I've been sort of piddling around with foreign currency denominated CD programs, for one because traditional accounts aren't returning squat and a judicious foreign “buy” when the dollar has spiked as it has done several times since 2008 serves as another source of return.
This has paid out fairly well over the three years I've been doing it, particularly Swiss Franc to Euro when the Euro bottomed below $1.21. That may have been dumb luck but paying attention does tend to highlight obvious opportunities for cautious risk-taking.
I got out of Euros at $1.34, these CD programs can be as short as three months and the return is still negligible in any major currency. It's the exchange rate float that makes them attractive.
That money has been sitting in dollars for months making nothing, waiting for another “distortion,” with the dollar at a high and a major foreign currency at a low. This might be the next opportunity.
I've stuck with Europe and Canada thus far, I understand them better. That Japan as a major manufacturer and exporter needs a “cheap” Yen gives me a little pause so I'm going to have to do some looking around to make sure I'm not making a bad assumption.
The other reason for doing this is to educate myself. There may be a time coming when such knowledge is very useful for capital preservation, maybe even key to avoiding suffering, if our own currency gets into major trouble. There are certainly enough indications of this being a possibility.
You seem to know what you’re about in terms of currency exchange and playing the field - a lot more than I do anyway.
I’ve been thinking about investing in some foreign currency and probably would if I had a clue. Particularly in the Israeli Shekel. How’s that for crazy? I’m already invested in an Israeli Oil company... the only one that hasn’t found more than a half pint of oil yet.
Last I knew my $1K worth of stock was good for about $300.
Now anyone with nugget of financial sense would consider that a “loss”; I look at it as a sacrificial offering... but it’s about on par for whatever I do in terms of “investment”.
Any advice for how a “little guy” might go about dabbling in currency exchanges? It worked so well for Soros....
I don’t do gold; back when it was about $367 an oz. our financial advisor told us, when I suggested laying some in; “NAAAH!; You don’t want GOOOLD!”
My Wife glared at me for even suggesting such a stupid idea and confirmed his advice. We got a nice mutual fund in stead.
A couple of years ago I bought a little silver just so I could say I did... recently silver sank back to about where it was then, and I’m tempted to invest in some more. It can’t hardly become worthless, can it?
Tried to order some on line but it won’t take; will try calling their land line tomorrow. With my luck, by then it will be back up around $67.
Were I contemplating escaping to another country when (or better yet before; “when” will probably be too late) the regime comes after the Christians, TEApers and Jews, I might lay up as much of the intended haven’s currency as I could smuggle out (by then the borders WILL be sealed, with the barbed wire pointing IN) and would have stashed some with a trusted colleague over there. Then when I arrived I’d find out if he was really trustworthy!
Would you open an account in a country of potential refuge to hold an escape stash in the local currency for you?
Is there any place where funds can be stowed where the regime can’t seize them without overthrowing that country?
Will I get arrested, looted and tortured just for asking?
That’s why I’m thinking Israel; if Israel goes down, Human civilization goes down with it, and money will probably do us little good at that point.