We have the total blow out in the FOREX today on unexpected SNB move to discontinue its Euro peg. Now you can appreciate what will happen to Gold and Silver in the future when US Dollar - the most crowed Long trade will be unwinding. Gold is breaking above the very important 1250 level and Silver is above $17 now. Swiss Franc has surged 14% against Euro and Swiss market is down -14% - the largest one day drop in its history. This is what happen when Central Bank's put is taking out. Now with Oil down more than 50% and this FOREX extraordinary move we can expect the spectacular blow up in one of the major financial players. Gold price will be the indication of the level of stress in the financial system.
CNBC has aired very interesting interview with the head of IMF Christine Lagarde. According to her: IMF was NOT informed in advance by SNB about its change of policy. In Central banks world it is a No-No. So what is really going on now?
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