MMV, It means that central banks are scraping the bottom of the barrel to find gold or anything else with actual value to sell to prop up their currencies. It is great for the Swissie, as they are gold rich. It is one of the few currencies people will accept for gold.
Short term, it is a negative for gold prices, but, longer term, you have taken overhang out of the market and that will allow gold bugs, of which the chief is Switzerland, to hold bars back to allow prices to go up. Much like in the 1970s.
Sadly, I don't think it means much for SWZ. The Swissie is already having a run against every other currency, but the dollar has to decline to give us any help on SWZ. So far, that has not happened and this probably won't mean much in that relationship. Longer term, I think the buck has to fall, and SWZ will be golden. <G>
MB |
