I was watching Money In Motion and they were saying that Swiss Franc and Gold go hand in hand but im trying to figure out how these two work together
The swiss government is widely believed to maintain a store of gold that is approx. 40% of their total currency in circulation. When 40% of the money you have in world is tied up in a single asset… that single asset will have a massive pull on your currency value. Put up a monthly chart of gold…and a monthly chart of USD/CHF.
You will see USD/CHF has sunk about as fast as gold has risen…well, in terms of percentage…it’s not even close…gold has outpaced CHF by several fold… but you get the idea.
Conversely, throw up a weekly chart of gold and USD/CHF. In november of 2009, CHF actually dropped compared to the U.S. dollar (the chart will show an uptrend starting in november of 2009). Also…gold dropped as well for almost 4 months.
Oh ok i get it now thx