Posted on 09/08/2011 12:18:53 PM PDT by Errant
While the move by the SNB to basically link its currency to the dying Euro was shocking and will send shockwaves throughout the global financial systems for months to come, in many ways it was inevitable. The central planners are still in control and they are getting increasingly desperate. Part of their desperation manifests itself in acts to prevent markets from sending out signals to investors and the general population. This is why Central Bankers print money and buy government bonds. This is why the ECB is buying worthless PIIGS debt. This is why the SNB decided to destroy its currency. After all, if they agree to destroy the value of the Franc at the same pace as the Euro then it will become less clear to the currency market just how quickly purchasing power is being destroyed. Of course, you can always tell in the commodities sector. What the Swiss did is unfathomably bullish for commodities, in particular energy, food and precious metals. Every rich person with a Swiss bank account in Swiss Francs will be scrambling to turn that into the one hard currency left: GOLD. That is what the Swiss said to us earlier this week. They told every investor on the planet “we don’t want to have a hard currency.” If you want a hard currency you have once option now. Gold. When people really figure this out it is going to be a mad scramble for physical metal the likes of which no one alive has ever seen.
(Excerpt) Read more at zerohedge.com ...
No countries will be kicked out. None can afford to. You will see a sister currency to the euro such as “euro light”.
Certainly silver - my silver investment has quadrupled vs gold at a double.
I'm hesitant about investing in industrial metals like copper as I feel we'll see a major deflation followed by inflation in some commodities. Prices of each will depend upon what the economy is like or what's in demand at the time.
Copper (or anything real) certainly sounds like a better investment to me than fiat or bonds. I've been wrong before.
For traders, of which I no longer am one, it must be almost like taking candy from a baby...
[ —the one hard currency left: GOLD—
What about silver and copper? Just wondering... ]
May not be applicable to Europe, but what about Lead and Brass?
Gold $1,869.10 $1,871.10 ^$51.50
bump.
My biggest problem with precious metals is that it is very easy for me to buy it, but selling it is like lopping off a limb. I see VERY bad times coming and getting rid of metals, even when there has ben a recent spike, is like selling my future.
I don’t own precious metals as an investment. I see them as a major facet of my family’s very survival.
—May not be applicable to Europe, but what about Lead and Brass?—
I don’t talk about those metals much. I’m keeping that particular info close to the vest.
Well, he has exaggerated it.
Things are going to be more local everywhere. Such as the food we eat and the products we use.
That's just nonsense. Even were the Euro to end (doubtful), the division of labor and comparative advantage would not.
The Obamaite nailed inside trader speaks such wisdom. We should all listen!
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