Sprott makes a bet on a different kind of bank

Good for Eric Sprott, the Canadian billionaire who's been on the right side of the precious metals trade for more than a decade.  According to Gresham's Law, bad money drives out good money.  In other words, people will dump debased paper fiat currencies, and hoard sound currencies, with gold being the soundest.

In the past, the Swiss franc was the most stable of currencies, reflecting centuries of sound banking policies.  That situation reversed itself several weeks ago when the Swiss National Bank pegged the "Swissie" to the sinking Euro, in attempt to stimulate their exports and tourism industry.  Apparently, the USDollar and Euro had weakened too far, driving up the Swissie and price inflation (and rendering Swiss products non-competitive).

With all developed countries trashing their sovereign currencies in a race to the bottom, gold will be the last man standing among currencies.  And a currency 100% backed by gold will maintain its role as a store of value, in addition to being a medium of exchange. 

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/sprott-makes-a-bet-on-a-different-kind-of-bank/article2204088/