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'Gold is the only safe-haven asset that will not do QE, put in capital controls, or complain'
Incisive comment, Mr. Bloom. But have you passed it along to your firm's gold derivatives desk?
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Switzerland Abandons Floating Exchange Rate in Dramatic 'Currency War' Twist
By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, September 6, 2011
http://www.telegraph.co.uk/finance/currency/8745686/Switzerland-abandons...
The Swiss national bank (SNB) said it would "no longer tolerate" a euro rate below 1.20 francs. "The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities. The massive overvaluation of the franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development," it said.
The franc plummeted against all major currencies, falling 9 percent against the euro as markets opened on Tuesday. The Swiss action will be studied closely in Norway, Singapore, and above all Japan, where the yen has also rocketed to levels that threaten to blight exporters and tip the country into deep deflation.
"The market must fear this will lead to a sharp escalation in currency wars," said David Bloom from HSBC. "Gold is the only safe haven asset that will not do QE, put in capital controls, or complain."
Mr Bloom said the Swiss move will exacerbate Europe's debt crisis by widening the spreads betweeen core EMU and the periphery. "This is a risky policy for the Swiss," he said.
Simon Derrick from BNY Mellon said the Swiss are restricting EMU debt purchases to German and French bonds, unlike earlier rounds of intervention. "The SNB is just as keen to have a safe haven for its money as any other investors. It is recycling money leaving southern Europe into northern Europe. This is the darker message," he said.
... Dispatch continues below ...
Golden Phoenix to Present at Investment Conference at Waldorf
Company Press Release
Thursday, September 1, 2011
The chief executive officer and the communications director of Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) will speak at the Rodman & Renshaw Global Investment Conference at the Waldorf Astoria Hotel in New York City on Tuesday, September 13.
The CEO, Thomas Klein, and the communications director, Robert Ian, will address the conference from 2:50 to 3:15 p.m. at the hotel. The conference's keynote speakers include former Vice Presidents Dick Cheney and Al Gore and former Secretary of State Henry Kissinger.
"At this conference Golden Phoenix will introduce its royalty mining growth strategy to a global investment audience," Klein says. "With rising gold prices, industry consolidation, and central banks becoming net buyers of gold, we believe that the investment demand for emerging and diversified gold producers like Golden Phoenix offers the potential for significant growth."
Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offer the potential for exploration upside with the backing of production and future royalty streams.
For information about the conference, including last-minute room and schedule changes, please visit:
http://www.rodmanandrenshaw.com/conferences?id=164
For the complete press release, please visit:
http://goldenphoenix.us/press-release/golden-phoenix-to-speak-at-rodman-...
Japan has warned that it may intervene at any moment, especially if the US weakens the dollar by printing more money (QE). Michael Saunders from Citigroup said Britain may beat them to it. "We suspect the UK will be the next central bank to reach into the unconventional toolbox, with a decision to restart QE on Thursday," he said.
The Swiss economy is at risk of crippling damage appreciating from SwFr1.7 against the euro in 2008 to near parity in August. Currency hedges have protected Swiss firms until now but these contracts are expiring, leaving exporters nakedly exposed.
The SNB was forced to act once global recovery stalled and Europe's debt crisis metastasized. The minimim floor is a copy of the bank's desperate strategy -- after all else failed -- in October 1978. It did stabilize the franc at that time but at a very high cost.
The flood of liquidity from "unsterilized" interventions stored up all kinds of problems. "Inflation skyrocketed, reaching over 7 percent in 1981," said Paul Mackel from HSBC.
The SNB said in July that it had already lost SwFr 9.9 billion from intervention this year. This is a political hot potato. There are already calls from the Swiss parliament for heads to roll.
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Prophecy Platinum Drills 49.5 Meters Grading 1.27 g/t PGM+Au at Yukon Wellgreen Project
Company Press Release
August 22, 2011
Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces results from its 2011 drilling program for its first completed hole on the Wellgreen Project in the Yukon Territory, Canada.
Borehole WS11-184 encountered 472.6 meters of mineralization grading 0.43% nickel equivalent from surface to the footwall contact. Within this larger swath of mineralization the hole encountered 49.5 meters of 1.27 grams per ton platinum group metals plus gold, 0.71% nickel, and 0.45% copper (or 1.11% nickel equivalent).
The geology transitioned from blebby disseminated to net-textured to massive sulphide approaching the footwall contact grading 6.3% nickel, 1.7% copper, 2.7 grams per ton platinum, 1.6 grams per ton palladium, 0.17 grams per ton gold, and 3.4 grams per ton silver. The drilling zones and results are tabulated here, with more information:
http://www.prophecyplat.com/news_2011_aug22_prophecy_platinum_wellgreen_...
