# Currency Investing



## Gilly (6 May 2010)

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.


----------



## PeterBrennan (7 May 2010)

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.


----------



## laurah5 (7 May 2010)

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


----------



## Chris (7 May 2010)

laurah5 said:


> 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.
> 
> ...



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.


----------



## PeterBrennan (7 May 2010)

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.


----------



## Gilly (7 May 2010)

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


----------



## Chris (10 May 2010)

Gilly said:


> 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.


----------



## What the (12 May 2010)

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


----------



## PeterBrennan (12 May 2010)

See goldmoney.com or bullionvault.com 

Gold is pretty overbought here.You will get a chance to get in lower soon.


----------



## Slim (13 May 2010)

Chris said:


> 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]
> ...


----------



## Gervan (13 May 2010)

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.


----------



## fto (13 May 2010)

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


----------



## Chris (14 May 2010)

Slim said:


> Chris said:
> 
> 
> > 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?*
> ...


----------



## merjock (14 May 2010)

Just out of interest, is it legal to own gold bullion in this country? actual physical gold?


----------



## Chris (14 May 2010)

merjock said:


> Just out of interest, is it legal to own gold bullion in this country? actual physical gold?



Yes it is


----------



## PeterBrennan (15 May 2010)

I trade silver from time to time. Its very volatile and for experienced traders only.


----------



## Brantford (7 Jun 2010)

*PTSB foreign currency accounts*

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


----------

