It is a statement to the mess we are in if our economy is the strongest in the world. Who can right the ship??? Today, the euro plunged 2.25, a large 1.6% against the dollar – and the Swiss franc fell off the edge of a cliff, dropping to 116.03. A few days ago, the Swiss franc was over 132. It’s crystal clear; gold (and silver) are the only safe currency investments now. Ignore this basic fact at you peril.
Isn’t it crazy that gold would plunge the day that the Swiss central bank announced to the world that it was devaluing the franc. Gold should have shot straight up, and it was starting to move up fast, until it ran into a storm of selling by the bullion banks. The selling continued when the Cartel arrived at work in the US. As usual, the bullion banks dropped their bids and flooded the market with sell orders – not once but twice, in the span of a few hours, to hold gold back. I say today’s losses will be recovered and then some before the week is up. I expect more of the same tomorrow – because gold must be tamed before the President speaks to the American public on the topic of jobs creation on Thursday.
Here is your “pull-back” and I expect it to be short-lived, probably coming to an end by Friday. Da Boyz just gave you a $75 – $100 discount on your next gold purchase!
Here’s a graph that’s an average of all the world’s global indices as plotted against the gold price…
It is similar to the Dow/Gold ratio, except it’s on a global basis. The World/Gold Indices Ratio was down to 3.576 to 1 on September 2nd and my guess is that we will eventually see the ratio fall to 1:1 [or less] before the bull market in gold [and silver] is over.
A few words from Derek Winebarger, one of our very savvy brokers, to a client of his:
Respectfully, you are missing that the ETF takes out .77% of the value of the ETF annually to cover “expenses”. Therefor, the value of the ETF is always moving further away from the spot price. Make sense?? Trust me. I sell the metal, and use the prospectus for the GLD as a marketing tool for making a case for physical metal. I’d be happy to discuss with you if you would like to call me at 1-800-822-8080.
Central banks smashed gold ahead of Swiss devaluation, Davies says
Submitted by cpowell on 02:17PM ET Tuesday, September 6, 2011. Section: Daily Dispatches
5:14p ET Tuesday, September 6, 2011
Dear Friend of GATA and Gold (and Silver):
Hinde Capital CEO Ben Davies today remarks to King World News about the suspicious pounding of gold in the minutes just prior to the announcement of the Swiss franc’s devaluation, which would have seemed hugely supportive of gold as the only remaining safe-haven currency.
In regard to gold, Davies says: “Why was it selling off just ahead of a really bullish announcement? You have to believe that there was some coordinated action. … The central banks will all have been in on knowing ahead of time that the Swiss were going to announce this. So there was central bank selling because they really didn’t want the price of gold to skyrocket on what is incredibly bullish news for gold.”
Yes, nothing could have been more obvious today — except perhaps to folks like Jon Nadler, Jeff Christian, Jim Rogers, and even Doug Casey, who seem to think that, though gold is increasingly not just a currency but a reserve currency and though central banks are frantically intervening, openly, in the currency markets, they’d never intervene surreptitiously against gold, though they used to do it openly all the time.
An excerpt from the King World News interview with Davies is headlined “Silver Headed to $65 and Gold to Soar” and you can find it at the King World News blog here: