News article

"Safe haven" investments 'not so safe'

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Individuals involved in FX trading may want to rethink their plans to purchase large amounts of Swiss francs in light of recent comments by experts.

According to European investment correspondent for Reuters Jeremy Gaunt, all three of the "safe havens" - gold, the Swiss franc and US Treasuries - are not looking as solid as they have in the past.

He suggested that there are already signs that demand for francs and gold is waning and that forex traders should be aware that they may be riskier in the future.

"None are 'safe' in all circumstances and their remarkable rises this year may now pose some risk for those holding them," he stated.

Ashok Shah, chief investment officer at London & Capital, told the news provider that gold could start to correct "a reasonably good amount".

Yesterday, the dollar traded at 0.8168 against the Swiss franc, having reached a five-week high of 0.8239 over Sunday (August 28th) night.

Posted by Clive ArneilADNFCR-1681-ID-800713110-ADNFCR