Or you can mail donations to Henry Shivley at P.O. Box 964, Chiloquin, OR 97624

A Black Swan Event Rocks Gold And The Swiss Franc Today

INO – by Adam Hewison

A black swan event is a metaphor that describes an event that comes as a surprise and has major consequences.

Today, such an event occurred causing the Swiss franc to soar as much as 30% and gold to jump to 4-month highs in chaotic trading after The Swiss National Bank (SNB) abandoned the cap on the currency’s value against the euro.  

The Swiss National Bank (SNB) said the cap, introduced in September 2011, was no longer justified. No one predicted, hinted or even contemplated that The Swiss National Bank would do this.

This move could well begin the demise of the euro that was cobbled together some 15 years ago. Personally, I am surprised to this day that this currency has survived as long as it has. The disparity between the work ethic of a country like Germany versus Greece is a joke – yet that is what the euro represents.

A Flight To Quality

As the Russian ruble continues to lose buying power, money is flowing into Switzerland from that country. I remember when I lived in Switzerland, flights used to arrive with passengers whose suitcases were stuffed full of illegal money. Make no mistake about it, this move by the Swiss National Bank is a game changer.

Investors in Europe have long believed in the value of gold. Today’s move in gold to 4-month highs underscores that belief. Gold has long been seen as a traditional safe haven out of paper money, and today we are seeing this all take place in real-time.

I have been bullish on gold since I posted a special report on January 7th. I continue to look for this market to reach my initial target zone of $1,340.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

http://www.ino.com/blog/2015/01/a-black-swan-event-rocks-gold-and-the-swiss-franc-today/#.VLht3ivF9MN

This entry was posted in News. Bookmark the permalink.
2029

Leave a Reply