, rather buys some amounts regular basis. I agree the next sixty days will be interesting to see whether the stock markets drop.

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