AUD,NZD/FXWW News/Trade Ideas

Don’t be short CHF if metals are rallying

I cut my long EUR/CHF position yesterday for a tiny loss once the precious metals started rising. I don’t think it’s the right time to be short any of the commodity currencies (AUD, NZD, CAD or CHF) if precious metals are rising.

The USD will be the biggest loser out of this market phase whilst the EUR would also be expected to lose out on the crosses.

  1. Too true Chris, or Holy Cheese ๐Ÿ™‚ Never have understood why the CHF belongs with the commodity ccys but I’m not going to re-educate the market so best behave like a sheep and start bleating ๐Ÿ™‚

  2. My understanding is that the Swiss have more ounces of gold per capita then any other country in the world, by a significant margin.

    http://www.contrarianinsights.com/gold-investment/top-10-gold-reserves-in-the-world-in-current-gold-stock-market-who-own-most-of-the-worlds-gold/

    8. Switzerland

    Switzerland has had a long association with gold. Swiss bank vaults are some of the most trusted in the world.

    So Switzerland may be the eighth largest owner of gold in the world. On a per capita basis, however, itโ€™s by far number one. In fact, Switzerland owns more than three times gold per capita than #2 Germany.

    Switzerland Gold Reserve Facts
    Gold Reserves: 1,146.5 tons
    Market Value: $58.7 billion
    Ounces of Gold Reserve per Capita: 4.796
    Market Value of Gold Reserve per Capita: $7,673
    Percent of the Worldโ€™s Gold: 0.63%

  3. To add to James’s point, CHF was the last currency to leave the gold standard – not too long ago. Perhaps market still remembers those old good days :p

    However, the franc stubbornly maintains its overvaluation despite GOLD price free fell recently.

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