http://www.marketwatch.com/story/euro-soars-as-snb-sets-floor-versus-franc-2011-09-06 This news just rocked the gold and silver markets something chronic.
So you reckon the big drop was after this news? Still trying to digest what this means myself, but it certainly adds a new dimension to things. ..."and is prepared to buy foreign currency in unlimited quantities." - yep, something has to give.
Well that has taken out the CHF as a safe haven, you would think more money would flow to gold now but in the short term it doesn't look like it. I imagine a number of Forex traders just got roasted. A 10% move like that is enough to send a forex trader to the wall.
I would say yes - just check out how the Swiss Franc gained almost 8% almost instantly earlier today right around the time gold and silver copped a little smackdown and you might get the picture Plenty of good reading around on the Currency Wars (which has been going on for a while now) - google it and grab a jug of coffee, well worth reading up on so you can understand the bigger picture. It's crazy stuff, some even say this is WW3 without a shot being fired (kinda makes sense I think, but I'm still reading as I would never claim to fully understand what's going on in all this craziness!) :/
And at the end of the day Australia, with our commodity based currency, will be at the bottom of the list.
Major "safe" havens: Swiss Franc Japanese Yen Treasury Bonds Gold and Silver One down, two to go Interesting how silver is taking a sharp dive while gold is holding up in the aftermath.. thoughts anyone?
Interesting how the Swiss have talked this into reality, I reckon this is a big bluff, all this talk about "unlimited currency" to keep the franc down is madness. They are playing with fire. I see the Japanese have joined in now. Gold has recovered quite a bit now, I'm willing to bet that it will be [del]mid $1900s by tomorrow.[/del] - FAIL
So people have been buying the Swiss franc as a safe haven - the value of the franc keeps going up , the SNB decides it has to devalue it by printing money and buying foreign currencies! Surely this could result in people buying more of it resulting in more and more printing? It all sounds crazy. When will this craziness end? I get the feeling that things are beginning to unravel, too much instability and it looks like it has started as predicted, in Europe!
Just a initial reaction, long term I believe this is positive for gold as a supposed "safe haven" currency gets devalued and more money printing by the swiss central bank to buy euros to keep the franc artificially pegged can only be good for gold in the long term.
This is the new currency war 9. September 2011 13:36:07 US PRESS: Hedge funds are considering ways to mount a counterattack against the Swiss National Bank, whose attempt to wrest control of the surging franc caught investors off-guard, the WSJ reports.
Thanks projack - the whole situation we face with our currencies and economies across the world is just a CROCK OF SHIT GAMES PLAYED BY POWERFUL BANKSTERS AND INVESTORS. If the world's major reserve banks are playing a game of devaluation - then Australia is screwed - coz our currency is going the other way and we don't seem to be playing the same game as them.
If AUS used the rising dollar to pay down sov. debt i would understand staying out of the game though it doesnt seem to be the game plan. Also, I may be wrong though from my understanding contracts, for supply of resources are only negotiated every few years, this means that effectively we (AUS) could be in a position where we are selling at 3 year old agreed rates that are effectively lower than they would be today, and this valuation of the AUD wouldnt have any effect on contracts already in place... I could be wrong. :/
