Currency Investing

G

Gilly

Guest
Hi all ... considering investing some euro savings in currencies such as the Canadian dollar, G.B. Pound, Swiss Franc, U.S. dollar or Australian dollar.

Would appreciate any advice on the best way to do this or even if this is advisable at the present time.

I have an investment account with Keytrade and i was considering some currency etf's such as FXC, FXA, or FXF.

Also considering allocating some regular savings to a GoldCore's gold saver account.

Any advice or other on the above is greatly appreciated.
 
Last edited by a moderator:
Gold is good as a store of value but its needs to be physical bullion.

Does not make any sense to buy other currencies unless its part of a deliberate strategy backed up by sound logic.

If you do want to speculate in forex the best thing to do is spreadbet it. But this requires specialist skills.
 
Hi Peter,

Following on from Gillys original post I too am looking for away to diversify away from the euro. I am worried about the direction it is taking and would like to protect my savings. I think the price of gold is too high to be an attractive option, but would be interested in investing in a commodity based currency possibly Canadian Dolar, I need to do my research on this first of all, but would love some information as to how to go about this.

How would you go about this?

Sorry for hijacking your thread Gilly

Laura
 
Hi Peter,

Following on from Gillys original post I too am looking for away to diversify away from the euro. I am worried about the direction it is taking and would like to protect my savings. I think the price of gold is too high to be an attractive option, but would be interested in investing in a commodity based currency possibly Canadian Dolar, I need to do my research on this first of all, but would love some information as to how to go about this.

How would you go about this?

Sorry for hijacking your thread Gilly

Laura

You need to decide whether you want to invest in a currency or in equities or bonds denomonated in a foreign currency. While I think your worry about the prospects of your euro savings are very well founded, make sure you do not rush into things, the decline of fiat curerncies will not happen over night.
Here are some suggestions, but none of them are recommendation:
1) Open an interest bearing Australian Dollar account. Australian central bank interest rate is at about 3.75% so you should be able to get good interest
2) Look into Canadian or Australian government bonds
3) Look into a country specific ETFs. There are hundreds of ETFs on the market, so I'm sure there will be something that focuses on Australia or Canada
4) Don't just restrict yourself to one or two currencies, but do focus on countries with a track record of fiscal prudence, commodity producing and export oriented.
5) Buy gold, it might look high now, but it has a long way to go yet

The most important thing is to do your homework and make a decision yourself.
 
Hi Laura,

If you want to hedge currency then the best thing to do is spreadbet it but that requires some specialist knowledge. Buying it from a bank will mean expensive conversion back & forth plus other issues such as how do you time it.

When you say you want to buy the Canadian dollar, you need to have a good argument for this otherwise its just a uninformed directional bet (ie a gamble).

I think gold is good long term but wait for it to pullback.
 
Thanks all ... (No problem Laura - thanks for the input)

Chris ... Thanks for your reply .. why do you think the decline of fiat currencies will not happen over night? Is it not happening as we type?

Thanks
 
Thanks all ... (No problem Laura - thanks for the input)

Chris ... Thanks for your reply .. why do you think the decline of fiat currencies will not happen over night? Is it not happening as we type?

Thanks

Yes indeed, it is going on as we type. What I meant was that you shouldn't rush into an investment decision. What would have been more accurate to say is that the collapse of fiat currencies won't happen over night.
 
Where can you buy gold or silver. A lot of people are saying this is going to rise sharpely in the short term. Does anyone have any data on this. Apparently Silver is undervalued now compared to Gold. Usually 40:1 now 70:1
 
See goldmoney.com or bullionvault.com

Gold is pretty overbought here.You will get a chance to get in lower soon.
 
1) Open an interest bearing Australian Dollar account. Australian central bank interest rate is at about 3.75% so you should be able to get good interest - How do I open an Aussie $ account and where?
2) Look into Canadian or Australian government bonds - Where can I buy these?
3) Look into a country specific ETFs. There are hundreds of ETFs on the market, so I'm sure there will be something that focuses on Australia or Canada - Where can one buy these?
4) Don't just restrict yourself to one or two currencies, but do focus on countries with a track record of fiscal prudence, commodity producing and export oriented. - Would you recommend Rabo funds?[/QUOTE]


Slim
 
1. PTSB have accounts in Canadian and Australian dollars: [broken link removed]

4. I read here recently that with Rabo funds there is a 28% exit tax you have to account for yourself i.e make calculations and Irish income tax return. That would reduce any investment gain.
 
one thing i didn't see mentioned here was silver.... that has also been make considerable gains and looks like a solid investment.
 
1) Open an interest bearing Australian Dollar account. Australian central bank interest rate is at about 3.75% so you should be able to get good interest - How do I open an Aussie $ account and where?
2) Look into Canadian or Australian government bonds - Where can I buy these?
3) Look into a country specific ETFs. There are hundreds of ETFs on the market, so I'm sure there will be something that focuses on Australia or Canada - Where can one buy these?
4) Don't just restrict yourself to one or two currencies, but do focus on countries with a track record of fiscal prudence, commodity producing and export oriented. - Would you recommend Rabo funds?[/QUOTE]


Slim

1) See Gervan's comment
2) & 3) get in touch with some stock/bond brokers, cost is the most important factor. Alternatively bonds can be bought directly from the RBA ([broken link removed]), I'm not sure if there are restrictions for foreign buyers.
4) I generally prefer ETFs to funds, as their built in costs and tax treatment are more attractive. For someone starting out small, and wanting to buy into a fund with small amounts, then I think Rabo offer a decent service.

4. I read here recently that with Rabo funds there is a 28% exit tax you have to account for yourself i.e make calculations and Irish income tax return. That would reduce any investment gain.
You are liable for 28% tax on all investment funds I believe. Rabo do not take care of this deduction, some other providers may do this.


one thing i didn't see mentioned here was silver.... that has also been make considerable gains and looks like a solid investment.

Yes silver has monetary properties as well, but it's main use is industrial, so it fluctuates more with economic conditions. For a lot of people silver is also easier to buy as bullion to store at home, as the price per ounce is lower when compared to gold.
 
Just out of interest, is it legal to own gold bullion in this country? actual physical gold?
 
PTSB foreign currency accounts

Re Gervan's post regarding PTSB foreign accounts - how secure are these if PTSB gets into financial difficulties?
 
Back
Top