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Euro-Swiss In Freefall, Triggers 1.18 Stops As It Tumbles To Fresh Record Lows, Sends Gold Surging

Tyler Durden's picture




 

This morning's Greek deposit flight (which recently dropped by €5 billion or 2.5% of total, in the month of May) appears to be enjoined by other countries, who are now actively converting their currencies into CHF and stuffing it into bank vaults deep under the Swiss Alps. As of minutes ago the critical EURCHF just took out the 1.18 stops, which sent the pair tumbling to an all time record lows of 1.1789. And, like clockwork, the triggering of the Swissy stops, send gold surging to a new record high in euros, and to just under $1,550 in USD. And elsewhere, confirming that Italy is merely the gateway drug, is the Belgium-Bund spread, which just hit all time wides. And this is as the S&P long overdue threat to downgrade the world's longest governmentless country hangs like a sword of Damocles which will send the Euro-crisis into overdrive.

EURCHF:

Gold:

 

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Mon, 07/11/2011 - 07:31 | 1443004 doomandbloom
doomandbloom's picture

And so it begins.....again?

 

( not sure how many times i have said that before....only to be bailed out each time)

Mon, 07/11/2011 - 08:00 | 1443064 malikai
malikai's picture

Meanwhile EUR up big against NOK, PLN, and up BIG BIG against the SEK. WTF?!

Mon, 07/11/2011 - 08:19 | 1443094 Reptil
Reptil's picture

Unwinding of positions? They all have exposure in the Eurozone and vice versa.

Mon, 07/11/2011 - 08:12 | 1443090 Reptil
Reptil's picture

this time it's different.

we don't have Berlusconi anymore, to plug the hole.

;-P

Mon, 07/11/2011 - 08:32 | 1443107 malikai
malikai's picture

I hear Berlusconi is pretty good at "plugging holes", especially when they're blonde and about 12 years old.

Mon, 07/11/2011 - 08:22 | 1443109 Sudden Debt
Sudden Debt's picture

this time it's different.

Yeah... the 4 most expensive words in the world.... maybe they can sell those?

 

Tue, 07/12/2011 - 21:46 | 1450192 MGHJFHD
MGHJFHD's picture

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Mon, 07/11/2011 - 07:32 | 1443007 qussl3
qussl3's picture

Chinabot on holiday?

 

Mon, 07/11/2011 - 10:39 | 1443625 Killer the Buzzard
Killer the Buzzard's picture

Sounds right... they might have come to the belated realization than in light of their recently failed debt auction, the PBOC has better uses for its capital than keeping the euro on life support.

Mon, 07/11/2011 - 07:37 | 1443010 Sudden Debt
Sudden Debt's picture

This has everything to do with the fact that the Swiss are voting right now to back their currency up by gold again which they had stopped since 2000 at 1650 dollar per ounce in 4 euro coins.

 

This of course is something nobody in their right minds would do... only the smart once keep printing the confidence on paper.

 

This currency game is all about the Rock, Scissors and paper game we all know.

Not exatly the same....

It's Gold, Austerity and Paper game

But you all know the rules.

 

NOW SHAKE THOSE HANDS!! THE LOSER BUYS THIS ROUND!!

 

 

Mon, 07/11/2011 - 07:41 | 1443022 qussl3
qussl3's picture

I agree, although i do think the swiss are nuts to attempt something like this.

Them bankers do not like hard money, those of the central banking persuasion even less so.

 

Mon, 07/11/2011 - 07:48 | 1443037 Sudden Debt
Sudden Debt's picture

Nuts indeed. They are killing their own export industry with this.

The only once who profit from this are their bankers...

strange how 1 group always seems to be able to dictate the policies...

 

 

Mon, 07/11/2011 - 10:27 | 1443569 Zero Debt
Zero Debt's picture

There are other ways to compete than price.

Mon, 07/11/2011 - 14:08 | 1444656 Urban Redneck
Urban Redneck's picture

I thought the SVP was proposing parallel currencies - a fiat franc and a gold franc, not returning to a gold standard for paper money.

Mon, 07/11/2011 - 07:34 | 1443011 wandstrasse
wandstrasse's picture

but but but it takes only 5 Euros to mine Swiss Francs out of the Swiss mountains!!

Mon, 07/11/2011 - 07:38 | 1443017 Sudden Debt
Sudden Debt's picture

and 200 euro for you gas bill to drive to Swiss and 120 for the Toll...

 

Mon, 07/11/2011 - 07:37 | 1443015 css1971
css1971's picture

And this is as the S&P long overdue threat to downgrade the world's longest governmentless country hangs like a sword of Damocles which will send the Euro-crisis into overdrive.

........... this is Belgium we're talking about here......

 

Mon, 07/11/2011 - 07:40 | 1443019 Sudden Debt
Sudden Debt's picture

Everything is about Belgium. That's the downside of being the center of the world.

Sure, there's also that place called the US but we call that "Parking Space".

 

Mon, 07/11/2011 - 07:48 | 1443038 wandstrasse
wandstrasse's picture

and Germany is Belgium's doormat! No kidding!

Mon, 07/11/2011 - 08:32 | 1443135 Sudden Debt
Sudden Debt's picture

And we also grow our Sausages over there on the Sausage trees.

 

Mon, 07/11/2011 - 07:37 | 1443016 Dismal Scientist
Dismal Scientist's picture

German exporters loving the move as usual. You gotta like that Euro weakness if you're a value added engineering company selling to the Asians...

Mon, 07/11/2011 - 07:42 | 1443024 Sudden Debt
Sudden Debt's picture

Once the Germans figure out how to build a Donut making machine and sell it to the Chinese...

IT'S GOODBYE UNITED STATES INDUSTRIAL BASE!!

 

I like mine frosted...

 

Mon, 07/11/2011 - 09:44 | 1443402 Bicycle Repairman
Bicycle Repairman's picture

Fat, donut-munching Chinese babes?  Noooo......

Mon, 07/11/2011 - 07:40 | 1443020 Yen Cross
Yen Cross's picture

 All over that one The FIBI resistance and cross made me short last Friday.. DXY held a key support level...

Mon, 07/11/2011 - 07:41 | 1443023 rajat_bhatia
rajat_bhatia's picture

Amidst all this , India is Prospering

Mon, 07/11/2011 - 07:44 | 1443028 Sudden Debt
Sudden Debt's picture

You've never been there he? :)

You'd better hope that kind of prosperity never becomes the indicator for US prosperity.

 

Mon, 07/11/2011 - 08:07 | 1443083 rajat_bhatia
rajat_bhatia's picture

you know they just found out 22 billion dollars worth of gold hidden below 1 temple, right? And you know how many temples are there in India? And you know Which country has lapped up the greatest amount of gold over the centuries? 

 

 

The way you collent iPads, Indians collect Gold :)

Mon, 07/11/2011 - 08:17 | 1443099 qussl3
qussl3's picture

Dont mean toot toot if you cant protect it.

Or when the Chinese decide to starve the Ganges.

Mon, 07/11/2011 - 08:36 | 1443115 Sudden Debt
Sudden Debt's picture

It was 7 billion, but a few weeks before they "found" it, they confiscated that temple from a family who had that temple for generation in their family.

That gold was hidden for the English when they conquered India.

There have also always been rumors about that threasure so the state just wanted to cash in.

That gold belongs to a private family. Sure they are billionaires but you can't just take it away.

 

And I've also already found a site where you can buy gold coins from that treasure. They sure didn't waste to much time cashing in.

 

Mon, 07/11/2011 - 08:45 | 1443182 Reptil
Reptil's picture

Interesting, can you give a link please?

 

Mon, 07/11/2011 - 07:46 | 1443033 Yen Cross
Yen Cross's picture

 I like the Indians... Good people! Give that 800B in PAKI money to India... +~

Mon, 07/11/2011 - 07:48 | 1443040 THE DORK OF CORK
THE DORK OF CORK's picture

Euro gold 1100 +.............

Should have bought more of that yellow shiny shit.

Mon, 07/11/2011 - 07:57 | 1443060 doggings
doggings's picture

cant have too much of it really, can you?

Mon, 07/11/2011 - 07:55 | 1443056 LMAO
LMAO's picture

And what about the spread between Brent and Light?

$ 22 and counting

This spread is reaching astonishing levels to say the least.

 

LMAO

Mon, 07/11/2011 - 08:04 | 1443074 Flakmeister
Flakmeister's picture

Check out the 321 crackspread....

Mon, 07/11/2011 - 08:05 | 1443079 THE DORK OF CORK
THE DORK OF CORK's picture

Yeah - Wepollock has speculated that this division in price is one of the strongest indicators of the coming breakdown crisis - he would have thought that this would have near equalised by now but it is doing the opposite......

Mon, 07/11/2011 - 08:07 | 1443080 uranian
uranian's picture

i've no idea what that implies, what's the driver and significance of this spread?

 

gold at £972, record high too.

Mon, 07/11/2011 - 08:18 | 1443103 Yen Cross
Yen Cross's picture

 The never ending Contango... Backwardation...

Mon, 07/11/2011 - 08:28 | 1443118 Sudden Debt
Sudden Debt's picture

That spread is being pay by US taxpayers who are selling their strategic reserves.

Just a few more months and those caves are tapped and that rocket takes off again.

 

Mon, 07/11/2011 - 08:33 | 1443137 uranian
uranian's picture

ta, SD. implies i guess that all hands are at the pump when it comes to US bankers trying to save their own system.

Mon, 07/11/2011 - 08:19 | 1443104 SheepDog-One
SheepDog-One's picture

World in comfirmed breakdown, while everyones looking for the next leg up. Looks like you got it, if you bought physical PM's.

Mon, 07/11/2011 - 08:30 | 1443116 uranian
uranian's picture

i know another alleged murky links between the insane daily volume of trading on supposedly purely physical exchanges such as the LBMA years ago and oil, perhaps there's some link to that? i see the DXY up a lot and gold in dollars up a bit, hitting new highs in other currencies...i've tended to think that if we get to the stage where both the DXY and dollar gold are surging simultaneously, we're days from a currency collapse. not there yet, but we're heading in that direction again.

Mon, 07/11/2011 - 08:25 | 1443114 LikeClockwork
LikeClockwork's picture

Make it stop!

I have yet to start accruing PM.

Mon, 07/11/2011 - 08:30 | 1443124 Sudden Debt
Sudden Debt's picture

Once the debt ceiling is breached officially, that shit is going to get pretty difficult to get by.

The price may still be the same but there won't be any left and spots will go into the stratosphere.

 

Mon, 07/11/2011 - 10:28 | 1443575 Transformer
Transformer's picture

Me too.  Haven't bought any yet.  Think now is a good time?

Mon, 07/11/2011 - 10:46 | 1443680 Sudden Debt
Sudden Debt's picture

To be honest, I don't know.

I won't untill the end of the year but that's because I want specific kind of coins that only come out at the end of this year.

But almost every day I feel like buying.

 

Mon, 07/11/2011 - 08:38 | 1443156 shortus cynicus
shortus cynicus's picture

Better buy guns and food. Then collect gold from all the dead and hungry, me inclusive.

Ammo and food is PMs with leverage.

Mon, 07/11/2011 - 09:00 | 1443235 LikeClockwork
LikeClockwork's picture

If we go full apocalypto, shiny yellow metal won't be relevant until population is heftily downsized.

Mon, 07/11/2011 - 09:55 | 1443436 bill1102inf
bill1102inf's picture

Guns.. check

Food.. check

Gasoline.. check

List of people I know of hoarding PM's.. check

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