Swiss Franc (FXF)
A safe haven discussion, however, must include gold. Gold priced in Swiss francs has been rising steadily since 1999; the pace of the rise accelerated substantially in 2005. This acceleration is depicted by the sharp rise in the angle of ascension of the secular trend from 14 to 32 degrees. This is illustrated in the chart below. While the Swiss franc might represent a safe haven against fiat, i.e. U.S. dollar and Euro, it can't hold a candle to gold.
Swiss Franc Gold:
Currency devaluation has infected all fiat (paper) money. Gold clearly illustrates that the Swiss franc, despite its designation as a safe haven currency, is not immune devaluation.
Headline: Swiss Franc Sets Record Versus Dollar; Japan Disaster Sparks Haven Demand
The Swiss franc surged to a record versus the dollar amid concern that a nuclear disaster is unfolding in Japan, prompting investors to seek havens.
Switzerland’s currency also jumped the most since September against the euro as stocks plunged in Asia and Europe and swaps to insure Japanese debt climbed to a record. Tokyo Electric Power Co.’s stricken Fukushima nuclear power plant was rocked by three explosions today as workers struggled to avert a meltdown in the wake of the March 11 earthquake.
“Given the domestic risk in Japan, which is leaving the yen’s safe-haven status more questionable, the Swiss franc is the clear alternative and is benefiting,” said Adam Cole, head of global currency strategy at Royal Bank of Canada in London. “Markets will stay very nervous, at least for the next couple of days. That probably will continue to support the franc.”
Source: bloomberg.com
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