Silver Price in Swiss Francs

The Swiss franc (CHF) is the national currency of both Switzerland and Liechtenstein.  The Swiss National Bank issues bank notes and the federal Swissmint issues coins. The Swiss franc is the only franc still used in Europe. It is divisible by 100, and the Swiss equivalent of cents are called Rappens (German) or centimes (French).

The Swiss franc was officially introduced in 1798. Before then, about 860 distinct gold and silver coins, all with different names, values and denominations, circulated in the Helvetic Republic (as Switzerland was known formerly).  These coins were minted by more than 75 mints located throughout the republic’s cantons, abbeys and cities. One of the coins in circilation, the Berne thaler, was used as the basis for the new Swiss franc. The new franc was equal in value to 6.75 grams of .999 fine silver which meant that it was equal to 1½ French francs. The Swiss franc was only issued until 1803. At that time the Helvetic Republic was reorganized into the Swiss Confederation, consisting of a number of cantons. Each canton issued its own currency based on the franc of the Helvetic Republic.

In the first years of the Swiss Confederation as little as fifteen percent of the currency in circulation was produced locally. There were, however, over 8000 coins and banknotes in use, mostly introduced by mercenaries returning from abroad. In 1848 the Swiss Federal Constitution declared that the government would be the only organization with the power to issue currency in Switzerland. The Federal Coinage Act of 1850 introduced the Swiss franc again, this time at par with the French franc. Rappen coins were struck in copper and billon, and francs were minted with .900 fine silver. Later changes in coin minting gave rise to the use of nickel and a reduction in the silver fineness of the franc.

The Latin Monetary Union was instituted in 1865 by Switzerland, Italy, Belgium and France.An agreement was struck to fix all of their currencies at par with each other. The currencies were fixed to a silver standard of 4.5 grams of silver, equivalent to 0.29 grams of gold. This monetary union survived until 1927 when it was abandoned. The Swiss franc continued to respect the old valuation until it was devalued by 30% in 1936 in response to the devaluations of the US dollar and other important currencies.

The Swiss National Bank began to issue bank notes in 1907.

In 1945 Switzerland adhered to the Bretton Woods accord and pegged the Swiss franc to the dollar at an exchange rate of 4.3 francs to one dollar. This meant that one franc was equivalent to roughly 0.2 grams of gold. When the Bretton Woods system was abandoned in 1971 the franc was floated against gold and the US dollar took the place as the world’s reserve currency.

The Swiss franc has always been a trusted currency for holding reserves. It has been able to hold its value against the Euro and the US dollar. By law, the franc is required to have 40% backing in gold reserves. This law was repealed in 2000. Following the financial crisis of 2008, investors piled in to the Swiss franc in a flight to safety. This made the franc rise against the Euro and the dollar. The Swiss franc even traded above the dollar for the first time ever. The franc continued to rise in value against the dollar and the Euro in 2011 as investments fled equity markets, ushering the franc past US$1.30 in August. This forced the government to announce a devaluation. A new floor of 1.20 francs per Euro was set. The franc immediately lost 10% of its value and is now eyed with skepticism by investors, as one of the last safe haven fiat currencies available had been corrupted.

Silver prices in Swiss francs hover near CH$30 per ounce

The main silver coin minted in Switzerland’s history was the Swiss franc, with a fineness of 0.800 0.835 and 0.900 fine silver.

The Swissmint is Switzerland’s official mint. It prints the fiat currency circulating in Switzerland as well as commemorative .900 fine gold bullion francs.

Silver Prices in Swiss Francs

Silver in Ozs

Silver in kg