We present this Flash Crash Summary Report using a time-line graph to distinguish the events that caused the crash from those that were effects of the crash. The main chart covers from 14:42:30 to 14:52:00 in 1 second intervals, and the inset covers from 14:42:43 to 14:42:46 in 25ms intervals. Click on underlined blue text to view a supporting chart, table, or document. To keep this document short, we will reference our initial and subsequent reports when possible. The color ribbon lines are color coded to match the intensity of a data set. The scale of colors are the colors of the rainbow and can be seen at bottom of the inset.

The volatility of biotech stocks provides an opportunity for investors.

As China’s economy becomes increasingly integrated with the rest of the world, it is a natural trend for its currency, the renminbi (RMB) to be more widely used in trade and investment. However, RMB in China has traditionally been a closed market with strict capital controls where currencies could not be delivered offshore. That has changed in recent years. In 2010, China launched a pilot program for RMB trade settlement through banks in Hong Kong. The Chinese government has a publicly stated ambition of internationalizing the RMB and putting RMB on track to be one of the world’s reserve currencies. The introduction of off shore renminbi (CNH) is one of the major step taken by the Chinese government in this direction.

For us, gold and silver are the most complicated assets to price. Stocks, currencies and other commodities mostly depend on fundamental data of the stock, the country or on physical demand and supply of the commodity. Once fundamental data about the asset comes out, even an inexperienced investor can understand most price movements.

Synopsis: Measuring market data using fiat currencies can be misleading – even though an asset may rise in dollars, it may be because of declining currency value rather than true economic process. With central banks devaluing currency at record rates, gold’s steady purchasing power makes it an ideal alternative pricing mechanism.

Whether by intent or good fortune, gold’s plunge in the last few days has reduced its appeal as a store of wealth and spurred the more central-planner-biased view that the US Dollar is the ‘safest’ place to deposit your hard-earned after-tax wealth. However, as Cypriots learned the hard way, trust in the entire system depends on the counterparty (in the case of bank deposits, you are implicitly lending your money for no return to a highly-leveraged entity) covered by an FIDC guarantee. As the following infographic makes very clear, that level of trust is remarkable when the reality is that gold is an asset without any counterparty risk and without any implied risk.

This infographic shows all the Silver ever mined throughout history. Silver price is currently hovering around $30 / troy oz. When Silver price hits $31.10 / troy oz each gram of Silver will be exactly $1. Silver is usually measured in Troy Ounces. A Troy Ounce is about 1.09 regular Ounces.

The crash of Cyprus financial sector and government bailout sentences Cyprus to a long period of recession and debt. The list of demands by EU to Cyprus for accepting the €10 billion bailout includes things such as freeze on pensions, massive tax increase on just about everything and more taxes.

What currency is feared by the European Central Bank as a threat to fiat monetary institutions? What currency is cash like but digitally transmittable allowing for ultimate anonymity and global mobility?

After the spectacular moves of late 2008, currency market volatility slowly reverted to more normal ranges, with a few exceptions over the course of 2009-2011. However, as Saxo Bank notes, since the start of the year, firebrand rhetoric is forcing currencies lower.