From gold high 1920 to 1866 back to 1900 in minutes

[Serpo]

They did say volatility would increase

[Neuro]

They did say volatility would increase

Has anyone seen a specific reason mentioned for this sharp downturn?

[Serpo]

Would say at a guess they hate it making new highs of course.

Or someone gobbled up a big chunk of cheaper gold after margins where set off.

With increased volatility it can go either way faster.

And since when does gold need a reason to go up or down.;D

Trying to yank silver down.

[gunDriller]

it's related to the Swiss Franc trading.

"the Swiss National Bank has just announced that it is putting a ceiling on the franc’s appreciation against the euro… effectively abandoning its economic sovereignty and putting its future in the hands of woefully corrupt and incompetent bureaucrats. On the news, the franc fell off a cliff, dropping almost 10% INSTANTLY. Gold priced in Swiss francs jumped from 1497 to 1620 per troy ounce, all in about 45 seconds. Precious metals are now all alone as the only forms of sound money that are truly safe havens. Since then gold has soared roughly 20%, and as of this morning, the SNB has imposed capital controls to thwart the rise of its currency. This is just the beginning. The Swiss government has basically told the world that they will print as much money as it takes, and buy up as much crap sovereign debt as they can, to competitively devalue the currency. This essentially puts Switzerland in the same sinking boat as Italy, Greece, and Portugal… with one key difference: Switzerland has 0% interest rates. In other words, you can now borrow in francs at 0% and buy government-backed euro garbage yielding 5%, 10%, 30%…. with absolutely no downside currency risk."

there's all sorts of sh!t going on, related to currency trading & the carry trade.

the carry trade used to be in Yen ... now it's in Franc's.

http://www.zerohedge.com/news/guest-post-immediate-effect

[Neuro]

Thanks Gundriller I just read about that... So basically Switzerland is bailing out Europe... That is very nice of them!

[Son-of-Liberty]

and somehow that is bad for gold?? all it means is more money printing

[Neuro]

and somehow that is bad for gold?? all it means is more money printing

Yes exactly, further a safe haven currency was taken out... What I think happened was that it was a manipulated smackdown to counter the effect of the announcement, which in reality is very gold positive...

[gunDriller]

more on what happened - sometime Monday night / Tuesday morning, the Swiss bank announced they were going to peg the Franc at 1.20 Euro's.

http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.pdf

*.pdf from the Swiss bank - the horse's mouth.

"Swiss National Bank sets minimum exchange rate at CHF 1.20 per euro
The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development.

The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities.

Even at a rate of CHF 1.20 per euro, the Swiss franc is still high and should continue to weaken over time. If the economic outlook and deflationary risks so require, the SNB will take further measures."


well, they're gonna TRY - by buying up Euro debt & other crap.

if i was a Swiss citizen holding Franc, i'd wonder about this.

sure makes an interesting looking curve for gold, doesn't it ?

http://www.kitco.com/images/live/gold.gif

[Horn]

there's all sorts of sh!t going on, related to currency trading & the carry trade.

the carry trade used to be in Yen ... now it's in Franc's.

http://www.zerohedge.com/news/guest-post-immediate-effect

The first lifeboats are being lowered into the water currently and quietly.