Investing in foreign currency before the value of the dollar plummets ?
Whose currency would be most stable.?
Foreign currency is a tough one, and I say this as a full-time trader and trading educator with 10 years of Forex behind me. As of Oct 15, you are about 7 months behind the curve in the latest meltdown, which means that any foray into currencies right now exposes you to a possible retracement right as you invest.
That being said, of the major currencies, the most stable are the Euro, Great Britain Pound, Japanese yen, and Swiss Franc. The dollar trades across from each of these on the spot market.
Other stable currencies to consider: Canadian dollar, Aussie dollar, and New Zealand dollar - these are currencies that benefit from strong commodity prices, which are a side effect of a weak dollar. You can trade the USD against each of these currencies on the spot market.
As for inflation, it is likely to become a problem at some point for each of these countries - central banks in every developed country have been expanding the monetary supply - this was not unique to the Fed here. Therefore, investing in these currencies as a hedge against inflation will not do much good as they will also experience it.
Other options: most experts have long viewed gold as one of the best hedges against inflation, but again, as you noted, you're probably a few months behind the curve buying now. Many savvy traders buy commodity futures as a hedge against both inflation and the sagging dollar, and some of them, like corn and soybeans still have a lot of room to the upside once the US harvest winds down over the next few weeks.
These are not for the faint of heart, but if I had to choose between exposure to the unregulated and increasingly fraudulent foreign exchange brokers, I would take futures any day.
Until people start to work produce profitable products sell them for a profit and get paid for this.
It is unlikely that massive inflation will occur.
gold at 1055. per oz. It hasn't adjusted to true lack of dollar purchasing power it has to be much higher to do that.
DON'T listen to stock brokers they have no sense of value.
They won't even recommend a portfolio of stocks that you should have like for a widows and orphans fund. because none of them know what or where things or how they really will go.
we are in uncharted waters and they can't even trust their own instincts they don't have any.
Really gold Is barely holding up to 50 % of what it should be look at the prices from 1980 to now.
Do the math in 1980 a person could buy a nice compact car toyota or Volkswagen or honda or ford or Chrysler. for no more that 5 or 6k dollars. Today you can't find anything for under 15,000 to 25,000 bucks.
Yes, there should be inflation on the horizon in the US with all this money printing. You can possibly invest in Silver or, better yet, commodities.
If you believe that currency is going to fall, you sound like a good candidate for buying gold.
if you thin kthe dollar will fall, buy euros.