Safe-haven currencies have rapidly gained ground, amidst ongoing debt jitters on both sides of the Atlantic.  The Swiss franc and the Japanese yen continue to hit record or multi-month highs against the other major currencies. 

The Swissie (CHF) is trading at all-time levels versus the euro and the U.S. dollar.  Meanwhile, the yen has also been a beneficiary of recent risk aversion.  There are increasing concerns that the strengthening yen may necessitate an intervention by the Bank of Japan.  Yet, the strength in the Swissie has yet to show signs of hurting the economy of Switzerland. In addition, the CHF may hold onto its rapid gains because it is not the currency of a nation with extensive fiscal woes.

Another obvious gainer in the commodities market has been gold.  The precious metal is extending its rally above $1,600 an ounce, and easily cleared the $1,620/oz. level this week.  Both gold and silver have soared well over 10% in 2011.

The U.S. debt stalemate and ongoing problems in the PIIGS leave little confidence in the minds and hearts of investors. Potential sovereign defaults by the troubled economies and additional downgrades by the credit rating agencies have done little to quell safe-haven demand. 

Ultimately, investors continue to seek a safe destination for their cash.  Dashing out to purchase bullion gold bars or stashing cold, hard cash under the mattress is obviously not the soundest financial decision.  In addition, bubbles abound and there is never a guarantee of an entirely risk-free investment.

The global fundamental risks remain apparent, but the implications of these potential worst-case scenarios are not as apparent.  With no crystal ball in existence, keep an eye on developments from D.C. and the Euro-zone, and always remain diversified.