How to invest in one of the strongest economies in the world.
If you are searching for a new way to diversify your portfolio, look no further than one of the strongest economies in the world, Switzerland. With a strong currency and an economic system that is almost impenetrable, investing is not only a good idea, but you’d also be missing out if you didn’t. For years, many international clients have trusted the privacy of the Swiss banking system.
Switzerland is number four in Europe in terms of GDP per capita, one of the lowest unemployment rates in the EU, and has very liberal trade and investment regulations. Many Americans are taking advantage of the economic climate, and the United States is the largest foreign investor in Switzerland. Investing in the Swiss franc was very popular in the 1970s for those smart Americans hoping to avoid inflation and has remained a safe way to do so.
With Alpenrose, you will not only benefit from the economic strength of your Swiss investment, but you will also benefit from the strong and trusted relationship we have with some of the most prestigious banks in the country.
For more insight on how and where to invest in one of the most sought-after investment climates in the world, continue reading below.
The Swiss Franc
Since there is so much faith in Swiss currency, this is the obvious first choice for investors. Investing in the Swiss franc can promise high security, low risk, and protection from inflation. Investors are always looking for a high return with minimal downside. Stocks can often offer high returns, but they can also come with high risks and high inflation.
There are many benefits of the Swiss franc as an investment option. One of these benefits is Switzerland’s strong economic system with a stable political climate, transparent legal system, a skilled labor force, and highly developed infrastructure.
The economy is so strong that there is no national deficit. The Swiss income exceeds its expenses, so the currency is fully backed by a self-reliant economy. The country also boasts low unemployment, high per capita income, and a popular banking destination utilized worldwide.
The easiest ways to invest in Swiss francs is through bonds, stocks, or gold.
Buying and Storing Gold in Switzerland
Like the Swiss franc gold is also seen as a safe haven, protecting investors from a tragic investment. In 2008, many investors relied on the precious metal during the financial crisis. Storing your gold in Swiss vaults been a way for those who would like to protect their gold to do so safely with trusted banks. Switzerland has historically been one of the leading countries in terms of offshore gold storage.
The country also has one of the world’s largest reserves of gold per capita.
Whether it’s a bank or a private vault, Switzerland’s options for storing gold have always been held in high regard.
Swiss Real Estate
Investing in foreign real estate is another way for an investor to diversify their portfolio. When it comes to investing in international real estate, Swiss real estate is the best of the best. Swiss real estate is notoriously difficult for foreigners to obtain, meaning that this real estate is highly coveted by wealthy investors hoping for the highest returns.
Being an incredibly small but wealthy nation, Switzerland is an optimal place to purchase real estate. The small size of the country puts a higher premium on real estate than would exist in a more sprawling nation. In addition, the relatively high wealth of the citizenry means that it will not be hard to find clients to rent out one’s Swiss real estate.
For most hopeful buyers, the Swiss housing prices are simply out of reach, even with current low interest rates. With the combination of high prices and strict mortgage requirements, the low interest rates mean nothing.
Foreign buyers come from all over to take advantage of Swiss real estate such as other European Union countries or the United States, Canada, or Russia. Though there are many buyers from outside counties, 85% of home buyers are Swiss.
There are no restrictions for EU citizens to buy property but a non-EU citizen must obtain a permanent residence status permit to real estate.
Another way to invest in Switzerland is investing directly into stocks.
There are two main stock exchanged in the country, the SIX Swiss Exchange and the Berne eXchange. The SIX Swiss Exchange is the largest exchange in Switzerland and home to the larger stocks while Berne eXchange is for the small and medium companies.
Where We Come in
At Alpenrose, we only entrust your money in the hands of the most prestigious and trustworthy banks. When you choose us to guide you through the tricky world of investment, financial planning, and asset managing, know that you are also choosing the world’s best banks, both private and public.
With several private banks, we also have relationships with the two biggest public banks in the country, UBS and Credit Suisse. These banks together hold almost $2.0 trillion in assets.
If you haven’t invested in foreign currency before, or you’d just like a guide through your investments, Alpenrose can walk you through the whole process. The Swiss franc can be a safe haven for your money. The strong Swiss economy with steady growth and low debt doesn’t seem to be changing anytime soon – and it will continue to be an important banking destination.
Alpenrose offers the possibility for clients to buy Swiss francs and deposit them in an account at one of our partner banks in Switzerland. The Swiss francs can be left in cash, or invested in CDs, bonds, equities, or any other CHF-denominated security.