Tuesday, December 9, 2014

Swiss No Vote on Gold Referendum is License to Print Money

People own physical gold and silver as a hedge against the ongoing global debasement of fiat paper currencies in the world. However, for people that own paper gold and silver, they will be settled in cash at the very time they will need this protection.

I believe this inflection point is rapidly approaching and it may explain to some extent the recent bizarre price action in gold and silver. Part of the reason for the extreme downdraft in the metals was related to the failed Swiss Gold Initiative. The Western central planners wanted to do everything they could to ensure that would not pass.

I gave that initiative zero chance of passing from the outset, and I said as much in my article several days before the vote took place. I think the Swiss vote was very telling in that it was so overwhelming. The Swiss gave license to the Swiss National Bank to continue to debase the currency.

Outside of the Germans, the Swiss from a historical perspective stand for financial rectitude. And if the Swiss are ‘all-in’ in favor of more debasement, I think this is a very powerful signal that we are headed for hyperinflation on a global basis in the not-too distant future.

- John Embry of Sprott Asset Management via King World News