Choosing a currency to invest in

the explorer

Hi,

I am considering converting around €500 into another currency as a hedge against possible euro risk from bailouts, contagin, QE etc. Two currencies that I had in mind were Swiss francs and Norwegian krone. While both countries are of course exposed to the eurozone for trade, they are both strong economies without property disasters.

Any advice on these or any other currencies would be greatly appreciated.

(I only want a currency that I can order and pickup in a bank, I don't want to do forex trading online)

creeper1

Simply holding currency (physical currrency) may not be that good an idea. All currencies are subject to inflation I think.

However you are right to get your money out of the bank before whatever the next stunt pulled by the government is.

The soundest currencies are Canadian and Australian dollars as well as Swiss Franks. The soundest currency of all is gold.

Victor

I honestly can see any sense in hedging only 500 euros.

If you want to do it, consider opening a sterling deposit account, possibly with a UK bank with an Irish branch.

creeper1 wrote: »

The soundest currency of all is gold.

Is generally considered overpriced, with its own little bubble. You also have to pay 21% VAT.

irishh_bob

Victor wrote: »

I honestly can see any sense in hedging only 500 euros.

If you want to do it, consider opening a sterling deposit account, possibly with a UK bank with an Irish branch.

Is generally considered overpriced, with its own little bubble. You also have to pay 21% VAT.

permanent TSB allow you to open dollar and sterling accounts , were ireland to exit the euro , surely they could not convert savings in theese accounts to punt nua

whysomoody

irishh_bob wrote: »

permanent TSB allow you to open dollar and sterling accounts , were ireland to exit the euro , surely they could not convert savings in theese accounts to punt nua

why would they transfer your sterling account to punt nua? Only Euro a/c's would be transferred.

irishh_bob

whysomoody wrote: »

why would they transfer your sterling account to punt nua? Only Euro a/c's would be transferred.

why would they transfer your euros to punt nua but not sterling or dollar ?? , ireland leaving the euro wouldnt mean the end of the euro as a currency

freeze4real

Ireland can't leave the euro. Ireland needs the EU. The question is do they need us?

WildBoots

freeze4real wrote: »

Ireland can't leave the euro. Ireland needs the EU. The question is do they need us?

Of course we can, we managed as a country before, we'll do it again in the future. There's either going to be a two tier euro or else it falls apart altogether. The right thing for Ireland to do at this point is to follow in the footsteps of Iceland.

Low Energy Eng

WildBoots wrote: »

Of course we can, we managed as a country before, we'll do it again in the future. There's either going to be a two tier euro or else it falls apart altogether. The right thing for Ireland to do at this point is to follow in the footsteps of Iceland.

I defo agree with the Icelandic approach but a two tier euro? Set up a currency so it can go to the wall? who'd hold it for langer than 6seconds?

WildBoots

Low Energy Eng wrote: »

I defo agree with the Icelandic approach but a two tier euro? Set up a currency so it can go to the wall? who'd hold it for langer than 6seconds?

Regarding the two tier euro, I'm just relaying some of the chatter I'm hearing. Personally I think it would be short lived as it would inevitably "go to the wall" as you put it.

whysomoody

irishh_bob wrote: »

why would they transfer your euros to punt nua but not sterling or dollar ?? , ireland leaving the euro wouldnt mean the end of the euro as a currency

because they aren't part of the old currency, in the same way peoples sterling accounts werent transferred to Euro!
The bank doesnt have any jurasdiction to transfer out dollars.