Euro And Swiss Franc Fall To New Record Lows Against Gold

Tyler Durden's picture


From Goldcore Gold Bullion

Euro And Swiss Franc Fall To New Record Lows Against Gold

Today’s AM fix was USD 1,781.00, EUR 1,374.65, and GBP 1,098.77 per ounce.
Yesterday’s AM fix was USD 1,755.25, EUR 1,365.32and GBP 1,084.16 per ounce.

Silver is trading at $1,670.75/oz, €26.96/oz and £21.52/oz. Platinum is trading at $1,670.75/oz, palladium at $637.90/oz and rhodium at $1,075/oz.

Gold climbed $26.00 or 1.48% in New York yesterday and closed at $1,777.30. Silver surged to hit a high of $34.74 and finished with a gain of 2.15%. Euro gold rose to a new record high at €1377. 

Gold prices are up on Friday, as the new austerity budget from Spain was received favourably and it increased the appetite for higher risk assets, sending bullion, commodities – brent crude oil at $112, the euro and equities to rise.  

Gold prices in euros held near the prior session's all time record high of EUR 1,380/oz, hit after rising spot prices coincided with a weaker euro on Thursday.  Euro-priced gold was up 1.1% at EUR 1,375.48/oz.  

US gold futures for December delivery were up $2.50/oz at $1,783.00 this morning. 

Quarterly performance for, gold, silver and platinum were all up.  Gold is on the way for an 11.4% gain. Silver racked up the largest gain and rose over 25%.  Spot platinum and palladium were up 15.4% and 9.8% for the 3rd quarter. US gold American Eagle coins was improved from last quarter (138,000 ounces vs. 133,000 ounces) however still the lowest quarterly figures in over 2 years.

Gold reached highs in euros and Swiss francs yesterday, in London trading it hit EUR 1,379.60/oz compared to EUR 1,375/oz last September.  In Swiss Francs gold traded at CHF 1,666/oz.

Europeans have been viewing scenes of violence and riots from protestors in Madrid and Athens over the past few days. 

Barclays Plc. announced yesterday it was opening its own London vault to store gold and other precious metals due to demand from their clients.

Investment banks have readjusted price targets upward in the past few days with some calling for gold at $2,000 and higher in the next few months.  

This signals that the recent rally of the euro against the dollar was largely due to the poor US monetary and fiscal situation and the greenback’s weakness and not due to any great confidence in the single currency per se.

Protests and violence clearly show that the eurozone debt crisis is far from over and there remains the risk of a currency crisis in the European Monetary Union (EMU).

Finally, we are confident that the new record euro and Swiss franc highs will soon be followed by new highs in gold.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold Sets Records in Euros and Francs on Currency Concern – Business Week

Gold rises to record in euros, swiss francs MarketWatch (blog) – Market Watch

Barclays Opens Precious Metals Vault in London as Demand Climbs – Business Week


Spain Must Leave The Euro – The Telegraph

Barclays Opens Massive Brand New Precious Metals Vault In London – Zero Hedge

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Fri, 09/28/2012 - 07:55 | 2838061 flaunt
flaunt's picture

Umm... Title?

Fri, 09/28/2012 - 07:56 | 2838064 GetZeeGold
GetZeeGold's picture



Worth it's gold.


Fri, 09/28/2012 - 07:58 | 2838068 bank guy in Brussels
bank guy in Brussels's picture

But the seven pretty euro notes come in all seven major colours of the spectrum!

Fri, 09/28/2012 - 08:04 | 2838080 GetZeeGold
GetZeeGold's picture



The new models will be out next month.....prepare to be dazzled.


Fri, 09/28/2012 - 08:19 | 2838100 Badabing
Badabing's picture

Silver is trading at $1,670.75/oz, NICE

Fri, 09/28/2012 - 10:56 | 2838868 dannyboy
dannyboy's picture


Paging editors of Goldcore, anyone home?

Fri, 09/28/2012 - 07:58 | 2838069 Ol Man
Ol Man's picture

It IS a little confusing....


Fri, 09/28/2012 - 08:11 | 2838090 GetZeeGold
GetZeeGold's picture



Sorta on purpose actually.


Fri, 09/28/2012 - 08:20 | 2838105 flaunt
flaunt's picture

Dammit, I ought to know better than to comment first thing in the morning.  My brain wasn't fully functioning :)

Fri, 09/28/2012 - 07:59 | 2838070 vinayjha
vinayjha's picture

In recession everything get hit. Gold and silver will fall.

Fri, 09/28/2012 - 08:12 | 2838093 fonzannoon
fonzannoon's picture

we have been in a recession for 12 years with some bubbles popping to keep us interested as we go.

Fri, 09/28/2012 - 08:16 | 2838097 GetZeeGold
GetZeeGold's picture



Just pulled up a 10 year gold chart.....I instantly spotted a chink in Sparky's armor.



Fri, 09/28/2012 - 08:26 | 2838117 Dr. Engali
Dr. Engali's picture

I'd say we have been in recession since the 70s. We just papered it all over with debt. Now we are paying the price for pulling all of that future growth forward for 40+ years.

Fri, 11/30/2012 - 04:58 | 3022971 jaffa
jaffa's picture

Price differences between locations are common, even inside the same country. But the use of the Euro will cut off the difference because of the exchange rate.Only the real costs are now playing the vital part.To make the different economies converge, it has used the same frame work of monetary policy determined by the European central bank in Frankfurt. Only fiscal policy is done by the country concerned under the guideline of the European parliament. Believe it or not,it is working. Thanks.
Eurochance 100

Fri, 09/28/2012 - 08:00 | 2838072 LULZBank
LULZBank's picture

Unpeg the CHF Bitchezz!!!

Fri, 09/28/2012 - 08:28 | 2838127 ThirdWorldDude
ThirdWorldDude's picture

Will be first thing to do after Germany goes back to DM.

Fri, 09/28/2012 - 08:39 | 2838167 swissaustrian
swissaustrian's picture

Then we'd peg to the DM.

Fri, 09/28/2012 - 08:48 | 2838191 ThirdWorldDude
ThirdWorldDude's picture

And so will the rest of N. Europe. That's the plan all along. 

(I wonder what happened with the Swiss Parlament's decision on golden francs, any info on that?)

Fri, 09/28/2012 - 10:18 | 2838650 swissaustrian
swissaustrian's picture

Considering a constitutional amendment which would require a popular referendum.

This referendum is more urgent, though:

We almost got the required 100'000 signatures.

Fri, 09/28/2012 - 08:01 | 2838075 CPL
CPL's picture

THe article is a little munged.  Otherwise.




Keynes versus Hayek round 2 Rap batttle

Fri, 09/28/2012 - 08:02 | 2838076 PaperWillBurn
PaperWillBurn's picture

It's MTM day. ECB marks their gold reserves to market. Higher POG, better balance sheet



Fri, 09/28/2012 - 08:06 | 2838083 TrumpXVI
TrumpXVI's picture

I thought it was TGIF.

Fri, 09/28/2012 - 08:23 | 2838108 swissaustrian
swissaustrian's picture

Same for the SNB...

Fri, 09/28/2012 - 08:14 | 2838081 Floodmaster
Floodmaster's picture

Cows and stratospherically-high house prices (add a zero for a Swiss-US equivalent, seriously! ), the Swiss Franc is the most overvalued currency in the world.

Fri, 09/28/2012 - 08:38 | 2838164 swissaustrian
swissaustrian's picture

Yep the Swiss real estate market is crazy right now. I could get a 10y fixed mortgage at 1.4% if I wanted. That's one of the unintended consequences of the EUR/CHF floor at 1.20.

There are other reasons for booming RE prices like population growth (from 6 milllion to 8 million in the last decade), low unemployment (3%), very low income taxes in some tax havens, money laundering (RE is nearly exempt from ml laws) and inflows of foreign capital (ultra high net worth individuals) which sees Swiss RE as a safe place.

UBS has launched an index called "Swiss Real Estate Bubble Index". It's pretty well done:

In terms of overvaluation: The Euro is not severely undervalued against the CHF in purchasing power parity terms which is at ~ 1.35.

The CHF gets a huge premium from the soundness of our government finances (budget surpluses and debt/gdp at 40%), and our non-membership in the Eurozone. We don't expect this to change anytime soon here in Switzerland.


Fri, 09/28/2012 - 09:06 | 2838237 Floodmaster
Floodmaster's picture

A small 1200 square foot condo in a small municipality for $1,390,000 CHF ->$1,500,000 USD!

Even at 1.4% you have to earn 200k a year to afford that kind of monthly payment.

Fri, 09/28/2012 - 10:08 | 2838591 swissaustrian
swissaustrian's picture

Cham in the State of Zug is a major tax haven and average wages of Cham residents are probably in the 200k+ range in that area, but I see your point.

Fri, 09/28/2012 - 08:06 | 2838084 Peter Pan
Peter Pan's picture

One would hate to think what the Euro price of gold would be if the Swiss were not buying euro bonds etc to maintain a peg. Bloody fools are messing with the market but little do they realise that their reins over the market are only made of paper.

Fri, 09/28/2012 - 08:11 | 2838091 RSloane
RSloane's picture

They know it, they just don't want anybody else to know it.

Fri, 09/28/2012 - 08:24 | 2838112 disabledvet
disabledvet's picture

Eh. The theory that "this means there is no economy in Europe anymore" is simply false. Clearly the Western World is in the grips of a massive deflation. There is no way to get out from under the onus of "free everything." Giving it we all will do in total someday...and what we do everyday without even thinking or knowing...means we are still stuck with the same problem we started with from to restore growth in an economy. Clearly Central Bankers are the problem not the solution. But there are so many solutions...all of them do-able and many underway right now. Clearly the collapse of the entitlement culture has been underway for some time. In the USA we have had massive moves in populations yet again...this will have dramatic consequences as it always has before.

Fri, 09/28/2012 - 08:28 | 2838126 Anglo Hondo
Anglo Hondo's picture

Folks are going to store their gold in Barclays new vault in London?  Barclays are going to count the gold in the same way they counted the Libor.

Anyone putting gold in Barclays deserves all they (won't) get (back).  Barclays statement: "Our new motor yacht has had a nasty accident.  The gold has all GONE!

Fri, 09/28/2012 - 08:43 | 2838176 Taterboy
Taterboy's picture

I gots ta buy some gold. Forget coins or bars, bling's what I need. Anybody gots an Obama phone I can use?

Fri, 09/28/2012 - 08:54 | 2838212 ATM
ATM's picture

Talked to my fried who is a wholesale jewelry and pm dealer. He can not find any gold for sale. A year ago he would call me with offers of PMs he could get. Now, nothing. No sellers.

Fri, 09/28/2012 - 09:21 | 2838326 orangegeek
orangegeek's picture

A gold commentary that makes sense.  Gold in Euros will rise.  Gold in US Dollars will fall.  Why?  The US Dollar is weighted about 60% against the Euro. 

Fri, 09/28/2012 - 11:31 | 2839035 Grand Supercycle
Grand Supercycle's picture


Longs please be careful.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:


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