Convert USD Savings into?

  1. #1

    Smile Convert USD Savings into?

    Because the Fed will continue to print money to stimulate the U.S. economy, it will cause USD to depreciate further. I have some USD savings in a bank and I wonder what I should do like converting my USD into some other currency in order to protect my savings. Many thanks

  2. #2

    Join Date
    Mar 2006

    Buy some gold as a hedge. Do it on pull backs. Don't put savings all in one basket. There are some other threads here that suggest what kind of gold purchase and how best to buy it given we are in HK.

    Kitco - Gold Precious Metals - Buy Gold Sell Gold, Silver, Platinum - Charts, Graphs, Prices, Quotes, Gold Stocks, Mining Stocks, bullion dealers

    It depends on how liquid you need to be.

    Some feel the POG is headed to $1500 but nothing goes straight up and some will even say gold is a bubble asset even at 1300.

    No doubt there are some other currency hedging strategies out there that I am not up to speed on.

    I am not a regular follower of this guy but this guy's take is interesting as he notes buying points at the 50 and 200 day moving average prices.

    Is Gold Getting Too Expensive, Too Soon? -- Seeking Alpha

    We all heard Goldman Sachs economists this week forecast gold to topple $1,650 by the end of next year, and a 17% overall increase in precious metals demand over the next 12. We might be wise to take that with a grain of salt. This is the same bulge bracket bank that forecast oil at $200 a barrel in 2008 when it was around $120, and never returned to those levels.

    However, GLD and its poor cousin, the iShares Silver (SLV) exchange traded fund, have seen big gains year-to-date and are due for a cool down. State Street's GLD was up 25% as of Thursday's close. BlackRock's SLV was up 45.3% as of Thursday's close. Compare that to other big movers this year, like the iShares MSCI Emerging Markets Index ETF (EEM), up just 12.7%.

    Wait for pullbacks and consider buying on the dips as a play against Washington's weak dollar policy. Whenever we hear central banks in the developed markets talk about increasing interest rates, then that will hurt precious metals because it makes bonds more attractive. We are not hearing that...yet."

    Last edited by Football16; 18-10-2010 at 11:22 AM.