Precious metal update: Another game changer
I started to hear many stories about Swiss Franc since beginning of last week. That is: Switzerland's central bank starts to peg the Swiss Franc to Euro due to the exact reasoning I've written about in last blog (I also talked little bit about it in the blog. For more detail, you can click here to my last blog). Basically, Switzerland's economy is currently in terrible shape due to its own strong currency. So, what they did was very obvious. They devalued its own currency so that their export will become more attractive. This will surely boost their export. Then, why this is the another game changer for precious metal investors? As most of people know, Swiss Franc has been considered as the strongest currency of the planet and many investors were holding Swiss Franc as a safe heaven currency. However, Swiss Franc is now pegged to the very weak Euro Currency. This means that investors will no longer consider Swiss Franc as safe heaven currency. I expect that many people will probably start dumping Swiss Franc and move their money to somewhere safer (Hard assets). I consider this event as possible game changer because there is now one less option for investors to choose as preserving their purchasing power and I know that Swiss Franc was treated as safe heaven currency for long time. In my view, only place we can go to preserve our purchasing power is now gold and silver. As German government is currently considering to expel Greece from Euro, I expect that Euro currency will be weakened even further. This means Swiss Franc will also be weaken. In this current situation, gold and silver are becoming more and more true safe heaven assets for many investors (If you are interested in buying gold and silver at wholesale price, feel free to visit the website by click here). Anyway, it will be interesting to see how Eurozone will treat this situation in this coming week.
P.S: I wrote new article about greatest wealth transfer. This entails what's happening in world economy in greater detail. Click here for more information.
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