Tuesday, July 06, 2010

After Dumping 1.300 Tonnes Of GOLD Close To The Bottom During 2000-2005 The Swiss National Bank Makes A U-Turn.....

Nice timing..... Last sale March 2005.......Almost as "good" as Gordon Brown

Da kann man in Sachen Timing nur noch gratulieren..... Der letzte Verkauf ging im März 2005 über die Bühne.....Fast so genial wie einst Gordon Brown

Make sure you click through the SNB presentation from 2005 & see the chart on page 11 with all the sales details..... Judging from the title of the presentation it´s probably time for a less "euphoric" update........ ;-)

Empfehle allen die Präsentation der SNB aus dem Jahre 2005 und insbesondere ab die Charts ab Seite 11 .......Wenn man sich den Titel der Präsentation so betrachtet dürfte es höchste Zeit für eine "Neuinterpretation" sein.....;-)

SNB Gold Sales – Lessons and Experiences
The Swiss National Bank completed its gold selling program of 1300 tonnes on March 30, 2005

Several hundred percent GOLD price & FX reserves increase later.....

Einige hundert Prozent GOLDpreisanstieg & Fremdwährungsreserven später......

FT Alphaville

A look through the FX reserve data shows that much of the fall can be accounted for by an increase in gold holdings. The SNB’s gold holdings at market value went from 39.1bn to 45bn showing an increase of 5.9bn (gold measured in CHF terms was actually down by 4.8% during June).

Thus instead of providing an indication of the SNB’s intervention stance, what we have is interesting insight into the SNB’s portfolio allocation which interestingly is showing a bias toward holding gold

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Blogger jmf said...

If the IMF story is true they should call Eric Sprott.....

He offered to take all the available GOLD months ago.....

Who’s the bank with the golden swap? Ft Alphaville

What about non-Eurozone monetary authorities? The list of potentials is long, though single institutions with gold reserves exceeding 380 tonnes outside of Europe are limited to US, the IMF, China, Switzerland, Japan, Russia, India, and Taiwan.

And it’s particularly interesting to see the IMF on that list.

The institution — known for its own revenue shortfalls — has been proactively selling off part of its gold reserves since last year. Some 403.3 tonnes of gold, to be exact.

As of February it still had 191 tonnes worth of gold to sell. Tully points out that since then the BIS added 189 tonnes worth of gold swaps to its balance sheet.

Could the gold swaps partly then, be some type of IMF bridging loan?

3:15 AM  
Blogger jmf said...

Some BIStoric gold swaps FT Alphaville

Whether the Bank for International Settlements can, or wants to, sell its 346 tonnes of newly-acquired central bank gold is a matter of some debate.

But one thing everyone seems agreed on is that, as the FT notes, these BIS gold swaps haven’t happened very much in recent years, or at least, they haven’t been mentioned in BIS’ reports.

Anyway, from what we can see from BIS’ historic annual reports, the last acknowledged gold swaps appear have taken place in the 1960s and 1970s......

Why the sudden resurgance in official BIS gold swaps now — some 40 years later?

3:21 AM  
Blogger jmf said...

I assume we will hear a lot from the SNB within the coming years.....

Will The Unwind Of One GDP's Worth Of Impaired Foreign Loans Cause The Swiss Franc To Surge And Trash The Swiss Economy? ZH

To appreciate the magnitude of these figures, consider that the sum of these loans equals around ten times the sum of all Swiss banknotes in circulation (CHF 48 bn in May 2010), and that they are nearly equivalent to Switzerland's nominal GDP of CHF 535bn in 2009. Further, the sum of franc loans abroad is equal to nearly 70% of the outstanding amount of loans in Switzerland (about CHF 723 bn in April 2010). The CHF 488bn loans are roughly double the size of the SNB's foreign currency reserves. That means there is a large franc short position outstanding, which more than counterbalances the francs that the SNB has created with its current FX interventions

1:35 PM  
Blogger jmf said...

Official Estimates Confirm Zero Hedge Projections That SNB Will Suffer €8 Billion In FX Interventions in Q2 ZH

Today, the FT picks up on this theme and reports that "the Swiss National Bank may have suffered paper losses of up to SFr10bn (€7.5bn) from huge interventions in the currency markets to restrain the value of the franc

And while that may not seem like a large number at first glance, as Bruce Krasting pointed out, "The 8.4b loss for the SNB would be equivalent to a $200 billion loss for the Fed. So actually this is a very big deal."

10:46 PM  

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