Thank You Swiss National Bank For $2000+ Gold
Confirming that this is a market for idiots, by idiots, was the 4 am response in the price of gold, which following the SNB's Swiss Franc peg announcement did not surge, as it should have considering that the SNB just singularly changed the role of the CHF from a "flight to safety" to a carry currency, making gold the only island of stability in a world of fiat insanity, but instead plunged by over $50. Subsequent attempts to regain the $1900+ level were met with constant program selling for no other reason, than just because someone 'else' was selling. Of course, the logic is completely and totally the opposite. But don't take our word for it: here is Reuters: "Switzerland's decision to peg the erstwhile safe-haven franc to the euro may finally give gold bugs the chance to see prices hit the once-unimaginable $2,000 an ounce mark, as the metal holds on track for its strongest annual rally in three decades. By buying euros in unlimited amounts to weaken the franc, the SNB is in effect putting more of its own currency into circulation, which threatens to trigger inflation. It has also impacted the Swiss currency's status as a haven in its own right. While gold prices initially dipped as the move sparked a rush to liquidity in the form of other currencies such as the dollar, the SNB move is likely to lend firm support to gold in the medium term, analysts said." Precisely. And it is not only Reuters: Bank of America's MacNeill Curry said that Gold will probably rise to $2,050 this year. The rationale - identical to the above: SNB decision to peg franc to euro should also support gold. "They have taken out one of the big safe-haven assets, which is the Swissie." As for the amount of time the idiots will need to realize that QE3 coupled with the SNB action means that gold is now valued somewhere well over $2000: at least a few days...Which everyone who looks for even the smallest golden pullback will be happy to take advantage of.
From Reuters:
"All in all, Switzerland is now on a quantitative easing policy in the foreign exchange markets," said Peter Fertig, a consultant for Quantitative Commodity Research. "If the Swiss franc is no longer a preferred safe haven due to intervention by the SNB, it will have (a positive) impact on the demand for gold."
Much of gold's rise this year - it is currently up 34 percent since January, on track for its largest yearly gain since 1979 - has been fueled by cheap cash, provided chiefly by Western central banks battling debt piles large enough to derail global growth.
Even without the SNB, the deterioration in the euro zone debt crisis and the U.S. economy's inability to create a single job last month had already prompted many analysts to upgrade their gold price targets this year.
The $2,000 mark is now coming clearly into view -- though its sustainability at that level is unclear.
"$2,000 is just another number. There is no reason why it can't go through that, can't go a long way through that," said Natixis strategist Nic Brown.
"This explosion in liquidity creates demand for gold and creates the perception for gold prices to go higher," he said. "But ultimately, this is a bubble fueled by liquidity."
Adjusted for inflation, gold already hit $2,000 an ounce in October 1980. In 1980s money, Tuesday's record high gold price of $1,920.30 an ounce is only worth $720.
But its rally is impressive nonetheless, with the metal set to end September with its twelfth quarterly gain in a row, its longest such winning streak in at least 30 years. Switzerland's move is just the latest piece of supportive news for the metal.
"I think gold is headed for $2,000. In theory, this could happen in a matter of days," said Frank McGhee, head of precious metals trading at Chicago's Integrated Brokerage Services.
"In reality, if this type of intervention action was taken and was ultimately seen to be ineffective, then the market will get new strength from that."
Who may do most of the buying? Why the same printing madmen themselves:
The most recent data from the International Monetary Fund shows the world's central banks have bought some 200 tonnes of gold this year, led by Mexico, Russia and South Korea. Investors in exchange-traded products backed by physical gold have increased their holdings by a net 75 tonnes in 2011.
The Swiss National Bank's "shock and awe" decision may prompt even more of this kind of investment.
So while the robots, the vacuum tubes and the algos are decidedly confused what to make of the noisy intraday momentum, the ultimate direction of the price of gold is beyond obvious. That's ok - anyone long gold since the triple digits has more than enough patience to wait. After all, it won't be the first, or last, time, the Ph.D.-programmed robots need a little time to regain their bearings in a market that has just seen a 180 degree overnight change in virtually everything.
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i get really nervous hearing banking analysts tell us gold is heading higher....realllly nervous......
In this one case I am not sure it concerns me. What are they going to do sell all the gold?
Unless they have developed industrial strength alchemy there isn't much to worry about.
The printing of fiat will continue until morale improves.
Turns out they have and I have the book, and no, not by paulo C.
That is the twist in the game.
V
check this out:
http://twitpic.com/6h0c22
from Hinde Gold Fund
What trade is this chart reflecting?
riots in CH in 3...2...1...
seriously, first they close down the Letten, now this!
Ah, the village idiot showed up. Riots? Wettin' you' pants again?
http://blog.agoodeye.co.uk/2011/05/may-day-riots-in-zurich/
You were saying?
Gold in terms of francs.
tmosley - Thank you! Something is not passing the smell test on this one. With all the manipulation why in the heck would they mow down all the life boats and force everyone into a decision between 1. The stock market, 2. US Treasuries, 3. Gold? Gold is the only asset moving higher and the most hated by the cartel. I think we should expect a severe bear attack on the PM's. It seems to me that they are about to throw the kitchen sink at the P.M.'s and coral everyones money for the slaughter on the DOW.
Unfortunately for them, it doesn't look as though people are becoming scared enough to run from Gold as fast and hard as they would like.
"... the world's central banks have bought some 200 tonnes of gold this year ..."
I'm gonna say that they bought it with money they printed.
Gold at $infinity anyone?
They probably got rid of their dollar reserves.
Agreed. The usual raids go for a very long sustained duration and are marginally successful. Even when combined with such beneficial factors as holidays, margin calls, and known news events, both Gold and Silver seem to climb back up in the asian hours. The patterns are so well known that there are major buyers getting great deals on waterfall declines. Telegraphing your moves doesn't help achieve your goals.
I also think that the Internet is helping a large number of people get quickly educated on what is going on. Education helps combat the "terror" when you watch that Kitco graph plummet through several dollars in a few minutes. I now actually look forward to these raids as I can see their frequency and effect are becoming far less pronounced. The end is near for the cartel. There are too many holes in the dykes.
When I think of my own transformation, from sheeple, to "outside the matrix," I was able to educate myself very quickly (through great sites like ZH of course) about the myriad details of global finance, and the PM markets. I have taken steps that, objectively, are very bold, considering my previous investment strategies, and of course, have paid off handsomely thus far. Far better is being able to sleep at night knowing I have prepared as best I can.
The fact is that the Cartels _influence_ the markets. They do not control them. And they have committed egregious overreach due to arrogance, and underestimating the rebel fleet. Here's to their imminent destruction.
Stick to your guns.
Locked and loaded Colonel-ingus!
They're caught between a planet sized rock and a shitload of hard places!
You the same LongBalls that used to play baseball in the DR and love Marlboros?
Stay right and hold tight!
You can buy other things than just bonds or stocks...
Get yourself a nice convolut of Picasso prints etc...
Nicer to look at even than stocks or bonds ;-)
Just don't fall for any falsified Miro or Chagall and the likes.....
Thanks for sharing that chart. Simply amazing. Hinde Capital is a smart group (I always enjoy what Ben Davies has to say).
It's interesting to show how quickly the currency debasement can be done, when someone gets a mind to do it. This must only be possible with digital currency (as the paper and ink variety would take far to long to generate - especially on those cheap new HP inkjet printers).
Quote of the DECADE!
"The printing of fiat will continue until morale improves."
All Credit too fuu !!
<bow>
Restecpa. :)
Tune them out. Make your own decisions and trust yourself.
I remember telling one of my friends to buy gold at $1,175 and telling him that it would eventually hit $1,500. Agast, he said "if gold hits $1,500, we have much more to worry about than making a profit." Well, he was obviously wrong, and he was obviously very right.
I clearly need to change my avatar, how do I do that?
Go to the home page.
On right hand side near top, see your userid and My Account, click on it
Click on Edit tab
Use "Picture" halfway down the edit page and add a new one
translated: "hide your gold and buy more lead"
fixed it for ya
Buy more gold and buy more lead. (I already assume each one with gold knows how to hide it)
Fixed it for you!
I did the first today, maybe buy more Pb tomorrow.
Nice avatar!
Don't forget to practice using that lead dispenser, it's useless if you can't make it do what you want, even in very stressful times or half asleep (or...stoned). And remember to clean the dispenser afterwards. These things don't work like in the movies, not even a little. For some of us, it's better than the movies, for all too many, only the bystanders are endangered. Like in those dumb criminal videos where two guys (a crook and a store owener) empty glocks at one another at two-three paces on no one is hit. Don't be those guys.
True. Practice and cleaning are essential skills in using your lead delivery device.
I get nervous to. Then when I watch the 'CPM Gold Yearbook' figures I am a bit calmer again. Gold ownership is at 0.7% of all global investment.
Source: http://www.resourceinvestor.com/News/2011/4/PublishingImages/4-4-11-ft-g...
Thanks for the chart. It reflects what I've seen here. Everyone's hoarding fiat currency, somehow think their euros are different from those in italian bank sheets. Amazing to behold. So.... Much talk not much commitment. Gold fills headlines, but not balance sheets.
Can you imagine what will happen when (not if; when) it reverts back to 5%? By then many will be out of business anyway.
Indeed. Another statistic:
Real inflation adjusted price for gold/silver peak at 80s was 2400usd/130usd.
The silver price is $130 when using the cooked government inflation adjusted numbers. ShadowStats puts it at over $300.
“On the surface, it would seem to be highly bullish for gold. The possible negatives could be:
1) investors throw in the towel and just put assets in USD, on the assumption that there is less of a risk of a 9% overnight move in the USD going against you.
2) this pushes investors into risk assets
3) the extreme losses experienced by CHF long speculators raises a warning flag for gold – i.e. bulls make money but pigs get slaughtered so to speak.
4) this could be a prelude to some intervention in the gold market.
One thing is clear to me is that no asset is safe in this environment.”How long will this jackassery of money sloshing go on? holy, mother fucking, fucketty fuck fuck .. They all know it's going to end and it will end badly for EVERYONE.. the longer they wait the worse it's going to be. I'm getting really tired of this shit.. they are just grindig metal on metal now.
Just grinding metal at this point, good analogy.
+1 for picking up on the "metal" ref ;)
Nothing that a carload of Vaseline can't ameliorate.
After the bending over we've all been given I'd be surprised if there is any Vaseline left. Maybe that will be the next hot commodity? We'll all come to remember the great Vaseline shortage of 2012.
The longer they wait, the worse it will be UNDER THE CURRENT SYSTEM. So why would so many bankers and politicians, worldwide, agree to kick the can at such a cost in today's fiat? Have they all gone crazy, all at the same time?
Maybe they know it doesn't matter how much fiat they spend to kick the can under a lost system. Maybe the longer they delay, the better their chances of smoothly switching to a new system. So they continue to kick the can and buy gold.
the crash, and thus the "worst part" (as referenced in the longer they wait the worse it will get) comes at the crashing point of the current system, not DURING the current system. My point stands, but for clarity I will amend my statement to read "The longer they wait, the worse it will be at the END of the current system".
I think their attempt is to make us beg for a new system which, I'm sure they have all so generously created for us; a system that benefits them the most and is, of course, tweaked and refined so that it's harder to uncover the fraud(s) in the new system that they install. I honesty think they will boil the fucking water for as long as they can..slowly.. until we either give up or start a war.
The easy way out for both sides is for us to beg.. the more costly for us is war. War is just a nuisance for them. They'll make money on it, but it just makes things take that much longer while the war plays out.
The reality of these or any other protests are the same that we here in America will face when it is our turn in the near future..
NOTHING!! WILL!! COME!! OF!! ANY!! PROTESTS!!
The reason why is simple, numbers.
The Bottom and Lower Rung Middle Income Crowds are on board with Fighting Back.
The Middle and Higher Rung Middle are Comfortable thusly there will be NO! Protest from them and in fact see the Lower Rung and Bottom as acceptable losses.
In the End.. after the Bottom and Lower Rung have been silenced..
The Attack on the Middle and Higher Rung will begin.. But the bottom and lower will want no part of those peoples problems and mostly the Middle and Higher Rungs will just grin and bare it!
divide and conquer.
this battle was won thru the programming of over stimulated decades ago.
The Bottom and Lower Rung Deserve what is happening.. they are less than. they are stupid or ignorant either or it doesn't matter.. not worthy of benefit and a drag on the larger society.
The Middle and Higher Rung will not want to lumped into that crowd and will suffer with a smile rather than be seen as one of those kinds of people.
Greece Fell!
Spain will Fall!
Germany is a LAP DOG! and will get in line becuase they win either way but this way with Global support.
Italy? will fall.
and then..
lastly..
after all the others have gone before.. America will fall, divided.. and by the time everyone figures out that it always was a war against all of us.. will be.. to.. fucking.. late...
It's going to continue for far long than we think.
I'm thinking that gold, the inverse of the monetary system, is going far, far higher than $12,000 per ounce. This does not comfort me, despite my position, but makes me a little scared.
What will happen when everyone will be clamoring for 1 ounce of gold, or 5 ounces of silver? Anyone who holds the physical might have to hire a private army to guard it.
But the only way it's going to play out is collapse. That much should be certain by watching the events unfold, despite the words coming out every leader's mouth. And for collapse to happen we have to hit a far more manic stage of crises and money printing.
i feel ya, but no ruling caste in history has ever willingly given up power. they will keep it going straight into WW3, unfortunately.
"they will keep it going straight into WW3, unfortunately."
What you mean is "we have always been at war with Eastasia."
The last two interventions in the gold market didn't work out so well for the manipulators, esp the last margin hike. I don't really care what the analysts do, and I'm losing any concern about the manipulators too.
Hike the margins to 100%. It matters not to me. Gold will shine whatever the manipulators do, given time.
No worries, except I can't get the green arrow to work here for you here...
So, take a written +1
There are still Norwegian Crowns, Japanese Yen and the ultimate undervalued currency-the RENMINBI--only available on the blackmarket..!!!
I believe renminbi can now be received from HSBC atms in HK, along with HKdollars. Probably a zerohedger in HK now. Oh, the dusk til dawn bar.
Just become a regular at a chinese restaurant and politely ask for "off the menu" specialties.
lol, don't count your chicken before they are hatched, instead join us at
OCCUPY#WALLSTREET!
Even the market propaganda called marketwatch is taking note of that...
http://www.entendance.com/forums/viewtopic.php?f=6&t=801&p=19165#p19165
Riiight.. you know, as much as I hate what the pig fuckers on wall street are doing, there is no fucking way in hell I'd join a US communist party backed event.. While their goal on that day might seem to match many of ours, their vision is far from it.
Great observation UGrev! There are groups out there itching to take advantage of this "tipping point". In the end they are no different than the banksters. They seek tighter controls on personal freedoms.
Thanks. It's taken me a while to re-tune the noodle to start picking through this bullshit that pops up. I took a look at the poster/image they have on their site and I immediately started digging to find out more about what the fuck these people are about. Ironically, the technique for recruiting hasn't changed much.. the internet just makes posting "posters" and trasmitting them to millions of people orders of magnitude more easy. This is a giant commie, anti-capitalist, recruitment orgy with a slathering of vitrolic tendencies to make it appear legit.
I too salute you, UGrev, for digging these guys' agenda up for us to see.
So who/what exactly will be occupying Wall Street?
Will it be zombies or dead bodies?
probably some half-breed... courtesy of your name.. ;)
last I heard, it was going to be script kiddies
Amen Brother!
SNB supports $2000 bitchez
Try $2500.
Last safe haven standing is worth +25% at least.
Try $2500.
Strange (or is it) that both metals are getting hammered (1860 AU, Down over 30 and 41.72 Ag, down 1.70 and odd?).
Very interesting. Pullback for the slingshot is what it looks like, technically speaking!
V
agreed, great time for a little options play, long Ag
Ag is a very frustrating metal. Earlier this year I was looking for a 20 to 1 ratio to be able to load up more Au, now the spread is widening. Aaaaaaggggggghhhhh!
Just like clockwork when the troll capitulates and joins the gold buggery it goes down.
I never buy when I capitulate!
But then I forget to buy when I dont want to.
There was the obvious smackdown that occurs post-holidays. The market timing was obvious, as everyone knew that this week was going to be brutal for stocks (so a little collateral damage to the PMs won't be noticed, and is necessary to show "there is no safe haven").
Also didn't the suprise move for the CHF create liquidity problems forcing sales of winners (like PMs, what else is winning)?
Once the vaccuum tubes realize this means we have a winner in the "last haven standing" the price should shoot up (Oh yeah, silver is acting mighty safe haven like as well).
Gold bitches... Calling Roubini... Moshi Moshi ?
The end of the great debt experiment is nearing and everything is pointing towards a big credit crash coming up. The world’s monetary system needs to be backed by gold in order to move forward with a sound financial system that does not allow banks create money out of thin air. Money should not be based on debt, but on sound intrinsic value.
Check out the latest from the Capital Research Institute (CRI): The Debt End Game
www.capitalresearchinstitute.org
It is not WHAT the money system is backed by, but WHO controls it.
If you mean by "who controls it".......who controls the quantity of currency, I would agree.
Or who controls what amount.
Money concentration is a problem too at times, but a problem which is usually self resolving.
The people setting up the new monetary system are not the types to leave themselves handcuffed. You can rest assured, they will have a way to manipulate and undermine the new system.
Therefore, I wholeheartedly agree with you Rgd.
The solution for each of us is to not their play game whenever possible. One way is buying gold. We want spread out among the people as much as possible.
Tyler, I agree to a certain point but...
Cosnidering the fact Gold is having troubles around the 1900.
that when shit hits the fan, cash is king.
Liquidity problem.
All the money that has been printed are stored somewhere but it is certainly not circulating as it should.
What's your take on my view?
Tell that to Zimbabwe.
There are always brief bouts of deflation prior to hyperinflation. I would not be one little bit surprised to see the Franc collapse into hyperinflation by the end of the year (or the end of the month, or the end of the week) as savers flee en masse, with the central bank powerless to stop it. Perhaps the ECB can buy up all the spare Francs generated in that way. That little circlejerk might buy a few months before the Euro collapses as well as investors flee in horror.
And you know, come to think of it, they have hyperinflation there TODAY. A 9.5% drop in their currency on a monthly basis (assuming trading only on week days) is more than 600%. 300% in a month is the traditionally accepted threshold for hyperinflation.
So congratulations, SNB and Swiss citizens. Enjoy paying (much, MUCH) more for everything you buy.
Soooooo: $50 for a big mac and coke in Zurich?
No, more like 50 francs. Hyperinflation in their currency won't really effect prices in that country in terms of other currencies. Especially since many or all of them are on the road to failure as well.
I see this move by the swiss as a reaction to the non-reaction of the world investors towards CHF with negative rates, it needed to help its exports, rather than financials.
Also, its banks are exposed to the sovereign debt crisis. They needed to reduce the impact before the end shock.
An $80,000 Rolex. Sounds right to me.
when shit hits fan then more kings are created/printed which calls into question the monarchy.
Pieces of paper are king? I guess if you have an outhouse.
7.62 is king.
5.56 the One-eyed Jack [Prince].
I first read this at ZH:
Lead is a precious metal whne moving at a high enough velocity.
Complements holding gold...
Pernicious Metals operate best when served hot and fast.
‘Copper for the Tinsman clever at his skill,
Silver for the Maiden tipped in the till,
Gold for the Noblesmen sitting in their hall,
Iron, cold Iron calls the Baron from the hill,
Iron, cold Iron is the King of them all.’
manipulation. it was above 1900 before the opening of the market here; then wham...fuck dat shit, dem gold fuckers thinks they'll be kings some day an rules.
we're persistent; we don't what the price is, we want change, we want our turn at the wheel.
Today Gold priced in CHF reached 146.2CHF. Oh sorry (sarc) that's the volatilty not the price. 1632.06 is the new all-time high
And BTW fuck you banksters! Swiss franc pegged to the Euro? This is just insanity! Oh fuck why did I not get rid of my salary as soon as I recieved it and move into gold?
In a month gold in CHF moved from 1236.08 to 1632.06 +32% !!!