Posted on 10/05/2009 5:21:30 PM PDT by Chickensoup
I am not really sure, but I want to loook at my options
I’d be careful with currency trading. It might seem like an okay thing to do now since the dollar has been taking a beating, but nearly all the western governments have been on the dole with bailouts, stimulus, etc... It’s not a case where our government is the only one with spending and debt problems.
I know some people who tried the British pound and ended up getting a nice haircut.
If you want to hedge against inflation, metals might be the better way to go. If you think gold is bid up too high, you could always go for platinum or silver.
One suggestion I read said to store things like gold and silver in a rented storage unit. Even if the government would try to confiscate all gold, there’s no way they would be able to track down and search every single storage unit in the country. The units are very anonymous, and the main problem that might happen would be if they went out of business and the main gates were locked.
How much do you want to change?
If you live near a larger city, you can go to a major bank and exchange money into almost any currency ... but I don’t know what the limit is. I’ve done up to $1000 for traveling.
I think you can order the foreign currency through the bank if they don’t have it on hand. Again, don’t know what the limit is.
Aside: I received 2 Euro coins in change today. I’m used to occasionally receiving Canadian coins in change but I was suprised to see Euros in circulation among our coins.
There are simple, lower risk means of gaining diversification out of the dollar, such as Everbank.com’s currency CD’s.
But, you need to have at least some degree of awareness of broader currency trends. Jumping in when the dollar is very strong is a better bet. Jumping in when the dollar is very weak is going to diminish your return. Political and economic factors enter into the picture.
These currency CD’s through Everbank are FDIC guaranteed, too. So, there’s an added level of security, provided the FDIC continues to be funded.
By choosing wisely and following broad trends, you can maximize your return with the rate of return on the CD itself, plus currency fluctuation. If you choose poorly, you’ll end up with less money than you started out with.
Like all CD programs, the funds must remain for a fixed period of time, or be penalized for early withdrawal.
if banks close are safty deposit boxes confiscated?
where is everbank and is it of good standing?
FXY=JapYen,FXE=EuroMark,FXC=Canada$,FXF=SwissFranc,etc. You get the interest on deposits in those currencies. Very safe.
What about pesos? They’re accepted by a surprisingly large number of (non and real) citizens.
It’s an online banking entity, with no brick and mortar branches. It’s headquartered in Jacksonville, Florida. You can check their rating on bankrate.com. There’s also a site that reports “Texas Ratio,” but I don’t have it bookmarked on this Mac laptop.
Last I checked, they’re in good shape. But, it pays to check frequently.
I don’t believe they are. Here’s the FDIC FAQ that covers safety deposit boxes:
Safe Deposit Boxes
The contents of a safe deposit box are not insured by the FDIC. (Make sure you read the contract you signed with the bank when you rented the safe deposit box in the event that some type of insurance is provided; some banks may make a very limited payment if the box or contents are damaged or destroyed, depending on the circumstances.) If you are concerned about the safety, or replacement, of items you have put in a safe deposit box, you may wish to consider purchasing fire and theft insurance. Separate insurance for these perils may be available; consult your insurance agent. Usually such insurance is part of a homeowner’s or tenant’s insurance policy for a residence and its contents. Again, consult your insurance agent for more information.
In the event of a bank failure, in most cases an acquiring institution would take over the failed bank’s offices, including locations with safe deposit boxes. If no acquirer can be found the FDIC would send boxholders instructions for removing the contents of their boxes.
http://www.fdic.gov/consumers/consumer/information/fdiciorn.html
Just checked ... Everbank has a four star rating on a scale of one to five. Not bad at all.
Silver. To be specific generic pre-1964 US coins. Dimes are probably your best bet. Gold, even in the smallest coin available has tremendous value. Small silver coins would allow you to evade any seizures, transaction controls or price caps. They are familiar to people and value is easily determined as a ration of face value, currently around 12:1. Not to mention that gold isn't really used for anything except trading on exchanges while silver is in heavy use as a industrial metal and usage currently exceeds supply. Get them by the roll on eBay. Sometimes, if you play it right you can buy them at melt and then get cashback from Bing.
http://www.marketwatch.com/story/currency-etfs-let-investors-hedge-weak-dollar-2009-09-18
I am looking at buying futures of a commodity or currency as a hedge. The futures contracts are less money than actually trading one currency for another. I need to do this as I may be relocating to Europe but will be earning income in dollars.
But I would caution drawing the conclusion of the demise of the dollar. Currency trading long term movements are driven in large part by economic growth and security. Other currencies do not have a better model than the US, in the sense of growth and security. It does not mean the US is growing, it is not. It’s just that other economies are doing poorer.
China has claimed growth but they are a mess in the reality of their society. They can’t afford to allow too much devaluation in the dollar because their sweat shop industries depend on the US consumer. And if they are successful trading dollars for gold or Euros or whatever, they will see those holdings be subject to downward economic forces as well.
Brazil holds promise but is not viewed as having the financial infrastructure to step into the US shoes.
Everyone is weak now. And the USA will be weak for three more years because the current President is not gearing up to promote growth but rather socialism.
This would be the time for other countries to make transformational moves but they are all weak. The recent spector of Saudis, Chinese, Russians etc. finding a currency to replace the dollar in oil trading is not well thought out. They have no real economic basis for profiting from such a move. They seek a stable currency tied to oil. Well oil prices are not stable so it’s a dumb move. It is essentially a primitive form of international political grandstanding.
What is needed to pull the world out of this deflationary cycle is for the US to lead in economic growth. That can only happen when the current White House occupant is replaced and the Congress passes major tax reform. No other country will be able to pull the world economy out of its downward spiral.
are these traded on all markets?
You can have your currency of account be Euros instead of USD, if you like.
NYSE
Let me alter my original post, I know that you can recieve interest on the deposits, if interest is sufficient to offset trust expenses. Interest is negligeble in any currency lately.
If you have an American Express office nearby you can buy foreign denomination travelers' checks. Of coarse, you're restricted in liquidity. Stored value cards might be an option at some levels.
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