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The Swiss Franc, inflation, silver and the dollar
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<p>[QUOTE="Inquisitive, post: 1046754, member: 20698"]The swiss Franc was silver until 1967, with the five Franc coin also silver in 1969.</p><p> </p><p>While liquidating a collection, I found 7 of these silver coins. Being an unusual composition (83.5% silver) I was unable to get a good price for them and bought them for myself. (an example (not mine) is below)</p><p> </p><p>[ATTACH]102774.vB[/ATTACH]</p><p> </p><p>These coins contain .42 ASW, which at $27 silver, makes them worth 11.34 each.</p><p> </p><p>Looking back historically, during Bretton Woods $1 = 4.375 francs, wich would make our 5 Franc coin worth $1.14, which at .715 ASW to the dollar (fractional coinage) gives the dollar about .82 ASW to our 5 swiss franc coin. I imagine this was the worth in 1964 (last year of 90% coinage).</p><p> </p><p>Fast forward to 2010:</p><p> </p><p>The Swiss Franc is at Parity to the dollar (or close enough). The silver value of the 5 Franc coin is 11.34, or 2.27 times melt.</p><p> </p><p>The dollar is at 19.3 times melt (at 27 dollar silver).</p><p> </p><p>What happened to our money? Inflation. The Swiss Franc until 2000 had to be backed by 40% in Gold.[/QUOTE]</p><p><br /></p>
[QUOTE="Inquisitive, post: 1046754, member: 20698"]The swiss Franc was silver until 1967, with the five Franc coin also silver in 1969. While liquidating a collection, I found 7 of these silver coins. Being an unusual composition (83.5% silver) I was unable to get a good price for them and bought them for myself. (an example (not mine) is below) [ATTACH]102774.vB[/ATTACH] These coins contain .42 ASW, which at $27 silver, makes them worth 11.34 each. Looking back historically, during Bretton Woods $1 = 4.375 francs, wich would make our 5 Franc coin worth $1.14, which at .715 ASW to the dollar (fractional coinage) gives the dollar about .82 ASW to our 5 swiss franc coin. I imagine this was the worth in 1964 (last year of 90% coinage). Fast forward to 2010: The Swiss Franc is at Parity to the dollar (or close enough). The silver value of the 5 Franc coin is 11.34, or 2.27 times melt. The dollar is at 19.3 times melt (at 27 dollar silver). What happened to our money? Inflation. The Swiss Franc until 2000 had to be backed by 40% in Gold.[/QUOTE]
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The Swiss Franc, inflation, silver and the dollar
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