| Since the collapse of the "Bretton Woods" system of
fixed exchange rates, the Swiss franc has appreciated not only against the dollar but in
relation to the other major currencies. In the last 25 years, the exchange value of the
franc increased from $0.26 to $0.81 (annual averages), or an appreciation of 212%. For a
US dollar-based investor, the Swiss franc's appreciation would have offset more than 70%
of the loss through inflation in the US dollar's buying power. The same general trend is
true with respect to other major currencies. |
