Time to buy swiss francs?

Discussion in 'Markets & Economies' started by Mike0770, Jan 15, 2015.

  1. Mike0770

    Mike0770 New Member

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    Wow the swiss franc just shot up 30%. Can't help but think maybe I should diversify into a pile of swiss francs as they seem to offer huge potential moving forward.

    Thoughts?
     
  2. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    I'd rather short the Euro
     
  3. goldpelican

    goldpelican Administrator Staff Member

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    Time to buy Swiss francs was yesterday. No-one knew.
     
  4. Mike0770

    Mike0770 New Member

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    True, but I assume it can only go up from here. The sky's the limit as they say.
     
  5. goldpelican

    goldpelican Administrator Staff Member

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    It's a reaction to being unpegged - could just as easily come down. It's an extraordinary jump.
     
  6. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Why bother asking the question if you've already made your decision?
     
  7. Golightly

    Golightly Well-Known Member Silver Stacker

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    D d d d dangerzone!!!

    Yeah I wouldnt now, who knows where it will go, rubles are the go
     
  8. billybob888

    billybob888 Well-Known Member Silver Stacker

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    But dont they have negative rates? Why buy something that has just sky rocketed
     
  9. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Ask yourself what else you would buy if it jumped 30% in a day..... ?
     
  10. goldpelican

    goldpelican Administrator Staff Member

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    Something I've come to realise over the years is that you make your money when you buy. They're 30% dearer than yesterday.
     
  11. willrocks

    willrocks Well-Known Member Silver Stacker

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    Something I've come to realise. A rapid 30% spike, is often followed by a short -20% to -40% drop.
     
  12. Altima

    Altima Well-Known Member Silver Stacker

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    Sounds like bitcoin right now!
     
  13. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    The only Swiss francs I have are silver, and they have been demonetised anyway.

    If I was in Switzerland I would be buying a ton of stuff from overseas eBay sites, might even go and buy some precious metals, the francs are more volatile than silver.
     
  14. whinfell

    whinfell Well-Known Member Silver Stacker

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    I'd say the Swiss Franc could go up or down, depending on your time frame. CJ would also add that if can go <<<<<<<<<<---------- sideways ----------->>>>>>>>
     
  15. tolly_67

    tolly_67 Well-Known Member

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    You are not talking about a normal occurence here.
    The Swiss Franc has been held down artificially through the Franc/Euro peg where the swiss national bank was having to buy euro's to keep the franc from dropping too much. In turn they were facing an ever increasing loss on exchange rates should they drop the peg. It was drop the peg now and suffer enormous losses or break the peg later and suffer freakin enormous losses.
    The end is nigh for the Euro and now the ECB will consider Q.E.........this will only serve to drive the Euro lower and drive capital to the U.S. dollar, the Swiss Franc, U.S. bonds.
    On top of this, an awful lot of people in Europe have home loans in Swiss Francs. They have just copped a 30% rise in the value of their home loan and will be keen to exit the loan. This will mean further buying of Swiss Franc.
    The Swiss Franc is not going to drop back down against the Euro. In the medium turn it will be going up, up, up and this will further drive capital to it.
     
  16. petey

    petey Active Member Silver Stacker

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    tolly, any thoughts on the HKD?
     
  17. Elemental

    Elemental Active Member Silver Stacker

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    The most interesting part for me was a drop in interest rates from -0.25 to -0.75%

    Pay them to hold your money - I just can't understand that.
     
  18. tolly_67

    tolly_67 Well-Known Member

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    Go to Ozforex and look at the one year chart of the HKD and you will see strength.
    Only a fool would be holding Euro at this point in time and those thinking of speculating are poorly informed. It is heading for parity with the U.S. dollar.
    It is a shame that we cannot get good rates in this country. I was in Singapore and could exchange Singapore dollar for Aussie dollar at a far better rate than I could get in this country.
     
  19. tolly_67

    tolly_67 Well-Known Member

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    The whole point of the negative interest rates was to discourage the flood of money entering the Swiss Franc. The 30% rise could have been 50% if the negative rates had not been enacted.
    Even so, -0.75% is a lot better than -30% don't you think?
     
  20. tolly_67

    tolly_67 Well-Known Member

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    Martin Armstrong likened it to an ordered retreat with a few smoke grenades thrown to cover the retreat. The negative interest rates are the smoke grenades. Helpful....in a small way.
     

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