Rick Santelli on gold rumors sparking widespread selling.
Don't skip the final minute with discussion of central banks.
About an hour ago on CNBC.
"There was a rumor of a sell order early Friday of 4 million ounces. That's 125 tons for sale...just on the open."
This is the clip you need to see from earlier today:
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CNBC Rush Transcript
take a look at an intraday look at gold. every time you think it'sstabilized it's down $1135. lost $30 in the past two minutes.rick santelli watching this incredible intraday action thismorning. hey, rick. hi, carl. first of all, and i don't mean to surround like a know it all in anyway. i'm looking at a lot of stories. i've been looking at gold for 40 years and i don't see anything like it. i disagree. there was a period of time in early 1980 where the futures market in chicago, before they owned the contract. it was a chicago mercantile exchange. and that contract had volatility bigger than this considering its price was half of what the current price is. all right. set that aside. let's consider this. some of the numbers -- and believe me, listeners, we are talking in generalalities. it's very difficult to pull in all the bullion, the over the counter, the etfs, but it seems to me that one large wire house in particular seems to have beenrumored to have had a sell order early friday that was anywherefrom, well, 3 1/2 to 4 million ounces. now, i can't tell you it'stotally true but looking at the price, i suspect it is, that'sanywhere from 100 to 125 tons. that is rumored to be just howmuch move on the opening. but it almost doesn't really matter what the number is. let's think about some things and try to draw some generalalities. first of all, we know a lot of these markets are furth er insight and the 4th of april when the bank of japan pulled out even bigger than ours considering the size of their economy, which is things like quantitative easing. their two-year note today is hov verge around 14 basis points. what was it the day before the bank of japan met? six basis points.that same day, the 4th, we saw a 32-basis point low on the tenure which closed at 65 today. first question, do you thinkcentral banks work in a vacuum? do you think the bank of japannever talked to the fed that never talks to the ecb? i'm not buying it. now, we also know that one of the instigators for the sell-offin gold was rumored to be what the cypriot national bank coulddo. mario draghi was very careful to say we can't tell the centralbank what to do. but i can't believe if they're all talking about quantitative easing central bank, the large holders of gold, that there isn't some communication there. do you think it makes the central bank look bad when gold is 1800 or 1900? i think so. what does it mean now? back to you. rick, before we let you go, having major trading a long time when does it getconcerning? when does your eyes really get opened? well, first of all, anybody who takes the bottom is going to probably get carried out. even if they pick it correctly, to me, it's a dangerous day. remember, those highs made in early 1980, adjusted forinflation, about 2300 an ounce, we haven't even gotten thereadjusted for inflation. to say those highs in 1980 marked the end of gold for a long time to the upside. it tends to move in long, long trends.
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