6 replies to this topic

[Rogerdodger]

Swiss bank breaks negative rates taboo...

The Alternative Bank Schweiz (ABS) caused shockwaves with a letter sent to all clients in mid-October informing them that it would begin imposing interest charges on deposits in 2016.
For current accounts, the bank said it would impose a -0.125-percent rate, while slapping a -0.75-percent rate on client deposits higher than 100,000 Swiss francs ($98,650, 92,420 euros).
The -0.75 percent rate is meant to dissuade foreign investors buying and holding Swiss francs as a safe haven investment, which had been putting upward pressure on the currency.

Was a December FED hike been priced in last week?

Meanwhile, Jack Chan observes:

Since identifying the top a few weeks ago, we expected a new low in gold but did not expect a spike down. Spikes are seldom sustainable, therefore, a recovery rally should begin anytime.
Current COT data is now near levels of previous bottoms, expect a recovery rally to begin anytime.

Main St. Predominately Bearish On Gold While Wall St. Sentiment Remains Mixed

Adrian Day of Adrian Day Asset Management mirrored Gero’s thoughts in that the Fed rate hike is now priced in and may be positive for gold.
“It removes this Sword of Damocles hanging over the market, and it is very clear that there will not be a rapid series of aggressive rate hikes; one tiny increase is meaningless for gold, whereas the constant threats have weighed on the metal,” he continued.

Edited by Rogerdodger, 23 November 2015 - 09:17 AM.

[AChartist]

got some extra this time, latest buy already up $40 in one week. Not that matters just nice to catch a good price right. I am doing the bitgold and it comes with a debit card. My long term cycle has another low mid next year then another low over a year away, it doesnt really go up for good for another year. Nice time to build up a bitgold account. But, all the victims in crashing stock disasters, seen in non weighted index charts, already lost much of their gold buying power in stock ponzies. Thats the point of rotation and allocation. This friday and a couple days recently my short fund in 401k was up on index up days. I am going to keep building that up because one half of 401k will be at risk in stocks and bonds, this is the hedge working really well to keep me even both up and down markets it is doing a good job to stay neutral, while I pick up the tax deferal and the 50% match adding to 401k. I am just doing it for the 50% match. I will keep adding to 401k with this short fund working through 2016 bear mkt low and switch long through 2017 hypermonetization. Then sell it all out, because at that point 2018 I can roll it over tax free to a private annuity. So far I am working it out ok catching the big themes, the best theme was to buy physical metal on each low since the late 2013 low. And when I announced here liquidating stock accounts this spring. I had silver with a loss before 2013 but it is way way averaged down now and not a concern.

[dasein]

Swiss bank breaks negative rates taboo...

what taboo??? Swiss banks have charged negative rates in the past- it is not taboo over there - it is ust a function of people's perception of safety and that they are willing to pay for it. like storage and insurance on physical gold.

[risk_management]

Swiss bank breaks negative rates taboo...

The Alternative Bank Schweiz (ABS) caused shockwaves with a letter sent to all clients in mid-October informing them that it would begin imposing interest charges on deposits in 2016.
For current accounts, the bank said it would impose a -0.125-percent rate, while slapping a -0.75-percent rate on client deposits higher than 100,000 Swiss francs ($98,650, 92,420 euros).
The -0.75 percent rate is meant to dissuade foreign investors buying and holding Swiss francs as a safe haven investment, which had been putting upward pressure on the currency.

Was a December FED hike been priced in last week?

Meanwhile, Jack Chan observes:

Since identifying the top a few weeks ago, we expected a new low in gold but did not expect a spike down. Spikes are seldom sustainable, therefore, a recovery rally should begin anytime.
Current COT data is now near levels of previous bottoms, expect a recovery rally to begin anytime.

Main St. Predominately Bearish On Gold While Wall St. Sentiment Remains Mixed

I think Your last COT gold related post was very timely. Was it within a day or two of top?

[AChartist]

Roger calls alot of gold turns real well. I have also started easing into Schiffs gold fund on lows in 401k but I dont believe in that like I do in the phys. Karen, bitgold should be very efficient for insurance and storage considerations. With political risks of foreign vaults, like the reptile vault in NY.

[Rogerdodger]

I don't make the gold calls but I do repost items which seem plausible. My best trade this year was probably last week, buying UVXY for a 3 day 10+ point 45% pop. I was hoping for a Monday pop-up to sell at the open. Could have got that much going the other way but I've been tied up all week with ill relatives. Those VIX related etfs can be fun.

Edited by Rogerdodger, 22 November 2015 - 05:36 PM.

[pdx5]

Negative bank rates are here already! Simply check the fees banks charge for keeping a checking account, fees for overdraws, fees for safe deposit box, and a slew of other charges. Then compare with the interest banks are paying on saving accounts. I will venture a guess, 2/3 of customers are paying banks more than they are receiving in interest.