Currency savings

Yolavd

As the sterling is at an all time low, is it better to have a savings account in euro or USD?????

purch

GBP is not at an all time low.

lvader

The pound is at the lower end of the historical scale compared to a range of other currencies. It has had a little bit of a rally in the last week or so, probably a line with the Torries doing better in the polls. I'm not sure any curencies are safe at the moment, we are bound to see a run on the US$ at some point. There seems to be a lot of support for the Canadian and Australian dollars so they might be the safest bets.

Reaper

I posted this in another thread where somebody else said the £ was at an all time low. Here it is again:

wriggly

Yolavd wrote: »

As the sterling is at an all time low, is it better to have a savings account in euro or USD?????

It would be good to have savings in USD or euros or Aussie dollars, as you could now transfer them back to sterling and make a profit.

However, since you can't go back in time, now is possibly a bad time to open a foreign currency account to transfer sterling into.

Sterling could drop more, but it could recover somewhat, noone really knows, although I doubt it will go back to US$2 anytime soon.

bendix

lvader wrote: »

The pound is at the lower end of the historical scale compared to a range of other currencies. It has had a little bit of a rally in the last week or so, probably a line with the Torries doing better in the polls. I'm not sure any curencies are safe at the moment, we are bound to see a run on the US$ at some point. There seems to be a lot of support for the Canadian and Australian dollars so they might be the safest bets.

Yeah, brilliant investment strategy Ivader. Wait till the pound is at very low levels compared to the canadian and australian dollars and then put money into those currencies.

While you're at it, why not buy shares at the peak of the market and sell them during the next crash too?

cloud_dog

Bendix is on my ignore list but..... I'll stick my neck out and say I bet he/she has made a condescending and pointless post?

DiggerUK

Yolavd wrote: »

As the sterling is at an all time low, is it better to have a savings account in euro or USD?????

Currencies have been debased by printy printy for so long now, that you are really asking which one of the four three legged horses, in a four horse race, you should bet on.
Should it be the one minus it's left front leg or the left hind leg.

Monetary inflation, is were this dogs breakfast of a world economy is going to unravel.
Me, I'm happy with my gold.

lvader

bendix wrote: »

Yeah, brilliant investment strategy Ivader. Wait till the pound is at very low levels compared to the canadian and australian dollars and then put money into those currencies.

While you're at it, why not buy shares at the peak of the market and sell them during the next crash too?

I wasn't suggesting investing in foreign currency, I simply pointed out a couple that I thought were safer than others. In the current climate commodity driven currencies are far safer bets than the Euro or even the US$.

lvader

DiggerUK wrote: »

Currencies have been debased by printy printy for so long now, that you are really asking which one of the four three legged horses, in a four horse race, you should bet on.
Should it be the one minus it's left front leg or the left hind leg.

Monetary inflation, is were this dogs breakfast of a world economy is going to unravel.
Me, I'm happy with my gold.

With gold you are effectively buying US$, since that is what it is traded in. If the pound gains against the US$ your gold loses value.

tradetime

lvader wrote: »

With gold you are effectively buying US$, since that is what it is traded in. If the pound gains against the US$ your gold loses value.

I can see why you might think that, however given there is a reasonably strong inverse correlation between the US$ and gold, then buying gold tends to bear a closer relationship to being short the US$, but even that viewpoint is somewhat flawed as the correlation is not fixed.
It is quite possible for any currency to gain against the US$ and still lose value against gold.