Are Swiss Francs Better Than Holding Dollars, Though Not Good as Silver/Gold?Submitted by James_Madison_Lives on Thu, 08/02/2012 - 00:22
Picking the brains of the savvy DP community. Are Swiss franc denominated investments better than holding dollars? I know the argument for silver here are strong, but I have friends who still want to be within the banking system.
Swiss Francs: An Inflation Proof Currency?
Switzerland’s banking system has been a type of financial and banking safe haven for centuries upon centuries. They’ve been used by governments, businessmen, tyrants, freedom fighters, terrorists, organized crime lords, tax evaders, and regular investors for the sake of financial safety and stability.
The reasoning for all of this is pretty straightforward: the Swiss government has historically not taken sides and will usually just mind its own business when it comes to dealing with other people from other lands. Plus, they’ve at least traditionally kept their Swiss francs backed by at least 40% gold.
While much of this has drastically changed in the last few years (especially for money laundering and tax evasion), the Swiss franc is still often seen as a currency safehaven, and is a much, much safer currency than the US dollar.
Direct Swiss Investments
Still, if you decide that you want to put part of your portfolio toward the Swiss system, you have basically two options — direct Swiss investments and indirect Swiss investments. I’ll list the direct methods imediately below, and the indirect methods a little lower on this same page.
Swiss Savings Account. This is a pretty obvious. Find a popular Swiss bank (UBS, most likely) and set up a savings account. If the interest rate is over 1-2% at all, you’re essentially beating inflation with your cash. That’s kind of amazing. Any interest at all with a Swiss franc savings account is incredible compared to US bank account alternatives.
Swiss “Cash” or Bonds. Owning short-term bonds issued by the national Swiss bank is another way to potentially profit from Swiss cash holdings. These are a little less liquid, but they’re still pretty damn safe as far as bonds go.
Indirect Swiss Investments... http://livegoldprices.com/best-inflation-hedges/