However, in an effort to ensure investors don't get too excited about swapping euros or dollars for francs, the central bank also slashed interest rates to -0.75%, down from -0.25%.
"It's like a tax on people holding money in Swiss francs," said Simon Smith, the chief economist at FxPro in London.
Instant haircut for swiss savers.
You want real currency price discovery? There it is. The shit is so worthless, we are going to charge you three quarters of a point just to hold it. Think about how outrageous that is. Swiss currency is trash. They want people to remove money from the bank.
Two months ago, I noted that silver traded down to 14.12. I bought nearly 100 ounces which averaged my overall holdings price down to about 21.00. That bottom was so low that silver immediately rallied nearly 25% and it is holding around 17. Gold rallied off the 1150 lows and it is up nearly 100 bucks.
The gold bull is back, Bill F says so. http://investingchannel.com/article/331384/Bill-Fleckenstein-The-Bull-Market-In-Gold-Has-Resumed#.VLnrVNxGmdM
Wait until the European Central Bank announces their QE program in less than 10 days.
The DJIA's blow off top occurred just over the 18,000 level. Without QE, the market simply cannot rally further. They have squeezed every last ounce of credibility out of the "buy the dip" theme. Commodities are all down- even cattle futures are starting to deteriorate. Dr. Copper is toast. Housing starts are down as well. Without a consumer feeling confident in "make believe equity" and buying worthless shit with Helocs- I don't know where any potential rally can come from. Last but not least, the oil bust is wiping out capital expenditures, market caps, equity, and jobs. The first oil patch bankruptcy was announced earlier this week.
I am liking this year a lot thus far.
You can't put money in the bank, you can't buy bonds paying less than 2%, you can't buy equities that have topped out after a 6 year, QE induced rally. You can't go long commodities or even currencies since we all know where they are headed.
What does that leave? Gold and silver.
I read a report earlier this week that said that all of the known gold in the world will have been mined in 20 years. Gold is a finite resource. We are well beyond "peak gold and silver" as all of the major miners are desperately mining and looking for new assets.
The bottoms are in for now and I see nothing to impede their rise. Gold 1300 this month. Silver 18.00 this month. I feel confident buying at these levels. I might even buy a little platinum while I sit back and watch the currency
Not coincidentally these past two weeks- the dollar fell against the yen and the Swiss franc. However, we have the European Central Bank announcing their own QE program later this month- so we'll see if that announcement has already been priced in.
I think it has.