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Thank You Swiss National Bank For $2000+ Gold

Tyler Durden's picture


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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Tue, 09/06/2011 - 14:04 | 1638857 kito
kito's picture

i get really nervous hearing banking analysts tell us gold is heading higher....realllly nervous......

Tue, 09/06/2011 - 14:08 | 1638882 fuu
fuu's picture

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.

Tue, 09/06/2011 - 14:20 | 1638948 Oh regional Indian
Oh regional Indian's picture

Turns out they have and I have the book, and no, not by paulo C.

That is the twist in the game.


Tue, 09/06/2011 - 14:27 | 1638972 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

check this out:

from Hinde Gold Fund

Tue, 09/06/2011 - 14:41 | 1639035 LongBalls
LongBalls's picture

What trade is this chart reflecting?

Tue, 09/06/2011 - 14:44 | 1639043 Ahmeexnal
Ahmeexnal's picture

riots in CH in 3...2...1...
seriously, first they close down the Letten, now this!

Tue, 09/06/2011 - 20:20 | 1640205 He_Who Carried ...
He_Who Carried The Sun's picture

Ah, the village idiot showed up. Riots? Wettin' you' pants again?

Wed, 09/07/2011 - 01:13 | 1640972 Ahmeexnal
Tue, 09/06/2011 - 14:47 | 1639058 tmosley
tmosley's picture

Gold in terms of francs.

Tue, 09/06/2011 - 15:00 | 1639111 LongBalls
LongBalls's picture

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.

Tue, 09/06/2011 - 15:01 | 1639122 UGrev
UGrev's picture

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. 

Tue, 09/06/2011 - 15:23 | 1639211 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

"... 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?

Tue, 09/06/2011 - 16:45 | 1639478 _Alekhine_
_Alekhine_'s picture

They probably got rid of their dollar reserves.

Tue, 09/06/2011 - 21:59 | 1640515 Fiat2Zero
Fiat2Zero's picture

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.

Tue, 09/06/2011 - 15:02 | 1639124 Ahmeexnal
Ahmeexnal's picture

Stick to your guns.

Tue, 09/06/2011 - 15:05 | 1639142 LongBalls
LongBalls's picture

Locked and loaded Colonel-ingus!

Tue, 09/06/2011 - 15:20 | 1639183 FeralSerf
FeralSerf's picture

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?

Tue, 09/06/2011 - 15:33 | 1639243 UP4Liberty
UP4Liberty's picture

Stay right and hold tight!

Tue, 09/06/2011 - 20:26 | 1640224 He_Who Carried ...
He_Who Carried The Sun's picture

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..... 

Tue, 09/06/2011 - 22:17 | 1640579 Fiat2Zero
Fiat2Zero's picture

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).

Tue, 09/06/2011 - 14:50 | 1639069 JW n FL
JW n FL's picture



Quote of the DECADE!

"The printing of fiat will continue until morale improves."

All Credit too fuu !!

Tue, 09/06/2011 - 15:19 | 1639194 fuu
fuu's picture


Tue, 09/06/2011 - 15:41 | 1639263 Motley Fool
Motley Fool's picture

Restecpa. :)

Tue, 09/06/2011 - 14:12 | 1638901 Corn1945
Corn1945's picture

Tune them out. Make your own decisions and trust yourself.

Tue, 09/06/2011 - 14:48 | 1639040 legal eagle
legal eagle's picture

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?

Tue, 09/06/2011 - 16:05 | 1639331 smiler03
smiler03's picture

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

Tue, 09/06/2011 - 14:12 | 1638903 DefiantSurf
DefiantSurf's picture

translated: "hide your gold and buy more lead"

fixed it for ya

Tue, 09/06/2011 - 17:52 | 1639688 DoChenRollingBearing
DoChenRollingBearing's picture

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!

Tue, 09/06/2011 - 18:08 | 1639745 DCFusor
DCFusor's picture

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.

Tue, 09/06/2011 - 20:40 | 1640280 DoChenRollingBearing
DoChenRollingBearing's picture

True.  Practice and cleaning are essential skills in using your lead delivery device.

Tue, 09/06/2011 - 14:21 | 1638952 Construct
Construct's picture

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.


Tue, 09/06/2011 - 15:05 | 1639130 Reptil
Reptil's picture

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.

Tue, 09/06/2011 - 15:11 | 1639174 Construct
Construct's picture

Indeed. Another statistic:

Real inflation adjusted price for gold/silver peak at 80s was 2400usd/130usd.

Tue, 09/06/2011 - 17:50 | 1639685 Jack Napier
Jack Napier's picture

The silver price is $130 when using the cooked government inflation adjusted numbers. ShadowStats puts it at over $300.

Tue, 09/06/2011 - 14:04 | 1638858 rgd
rgd's picture

“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.”


Tue, 09/06/2011 - 14:15 | 1638922 UGrev
UGrev's picture

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. 

Tue, 09/06/2011 - 14:27 | 1638975 SheepDog-One
SheepDog-One's picture

Just grinding metal at this point, good analogy.

Tue, 09/06/2011 - 14:37 | 1639015 UGrev
UGrev's picture

+1 for picking up on the "metal" ref ;)

Tue, 09/06/2011 - 15:25 | 1639219 FeralSerf
FeralSerf's picture

Nothing that a carload of Vaseline can't ameliorate.

Tue, 09/06/2011 - 17:53 | 1639690 Jack Napier
Jack Napier's picture

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.

Tue, 09/06/2011 - 14:39 | 1639026 Smiddywesson
Smiddywesson's picture

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.

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. 

Tue, 09/06/2011 - 15:02 | 1639062 UGrev
UGrev's picture

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. 

Tue, 09/06/2011 - 15:52 | 1639285 JW n FL
JW n FL's picture



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..


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..


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...



Tue, 09/06/2011 - 22:07 | 1640545 Fiat2Zero
Fiat2Zero's picture

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.

Tue, 09/06/2011 - 15:11 | 1639170 trembo slice
trembo slice's picture

i feel ya, but no ruling caste in history has ever willingly given up power.  they will keep it going straight into WW3, unfortunately.

Tue, 09/06/2011 - 23:19 | 1640720 bid the soldier...
bid the soldiers shoot's picture

"they will keep it going straight into WW3, unfortunately."

What you mean is "we have always been at war with Eastasia."

Tue, 09/06/2011 - 14:34 | 1639004 Smiddywesson
Smiddywesson's picture

this could be a prelude to some intervention in the gold market.

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.

Tue, 09/06/2011 - 17:57 | 1639713 DoChenRollingBearing
DoChenRollingBearing's picture

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

Tue, 09/06/2011 - 14:52 | 1639078 Mountainview
Mountainview's picture

There are still Norwegian Crowns, Japanese Yen and the ultimate undervalued currency-the RENMINBI--only available on the blackmarket..!!!

Tue, 09/06/2011 - 16:15 | 1639372 au_bayitch
au_bayitch's picture

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.

Wed, 09/07/2011 - 01:19 | 1640985 Ahmeexnal
Ahmeexnal's picture

Just become a regular at a chinese restaurant and politely ask for "off the menu" specialties.

Tue, 09/06/2011 - 14:05 | 1638866 entendance
entendance's picture

lol, don't count your chicken before they are hatched, instead join us at


Even the market propaganda called marketwatch is taking note of that...

Tue, 09/06/2011 - 14:19 | 1638946 UGrev
UGrev's picture

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.  

Tue, 09/06/2011 - 15:07 | 1639127 LongBalls
LongBalls's picture

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.

Tue, 09/06/2011 - 15:08 | 1639152 UGrev
UGrev's picture

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. 

Tue, 09/06/2011 - 18:03 | 1639726 DoChenRollingBearing
DoChenRollingBearing's picture

I too salute you, UGrev, for digging these guys' agenda up for us to see.

Tue, 09/06/2011 - 15:03 | 1639131 Pure Evil
Pure Evil's picture

So who/what exactly will be occupying Wall Street?

Will it be zombies or dead bodies?

Tue, 09/06/2011 - 15:09 | 1639157 UGrev
UGrev's picture

probably some half-breed... courtesy of your name.. ;)

Wed, 09/07/2011 - 01:20 | 1640988 Ahmeexnal
Ahmeexnal's picture

last I heard, it was going to be script kiddies

Tue, 09/06/2011 - 21:18 | 1640394 Solid
Solid's picture

Amen Brother!

Tue, 09/06/2011 - 14:07 | 1638870 Dangertime
Dangertime's picture

SNB supports $2000 bitchez

Tue, 09/06/2011 - 22:10 | 1640549 Fiat2Zero
Fiat2Zero's picture

Try $2500.

Last safe haven standing is worth +25% at least.

Tue, 09/06/2011 - 22:09 | 1640551 Fiat2Zero
Fiat2Zero's picture

Try $2500.

Tue, 09/06/2011 - 14:07 | 1638873 Oh regional Indian
Oh regional Indian's picture

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!


Tue, 09/06/2011 - 14:16 | 1638930 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

agreed, great time for a little options play, long Ag

Tue, 09/06/2011 - 14:33 | 1638992 goldm3mb3r
goldm3mb3r's picture

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!

Tue, 09/06/2011 - 14:34 | 1638999 topcallingtroll
topcallingtroll's picture

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.

Tue, 09/06/2011 - 22:13 | 1640565 Fiat2Zero
Fiat2Zero's picture

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).

Tue, 09/06/2011 - 14:10 | 1638888 Zola
Zola's picture

Gold bitches... Calling Roubini... Moshi Moshi ?

Tue, 09/06/2011 - 14:11 | 1638896 AustrianEconomist
AustrianEconomist's picture

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

Tue, 09/06/2011 - 14:16 | 1638926 rgd
rgd's picture

It is not WHAT the money system is backed by, but WHO controls it. 

Tue, 09/06/2011 - 14:19 | 1638942 JohnG
JohnG's picture

If you mean by "who controls it".......who controls the quantity of currency, I would agree.

Tue, 09/06/2011 - 14:37 | 1639016 topcallingtroll
topcallingtroll's picture

Or who controls what amount.

Money concentration is a problem too at times, but a problem which is usually self resolving.

Tue, 09/06/2011 - 14:56 | 1639100 Smiddywesson
Smiddywesson's picture

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.

Tue, 09/06/2011 - 18:07 | 1639742 DoChenRollingBearing
DoChenRollingBearing's picture

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.

Tue, 09/06/2011 - 14:13 | 1638908 hungarianboy
hungarianboy's picture

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?

Tue, 09/06/2011 - 14:29 | 1638980 tmosley
tmosley's picture

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.

Tue, 09/06/2011 - 14:34 | 1639003 tmosley
tmosley's picture

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.

Tue, 09/06/2011 - 16:23 | 1639401 apberusdisvet
apberusdisvet's picture

Soooooo:  $50 for a big mac and coke in Zurich?

Tue, 09/06/2011 - 17:30 | 1639623 tmosley
tmosley's picture

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.

Tue, 09/06/2011 - 16:27 | 1639410 Mec-sick-o
Mec-sick-o's picture

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.

Tue, 09/06/2011 - 23:11 | 1640697 bid the soldier...
bid the soldiers shoot's picture

An $80,000 Rolex. Sounds right to me.

Tue, 09/06/2011 - 14:29 | 1638981 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

when shit hits fan then more kings are created/printed which calls into question the monarchy.

Tue, 09/06/2011 - 14:29 | 1638982 SheepDog-One
SheepDog-One's picture

Pieces of paper are king? I guess if you have an outhouse.

Tue, 09/06/2011 - 14:40 | 1639031 SheepDog-One
SheepDog-One's picture

7.62 is king.

Tue, 09/06/2011 - 14:54 | 1639089 Moe Howard
Moe Howard's picture

5.56 the One-eyed Jack [Prince].

Tue, 09/06/2011 - 18:10 | 1639754 DoChenRollingBearing
DoChenRollingBearing's picture

I first read this at ZH:

Lead is a precious metal whne moving at a high enough velocity.

Complements holding gold... 

Tue, 09/06/2011 - 20:53 | 1640318 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

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.’

Tue, 09/06/2011 - 16:06 | 1639339 lemonobrien
lemonobrien's picture

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.

Tue, 09/06/2011 - 14:13 | 1638912 Overflow-admin
Overflow-admin's picture

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% !!!

Tue, 09/06/2011 - 14:14 | 1638916 Hulk
Hulk's picture

I figure today's gold price action is due to a leaked margin hike coming tonight, tomorrow, or the next day...

Tue, 09/06/2011 - 14:19 | 1638941 NotApplicable
NotApplicable's picture

Nah, they would never do that.

Tue, 09/06/2011 - 18:12 | 1639762 DoChenRollingBearing
DoChenRollingBearing's picture

Let them hike the margins all they want.  That will not stop the buyers of physical, like us.  Gold will win, they will not.


Tue, 09/06/2011 - 19:08 | 1639956 Hephasteus
Hephasteus's picture

But traders need to be careful. Anyone who believes that a number or a valuation will be 'defended' is going to get hurt. They will rape you while you are retreating and rape your wife while you are advancing. They won't defend any line or valuation they'll just counterpunch. So it's not going to in a straight line. It's likely going to go crazy mood swings.

Tue, 09/06/2011 - 21:22 | 1640405 Hulk
Hulk's picture

Higher highs and higher lows, that's all I ask!

Tue, 09/06/2011 - 14:15 | 1638918 RobotTrader
RobotTrader's picture



Here's the latest list of the Investor's Business Daily Top "Riverboat 50"

Gold stocks are getting liquidated, and they are now Heatmapping the growth names.

Tue, 09/06/2011 - 17:17 | 1639584 Flakmeister
Flakmeister's picture

Oil sure got blown out of the water today, eh?

Brent is close to the all time high when adjusting for the relative value of DXY...

The WTI price means nothing....  except to a few refiners.

Tue, 09/06/2011 - 14:15 | 1638923 caerus
caerus's picture

agree franc peg bullish for au longer's trading significant short term, imo...large trading range and a flat finish would indicate noteable uncertainty / lack of significant conviction on part of both buyers and sellers...technically, resultant doji typically precedes large movements...for example, doji on ESI 4/25...good luck

Tue, 09/06/2011 - 14:16 | 1638931 NotApplicable
NotApplicable's picture

"But ultimately, this is a bubble fueled by liquidity."

Except now the liquidity even comes in Francs.

Good luck holding that fiat.

Tue, 09/06/2011 - 14:17 | 1638934 RobotTrader
RobotTrader's picture



Put/Call Ratio pinned all day in the 1.25 - 1.35 range.

Closed on Friday at 1.44

Looks like all the late, panicked put buyers are about to get blowtorched.

Tue, 09/06/2011 - 14:31 | 1638987 SheepDog-One
SheepDog-One's picture

'Getting blowtorched'....gee I dont imagine anyone is more fired to a crisp than you with your 'long DUH 12,700' and last Fridays 'better get all in long here bears' calls. But I guess it doesnt matter much for you and your paper trades.

Tue, 09/06/2011 - 14:44 | 1639047 topcallingtroll
topcallingtroll's picture

As usual, but this time may be different.

Tue, 09/06/2011 - 14:19 | 1638944 Dick Darlington
Dick Darlington's picture

Tyler, please post those Kocherlakota headlines. I'm in a serious need of comedy!

Tue, 09/06/2011 - 14:21 | 1638951 robertocarlos
robertocarlos's picture

It is too way easy to make money today. And yet for some reason I'm still poor. relatively speaking.

Tue, 09/06/2011 - 14:33 | 1638988 Silver Dreamer
Silver Dreamer's picture

Debt as money only makes the banksters a profit of course.

Tue, 09/06/2011 - 15:00 | 1639119 margaris
margaris's picture

just stay on course, be patient, dont be greedy, and accumulate.


Not only gold, but also wisdom, skills, etc...


Time will tell

Tue, 09/06/2011 - 18:14 | 1639770 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, stay the course.

Non illegitimi carborundum (Don't let the bastards get you down).

Tue, 09/06/2011 - 18:53 | 1639921 Greenhead
Greenhead's picture

My gradfather had a sign in his office that read that.  He translated it as Don't let the bastards wear you down.  Later, I found in a steel fabrication shop, a grinder with a wheel which had the Carborundum brand.

Tue, 09/06/2011 - 14:22 | 1638959 TradingJoe
TradingJoe's picture

Algos working extremes on low volume to close in the green today, neeed them green closing for "confidence" you know, so that some suckers get in, then wooooosshhhhh!

Gold and Silver are taking a beating as usual on orders, so BTFD, once printing commences you will be happy to own some!

All is see today is selling into "strenght", my 875ish to 1050ish is still up there and I won't back down! STFB is the new "mantra", people tell me hedgies and othe rbig institutions are selling like crazy into SPY QQQ AND PMs, the paper ones of course!!! Don't be surprised to see a hge bounce in Gold/Silver to new highs for the year, befor the year is over!

Keep adding to positions or open new ones if you're late to the party! VXX suckers got hammered today, some still dont get it, it's a daily rebalancing kind of ETF nothing for retailers, jesus!

Today's action only highly confirms what's going on in the pits, some shill was saying "no panic, just slow selling", jesus it is still Selling to me!

Tue, 09/06/2011 - 14:34 | 1639002 SheepDog-One
SheepDog-One's picture

SP 875 that is IF they are plotting a QE3 announcement which I do not believe they will do, theyre just loving their carrot on a stick too much. If they were lining up to announce QE3, then why not let drops take place and stick? I think they cant do it...just able to allow 200 point drop then machines buy it back up. No QE3.

Tue, 09/06/2011 - 14:45 | 1639050 TradingJoe
TradingJoe's picture

Something's gotta give Sheep! "Intervention" is unavoidable thus my call and hence the price action in PMs lately, be it paper or physical! Timing is pretty much obsolete right now since "any minute" something "really bad" can/may/(WILL?) happen and woooshhhh!

It's a dirty political game and it cant be won by anyone, WE ALL LOSE in the end, except some of us WILL STILL be STANDING when the dust settles, because we have PHYSICALsssssss!

Tue, 09/06/2011 - 14:22 | 1638962 Belarus
Belarus's picture

So, let me get this straight: Europe's banks are leveraged 40:1, they are sitting on toxic soveirgn debt which cannot be repaid, therefore the CAC DAX FTSE get crushed. So far, so good. But then Europe seeing Gold as a flight to safety therefore sells anything shiny and traditionally for spam hard into the day. Yeah, sure.

Meanwhile, back here in algo land, stocks sell off on decent volume but then proceed their melt-up on no volume the rest of the day as T-Bonds yields sink even further into the abyss. 

Yep, it's all making sense to me now. The Fed is in total control of price stability, maximum employment, inflation and asset rigging to the hearts delight. 

And we wonder why no one is in the market anymore? Well, not the we here, but you get the drift....not to get the captain obvious award of the day but these markets are a total joke. 

Tue, 09/06/2011 - 14:24 | 1638966 gatorontheloose
gatorontheloose's picture

nobody put etrade baby in a corner.  rally harrrrrrd!

Tue, 09/06/2011 - 14:27 | 1638973 Zeff
Zeff's picture

Krona's lining up for a big shoot upwards.

Tue, 09/06/2011 - 14:27 | 1638974 Fuh Querada
Fuh Querada's picture

Watch for the next tidal wave of quantitative easing, which will come from the ECB. No other way of keeping PIIGS   in the EUR as ordained by the Illuminati.

Tue, 09/06/2011 - 14:28 | 1638977 monmick
monmick's picture

I think a lot of safe haven seekers were (are) invested in both gold AND the Swissie. When one gets torpedoed, the knee-jerk reaction is to sell the winner to cover the losses (or meet the margin calls) on the loser.

I am not saying that is a winning strategy... I'm only saying that that explains some of what is happening today...

Tue, 09/06/2011 - 14:28 | 1638979 John McCloy
John McCloy's picture

Tyler when are you going to hook us up with the BBerg chart illustrating how the HFT's are playing pong with the same shares on 100 shares back and forth supposedly leading the markets back up?

I look forward to the big red triangle of zero volume.And people wonder how days of no volume 500 point rallies are undone in 3 hours when real selling comes in. 

Tue, 09/06/2011 - 14:30 | 1638984 docj
docj's picture

And heeeeeeeeeeeeeeere comes today's PPT stick-save!

Tue, 09/06/2011 - 14:35 | 1639008 SheepDog-One
SheepDog-One's picture

Just all the more proof that theres no diamond encrusted QE coming. 

Tue, 09/06/2011 - 15:06 | 1639147 Smiddywesson
Smiddywesson's picture

and is further evidence that they don't have to print their way into hyperinflation to get what they want.  They just want to hold everything together while they buy up all the cheap gold.

Tue, 09/06/2011 - 18:18 | 1639780 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1870

Not my gold.

Gold is cheap.

Green for you, worked this time!

Tue, 09/06/2011 - 14:33 | 1638991 Spaceman Spiff
Spaceman Spiff's picture

If the marketticker guy story is right, and euro banks won't have to mark to market, then the euro sleaze PTB deserve some credit too.

Tue, 09/06/2011 - 15:03 | 1639123 MsCreant
MsCreant's picture

I have been over here looking to see if folks would be talking about this. It is a huge kick the can/implode this bitch bigger and badder kind of move. The way folks have been acting, they would buy equities like crazy, short term.

Remember when Chitibank was under a buck and then it went to four bucks in several weeks? Ditto others? Yes it was after TARP, but the mark to fantasy happened first.

Tue, 09/06/2011 - 14:33 | 1638993 OutLookingIn
OutLookingIn's picture

Jim Rogers and freinds are laughing all the way to their bullion vaults! After using all their Swiss francs to buy gold bullion at a plus 32% quantity! Or would that be selling some bullion to buy 32% more Swiss francs?

Tue, 09/06/2011 - 14:35 | 1639005 falak pema
falak pema's picture


While Gold burns in Midas's itchy fingers, read what is happening to that great bank of US oligarchy; of yesteryear : Chris Whalen: Bank Of America Should Declare Bankruptcy Linette Lopez|Sep. 6, 2011, 12:31 PM|; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; color: #f3502a; background-position: -200px 0px; background-repeat: no-repeat no-repeat;" title="views">6,193|42



Bank of Americahas over $100 billion in mortgage liabilities,says Chris Whalen Co-founderof Institutional Risk Analytics.

On a web broadcast published on KingWorldNews, he advocates "the classical American way of dealing with this problem"-- complete and total restructuring through Chapter 11. Before its too late.


Read more:



Tue, 09/06/2011 - 14:35 | 1639010 mick_richfield
mick_richfield's picture

How large was the market for Swiss Francs?  I know how to estimate the "market cap" of gold (or silver) -- but how can I do the same for the Swiss Franc? 

Tue, 09/06/2011 - 15:08 | 1639153 Ahmeexnal
Ahmeexnal's picture

You can't. They can just print anytime they want.

Tue, 09/06/2011 - 14:38 | 1639023 falak pema
falak pema's picture

swiss have said NIet to currency haven role...

Tue, 09/06/2011 - 14:38 | 1639025 SheepDog-One
SheepDog-One's picture

DOW now down less than 100? Forget it, theres no 'QE' coming, not if they cant even allow a 100 point drop to stick on a day like today. Stick a fork in the QE dreams its over.

Tue, 09/06/2011 - 20:46 | 1639783 DoChenRollingBearing
DoChenRollingBearing's picture

A stealthy QE3 is already underway...

Tue, 09/06/2011 - 14:39 | 1639028 HpDeskjet
HpDeskjet's picture

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

Lol... if these algos pump up the gold price from 1600 to 1900 by buying because someone else is buying (or oil from $70 to $120), its "fair"/"logical"/"sensible", if they do the opposite it is not "allowed"...

Very, very poor article.

Tue, 09/06/2011 - 14:49 | 1639065 tmosley
tmosley's picture

Ironic nickname for someone who doesn't understand the concept of the "naked short".

The algos, for the most part, don't buy gold.  They sell it.  But they never bought it.  Savvy?

Tue, 09/06/2011 - 14:57 | 1639106 HpDeskjet
HpDeskjet's picture

LOL algos only short, and "great investors" only go long... BAD BAD Algos, they should be punished!! Fukking manipulators! The SEC should do something about this fraud!

Tue, 09/06/2011 - 15:01 | 1639120 tmosley
tmosley's picture

I love how you pull things out of your ass.  Must be spacious in there.  Maybe you could rent it out for some fast cash?

Look back over the last decade, and tell me which way the "great investors" were invested.


Tue, 09/06/2011 - 15:06 | 1639146 HpDeskjet
HpDeskjet's picture

Pfff, grow up kid...

Nothing goes up or down in a straight line, blaming algorithms for a negligible drop in the gold price is just pathetic. The quality of articles here is good normally, but this 1 just stinks... It is forbidden to be a bit critical? Should i rather "believe" everything that is posted here without thinking myself? Come on

Tue, 09/06/2011 - 15:21 | 1639189 tmosley
tmosley's picture

You just LOVE jamming things in other people's mouths, don't you?

YOU are the one running around screaming as if there were no such thing as naked shorting, or as if these markets were perfectly normal and healthy, thus demonstrating your own downright stupidity.  I didn't say ANYTHING about manipultion.  I said the algos don't buy gold, but they short it, often/always without borrowing the underlying.

Lurk more, dumb fuck.

Tue, 09/06/2011 - 15:19 | 1639191 Stumpy
Stumpy's picture

tmosely, kid? More like dad, or at least uncle.

Tue, 09/06/2011 - 15:42 | 1639264 ViewfromUnderth...
ViewfromUndertheBridge's picture

dropping from the trend line at 1921 was a technical trade so it is fair to identify it with algos

Tue, 09/06/2011 - 14:39 | 1639029 topcallingtroll
topcallingtroll's picture

Civilization needs to shit or get off the pot.

I am getting bored waiting for the collapse.

Hurry up and decide already.

Tue, 09/06/2011 - 14:42 | 1639039 SheepDog-One
SheepDog-One's picture

Theyre just grinding metal on metal at this point. They have cold feet? Or just waiting on a pre-set date alignment? I'd guess the latter, knowing something about the 'illuminated ones'.

Tue, 09/06/2011 - 15:44 | 1639270 ViewfromUnderth...
ViewfromUndertheBridge's picture

we all like that metal on on ag

Tue, 09/06/2011 - 18:22 | 1639792 DoChenRollingBearing
DoChenRollingBearing's picture

Metal grinding on metal makes bearings nervous...

Tue, 09/06/2011 - 15:11 | 1639173 Smiddywesson
Smiddywesson's picture

I am getting bored waiting for the collapse.

Those that will profit from the new system that comes after the collapse are profiting from the delay, otherwise they would bring about the collapse right away.  Gee, what are they buying now?

Tue, 09/06/2011 - 15:12 | 1639176 Troll Magnet
Troll Magnet's picture

i hear ya. buy more popcorn and smoke some hash. makes waiting much easier.

Tue, 09/06/2011 - 15:21 | 1639204 caerus
caerus's picture

i like your style dude

Tue, 09/06/2011 - 14:40 | 1639032 caerus
caerus's picture

watching to see if ES gap fills around 1169

Tue, 09/06/2011 - 14:41 | 1639034 Clam McCain
Clam McCain's picture

the endgame is coming bitchez.

long au and ag

Tue, 09/06/2011 - 14:42 | 1639037 MountainMan
MountainMan's picture

This is barbaric, bitchez.

Tue, 09/06/2011 - 14:43 | 1639045 GFORCE
GFORCE's picture

It's not the SNB you need to thank, it's the alpha-junkie speculators.

All news is gold news.

Tue, 09/06/2011 - 14:43 | 1639046 Quinvarius
Quinvarius's picture

Just another banker failraid trying to make you believe something that cannot be so.  Gold is extremely strong today under a huge flood of paper sales.  When I say failraid, it is a spectacular failraid. 

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