The Swiss franc: as good as gold?

Such is the popularity of the safe-haven Swiss franc that it's now hit a lifetime record of CHF1.31 to the euro. That's all well and good, but is it as good as gold?

The Swiss franc is like gold, says BNP Paribas's Hans Redeker: a classic safe haven. No wonder, then, that Germans rattled by the euro crisis and fearing an ever-weaker single currency have been pouring across the border in droves of late. So much so that the Swiss franc has hit a lifetime record of CHF1.31 to the euro.

The Swiss National Bank's decision to stop trying to hold down the franc's value by selling it for euros has also provided a fillip; the Swiss had wanted to temper franc gains to prevent deflation taking hold, but now the central bank thinks the threat of deflation has "practically disappeared".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.