Convert sterling to euros?

jez1in

I have a large sum of cash in the bank, would i be better off changing this to another currency such as euros? Because the way things are going the pound looks in serious trouble.

hopefulfooluk

No.

Eurozone interest has dropped recently too so investing in Euros is probably the last thing you want to do now. Why does the pound look like it's in serious trouble anyway? Better now than what it was, and this is happening on a global scale, not just localised to the UK.

purch

would i be better off changing this to another currency such as euros?

There are numerous similar threads on here from the past couple of months, if you care to search.

They have lots of arguments both pro and anti, and also advice as to how to go about it if you choose that road.

Without trying to predict the unpredictable, or get into an argument, my only fresh observation would be that unless you have a current or a foreseeable need to use the EUR or whatever other currency you might choose as you everyday currency, then you would be adding a further and significant layer of risk to your savings/investments by doing this.

If you move your holdings into another currency, or utilise a hedging strategy to offset any fall in GBP you can only gain if GBP falls, but you will stand to lose if GBP doesn't.

It will be very much a one way trade, and therefore my only advice would be to make certain you know what you are doing and why you are doing it before you start, as once you get the "wrong side" of the trade it will be very difficult to get back onside.

jez1in

Many thanks for taking the time to reply on my question, my worrys were based on comparing pound against, dollar,euro, etc looking back to Aug 08, but I have just lost confidence in the uk banks,financial system and goverment control of it all.

Voyager2002

jez1in wrote: »

Many thanks for taking the time to reply on my question, my worrys were based on comparing pound against, dollar,euro, etc looking back to Aug 08, but I have just lost confidence in the uk banks,financial system and goverment control of it all.

How about gold? Or stamps?

sdooley

If you like going on holiday in Europe and will spend your euros there, then transferring enough for that would be ok, although accept that the currency market could go either way. Transferring to euros with the hope of transferring back into pounds for profit will make the people taking commission money, but probably not you.

jez1in

Gold? will have to check that one out,
Thanks
Jez

rabialiones

i have also been thinking about this, maybe gold is better, but if you buy it , where would it be safe to keep it?

jzi19

Back in October '07, I exchanged some currency for some Hong Kong Dollars and China RMB as the rates were favourable at the time and I was travelling there to see familly. I never converted it back into sterling and only gave it some thought this weekend. Astonished to see it is worth 40% more today. Sure I can cash it in now and profit a few thousand pounds. The only problem is, I have relatives there and right now, it would cost 40% more to go over there. Smart money tells me I may as well keep hold of it to absorb the high cost.

hopefulfooluk

jzi19 wrote: »

Back in October '07, I exchanged some currency for some Hong Kong Dollars and China RMB as the rates were favourable at the time and I was travelling there to see familly. I never converted it back into sterling and only gave it some thought this weekend. Astonished to see it is worth 40% more today. Sure I can cash it in now and profit a few thousand pounds. The only problem is, I have relatives there and right now, it would cost 40% more to go over there. Smart money tells me I may as well keep hold of it to absorb the high cost.

Yeah if you're going back I would hold onto it.

I've just exchanged about 40,000 sri lankan rupees left over from a trip 18 months ago - got about 20% more back now than I would have done if I'd remembered to do it back then.

Sometimes it pays to be forgetful

sdooley

Gold is at an all time high against sterling. Buy now and you could lose 75% of your money (though it might go up before it goes down).

If you want to put some of your money in a few foreign currencies, it could reduce your risk, but choose currencies of countries you might want to go to/ spend money on stuff from. Buying Korean Dong or whatever might seem clever but what're you going to do if they introduce exchange control.

And don't spread-bet. Everyone loses, on average. Except the house.