Swissy Plummets On Rumor Swiss Banks To Charge For CHF Deposits (Update: SNB Denies)

Tyler Durden's picture

Update: the SNB just denied it has sent letters to Swiss bank demand a surcharge for CHF deposits. Response:

As the stock market whipsaws continue, nothing compares to what is happening in the various Swiss Franc pairs, as both majors USDCHF and EURCHF have soared (the Franc has plunged) following rumors that UBS (and possibly more banks) have escalated the currency war by announcing charges for CHF-based deposits, thereby making CHF holdings more expensive, and forcing a sell off. It is unclear if this was a private decision or mandated through the SNB. We expect that it will take the market the usual several hours to realize that the only winner out of this move is not ES but gold (and physical at that), which once again reminds everyone it is the only money without deranged central banker counterparty risk.

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unky's picture

People will soon realize that the swiss franc is just another paper currency. THen they will also flock into gold

Pladizow's picture

Whether it be Swiss Cheese, Swiss Francs or any other Fiat paper currency, they are all riddled with holes.

"The FEd will elevate gold ownership from intelligent diversification to practical necessity." - John Embry

mkkby's picture

This article is about raising the price of holding a certain asset they want to manipulate.  You think that can't happen with gold?

They can raise the taxes very high.  They can make it illegal to own and trade.  They can raise storage costs or refuse to store it.  They can tax buying and selling with dealers.

All of these things can crater the price at any time.  I have no position.  I'm just saying protect yourself from this relentless hype.  You won't be allowed to pay off your house with a gold coin.  And they won't let the price undermine their determination to keep the ponzi going.

unky's picture

Thats why you hold your gold in different jurisdictions. Plus, you can always move your Gold where free trade is welcomed such as Singapoore or HK.

If you live in europe you might very quick move your gold into switzerland or Luxemburg or Liechtenstein or where ever you prefer, when rumors of confiscation or taxation of Gold come to world.

nope-1004's picture

All of that assumes there is an alternative option and viable medium of exchange if and when your predictions occur.  What if there isn't?  Will you pay off your house with buttons?  Coffee beans?  LOL.

Pladizow's picture

These are simply all scare tactics that Wall Street and Washington hope I place any creedence in - which I do not.

Perhaps you can tell me what Wall Street product I should buy?

You mention "relentless hype" - how many magazines, newspapers, TV stations, internat sites, radio shows or any other form of mass media propoganda have been dedicated to pushing gold as opposed to Wall Street products over the last 50 years?

ALL ponzi's end!

ramirez's picture

I have a few headphone pairs with gold-coated jacks and gold-coated watch. I can't sleep what would happen if the "make it illegal to own and trade". I could never listen to music neither know what time is it anymore :) Nor would I be able to get rid of these accessories to avoid being prosecuted :P

Sudden Debt's picture

It's just a way to fund their dying banks to.

First they set up the trap, lured the money in AND NOW IT'S PAYDAY BITCHEZ!

The account holders can withdraw their money back to their country off course for the small fee of 4% ON THE TOTAL SUM!

And for those who don't agree, can always complain at the tax collectors in their own country explaining that they fled with their money to Swiss to avoid taxes and don't like it anymore.



unky's picture

Germany did some new agreement with switzerland recently whereby the swiss  banks would collect the taxes and then send them to the german government. However they would send all the taxes collected at once, so its anonymouly and the german government wont see who has how much money there.

I call bullshit. Maybe next year we will see new, stricter laws. Why I should bother with all of this uncertainty when I can just hold the physical gold.

Nothing To See Here's picture

"People will soon realize that the swiss franc is just another paper currency. THen they will also flock into gold"

Technically, the problem with paper currencies is not that they're made of paper, it's that they are not backed by gold in order to prevent the free printing. But say that the Swiss franc is not printed and its supply is stable, it would be (almost) as good as gold. But since all the other currencies are managed by madmen, investors flee to the only currency which is soundly managed and it causes imbalances which are unfair to the country who correctly managed its currency.

Same happens with the economy overall. Countries with better regulatory environments get the most business and investsments, but they suffer the most because of this when it all crashes because of the actions of madmen in other countries.

Sorry for the lecture, had a few thoughts which I wanted to write about...

Debugas's picture

holding physical gold costs me less than 0.5% p.a.

why would i want to pay for electronic deposit in constantly devalued fiat currency ?

unky's picture

I hope you dont hold it in a vault in the U.S. ;- )

Irish66's picture

"will take the market the usual several hours"

What the hell are they zombies

unky's picture

Actually the market could have figured this out years ago  that treasuries or the swiss franc or whatever are all just paper.

But the market is stupid. First the U.S. gets downgraded and some individual investors might think they dont want to stay in treasuries anylonger, but rather buy swiss francs. Then we see headlines like today and people think: Hmm, might buy something else. A smart person would realize immediatly that all of this is just paper and only the physical gold (or silver) cant be devalued by governments.

Bullionaire's picture

Negative JPM:SILVER ratio watch - Day 25.


Suck on THAT, Blythe.



mkkby's picture

"only the physical gold (or silver) cant be devalued by governments"

The hell it can't.  They can tax it, or make it expensive to store or trade.  They can make it illiegal to trade.  The only safety in gold is in your mind.

alien-IQ's picture

Hence, the first rule of Zombieland: Cardio.

Magnum's picture

It is not possible for Americans to open an account in Switzerland due to FATCA, and the UBS lawsuit settlement widely seen as unfair, and pissed off the Swiss to no end.  Swiss banks absolutely will not open any account for an American citizen.

alien-IQ's picture

Dual Citizenship = Problem solved.

(and it doesn't have to be Swiss citizenship)

trader1's picture

that's not true.  if you live over here and/or work here, then you can get an account

Magnum's picture

Check your facts.  Swiss banks all have a policy: NO AMERICANS CAN OPEN AN ACCOUNT.  Not $10,000 not $10M.  The answer is NO.  I was in Switzerland within the very recent past.  In person I spoke to every bank and none of them will open an account for an American.  zzzzzzzzzz.

Regarding "dual citizenship" this is extremely complicated and not a reasonable solution with all due respect.  

trader1's picture

i re-raise you and ask you to check your facts again.  

to open a swiss bank account as an american, you simply need to have a work permit or a residence permit for switzerland.

zoogle's picture

I can also confirm this. First question that they started with during the opening process once they heard my non British accent at one bank. This  was NOT followed with "unless you have a work or residency permit". At another bank the same question was asked with alarm in the secreteries voice as if having American citizenship is like the plague.

trader1's picture

Did you show the bank rep your work or residency permit for Switzerland?


JJSF's picture

I can confirm this. Even as a corporation if there is a US beneficial owner you will still be denied. There are other countries where this is happening as well. There will come a day where american assets overseas will just be readily handed over to the US gov in swap deals.

alien-IQ's picture

which begs the question: what's the point of being an american citizen?

to say you belong to the club with the most guns?

not too compelling an argument.

or to quote Woody Allen/Grouch Marx/Sigmund Freud: "I would never want to belong to a club that would have someone like me as a member"

Debugas's picture

what's the point of being an american citizen?


if you have a job your salary is still well above the rest of the most of the world.

GFKjunior's picture

An expensive option for most but an invaluable asset is a second citizenship. Several countries offer a pay-for-residency program. I only know about the Saint Kitts and Nevis program but for 200,000 to 350,000 you get a fully legal second passport with visa free access to tons of countries including the European Union and Canada.

RobotTrader's picture



Speaking of gold, why can't UXG get a bid?  Rod McEwen must be steaming.  I've been sitting on that dog for 2 years and it simply will not move.

Meanwhile, Tiffanys is getting all the love today.

nope-1004's picture

What is UXG?  Who is Rod Mcewan?

I think u mentioned gold Robo.... are your references eluding to the large stack of physical gold and silver I have stashed in my basement?

It's not steaming.  It's not looking for a bid.  And it's not having its deposit rates rise anytime soon.

Get a grip dude.  You're totally a paper shill.

mkkby's picture

If they raise the taxes or make it illegal for dealers to trade with consumers, your basement stash will be worth a lot less.

I suggest people stop deluding themselves.  You should not be 100% in PMs.  They can change the rules any time.  They won't let you pay off your mortgage with one coin, and they won't let the price rise to where it defeats their determination to keep the ponzi going.

tmosley's picture

lol, you've been in a gold stock for two years?

No wonder you keep insulting Gentleman Jim and Co.  You are pissed off that they are making lots of fiatscos on physical metals while you just lose, lose, lose on paper crap.

lieutenantjohnchard's picture

you didn't hear his most recent bray? why, by golly, all this time he's been buying gold bullion, he said (lied). brayed that he's been making money via bullion hand over fist, thank you very much. riiiiiiiiiiiiight! makes sense to me. buy something, and then trash it to high heaven.

tmosley's picture

Reminds me of our resident eugenicist and high priest of death worship, who owns silver, but constantly talks it down like he's fucking George Soros or something.

snowball777's picture

Because you're a moron, Robo. Keep holding that purse...I mean bag.

swissaustrian's picture

Coordinated action by the FED and the SNB to devalue the CHF right after Bernankes speech.

Benny met Phillipp at the BIS and leaked his speech to him, so the SNB could intervene on the "NO-QE3-yet"-news triggering a short squeeze.

Apostle of Unknown's picture

They know the amount of Eastern European loans denominated in Swiss Francs. An expensive CHF makes those loans more risky.

lieutenantjohnchard's picture

from the swiss point of view i like the idea. it helps protect domestic exports in a dog eat dog world of currency debasement, and serves notice that there's a cost for protection if you want it.

SheepDog-One's picture

DOW up +100 from down -100 in minutes? Totaly broken.

--Freedom--'s picture

Now back down to -15, what a fucking farce. NASDAQ was up 1.6 percent at one point, now dropping again.

By the way, nice call on no qe for the last few weeks.

SheepDog-One's picture

Thanks! Now we'll see what the manic depressive market robots do with it.

gmrpeabody's picture

Hedges and their stops wipsawwed to the max. This can be painful.

HAL 9000's picture

Has the mission been completed? You know that I have the greatest enthusiasm for it.

TradingJoe's picture

Algo bulls must be totally and utterly in full desperation mode! They night know what's coming, eh?! Volume is minimal to non existent, a perfect time to scalp a little more before it's lights out! Watch the action in the VIX/VXX calls they tell you what's coming! I don't trust this fake ramp at all!

alien-IQ's picture

a rumor which has conveniently put the brakes on the EUR/USD decline.

What were the odds huh?

FunkyMonkeyBoy's picture

Yeah, but unlike fiat and stock certificates, you can't burn gold to keep warm in the coming winter of discontent.

unky's picture

But you can put it in your tooth. Or wear it as jewlery as so many indians and pakistani women do arround here ;- )