Wall Street analysts and investors say the the Swiss central bank's decision to peg its currency to the euro as a way to reduce the value of the franc will make gold more attractive to investors.
Michael Jansen of JPMorgan Chase said this direct intervention ois undeniably bullish for gold.
He said the Swiss National Bank's move Tuesday shows that even so-called safe-haven currencies are not immune to coordinated debasement. Jansen also said he expects to see the Swiss franc stop being regarded as a safe haven, leaving gold, precious metals broadly and other traditional stores of value as the main beneficiaries.
UBS strategist Edel Tully also said the Swiss move was positive for gold.
Efforts to dampen currency appreciation mean that gold moves up the pecking order of preferred safe havens, she said in a note. This is crucially important given that safe havens are currently sought as alternatives to equities and other assets while macro concerns and European sovereign issues prevail.
Legendary investor Jimmy Rogers ripped the Swiss central bank's move as a huge mistake, according to CNBC.com. The Swiss National Bank could lose a lot of money buying up lots of foreign currencies which they will eventually sell at a loss, Rogers told CNBC.com.
Rogers also warned that Swiss central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry.