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now THIS has to be some kind of indicator - the bottom - at least in sentiment for AU ?
Mr J ?
Gold's Decline Eats Into Swiss Reserves
Central Bank to Cancel Dividends for First Time
(behind the paywall)
but this ones open:
Swiss National Bank Takes Hefty Gold Hit
Mr J ?
Gold's Decline Eats Into Swiss Reserves
Central Bank to Cancel Dividends for First Time
(behind the paywall)
but this ones open:
Swiss National Bank Takes Hefty Gold Hit
The Swiss National Bank—effectively one of Europe’s premier investment houses as well as a Very Serious Central Bank–offered a reminder Monday that it’s not only wild-eyed gold bugs that have been stung by the rout in the shiny stuff.
The central bank said in a press release that it will report a loss “in the order of 9 billion Swiss francs” (that’s around $10 billion) for 2013, including a thumping loss of 15 billion francs on its gold holdings. That’s a wallop that more than negates the 3 billion francs it made out of foreign-currency positions. More details, including definitive figures, are due March 7.
As a result: “The SNB cannot make a profit distribution, as stipulated in the National Bank Act and the profit distribution agreement between the Federal Department of Finance and the SNB. This affects both dividend payments to shareholders and the profit distribution to the Confederation and the cantons.”
The losses on gold are not exactly a surprise. The central bank churns out statistics on its balance sheet on a regular basis and the breakdown on gold has not made pretty reading as the gold price has slumped (it fell by 28% last year).
The SNB holds 1,040 tons of gold, according to the World Gold Council, making up slightly less than 10% of its assets. This is substantially less than held by the U.S., Germany and Italy.
It is important to remember here that while the SNB has pretty large reserves, and those losses are on the chunky side, it is not in it just for profit. Far from it; the FX and gold reserves are there to give the central bank wiggle room in monetary policy and to act as a rainy-day fund for potential crises, and the total racked up quickly after it slapped a cap on the Swiss franc in 2011—a policy that has led it to buy euros in large amounts.
Still, if the SNB can take a loss like this on gold, who knows how less experienced punters have fared.
The central bank said in a press release that it will report a loss “in the order of 9 billion Swiss francs” (that’s around $10 billion) for 2013, including a thumping loss of 15 billion francs on its gold holdings. That’s a wallop that more than negates the 3 billion francs it made out of foreign-currency positions. More details, including definitive figures, are due March 7.
As a result: “The SNB cannot make a profit distribution, as stipulated in the National Bank Act and the profit distribution agreement between the Federal Department of Finance and the SNB. This affects both dividend payments to shareholders and the profit distribution to the Confederation and the cantons.”
The losses on gold are not exactly a surprise. The central bank churns out statistics on its balance sheet on a regular basis and the breakdown on gold has not made pretty reading as the gold price has slumped (it fell by 28% last year).
The SNB holds 1,040 tons of gold, according to the World Gold Council, making up slightly less than 10% of its assets. This is substantially less than held by the U.S., Germany and Italy.
It is important to remember here that while the SNB has pretty large reserves, and those losses are on the chunky side, it is not in it just for profit. Far from it; the FX and gold reserves are there to give the central bank wiggle room in monetary policy and to act as a rainy-day fund for potential crises, and the total racked up quickly after it slapped a cap on the Swiss franc in 2011—a policy that has led it to buy euros in large amounts.
Still, if the SNB can take a loss like this on gold, who knows how less experienced punters have fared.