(REUTERS) -- The Swiss franc and investments in gold will no longer provide investors with safe harbor from market turmoil and the eurozone debt crisis, UBS AG's investment chief told the Swiss bank's client in a letter on Friday.
As we enter 2012, neither gold nor the Swiss franc retains a safe haven status, UBS Chief Investment Officer Alexander Friedman wrote in the letter.
In September, the Swiss National Bank vowed to cap the franc at 1.20 per euro, a level it pledged to defend this week at a regular rate-setting session. The September move effectively removed the Swiss franc from the haven list which includes U.S. treasuries and Japanese government bonds, UBS's Friedman said.
UBS sees the situation slightly more complicated with gold. Without a central bank trying to depreciate its value, and negative real rates reducing the opportunity cost of owning gold, investors will turn to the metal when currencies are being debased, Friedman said.
Investors should not, however, buy gold expecting it to act as a safe haven during severe, liquity-driven market sell-offs, Friedman said.