it's called gold... it's called gold...There are funds that invest in currencies. Don’t ask me which ones.
Stick to what you know and understand.
learn about FOREX
everbank.com
You can get worldcurrency CD and world currency index CDs.
http://www.ehow.com/how_2063477_invest-foreign-currencies.html
I’m guessing you’d go thru any brokerage firm that handles FOREX trading.
How much money are you talking about - and what currency are you looking for?
Indeed, I’d be curious, insofar as I can’t think of any currency I’d really want to hold as an alternative to the U.S. dollar in the event of a catastrophic collapse - the Yen, the Euro, the Pound - of the major currencies - are at least as vulnerable as the Dollar (the Euro possibly moreso). The minor stable currencies - the Canadian and Australian dollars, for example, would be adversely effected by anything that happened to the U.S. dollar.
I mean, if you really want Euros - and we’re talking in the thousands or so - I’d withdraw them in cash and put them in a safety deposit box or a safe somewhere. But if you really want hard currency to hedge against the Dollar, I’d say go Gold.
If I understand your question, you should be able to go to any large bank and buy any currency that you want.
Not sure about the limits on each exchange amount nor if you tried to physically take those currencies out of or into another country. I think there is a $10k limit when traveling.
It’s easy to deal in currencies in the futures market.
Good luck.
At the same time he doesn't think China would want to participate because they would take a big hit for owning so much of our debt. On the other hand China would love to knock us out of the number one slot when we are currently weak and wavering.
The question is what currency would you or should you think of putting some of your dollars in? When the next wave of "All Hell Breaks Loose", what countries will be left standing untouched? I would think every body's economies are affected off of each other, so I really don't know if there is a safe haven.
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.
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 $1000 for traveling.
I think you can order the foreign currency through the bank if they don’t have it on hand. Again, don’t know what the limit is.
Aside: I received 2 Euro coins in change today. I’m used to occasionally receiving Canadian coins in change but I was suprised to see Euros in circulation among our coins.
There are simple, lower risk means of gaining diversification out of the dollar, such as Everbank.com’s currency CD’s.
But, you need to have at least some degree of awareness of broader currency trends. Jumping in when the dollar is very strong is a better bet. Jumping in when the dollar is very weak is going to diminish your return. Political and economic factors enter into the picture.
These currency CD’s through Everbank are FDIC guaranteed, too. So, there’s an added level of security, provided the FDIC continues to be funded.
By choosing wisely and following broad trends, you can maximize your return with the rate of return on the CD itself, plus currency fluctuation. If you choose poorly, you’ll end up with less money than you started out with.
Like all CD programs, the funds must remain for a fixed period of time, or be penalized for early withdrawal.
FXY=JapYen,FXE=EuroMark,FXC=Canada$,FXF=SwissFranc,etc. You get the interest on deposits in those currencies. Very safe.
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.
You can have your currency of account be Euros instead of USD, if you like.
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.
apmex.com
Huge Beginner’s Guide to Forex (Foreign Exchange): http://www.babypips.com/
Good forum on Forex trading:
http://www.forexfactory.com/forum.php
You’re asking the wrong people. Fidelity and Scottrade are not in the currency business. They train their reps to teach you how to buy stock funds and hold them or trade stocks and pay the commissions. Beyond that they are useless. I worked there...I know. Google the MERK FUNDS or CURRENCY Trading or FOREX Trading. You’ll hit all you need. It’s not just for the rich....but buyer beware. The dollar is at a 10 month low it will likely rally soon when the fed makes a final push this quarter. Chart UDN you’ll see it.