What should we be investing in??? Re: Dollar falling. Help!

[CoffeeCat]

With all of this talk of the dollar crumbling...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2281481

What should we be doing with our money?

Investing in gold?

Foreign markets?

Buying other currencies?

What?

HELP!!

[RufusEarl]

1. Most folks i know are buying gold and silver, hope that helps.

But to be honest, if Bu$h nukes Iran and it appearers that he will. All the gold and silver in the world, want be of much value.

[unblock]

2. i've got most of my money in emerging market mutual funds

some in latin america, some in europe, some in russia.

i've nearly doubled my money in the last year, thanks in part to the dollar's decline.

but, of course, this can be a risky play if wrong.

[Mist]

3. Risky how? Emerging markets are more certain than domestic investment

it seems to me. Plus, it's investing in currency other than the dollar.

[unblock]

6. well of course i agree that the LIKELY result is that i'll make money

otherwise i'd have my money invested elsewhere.

the risk is that if i'm wrong, i might get a double whammy of the overseas companies losing value AND their currencies losing value relative to the dollar.

[Mist]

7. It seems more likely that the dollar will continue losing value against

other currencies. I'm more about protecting what I have than making money. I'm just looking for ways to not lose too badly!

[Warpy]

4. Gold is a hedge against inflation

but how good a hedge at this point is moot. The price has risen a little faster than the dollar has fallen, not a good sign. Plus, you have to figure out where you're gonna stash all those shiny rocks. DHS has an unconstitutional law on their side that allows them to rob your safe deposit box at the bank if they determine there's some kind of unspecified national emergency.

Gold futures are another way to approach it, as are mining stocks. However, you have to have a leap of faith that your certificate will be honored should the need arise.

As for foreign currencies, there are quite a few funds out there that specialize in currency trading. Clough is one, Barclay has another. It's hard for the small timer to make money at this stuff because of the fees the local banks charge for exchanging currency, which is how most people think they're gonna do it. The bad news about currency traders is the price of admission, generally in excess of $10,000 and some as high as $100,000.

The best thing for the small timer to do is diversify as much as possible into tax free bonds, stocks, and some of the better mutual funds. The socially conscious mutuals outperform other funds across the board, a DUer's dream. Dreyfus Third Century is one, and the price of admission isn't terribly steep there, either.

We are heading into a period of extreme economic uncertainty. The best thing you can do with your money right now is to get out from under your debts. Remember, paying off a debt that carries 8% interest is like paying yourself that 8% every year you've shaved off that loan. Even the best currency traders are generating only about 7-7.6% at this point.

Good luck to us all. I think I'm giving good advice, but it'll take the next decade to find out whether or not I'm talking through my hat.

[JaneGat]

5. Gold and silver have intrinsic value as opposed to confidence-based

value, such as currency. When our currency was backed by gold it wasn't as fluid, but stable. Silver is expected to continue to rise because it's being used more and more in industry. Additionally, silver is now an ETF (exchange traded fund), which means you can trade in silver without having to buy silver related companies.

[Yollam]

8. Tell me about it. I live in Japan and get paid in dollars

My paycheck is worth about $20 a week LESS than it was a couple of weeks ago. :(


The only thing I could do about is is take a job with a local employer, in fact, if the slide continues much more, I'll have to.

[mmonk]

9. I countered early this year

by buying euro shares from the Euro Currency Trust ( http://www.currencyshares.com ). Shares of other currencies such as the Swiss Franc and a silver trust are also in the works. This is just a way to hedge against a currency's weakness and loss of value. I've posted this before and was slammed here for it saying I was giving bad advice to people. I wasn't giving advice, just an option (that has worked for me so far). The euro trust pays interest at the euro bond rate as long as you are invested in it.