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Are Swiss Francs Better Than Holding Dollars, Though Not Good as Silver/Gold?

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/

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fireant's picture

Didn't they do a partial peg to the euro last year?

They are awash in euros, which likely continues to lose value.
For now, I like the dollar. It's been in an uptrend for about a year with no sign of changing. Until Germany relents and let's the ECB print (not likely), the dollar is heading to parity with the euro imo.

Undo what Wilson did

It is a great, safe,

It is a great, safe, investment. I myself have nearly 50,000 in CHFs. Be warned though, that since banks over there fractionally bank a lot less (since the ration I think is 60:40), the banks make a lot of their money through fees and service charges. Interest rates on accounts are incredibly low.

Having an account where I can basically do nothing with it (I get a maximum of 3 withdrawals per year, and debit card fees are through the use), I get charged about 400 francs/year. The interest earned on the account is about 450 francs, so I do end up making money though the opportunity cost is high.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

That's ok since silver coins in a safe are

earning no interest either. The goal is storage of value, an inflation hedge. I guess the last consideration would be would Swiss branches in the US honor withdrawal requests when the SHTF, or would you need to go to Switzerland to access your money?

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali

I own some Swiss Francs, and

I own some Swiss Francs, and some Euros, along with some Czech and Hungarian money from my backpacking trip in Europe 3 years ago after college when I visited these countries. I was wondering about this too a while back and I read that the Swiss Franc coins are made out of Cuprinickle(Sp.?) which is a mixture of copper and nickel, so yes the coins I know for sure will hold it's value. Switzerland is a gorgeous country (my favorite) and very safe and clean. I would move there if I could afford to.

well if no one is shootin' it down I guess the info is ok

(also was posted kinda late at night)

: )

A man who views the world the same at fifty as he did at twenty has wasted thirty years of his life.
-- Muhammad Ali