Central banks smashed gold ahead of Swiss devaluation, Davies says

Submitted by cpowell on 02:17PM ET Tuesday, September 6, 2011. Section: Daily Dispatches
5:14p ET Tuesday, September 6, 2011

Dear Friend of GATA and Gold (and Silver):

Hinde Capital CEO Ben Davies today remarks to King World News about the suspicious pounding of gold in the minutes just prior to the announcement of the Swiss franc's devaluation, which would have seemed hugely supportive of gold as the only remaining safe-haven currency.

In regard to gold, Davies says: "Why was it selling off just ahead of a really bullish announcement? You have to believe that there was some coordinated action. ... The central banks will all have been in on knowing ahead of time that the Swiss were going to announce this. So there was central bank selling because they really didn't want the price of gold to skyrocket on what is incredibly bullish news for gold."

Yes, nothing could have been more obvious today -- except perhaps to folks like Jon Nadler, Jeff Christian, Jim Rogers, and even Doug Casey, who seem to think that, though gold is increasingly not just a currency but a reserve currency and though central banks are frantically intervening, openly, in the currency markets, they'd never intervene surreptitiously against gold, though they used to do it openly all the time.

An excerpt from the King World News interview with Davies is headlined "Silver Headed to $65 and Gold to Soar" and you can find it at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/6_Ben_Davies_-_Silver_Headed_to_%2465_%26_Gold_to_Soar.html