How To Buy Swiss Francs in 5 Minutes or Less
September 25th, 2010 by Terence Gillespie
Email this article to a friend During the currency crisis’ of Chile and Argentina the first people to exchange local fiat for US dollars were among the few to keep their savings from disappearing into smoke.
Today, you can swap in and out of any currency in the world with the click of a button. If buying gold or silver is too much of a hassle there’s nothing to prevent swapping into the strongest fiat of the moment. Doing so is one of many actions recommended in Vulture Economics and the Silver Lining of Collapsing Asset Prices.
The following steps are all it took to buy $1000 of both Swiss Francs and Canadian dollars1:
Therefore, I paid a 5.75% premium on Swiss Francs (.9266 / 0.9831).
Therefore, I paid a 5.2% premium on Canadian Dollars (.9760 / 1.0275).
In other words, I paid about a nickel for every dollar converted. Better rates might be available through a different bank, by using a credit card in a foreign country or by performing a higher volume transaction. Since I won’t be doing anying but storing this cash for a rainy day the 5% seems like a reasonable service fee for for being able to choose any currency and having it delivered locally.
Tags: banking, canadian dollars, cash, dollar, economy, fiat, gold, hedge, money, safety, silver, swiss francs
Today, you can swap in and out of any currency in the world with the click of a button. If buying gold or silver is too much of a hassle there’s nothing to prevent swapping into the strongest fiat of the moment. Doing so is one of many actions recommended in Vulture Economics and the Silver Lining of Collapsing Asset Prices.
Gold Before Fiat
Gold and silver are the best money in the world and enable easy conversion to every fiat currency. However, if your idea of cash is limited to government issued fiat then at least hold a stable one. They’re all based on nothing but Swiss Francs and Canadian dollars may faire better than the dollar.Keep Some Dollars
We had family members stay with us, last Christmas, from Venezuela. The week after they returned home Chavez devaluated the Bolivar by 40% for non-food and medicine imports causing panicked shoppers to flood the stores to beat overnight price increases. These early shoppers succeeded. For that reason and simple practicality I do recommend keeping some amount of US dollars on hand.Step by Step
Only a few branches of Bank of America keep foreign currency on hand. However, you can order any fiat currency online and have it shipped to any branch where you can pick it up in 1-3 days. If you ever need emergency cash (In US dollar form) all banks accept foreign currencies and will provide dollars in return (Probably more than you started with).The following steps are all it took to buy $1000 of both Swiss Francs and Canadian dollars1:
- Open Bank of America’s Foreign Currency web page or click here (Bank of America, Foreign Currency).
- Click the button for the currency you want to buy. I clicked the Swiss Francs button.
- Hit yes to use your online account or choose "I prefer ordering Foreign Currency without logging in.
- Choose the type of bills you prefer: Small, Large or mixed. I chose Small.
- Enter the dollar amount of your purchase. I entered $1000.00 and hit calculate.
- The rate quoted was 1.0792 per Swiss Franc. Upon hitting ‘calculate’ the order was rounded up to $1003.66 to purchase 930 Swiss Francs.
- Click the Add button for any addition currencies you’d like to add to your order. I clicked the button for Canadian Dollars.
- Choose the type of bills you prefer: Small, Large or mixed. I chose Small.
- Enter the dollar amount of your purchase. I entered $1000.00 and hit calculate.
- The rate quoted was 1.0246 per Canadian dollar. Upon hitting ‘calculate’ the order was rounded up to $1004.11 to purchase 980 Canadian dollars.
- Hit next
- Input personal data (Automatically filled in for you if you have an online account).
- Either input the address for your branch or search by zipcode and it will fill in the information for you. Bank of America allows you to ship to any branch.
- Read and click to sign the agreement.
Swap Rates
The rate for the day is pegged at 3 am. That means the quote stays the same for the whole day regardless of the actual change of the dollar index and the real time value of the currency you’re purchasing. Although there is no shipping fee for orders over $1000 you will be charged the retail rate for the sale and not the wholesale rate you see quoted on Kitco or in the newspaper.Francs
The Kitco rate1 was SF/USD = 0.9831, My rate was 0.9266 (Quoted as 1.0792).Therefore, I paid a 5.75% premium on Swiss Francs (.9266 / 0.9831).
Canadian
The Kitco rate was CAD/USD = 1.0295, My rate was 0.9760 (Quoted as 1.0246).Therefore, I paid a 5.2% premium on Canadian Dollars (.9760 / 1.0275).
In other words, I paid about a nickel for every dollar converted. Better rates might be available through a different bank, by using a credit card in a foreign country or by performing a higher volume transaction. Since I won’t be doing anying but storing this cash for a rainy day the 5% seems like a reasonable service fee for for being able to choose any currency and having it delivered locally.
Terms
Bank of America was used for this article because I have an account and to provide a specific example. Their terms are:- Shipping is free if your purchase is over $1000 and $7.50 if not.
- The minimum total order is $100 U.S. dollars, and the minimum order per currency is $25 U.S. dollars. Foreign amounts are rounded off to match available denominations.
- The maximum combined order amount for Bank of America account holders choosing not to sign in to Online Banking is $500 U.S. dollars. When using a Bank of America checking or savings account, the maximum combined order amount is $10,000 U.S. dollars when signing into Online Banking. Foreign currency orders over $1,000 U.S. dollars must be picked up at a Bank of America full service banking center. Identification will be required.
Tags: banking, canadian dollars, cash, dollar, economy, fiat, gold, hedge, money, safety, silver, swiss francs
One Response to “How To Buy Swiss Francs in 5 Minutes or Less”
- The spot rates of all currencies against the US dollar (USD) are basic ones , the rest are considered cross rates. Harold Economics
Harold Economics says:
