By Geedard on Tue, Apr 28, 2015 - 3:17am


I would greatly appreciate member feedback and opinions to the following specific situation please.   First the situation, followed by my question at the end.      

BRIEF SITUATION -->  I'm in the fortunate and hard-worked-for situation of living in Switzerland in a tucked away mountainside property (without mortgage), with a little spare cash. Within the last 12 months I invested some spare cash into physical gold and physical silver, both metals purchased with Swiss Francs.       My goal was only to spread a little risk (between physical property, gold, silver and cash) and ultimately to "preserve something of useful value, in the event of a serious economic fail". Basic stuff, nothing complicated.          Both metals were purchased around their last 5 year low price points, with a $USD to CHF exchange rate of circa 0.95:1 (+/-).        Preserving the investment value therefore revolves around 2 variables: 1) metal price and 2) currency exchange rate. Thus, a significant spike or drop in either variable would positively or negatively impact the whole.        

QUESTION TO MEMBERS -->     What future risks (situations) do members see where the metal price and USD/CHF exchange rate might completely de-couple from one another (where changes in price and exchange rate do not reasonably cancel each other out)?    And what is the likely probability?        (Specifically for example, that the USD might significantly weaken against the CHF --> but --> the weakening does not reasonably correspond to 1) an increasing metal price or 2) some monetary or fiscal manipulations which re-couple the currencies for global competitive reasons...either of which might "re-couple the variables" to bring "the whole" back together again and "reasonably" preserve the original investment with perhaps a smallish gain or loss)

I am very interested and curious to hear all opinions. THANK YOU IN ADVANCE.

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2 Comments's picture
Status: Member (Offline)
Joined: Feb 26 2012
Posts: 7

Give  that the price of gold is fixed in USD for still a reasonable time, the future of all present

currencies in relation to the USD is very unstable. This forces you to search for the temporally

most stable currency in relation to the USD. At the moment the EURO has this relation, as Euro-

land has economic growth. You will have to decide, how stable is the relation between the CHF and

the EURO ; compared to the USD. If you just sit on your gold and do not trade with it, you will have

to wait until the new global currency, the SDR, will be the "stable" currency for us all.




Geedard's picture
Status: Bronze Member (Offline)
Joined: Oct 13 2014
Posts: 82
Thanks Frederik.

Thanks Frederik.

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