Peter Schiff: Will China Pull a "Switzerland" on the U.S. Dollar?

Gold Surges More Than 2% On Unexpected Swiss Bank Capitulation On Euro Cap.

  We have the total blow out in the FOREX today on unexpected SNB move to discontinue its Euro peg. Now you can appreciate what will happen to Gold and Silver in the future when US Dollar - the most crowed Long trade will be unwinding. Gold is breaking above the very important 1250 level and Silver is above $17 now. Swiss Franc has surged 14% against Euro and Swiss market is down  -14% - the largest one day drop in its history. This is what happen when Central Bank's put is taking out. Now with Oil down more than 50% and this FOREX extraordinary move we can expect the spectacular blow up in one of the major financial players. Gold price will be the indication of the level of stress in the financial system.

  CNBC has aired very interesting interview with the head of IMF Christine Lagarde. According to her: IMF was NOT informed in advance by SNB about its change of policy. In Central banks world it is a No-No. So what is really going on now? 

Great video: Gold Set To Rally In 2015.

Koos Jansen: Chinese Lunar Year Gold Buying Frenzy Started.

Jim Wyckoff: SNB Black Swan Event Rocks Gold.

"Excitement is back in the gold market, as the metal hit a 4-month high on Thursday, following the Swiss National Bank’s unexpected currency peg drop. Now, what does this mean for gold? Jim Wyckoff joins Kitco News to explain how he sees this affecting the precious metals as well as the currency markets moving forward. “This move by the [SNB] was just a shock to the marketplace,” he says. “In fact, some veteran market watchers are saying that the abandoning of the peg from the Swiss franc to the euro is probably the biggest news in the past 25 years.” Tune in now to see how he rates gold and silver under current market conditions. Kitco News, January 15, 2014."

Gold Surges More Than 2% On Unexpected Swiss Bank Capitulation On Euro Cap.

  "We have the total blow out in the FOREX today on unexpected SNB move to discontinue its Euro peg. Now you can appreciate what will happen to Gold and Silver in the future when US Dollar - the most crowed Long trade will be unwinding. Gold is breaking above the very important 1250 level and Silver is above $17 now. Swiss Franc has surged 14% against Euro and Swiss market is down  -14% - the largest one day drop in its history. This is what happen when Central Bank's put is taking out. Now with Oil down more than 50% and this FOREX extraordinary move we can expect the spectacular blow up in one of the major financial players. Gold price will be the indication of the level of stress in the financial system.

  CNBC has aired very interesting interview with the head of IMF Christine Lagarde. According to her: IMF was NOT informed in advance by SNB about its change of policy. In Central banks world it is a No-No. So what is really going on now? Read more."

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

Gold Surges More Than 2% On Unexpected Swiss Bank Capitulation On Euro Cap.

  We have the total blow out in the FOREX today on unexpected SNB move to discontinue its Euro peg. Now you can appreciate what will happen to Gold and Silver in the future when US Dollar - the most crowed Long trade will be unwinding. Gold is breaking above the very important 1250 level and Silver is above $17 now. Swiss Franc has surged 14% against Euro and Swiss market is down  -14% - the largest one day drop in its history. This is what happen when Central Bank's put is taking out. Now with Oil down more than 50% and this FOREX extraordinary move we can expect the spectacular blow up in one of the major financial players. Gold price will be the indication of the level of stress in the financial system.

  CNBC has aired very interesting interview with the head of IMF Christine Lagarde. According to her: IMF was NOT informed in advance by SNB about its change of policy. In Central banks world it is a No-No. So what is really going on now? 

Great video: Gold Set To Rally In 2015.

Next Meltdown: Oil Crash And Derivatives 10 times The Size Of The Global Economy.

Just one more thing to get you started your own research. Is it one of the reasons why China is buying so much Gold now?

David Morgan: Oil, Derivatives And Unbelievable Lack of Trust in the System.

Koos Jansen: Chinese Lunar Year Gold Buying Frenzy Started.

Swiss Gold Referendum on November 30 - All You Need To Know To Vote Yes!

Grant Williams: All You Need To Know About Swiss Gold Referendum.

Great presentation from Grant Williams on this groundbreaking event for the Switzerland and the Gold market! We are close to the very important catalyst point for the Gold market now.

Eric Sprott: Global Gold Demand Is Overwhelming Supply.

Charles Nenner: “Gold Close To Major Bottom”.

  I am putting Charles Nenner on the record here. Can he be right again this time? So far, after hitting $1,130 Gold was cooperating with his Call. Gold space is full of buzz again. Alan Greenspan is talking about Gold with FT, Le Pen in France is demanding Gold audit and its repatriation after Netherlands brought some of its Gold from NY and Swiss are going vote in their referendum this Sunday. Will it all translate into the Gold breakout above $1,225 level next week? Read more."

Alan Greenspan: Gold Is The Premier Currency And The Dollar Can't Match It.

We have "the new rock star for the gold bugs community." Interesting revelations from Alan Greenspan to say at least. Chinese must be listening. Swiss can join the party as well now.

Gold Short Squeeze - Koos Jansen: When China Will Utilize Its Gold The Price Will Rise.

Bloomberg: 1,500 Tons Of Gold On The Line In Swiss Vote To Buy Back Bullion.

  

Bloomberg.

  The story about Swiss Gold Referendum has made its way up to the Bloomberg. Now everything depends on the people of Switzerland, but at least we will have the opportunity for the proper discussion about the FIAT Currency systems and Gold. China is not only buying record amounts of gold now, but taking out the best long term mining assets all over the globe. Read more."

TNR Gold Los Azules Copper M&A: Barrick In Talks With Chinese Miner Zijin On Pascua-Lama Investment.

Grant Williams: All You Need To Know About Swiss Gold Referendum.

Great presentation from Grant Williams on this groundbreaking event for the Switzerland and the Gold market! We are close to the very important catalyst point for the Gold market now.

Koos Jansen: The Chinese Precious Metals Market Is On Fire.

  Koss Jansen continues his brilliant work and brings us another confirmation about the real situation with the Gold market. China moves into the next stage of Gold accumulation breaking all previous records.

  Initial polls from Swiss Gold referendum put this news in the context, so who will come up on the top of this game and create the gold-backed currency first?

First Polls On Swiss Gold Referendum Show 45% Support, 39% Opposing, 16% Undecided.

 "We have first reports on Swiss Gold Referendum polls and I would like to share the very important news for TNR Gold.
  Do we have the chance now for the Gold backed Swiss Franc? Can the direct democracy in action initiate the change in the world financial system? Will China follow with its enormous appetite for Gold now? We have a lot of questions to answer, but these developments will mark the very important point in the history.
  I am personally very impressed with these initial results considering almost total silence in mass media about this groundbreaking event in the heart of Europe. Read more."

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

Koos Jansen:

The Chinese Precious Metals Market Is On Fire

Chinese gold demand 67 tonnes in five days

Published: 19-10-2014 23:07

The Chinese national holiday, The Golden Week, is over and the latest data from the Shanghai Gold Exchange (SGE) shows the Chinese have been buying extraordinary amounts of gold before and after this holiday. The SGE was closed from October 1 to 7, the latest SGE withdrawal numbers cover September 29 and 30, and October 8, 9 and 10. In these 5 days 68.4 tonnes were withdrawn from the SGE vaults (in the mainland and the Shanghai Free Trade Zone)    

Blue is weekly withdrawals in Kg's, green is year to date withdrawals in Kg's. 

Because the SGE still isn't disclosing withdrawal numbers from mainland and FTZ vaults separately we have to subtract the volume traded on the Shanghai International Gold Exchange (SGEI), located in the FTZ, from total withdrawal numbers, just in case all buyers on the SGEI opted for withdrawal, to come to the amount of withdrawals in the mainland (which equals Chinese wholesale demand). Although it's highly unlikely all SGEI traded volume is withdrawn from the vaults, for the time being I'm forced to choose understating mainland withdrawal numbers rather than overstating. 

After subtracting SGEI volume from total withdrawals numbers, withdrawals from the mainland vaults (= Chinese wholesale demand) can not have been less than 66.91 tonnes. Year to date withdrawals can not have been less than 1492.59 tonnes. 

According to my simplified equation to calculate Chinese gold import (import = SGE withdrawals - mine - scrap), China has imported 957 tonnes year to date. Domestic mining stands at 356 tonnes (based on an estimated total of 451 tonnes for 2014) and scrap stands at 181 tonnes (based on 229 tonnes recycled gold in 2013).

Shanghai silver remains scarce, on the Shanghai Futures Exchange (SHFE) silver has been trading in backwardation Since august 6. The scarcity has diminished the discount of silver in China relative to London significantly. Throughout October the discount was lower than 4 %.

  

If the discount of the pure price of silver in Shanghai reaches zero and becomes a premium, demand for silver on the world market will increase as the Chinese will start importing silver bullion.

At this moment the pure price of silver in China is lower than in London for two reasons:

(i) The costs for mining silver in China is significantly lower than elsewhere across the globe. For example Silvercorp can mine silver in the mainland for $9 an ounce. 

(ii) China's economy is heavily dependent on copper and other base metals such as lead and zinc. By importing copper, lead and zinc concentrates that contain silver as a byproduct China is incidental importing silver.    

The reason the price difference is a not arbitraged is silver bullion export from the mainland enjoys 17 % VAT (no restitution). Which in affect is an export tariff of 17% to protect silver from leaving the mainland. Read: the State Council is protecting the Chinese silver market to offer their citizens to invest in silver below international prices.     

SHFE silver inventory has stabilized now all the metal that was brought into the warehouse to cash and carry silver (in times of a steep futures contango curve) has been depleted. Total SHFE silver inventory now stands at  94.807 tonnes. 

If we combine the last to charts we can see that whenever silver is trading in backwardation, inventory is dropping or stabilizing. If silver is not trading in backwardation (and the contango curve is steep enough), it can cause inventory to increase as the cash carry arbitrage opportunity arises (explained here).   

All in all, there is strong demand for silver and gold currently in China, though the mainstream media might tell you different.  

Koos Jansen

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Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

 "The Swiss Gold Initiative will allow the Swiss people to vote on the fate of their financial system and partially back the Swiss Franc with gold. Citizens will vote on November 30th.

Learn more about the Referendum here: http://dailysilverupdate.com/blog/201...

But this has rapidly changed during the past few decades as the Swiss government quietly removed the 40% gold backing of their currency from the revised Federal Constitution which was adopted by a majority vote in 1999. Since 2008, the Swiss National Bank's balance sheet has expanded 5 times from CHF 100 billion to CHF 500 billion. Therefore due to dissatisfaction with the conduct of Swiss monetary policy and Swiss banking policy, the Swiss People's Party (SVP) have collected 100,000 signatures from Swiss citizens calling for a referendum on gold.

What is the Gold Initiative Referendum?

On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on:
1) Returning their national gold which is held abroad back to Switzerland
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold
3) Prohibiting further gold sales

What will a “YES” vote mean for Switzerland and gold?

If the referendum passes, Switzerland's central bank will swallow up a whopping 1500 tons of gold over a period of 5 years to support the underlying value of their currency. A currency backed by gold also means that the government and central bank cannot manipulate the currency supply by printing endless amounts of money without retaining a relative amount of gold.

Switzerland Repatriation

The Switzerland National Bank would also need to bring back 300 tons of gold that is currently in the UK and Canada. If this gold is available for delivery, it should return immediately, however Germany recently had a different experience. They requested to have 647 tons returned to their country from the Fed but all they have received so far is 5 tons! The Fed said that this process would take 5 years, however a measly 5 tons is a very small fraction of what they are owed. If Switzerland has a similar experience to Germany, this process could take even longer than the projected 5 years of getting this process complete.

What effect will this have on gold?

A YES vote in the Swiss Gold referendum would mean that Switzerland would have to buy upwards of 1,500 tons of gold at current prices. To put this in perspective, 1500 tons equals 48.225 million troy ounces of gold which is valued at approximately $58.9 billion. This would likely have an immense impact on the price of gold and constrain supply, since this amount is approximately 70% of annual world gold production. All of that physical gold will be extremely difficult to acquire without effecting the gold price at these suppressed levels while China and India are buying with both hands."

Video: Gold Referendum In Switzerland - November 30, 2014.

Ron Paul:

All Eyes on the Swiss Gold Referendum

On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold. On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold make up at least 20 percent of the SNB’s assets.

Arising from popular sentiment similar to movements in the United States, Germany, and the Netherlands, this referendum is an attempt to bring more oversight and accountability to the SNB, Switzerland’s central bank...DailyReckoning."

Swiss Gold Referendum: What Is It All About? UBS: 1,500 t Of Gold Buying By SNB At Stake.

UBS: If The Referendum Passes Swiss Bank Would Have To Buy About 1,500 t of Gold over 3 years.

It is the very good speech, but the most significant here is the place where it is happening: Swiss Parliament. It could be very much the beginning of the global reset.

And who is buying Gold now:

In Gold We Trust @KoosJansen.

Swiss Gold Referendum: People of Switzerland Demand Global Gold Recall Despite Central Bankers.

  "Mass media is very slow to pick up on this groundbreaking development in Switzerland. Scotland referendum, Catalonia quest for independence will be just orchestrated "democratic noise" compare to this real democracy in action and its implications for the worldwide financial system. China  or Switzerland - who will be first to create the gold backed currency now? Read more."

"In a word association game, If I said Switzerland, you might say cheese or chocolate or maybe the alps. But another common item everyone associates with the Swiss is their money. Their banks. Their currency.  

Soon, that currency could change in a big way. This November, a Swiss Gold Referendum is going to a vote, and the repercussions, one way or the other, could cast a shadow of uncertainty on the US dollar. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, not it’s less than 8 percent.

If THIS VOTE goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.  

Joining us today is radio host Charles Goyette. He and Congressman Ron Paul have talked about central banks at great length on his radio show. Today, we’d like to get HIS input on the Swiss Gold Referendum. NextNewsNetwork"

Kitco:

“There is already support for this referendum and I am expecting the gold market to start paying more attention, especially if the polls show the vote will be close,” said Hansen.Currently, according to data compiled by the World Gold Council, Switzerland holds 1,040 metric tons of gold making up 7.7% of its reserves.In a research note published Sept. 24, Analysts at UBS said that if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. “1500 tonnes equates to half of the world's annual production,” they said in the report.“That kind of gold buying would put what we’ve recently seen in China to shame,” said Hansen. Read more." 

Turd Ferguson Interviews Koos Jansen: In Gold We Trust - China's Quest For Gold.

Swiss Gold Referendum: What Is It All About? UBS: 1,500 t Of Gold Buying By SNB At Stake.

In Gold We Trust @KoosJansen.

Swiss Gold Referendum: People of Switzerland Demand Global Gold Recall Despite Central Bankers.

  "Mass media is very slow to pick up on this groundbreaking development in Switzerland. Scotland referendum, Catalonia quest for independence will be just orchestrated "democratic noise" compare to this real democracy in action and its implications for the worldwide financial system. China  or Switzerland - who will be first to create the gold backed currency now? Read more."

"In a word association game, If I said Switzerland, you might say cheese or chocolate or maybe the alps. But another common item everyone associates with the Swiss is their money. Their banks. Their currency.  

Soon, that currency could change in a big way. This November, a Swiss Gold Referendum is going to a vote, and the repercussions, one way or the other, could cast a shadow of uncertainty on the US dollar. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, not it’s less than 8 percent.

If THIS VOTE goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.  

Joining us today is radio host Charles Goyette. He and Congressman Ron Paul have talked about central banks at great length on his radio show. Today, we’d like to get HIS input on the Swiss Gold Referendum. NextNewsNetwork"

Swiss Gold Referendum: What Is It All About? UBS: 1,500 t Of Gold Buying By SNB At Stake.

UBS: If The Referendum Passes Swiss Bank Would Have To Buy About 1,500 t of Gold over 3 years.

It is the very good speech, but the most significant here is the place where it is happening: Swiss Parliament. It could be very much the beginning of the global reset.

And who is buying Gold now:

In Gold We Trust @KoosJansen.

Swiss Gold Referendum: People of Switzerland Demand Global Gold Recall Despite Central Bankers.

  "Mass media is very slow to pick up on this groundbreaking development in Switzerland. Scotland referendum, Catalonia quest for independence will be just orchestrated "democratic noise" compare to this real democracy in action and its implications for the worldwide financial system. China  or Switzerland - who will be first to create the gold backed currency now? Read more."

"In a word association game, If I said Switzerland, you might say cheese or chocolate or maybe the alps. But another common item everyone associates with the Swiss is their money. Their banks. Their currency.  

Soon, that currency could change in a big way. This November, a Swiss Gold Referendum is going to a vote, and the repercussions, one way or the other, could cast a shadow of uncertainty on the US dollar. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, not it’s less than 8 percent.

If THIS VOTE goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.  

Joining us today is radio host Charles Goyette. He and Congressman Ron Paul have talked about central banks at great length on his radio show. Today, we’d like to get HIS input on the Swiss Gold Referendum. NextNewsNetwork"

Kitco:

“There is already support for this referendum and I am expecting the gold market to start paying more attention, especially if the polls show the vote will be close,” said Hansen.Currently, according to data compiled by the World Gold Council, Switzerland holds 1,040 metric tons of gold making up 7.7% of its reserves.In a research note published Sept. 24, Analysts at UBS said that if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. “1500 tonnes equates to half of the world's annual production,” they said in the report.“That kind of gold buying would put what we’ve recently seen in China to shame,” said Hansen. Read more." 

Jim Rickards: 16 Intelligence Agencies Have Issued Alarm Report On US Dollar Reserve Status.

 It is good time to contemplate on the gold fundamentals while the sentiment in the Gold market is hitting  another low and US Dollar seems to be rising with stock markets straight into the sky now. We have now Jim Rickards himself to dissect all ongoing "Currency Wars" which lead us into "The Death Of Money".

  Developments in Switzerland and China are coming now right from the pages of Jim Rickards's books. And if you think that Currency and Trade wars in late 1920s are different from what is happening now in Europe with Russia and Ukraine, this video is for you. Read more."

Swiss Gold Referendum: Are you aware of the potential Swiss gold shock?

Ole Hansen

"A major shock could be on its way which could dramatically change the gold price. In late November, a referendum in Switzerland could force the Swiss National Bank to hold far more gold reserves.

Should there be be a ‘Yes’ vote, the so-called "gold initiative" would seek to stop all gold sales by the Swiss National Bank (SNB) and require the central bank hold 20 percent of its assets in the precious metal. The Swiss Parliament and the SNB are against it, as this would stop their ability to freely print money and reduce its maneuverability in the market.

Saxo Bank's Head of Commodity Strategy, Ole Hansen explains that such an event would have a "huge" impact on the gold market. The SNB would have to buy thousands of tons of gold over the next three years, which could usher in significant levels of gold buying."

Swiss Gold Referendum: People of Switzerland Demand Global Gold Recall Despite Central Bankers.

  "Mass media is very slow to pick up on this groundbreaking development in Switzerland. Scotland referendum, Catalonia quest for independence will be just orchestrated "democratic noise" compare to this real democracy in action and its implications for the worldwide financial system. China  or Switzerland - who will be first to create the gold backed currency now? Read more."

"In a word association game, If I said Switzerland, you might say cheese or chocolate or maybe the alps. But another common item everyone associates with the Swiss is their money. Their banks. Their currency.  

Soon, that currency could change in a big way. This November, a Swiss Gold Referendum is going to a vote, and the repercussions, one way or the other, could cast a shadow of uncertainty on the US dollar. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, not it’s less than 8 percent.

If THIS VOTE goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.  

Joining us today is radio host Charles Goyette. He and Congressman Ron Paul have talked about central banks at great length on his radio show. Today, we’d like to get HIS input on the Swiss Gold Referendum.NextNewsNetwork"

Gold And Madness Of Crowds - ZeroHedge: Summarizing The "Long Dollar Trade" In One Chart.

And who is buying Gold now:

In Gold We Trust @KoosJansen.