So you're saying it was convertible, or it wasn't? Because from the point of view of all of us non-Swiss, if they'll convert their money into gold, you got a convertible currency. And that opens them up to all sorts of vulnerabilities to well-financed currency speculators.
The Swiss situation was similar, but not identical. In the heyday of the 'Gnomes of Zurich', the early 1970s, the Swiss routinely blocked (that is, put up as security) the nation's gold reserves in international transactions, sometimes very dicey ones too. Might as well get some use from all that gold in the vaults, right?
I'm not criming the Swiss, here; British and American bankers have historically been AT LEAST as shady, but the Swiss had a tool that the Brits did not, namely gold. And they used it to very good effect...as long as the game lasted.
Nothing against gold, but if we're rational, we must wonder why the assorted central banks have entered into a compact to restrict their own gold sales to, what is it, I forget, something on the order of 400 tons per year.
Naturally, as any self-respecting gold bug will tell you, it's all just a gigantic conspiracy to rule the world, or send us all into socialism, or enslave us to the Illuminati. I've never really figured out which. If you happen to know (and you might, why not), please advise.
FRegards! .