Investing in Foreign Currency??

[maddog69]

I have an acquaintance trying to get me to invest in foreign currency. Mostly Mid East and Asian currency. He said when their economy fails, those holding the money can exchange it and get filthy rich. I told him he is nuts.

Do any of you deal in foreign currency? Last thing I want to do is buy some dongs (Vietnam) and be stuck with them.
This post was edited on 3/5 4:51 PM by maddog69

 

[vevois23]

Originally posted by maddog69:
Last thing I want to do is by some dongs (Vietnam) and be stuck with them.

Really, of all the currencies out there under the umbrella you laid out, this is what you went with?

 

[noleman1010]

Originally posted by maddog69:
I have an acquaintance trying to get me to invest in foreign currency. Mostly Mid East and Asian currency. He said when their economy fails, those holding the money can exchange it a get filthy rich. I told him he is nuts.

Do any of you deal in foreign currency? Last thing I want to do is by some dongs (Vietnam) and be stuck with them.

Just don't. You might as well buy a lottery ticket.

There was an scam like this going around a few years ago except with Iraqi Dinars. Someone was spreading the idea that the currency was supposed to appreciate against the USD since the country was stabilizing. I was an FA at the time and had to talk several clients out of putting their life savings into Dinars. It's safe to say that they are glad they didn't make that move.

 

[Formerly Rockymtnole]

I'd advise against it. Never a good idea to get caught holding dongs.

 

[12Nole]

Remember when everyone thought they were going to get rich off of the Iraq dinar...
Posted from Rivals Mobile

 

[SeaPA]

Originally posted by maddog69:
I have an acquaintance trying to get me to invest in foreign currency. Mostly Mid East and Asian currency. He said when their economy fails, those holding the money can exchange it and get filthy rich. I told him he is nuts.

Do any of you deal in foreign currency? Last thing I want to do is buy some dongs (Vietnam) and be stuck with them.

This post was edited on 3/5 4:51 PM by maddog69

If the country collapses because of its failed economy, who does he think is going to want their currency?

 

[Lemon Thrower]

he's got it backwards. when russia got hit with sanctions, and then the value of its export product (oil) collapsed, the value of the ruble collapsed. you didn't want to own it then. if you think the sanctions will be lifted, or oil will go up, you will profit from holding rubles.

there are usually etfs that own short term bonds denominated in specific currencies. FAX is one that owns yen i think.

there are other more complicated way to do this but not worth it.

Russia and Brazil are interesting speculations. I don't know about the middle east. Euro may be about as low as it will go as well. some folks are speculating that pegged currencies, like HD dollar, Denmark, and yuan, will be unpegged and rise like the CHF did.