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9/22/2017 12:11:25 AM
Posted: 1/13/2006 9:36:23 AM EDT
I suspect the dollar will eventually be taking a nosedive, given the debt situation, etc. How does one buy into foreign currency stocks, as a hedge against this dollar decline? I am specifically interested in countries which have a lot of resources, such as oil, natural gas, gold and other metals, among other things (Australia and the like). Are ETFs the way to go? Anyone out there have some recommendations I could look into? Thanks.

Link Posted: 1/14/2006 3:48:30 AM EDT
[Last Edit: 1/14/2006 3:50:19 AM EDT by raven]
You can open a FOREX account here

www.interactivebrokers.com

If you dont have the $2000 minimum to risk, there are alternative ways to make bets against the dollar. For as little as $100, you can open an account with Hedge Street, another financial betting service is Intrade.com where you can bet on sports, financial figures, politics, elections, all sorts of stuff.
Link Posted: 1/15/2006 2:01:45 PM EDT
Simplest way to do this is to buy gold coins. I did this about 2 years ago when it was in the high $300. I inquired with banks in several european countries Austria, Germany and Switzerland about opening an account or buying their equivalent of a CD but was to small for them to fool with. You needed to be willing to invest alot to get their attention. It may be different if you just go over and open an account in person. That said you can buy funds that invest in companies, etc in other countries as our dollar falls the price of the stock you own will rise. That said the dollar has already fallen a considerable sum in the last couple of years. So maybe it will level off somewhat.
Link Posted: 1/24/2006 10:24:13 AM EDT
[Last Edit: 1/24/2006 10:24:34 AM EDT by James16688]
It's not exactly a dollar hedge, but Deustche Bank is introducing an commodity indexed based ETF symbol DBC to trade in first half Feb...

Good to own as Iran prepares itself to become a glass sea...
Link Posted: 1/24/2006 10:29:15 AM EDT
Now that you know what you DON"T believe in, why don't you decide what you DO believe in? In other words, what do you think is going to do well if the dollar slides? If you think that the answer is Chinese manufacturers, buy a mutual fund that invests in Chinese manufacturers. If you think that it is gold, buy a mutual fund that invests in gold stocks, or buy bullion, or gold coins, etc.
Link Posted: 1/24/2006 11:00:49 AM EDT
Originally Posted By raven:
You can open a FOREX account here
www.interactivebrokers.com
If you dont have the $2000 minimum to risk...quote]

It looks like the minimum is $25,000 for a FOREX
Link Posted: 1/24/2006 11:05:43 AM EDT
$ag (or it's Aussie or Canadian equivalent).
Link Posted: 1/28/2006 6:16:05 PM EDT
There is a new exchange traded fund, (ETF), whose ticker symbol is FXE. They are investing in Euros. It will pay some interest, reduced by the fees required to run the fund. If the dollar weakens against the Euro, the dollar investor will profit.

Conversely, if you think the dollar is going to strengthen, you could sell it short.

This is one of the easiest ways for the small retail investor to get exposure to foreign currency. There is an American bank that specialized in foreign currency CDs. This would also be an easy way to benefit from currency moves.

Of course, if your position moves against you, you will lose. You pays your money, and you takes your chances.
Link Posted: 1/28/2006 10:17:56 PM EDT
[Last Edit: 1/28/2006 10:20:34 PM EDT by tanlegsintx]
www.fxcm.com

You can open a standard account with $2000 or a mini account with $300.00.
Link Posted: 1/31/2006 10:08:11 AM EDT
[Last Edit: 1/31/2006 10:08:49 AM EDT by BigRedDog]
GLD or IAU are both ways of temporarily exchanging your dollars for gold.

Link Posted: 2/2/2006 5:23:57 PM EDT
Thanks.

I went with XLE and IAu for now. Already lost some on XLE, but I suspect that will turn around. Gold is up. My guess is that it goes to $600/oz before any serious correction occurs. I bought some Krugerrands a couple of years ago, and have done well with them.

I set some cash aside to buy more if and when a correction occurs, to dollar cost average down. I am also looking at DBC as another possibility, when it comes out.

Also dumped some cash into an international stock fund via my 401(k).

If Iran goes through with pricing their oil in Euros (as opposed to dollars) and others follow suit, I will look into a Euro ETF.
Link Posted: 2/5/2006 1:11:58 PM EDT

Originally Posted By mjm1:

If Iran goes through with pricing their oil in Euros (as opposed to dollars) and others follow suit, I will look into a Euro ETF.



Don't hold your breath on those Euros.

Despite the fact that the EU has rukes about deficits, most EU countries are running deficits higher than even this wartime US! Yes, that's right. Even with fighting & rebuilding Iraq our deficit is still lower than most of the EU.
Link Posted: 2/8/2006 7:16:37 AM EDT
The most conventional way to "sell the dollar" would be to open a FOREX account as was already mentioned. I've been away from FOREX for a while but it was my understanding that FXCM was somehow tied up with Refco, who hit the skids a while back. Again, it has been a while so don't take that at face value, surely there is somebody around with more information on the subject than me.

Persoanlly I would go with Oanda (https://fxtrade.oanda.com/), no minimum investment if I recall correctly, and setting up a permenant game account is free if you want to learn the ropes/UI first. Plus they have some forums with a decent amount of information.
Link Posted: 2/10/2006 8:52:12 PM EDT

Originally Posted By paragon:
The most conventional way to "sell the dollar" would be to open a FOREX account as was already mentioned. I've been away from FOREX for a while but it was my understanding that FXCM was somehow tied up with Refco, who hit the skids a while back. Again, it has been a while so don't take that at face value, surely there is somebody around with more information on the subject than me.

Persoanlly I would go with Oanda (https://fxtrade.oanda.com/), no minimum investment if I recall correctly, and setting up a permenant game account is free if you want to learn the ropes/UI first. Plus they have some forums with a decent amount of information.



Oanda is goood, the game is fun too.
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