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Old 17.01.2015, 01:33
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Investing now that the SNB has removed the Euro peg [Merged threads]

Ok, so after so much dust over latest SNB move, and the erratic exchange rate, the question is what is best thing to do if one has 1000 CHF. How to make the most of the profit? (note that the amount is irrelevant, the question is about the percentage of profit).

Option 1: exchange all in EUR now

reasoning: The exchange rate may bounce back, since CHF is really too expensive, and it doesnt help Swiss economy. Therefore measures will be taken at some point to bring CHF to a level of 1.3 chf : 1 eur or so.

Option 2: exchange all in EUR only after 22nd January and the announcement of ECB

this may be reasonable since ECB should go with quantitative easing, meaning injecting money into the EU. This should bring inflation to EUR-zone, so the CHF would become even more expensive


Option 3: buy shares of Novartis, Nestle, Roche or similar .

The share prices have dropped by 10% or so in the last day. There are chances that they rebound when the panic settles. Nothing really has changed in these companies business (only that their Swiss staff costs bit more, but this is not so big expense comparably)


Option 4: buy real estate in e.g. Germany

Buy the flat in Germany and rent it out. Generates steady income over years. The property price will rise, if ECB manages to create inflation and inject money into the system.




Any other suggestions?
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Old 17.01.2015, 02:15
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Re: How to maximize 1000 CHF in the current situation?

Exchange for USD now?
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Old 17.01.2015, 02:20
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Re: How to maximize 1000 CHF in the current situation?

Just leave it.

Not worth pissing around with the currency markets for 1000. The options (buy real estate????) really do depend on how much you're playing with.
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Old 17.01.2015, 02:48
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Re: How to maximize 1000 CHF in the current situation?

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Ok, so after so much dust over latest SNB move, and the erratic exchange rate, the question is what is best thing to do if one has 1000 CHF. How to make the most of the profit? (note that the amount is irrelevant, the question is about the percentage of profit).

Option 1: exchange all in EUR now

reasoning: The exchange rate may bounce back, since CHF is really too expensive, and it doesnt help Swiss economy. Therefore measures will be taken at some point to bring CHF to a level of 1.3 chf : 1 eur or so.

Option 2: exchange all in EUR only after 22nd January and the announcement of ECB

this may be reasonable since ECB should go with quantitative easing, meaning injecting money into the EU. This should bring inflation to EUR-zone, so the CHF would become even more expensive


Option 3: buy shares of Novartis, Nestle, Roche or similar .

The share prices have dropped by 10% or so in the last day. There are chances that they rebound when the panic settles. Nothing really has changed in these companies business (only that their Swiss staff costs bit more, but this is not so big expense comparably)


Option 4: buy real estate in e.g. Germany

Buy the flat in Germany and rent it out. Generates steady income over years. The property price will rise, if ECB manages to create inflation and inject money into the system.




Any other suggestions?
$

Option 4 : If you find a flat to purchase anywhere in Germany for CHF 1000.00 please let me know. I will give you chf 1000.00 just for finding me one...
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Old 17.01.2015, 03:00
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Re: How to maximize 1000 CHF in the current situation?

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Buy the flat in Germany and rent it out. Generates steady income over years. The property price will rise, if ECB manages to create inflation and inject money into the system.




Any other suggestions?
I'd stay out of the German property market - due to the low interest rates have millions of people looked to buy flats for investments and as a result is the market currently a bubble by itself. Once the interest rates go up the housing prices will always go down, but next time they'll take a real nose dive.
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Old 17.01.2015, 09:53
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Re: How to maximize 1000 CHF in the current situation?

Option 1

They been trying this for last 3 1/2 years and never really got much above 1.20, so can't quite see where 1.3 comes from
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Old 17.01.2015, 09:58
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Re: How to maximize 1000 CHF in the current situation?

get the currency of your favourite holiday place and head there!
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Old 17.01.2015, 10:10
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Re: How to maximize 1000 CHF in the current situation?

Take a few trips into Germany or France and buy things.
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Old 17.01.2015, 10:23
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Re: How to maximize 1000 CHF in the current situation?

Exchange it for X currency of your choice. But will be interesting on what this means for Swiss companies...thoughts??
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Old 17.01.2015, 11:23
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Re: How to maximize 1000 CHF in the current situation?

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If you find a flat to purchase anywhere in Germany for CHF 1000.00 please let me know. I will give you chf 1000.00 just for finding me one...
Just around Waldshut-Tiengen I find four (4): http://www.immobilienscout24.de/Such...ne_step_search

(For the sake of simplicity I assumed CHF:EUR == 1:1)

Now lets get to the "anywhere" part:

30 listed for Görlitz - http://www.immobilienscout24.de/Such...om=result_list There is even one at EUR 16000 (yes, sixteen thousand Euro): http://www.immobilienscout24.de/expose/78005639

47 listed for the city of Rostock - http://www.immobilienscout24.de/Such...om=result_list

1309(!) listed for (I suppose) the Berlin metropolitan area: http://www.immobilienscout24.de/Such...om=result_list

The key challenge is not finding something up to an amount of EUR 100k. The key challenge is in finding value for money. You might have noticed that I was careful in constructing my choice of areas
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Old 17.01.2015, 12:35
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Re: How to maximize 1000 CHF in the current situation?

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Just around Waldshut-Tiengen I find four (4): http://www.immobilienscout24.de/Such...ne_step_search

(For the sake of simplicity I assumed CHF:EUR == 1:1)

Now lets get to the "anywhere" part:

30 listed for Görlitz - http://www.immobilienscout24.de/Such...om=result_list There is even one at EUR 16000 (yes, sixteen thousand Euro): http://www.immobilienscout24.de/expose/78005639

47 listed for the city of Rostock - http://www.immobilienscout24.de/Such...om=result_list

1309(!) listed for (I suppose) the Berlin metropolitan area: http://www.immobilienscout24.de/Such...om=result_list

The key challenge is not finding something up to an amount of EUR 100k. The key challenge is in finding value for money. You might have noticed that I was careful in constructing my choice of areas
You are talking about one hundred thousand 100000 while everyone else is talking about one thousand aka 1000. (There is a difference between a dot in England and a comma in Germany to mark where the cents start...)
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Old 17.01.2015, 12:52
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Re: How to maximize 1000 CHF in the current situation?

As for each investment you should ask yourself two questions:

1. what is my time horizon of the investment (1 month, 1 year, 10 years)?

2. what is my risk appetite (or rather risk tolerance).

In general longer time horizon means lower risk for the same type of investment.

If you ask what I would do, I would keep franks and wait for the less volatile market. The worst advisor is a rush ;-)

Good luck!
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Old 17.01.2015, 14:55
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Gold fluctuation post-SNB ruling. Can I export?

Simple questions I hope.

In recent days, gold prices have shot up in dollars and UKP, but fallen in CHFs.

If I had a small amount of physical gold in a bank safety deposit box in Zurich, purchased from that bank, would I legally be allowed to take it out and go to the UK or elsewhere and sell it at the higher price?

If yes, and I turned up in the UK with this small amount of gold, what would a buyer want/need in terms of proof that the gold is genuine?

And would there be tax implications in either country?

Thank you for any information.
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Old 17.01.2015, 15:01
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Re: Gold fluctuation post-SNB ruling. Can I export?

I don't get it. The value is the same, just the currency is different. Gold is quoted in USD. CHF appreciated vs the USD. Wether you sell in pounds and then change that money back to CHF, or sell in CHF directly makes (almost) no difference.
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Old 17.01.2015, 15:13
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Re: Gold fluctuation post-SNB ruling. Can I export?

You may find some answers in this thread:

Buying gold bars in Zurich

When you buy some bars or coins you will get them with an individual number and a certificate.

But to be honest I would be quite surprised if such small scale arbitrage (counting service fees etc.) can be profitable. I were you, I would check the exact price in a venture that is going to sell you this commodity and the price in the venture that is going to buy it before really buying anything.
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Old 17.01.2015, 15:22
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Re: Gold fluctuation post-SNB ruling. Can I export?

Maybe I'm confused, but isn't gold traditionally valued in dollars? So it's therefore at the mercy of exchange rates?

Looking at the last few days, from what I can see, the value of a kilo of gold is higher in pounds in London than it was at the start of the week. But the value of a kilo of gold is lower in CHFs in CH than it was at the start of the week.

I should have said that the intention would not be to convert the proceeds back from UKP to CHFs, but to keep the money in the UK.
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Old 17.01.2015, 15:30
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Re: Gold fluctuation post-SNB ruling. Can I export?

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I should have said that the intention would not be to convert the proceeds back from UKP to CHFs, but to keep the money in the UK.
But then selling it in Switzerland and receiving either CHFs or USDs, and changing the proceeds into pounds should be exactly the same (because you get more pounds for the CHF now vs. a week ago). Basically for what you want to do you don't need to move the gold, you can do the transaction in Switzerland and just work with currency exchange / a foreign currency account.
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Old 17.01.2015, 15:31
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Re: Gold fluctuation post-SNB ruling. Can I export?

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Looking at the last few days, from what I can see, the value of a kilo of gold is higher in pounds in London than it was at the start of the week. But the value of a kilo of gold is lower in CHFs in CH than it was at the start of the week.

I should have said that the intention would not be to convert the proceeds back from UKP to CHFs, but to keep the money in the UK.
Then you can skip the buying and selling gold part ;-)

For the sake of the discussion let's assume that gold price in GBP is unchanged. As CHF value in GBP is now higher e.g. 10% then if you just convert your CHF to GBP as you intend to do you get 10% then last week without involving any other asset.
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Old 17.01.2015, 16:01
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Re: Gold fluctuation post-SNB ruling. Can I export?



I think the gold-scales are falling from my eyes at last. So even though I'm getting less in CHFs here, the higher value of the CHF means that if I converted it to UKP, the result should be equal to the different price movements in gold price between the 2 countries in recent days. Got it. Thanks, that's made my life simpler.
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Old 17.01.2015, 16:10
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Re: Gold fluctuation post-SNB ruling. Can I export?

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I think the gold-scales are falling from my eyes at last. So even though I'm getting less in CHFs here, the higher value of the CHF means that if I converted it to UKP, the result should be equal to the different price movements in gold price between the 2 countries in recent days. Got it. Thanks, that's made my life simpler.
OMG
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cash, credit, currency, customs, euro, exchange rate, export, finance, gold, investing, investment, mortgage, peg, savings, snb, tax, ubs




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