Wait then pounce on CAN$ ??????

[Ross]

Shown below are the worlds major currencies vs Gold .

Note the lower you are on the graph the more gold your
currency buys . So being low means a strong currency .



The Yen
Kindly note that the Japanese Yen is doing best of all . That is insane .
A country whose ratio of debt to GDP is around 200% with a Fukushima-ed
economy and it is more highly valued than say the Canadian Dollar !
I can tell you that if I worked for the Japanese Central bank I would furiously
converting $Yen to gold with both hands .

The Canadian Dollar
I think US citizens should consider watching the Canadian Dollar .
It is likely to plunge due to falling commodity prices and if so it may
represent very good value for those wishing to escape from USD$ .
The problem is of course to pick a market bottom .

[Sonny]

Ross, do you not feel the same way towards the Aus$ vis a via the US$ ?

~

[Ross]

I mentioned CAN$ because I thought you people would be a lot
more comfortable with the conversion and find it easier to do .

Last time fear swept the world the $AUD plunged so moving too early
is likely to be painful . Dunno about the long term . We are energy
rich , mineral rich and have a massive set of raw material projects
unfolding but many will probably be cancelled as commodity prices plunge .

The current Australian government , culture and media are so heavily
socialist in outlook that much foolish financial behavior is virtually
guaranteed .

In short if our currency plunges to 60% of USD$ the answer is yes
yes yes yes.

At 70% yes .

At 80% depends on holding time frame .

I doubt the AUD$ will fall ( short term ) below 80% of USD$ this time though .

[Brihard]

Canada and Australia have similar economies in the sense of abundant primary resources- both energy and mining. I keep my investing Canadian simply for convenience and familiarity, but either economy has many investment opportunities.

I'd not simply invest directly in the currency, but rather invest in resource or energy sector funds denominated in the respective currencies. Currency hedging with potential for real capital growth.

[Ross]

I'd not simply invest directly in the currency, but rather invest in
resource or energy sector funds denominated in the respective currencies. Currency hedging with potential for real capital growth.

I agree .

Paper currency is not something to hold long term if you can find
part of a safe prospering business to buy or some safe asset.

However events are moving very fast now you will need to be
both financially aware and liquid .

.

[Brihard]

I have long term faith in the strength of commodities that comes out of the ground, and consequently in the companies that do the heavy lifting on that. I personally go for some more obscure sectors, but I find them more fun.

[Ross]

Ok let me have another try .

Do you think the commodities you indirectly own will rise in price soon ?

I think it more likely they will plummet and stay low for an unknowable
period .

It the commodity plunges 20% the value of a mine is likely to fall much
further than 20% and the mine itself may even become unprofitable .

Sell now and you can buy back in later at a much lower price should you
choose to do so .

[Brihard]

I believe that any downward pressure will be temporary, and that rises back up will be unpredictable. I'm a 'buy and hold' type; I've already learned about thinking I can time the market, so I don't try to.