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Swiss franc tumbles in value

  • 06-09-2011 02:35PM
    #1
    snowstreams
    Registered Users, Registered Users 2 Posts: 1,342 ✭✭✭


    I see todays news that the Swiss national bank has refused to allow the franc to gain in value, and so they have started to buy foreign currencies to try and lower the value of the franc.
    Apparently it dropped by 8.5% in one day :eek:
    See link below

    http://www.irishtimes.com/newspaper/breaking/2011/0906/breaking39.html

    Where will people move their swiss franc investments too after this?
    Tagged:


Comments

  • #2
    Mr_Roger_Bongos
    Registered Users, Registered Users 2 Posts: 1,470 ✭✭✭Mr_Roger_Bongos


    From my perspective the reason for moving funds to 'Safe Haven's' is to mitigate your Euro or USD risk. The recent improvement of the exchange rate would simply be a bonus for those who moved their funds early.

    Pegging the FX rate to 1.20 only brings us back to July levels of exchange, so I wouldn't see any reason to move your funds out if you got them there before July. Switzerland still remains a safe haven.

    With regards other Haven's; Japan (which i don't really like), the Nordic countries, you could also consider Canadian/Aussie dollar if you feel commodity prices are going to creep up again.


  • #3
    gizmo555
    Closed Accounts Posts: 2,948 ✭✭✭gizmo555


    snowstreams wrote: »
    Where will people move their swiss franc investments too after this?

    Has to be positive for gold and other precious metals.


  • #4
    irishh_bob
    Closed Accounts Posts: 5,700 ✭✭✭irishh_bob


    gizmo555 wrote: »
    Has to be positive for gold and other precious metals.

    im big in gold but im not naieve enough to believe that metals are immune from manipulation , central banks buy and sell gold all the time


  • #5
    gizmo555
    Closed Accounts Posts: 2,948 ✭✭✭gizmo555


    irishh_bob wrote: »
    im big in gold but im not naieve enough to believe that metals are immune from manipulation , central banks buy and sell gold all the time

    Indeed they do . . . have a look at the chart from yesterday (from Dan Norcini's blog: http://www.traderdannorcini.blogspot.com)

    snapshot-880.png

    They can't, however, manipulate gold as much as their own currencies, which they can print and/or devalue at will, as the Swiss have just done. More gold can't be created out of thin air, unlike dollars, euros or Swiss francs . . .


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