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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (20776)	10/6/1998 3:43:00 PM
From: Alex	Read Replies (2) \| Respond to of 116790

It is no accident that the Swiss Franc is the strongest currency on earth................ The Swiss Franc--World's Safest Currency The Swiss franc's superior performance is no accident. Swiss political, social and economic stability have helped the franc outperform all other currencies, not just since 1971, but since the 1920s and before. There are many sound reasons behind the strength of the Swiss franc, and they all come back to superior Swiss-style money management: 1.200% to 300% Gold Backing. The Swiss central bank's gold reserves amount to twice the volume of Swiss franc currency in circulation. This forces the Swiss central bank to maintain a slow and stable money supply growth. Swiss law requires a minimum 40% gold reserve for every franc in circulation. Actual gold reserves amount to over 50%, and are valued at only $70 per ounce. Even if gold reaches historically low prices, such as $280 per ounce, 50% gold backing at $70 an ounce amounts to 200% gold backing. (It's important to note the the Swiss franc is not exchangeable to a fixed value in gold--no currency is--but these gold reserves are a sign that the Swiss honor gold and resist inflation.) 2.No Exchange Controls. Switzerland is the only country in the Eastern hemisphere which has never imposed external exchange controls on the outflow of funds. The knowledge that one's money will never be held hostage make more investors buy that currency, thus bidding its price up. 3.Political Neutrality. Switzerland maintains strict neutrality. In times of war and political unrest, this neutrality protects the wealth of all peoples, of any political affiliation, until peace is restored. 4.Strong Democracy, Weak Government. The Swiss control their government--not the other way around--through the national referendum and initiatives. Switzerland is the world's oldest and purest democracy. 5.Frugal Traditions. The Swiss enjoy the highest per capita wealth and income in the western world, with a long-established tradition of financial privacy and fiscal responsibility. 6.Low Money Growth. Swiss money supply growth is low and stable, which is the best indicator that the Swiss franc will enjoy low inflation rates over a long-term scenario, maintaining its strong purchasing power in the future. soilandhealth.org