Worth buying some Dollars?
Worth buying some Dollars?
Author
Discussion

Daimeydum

Original Poster:

115 posts

234 months

Wednesday 4th July 2007
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This may well have been asked before...
Ok so the dollar is at the twenty something year low. So for those in the know, is it worth me buying a few K and if not why not?

Cheers

g4ry13

21,864 posts

285 months

Wednesday 4th July 2007
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Definitely, but it depends how long you're willing to hold for?

Edited by g4ry13 on Wednesday 4th July 12:17

Leftie

11,838 posts

265 months

Saturday 7th July 2007
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I bought my holiday money about 6 months ago at $1.95, and the dollar continued to rise to $2.0. Tt has fallen back to what I paid now, but I was happy at $1.95. To make any real money you have to buy vast amounts and get accesss to the market rates not the tourist rates s I did.

NorthernBoy

12,642 posts

287 months

Saturday 7th July 2007
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Yes, it is worth itif you are goin to need to use them in the next few months.

Do you ave a USD account to deposit them in, though? If not, then the 4% after tax that you would have been earning on your pounds is lost. That means that if you keep them for a year, you realy only bought them at $1.92 to the pound.

I have quite a lot of my assets in USD now, and think it makes more sense than keeping it in GBP, but there is nothingto say that it cannot go further, so please think carefully before you do it.

mcflurry

9,191 posts

283 months

Sunday 8th July 2007
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Leftie said:
I bought my holiday money about 6 months ago at $1.95, and the dollar continued to rise to $2.0. Tt has fallen back to what I paid now, but I was happy at $1.95. To make any real money you have to buy vast amounts and get accesss to the market rates not the tourist rates s I did.
True.

Nightmare

5,279 posts

314 months

Sunday 8th July 2007
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NorthernBoy said:
Yes, it is worth itif you are goin to need to use them in the next few months.

Do you ave a USD account to deposit them in, though? If not, then the 4% after tax that you would have been earning on your pounds is lost. That means that if you keep them for a year, you realy only bought them at $1.92 to the pound.

I have quite a lot of my assets in USD now, and think it makes more sense than keeping it in GBP, but there is nothingto say that it cannot go further, so please think carefully before you do it.
just assets or some cash? I constantly have to shift money arounds friends in the US as Im not allowed an account of my owne...or do you have some limited US citizenship or know a way of getting an account? WOuld be v useful knowledge!

OP buying dollars does seem tempting doesn't it? Prob only worth it if you're gonna get a few hundred K's worth mind...

zed sump

3,142 posts

267 months

Sunday 8th July 2007
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just setting up a LloydsTSB USD account to deposit the conversion proceeds from a deposit with this conversion company:
http://www.customhouse.com
-can get virtually the market rate smile
...has anyone used them before?
think i should check them out with companies house before forwarding an large lolly.

NorthernBoy

12,642 posts

287 months

Tuesday 17th July 2007
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Nightmare said:
NorthernBoy said:
Yes, it is worth itif you are goin to need to use them in the next few months.

Do you ave a USD account to deposit them in, though? If not, then the 4% after tax that you would have been earning on your pounds is lost. That means that if you keep them for a year, you realy only bought them at $1.92 to the pound.

I have quite a lot of my assets in USD now, and think it makes more sense than keeping it in GBP, but there is nothingto say that it cannot go further, so please think carefully before you do it.
just assets or some cash? I constantly have to shift money arounds friends in the US as Im not allowed an account of my owne...or do you have some limited US citizenship or know a way of getting an account? WOuld be v useful knowledge!

OP buying dollars does seem tempting doesn't it? Prob only worth it if you're gonna get a few hundred K's worth mind...
I have both. However, my USD deposit account pays no interest, so I do not want too much in there over too long a time. I don't have US citizenship, and just asked by bank in the UK (HSBC) to set me up an account over there. They normally want a US address, but you do not really have to be there. It seemed more about having to fill things in on the form than it mattering.

I did work over there for a while, and so was able to get my cards sent to the office. If you have a friend over there who can act as your postal address (get online statements, so no worries on that front), then all you need him to do is to forward you your cards. I have never been into my US branch, and have had the account for a few yeas now.

zed sump

3,142 posts

267 months

Wednesday 18th July 2007
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£1=$2.06 !! yikes

Edited by zed sump on Wednesday 18th July 13:32

LeoSayer

7,838 posts

274 months

Wednesday 18th July 2007
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To make it more interesting, find a US company you like and buy their shares - hey presto instant currency AND market risk.

g4ry13

21,864 posts

285 months

Wednesday 18th July 2007
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LeoSayer said:
To make it more interesting, find a US company you like and buy their shares - hey presto instant currency AND market risk.
Apple's a good one but i'd have recommended about a week ago but it's still probably a good time to get in. The only issue is the way things are currently going the currency is working against you as the dollar is weakening. If you're willing to hold for longer (a year or more) and the dollar will eventually strengthen then it'll be worth it as you can make money on the currency and hopefully on the share moving up in price.

NorthernBoy

12,642 posts

287 months

Thursday 19th July 2007
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LeoSayer said:
To make it more interesting, find a US company you like and buy their shares - hey presto instant currency AND market risk.
That tends to be a better idea than sticking the money on depoit, at 0.25% interest, less tax.

I'd just be a bit boring here, and point out, again that money invested into single stocks needs to be cash that you can afford to lose, rather than your entire pension fund.

LeoSayer

7,838 posts

274 months

Thursday 19th July 2007
quotequote all
NorthernBoy said:
LeoSayer said:
To make it more interesting, find a US company you like and buy their shares - hey presto instant currency AND market risk.
That tends to be a better idea than sticking the money on depoit, at 0.25% interest, less tax.

I'd just be a bit boring here, and point out, again that money invested into single stocks needs to be cash that you can afford to lose, rather than your entire pension fund.
Or to reduce risk, do what I did back in April and invested into a global investment fund priced in USD. The fund price is currently up 5.5% but the USD is down 3%!

Daimeydum

Original Poster:

115 posts

234 months

Thursday 19th July 2007
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What about buying US property?

Any ideas?

I also wondered about buying diamonds form the US is there mileage in this?

NorthernBoy

12,642 posts

287 months

Thursday 19th July 2007
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Daimeydum said:
What about buying US property?

Any ideas?

I also wondered about buying diamonds form the US is there mileage in this?
No. They cost pretty much the same in both countries. This drop in the dollar does not magically allow you to pull money out of the air.

Horse_Apple

3,795 posts

272 months

Friday 20th July 2007
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Daimeydum said:
This may well have been asked before...
Ok so the dollar is at the twenty something year low. So for those in the know, is it worth me buying a few K and if not why not?

Cheers
Only if you have a USD account and trade the Sterling through a proper physical FX house.

If you are taking cash delivery then it's a waste, if you are using a bank or BDC then that is also a waste.

On top of this, you would only swap currency that you expected to spend in the next 24 months.

2something

2,145 posts

238 months

Saturday 21st July 2007
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Daimeydum said:
What about buying US property?

Any ideas?

I also wondered about buying diamonds form the US is there mileage in this?
US property prices could well be a bit volatile for the forseable future.

Buying USD - depends for what and for how long you want to keep the USD.

For small scale, short term speculating there are plenty of companies offering tight spreads even for a couple of k. By tight I mean 2.0500/2.0506 as a two way price, but the daily roll will cost you bid/ask which adds up over time. You can also do 3 month future equivalents, but these trade a bit wider as the real futures don't trade in such small sizes.

If you want physical USD to put in a USD account somewhere, spreads are likely to be more in the 2.0500/2.0530 two way region and some kick you with a 10-15 pound transfer fee on one side which makes the above spread on say 5k USD a whole lot wider i.e. 10 pound charge for 5k usd is roughly equivalent to adding 0.0040 pips I think.