Swiss National Bank makes a pledge, gold futures marks time at $1900.

The Swiss export sector is hurting since the Swiss franc has been rallying over the past weeks as a percieved safe haven. To increase exports, the fiat currency has to be devalued. This moves underlies the fact that the global race to the bottom in fiat currencies has taken an even more serious turn as even the strongest economies cannot survive without debasing their curreny. The Swiss National Bank has pledged to buy foreign currencies in unlimited quantities setting a minimum exchange rate of 1.20 francs per euro.

Investors now have only gold as a currency that cannot be devalued.  Gold is hovering around $1900 today as the big margin requirement hikes, placed just a couple of weeks back, get brushed aside.

Pe-market the US stock futures are lower again today with Dow Jones futures convincingly below the psycologically important level of 11000. The currently trade at 10974.

The unravelling of the trust in fiat currencies is in full swing. Keeping the principal intact is becoming crucial, hence the move by Central Banks worldwide to shore up their gold holdings, and for investors to move to the only assest that is not being devalued, that is precious metals.

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