Tuesday 7th June 2005

"THE SWISS PERSPECTIVE" 

Lately we have been digging into the views of gold and money from the Swiss perspective. While frequently making mention of our esteemed Swiss Banker, Dr. Ferdinand Lips, he is not alone in his views.

Jean Zwahlen is a former member of the Governing Board of the Swiss National Bank, an Ambassador, and senior economist at Credit Suisse Private and Vice Chairman of Union Bancaire Private, Switzerland.

Zwahlen has said; ""In the Old Testament, Genesis tells us that gold is a valuable asset. It cannot have been its monetary charm that attracted our biblical fathers - and, at that time, central banks were not running the show. Hence, no charm, no harm! Something that has enjoyed unique esteem for thousands of years is not going to melt down in the space of a few years."

The pecuniary times we are living in are deceptive and dangerous. The Days of the Dollar (the world's reserve currency) are drawing to a close. While the dollar is systemically fragile and flawed, the EURO is no viable alternative. What about the Swiss Franc? Gold and silver, having severed well as money for 6000 years, have for the last 100 to 200 hundred years been the focus of an intense monetary war. Gold backed currencies - as indeed gold itself - have been at the forefront of this monumental struggle.

Ferdinand Lips wrote; "In the nineties, the gold war entered what may be its last and most tragic phase. Gold-rich Switzerland became the main target. War preparations are often made a long time before actual hostilities begin." More from our Swiss Banker's "Gold Wars" in the coming days. 

Best Regards 

Philip Judge
pjudge@anglofareast.com