Money In US Dollars - What To Do?

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Djshorty89

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Nov 18, 2009
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I know wickedfire isn't a finance forum or anything like that, but some of y'all seem to really know your shit when it comes to the markets.

All signs seem to point to the US currency continuing to drop in value, and unfortunately my affiliate monies totaling a whole $500 is in USD (I kid, I kid, maybe). What are you guys doing with your US dollars now?

If you had a couple hundred thousand sitting in US dollars wtf would you do? Hold it long term until it hopefully goes back up sometime in the distant future? Or start selling it off for other currencies? Buy gold, silver? Buy a lot of blow and store it in a vault?
 


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Don't leave your money at the bank. Start a business and create jobs for your fellow citizens, your country needs you! Be patriotic for gods sake.
 
IF you want to stay in currencies, but feel that the US dollar is on the way down, then you need to come up with a currency that is not only not pegged to the US dollar (in which case it would move in lockstep with the dollar if it fell) but one that actually moves in the inverse. If you are bullish or bearish on a stock class, its easy to find an "opposite" bet, but finding a true inverse bet in the currency arena is difficult for the following reasons.

Currencies are a very similarly situated asset class, their relative valuation only matters when compared to each other. So, if the US dollar is plunging against most other currencies, and at the same time the Yen is plunging against most other currencies, that doesn't mean that the Dollar vs Yen relationship is plunging, there is a "winner" and a "loser" in that relationship too.

So, let's assume you think the EU has their shit together better than the U.S. You trade your Dollars for Euros at today's exchange rate, and if you are right, in the future you will be able to trade those Euro's back for more dollars than you originally had. Today, you trade your 100 Dollars for 70 Euros. If you are right, and the Euro appreciates relative to the dollar (how it does against other currencies is immaterial) then you will get back more than $100 Dollars when you reverse the transaction in the future. Euro and Yen are popular trades for people who are bearish on the dollar because they are both established currencies.

If you really feel strongly about the dollar devaluing against certain currencies, look into leveraged ETFs like EUO (Euro v $) and YCS (Yen v $) that will help you magnify your gains if you're right, without the hassle of exchanging and holding physical currency.
 
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Djshorty89 said:
If you had a couple hundred thousand sitting in US dollars wtf would you do? Hold it long term until it hopefully goes back up sometime in the distant future? Or start selling it off for other currencies? Buy gold, silver? Buy a lot of blow and store it in a vault?
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From your questions it sounds like you are looking for a more safe, diversified alternative.

I haven't done much research on it but you can look up foreign currency basket bank accounts and CDs.
 
You are right, the Fed will continue printing money, they simply cannot stop printing now. There are fewer and fewer buyers for Fed bonds. ..If you want to preserve your wealth, buy "physical" Gold and Silver.
 
There is no doubt that the US dollar will continue to be debased and driven toward zero value. I'm inclined to follow Marc Faber's advice. Check YouTube for plenty of videos. Basically:
- own some physical gold but not in the US because it will be confiscated again as it was not so long ago (Obamacare has a sneaky provision in it to facilitate that)
- buy productive farmland because it is increasing in value and it also produces an increasingly valuable commodity, food
- buy equities, they are being price inflated as more dollars are printed so although they aren't really rising in value when inflation adjusted they at least do preserve some of your wealth

I also like to include Warren Buffet's thoughts about the fact that gold doesn't produce anything and it is better to buy profitable businesses since as the dollar races toward zero the business simply keeps charging more for its products. So own some gold but don't put all your money in it.
 
Been buying gold for a while now. I own the stocks but prefer to physically have it. Buy bulk 1oz credit suisse bars every month. I started buying them at around $900 an oz.

Its near fucking double already. $1,600 an oz.

Not only a good way to save and secure money but it makes money just sitting there.
 
If you're looking at other currencies, it's also important to look at what returns you can get on that currency while you hold it.

For example, AUD is trading at about $1.08 (aud to usd) (or $0.922 usd to aud). But you're also going to be getting at least a 6% return just from a regular savings account - so even if the AUD only holds it value against the USD (which is unlikely considering China's demand for raw materials - some people are suggesting that it'll reach $1.5+) you're still gettng a much better return than you would be in the US.

If you're also interested in purchasing gold but don't want to hold it physically then it's always worth whiled having a look at companies that actually mine the stuff - along with companies that do speculating.

Most of my money is tied up in Australian mining companies - but I bought most of my stuff on the cheap (ASX:BHP for $23, why thank you - yes I will take some of that).

I get most of my investing advice from my uncle, was just looking at some advice he gave me back in June of 2009 and he picked 2/2 absolute winners.

Told me to get onto: ASX:GPT (at $0.5, now at $3), ASX:CFU (at $0.09 now at $0.17)

Also told me to get on some convertible zinc bonds which worked out well. Speaking of which, I should get some more tips off him and get rid of this excess monies.
 
BigWill said:
Been buying gold for a while now. I own the stocks but prefer to physically have it. Buy bulk 1oz credit suisse bars every month. I started buying them at around $900 an oz.

Its near fucking double already. $1,600 an oz.

Not only a good way to save and secure money but it makes money just sitting there.
Click to expand...

i really think that most people should have 5% of their networth sitting in physical gold and silver somewhere. The piece of mind it brings is worth it.
 
BigWill said:
Been buying gold for a while now. I own the stocks but prefer to physically have it. Buy bulk 1oz credit suisse bars every month. I started buying them at around $900 an oz.

Its near fucking double already. $1,600 an oz.

Not only a good way to save and secure money but it makes money just sitting there.
Click to expand...

Curious, say that you were in a dire situation and needed to sell your gold fast for real money, how does one go about doing that? I don't imagine it's easy.
 
Instrumentalist said:
Curious, say that you were in a dire situation and needed to sell your gold fast for real money, how does one go about doing that? I don't imagine it's easy.
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Cary it down to any of a dozen gold & coin dealers in any city and cash it in for the spot price and leave with your money just like you would a bank
 
i trade currency for a living. i do im on the side.

not a single person in the world who's credible is going to even suggest knowing the direction of the usd against any other single currency over the next few years. macro signs are just too all over the place. guesses... sure. but solid direction? no.

people calling for the usd to be devalued to '0' never studied econ.

in fact, pull up a chart on GBPUSD or EURUSD and USDJPY since 2008. it's up on two of the three. those are the majors.

it sounds as though you want to be hedged, which means you want diversity in order to maintain your wealth in case of a collapse. you're not interested in 'making money' with this as much as you are conserving what you have in case youtube economists predictions for the largest economy in the world turn out to be accurate.

"All signs seem to point to the US currency continuing to drop in value, and unfortunately my affiliate monies totaling a whole $500 is in USD (I kid, I kid, maybe). What are you guys doing with your US dollars now?"

i'm curious... which signs? and a drop against what?

my suggestion would be to sit down with someone and listen to some options.
 
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