How would you hedge against an $AUD collapse (10c+)?

Discussion in 'Currencies' started by SpacePete, Aug 1, 2014.

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  1. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Theoretically, if the the AUD were to lose 10 cents or more against the USD over the next 2 years or so, what would you invest in now while the AUD is strong?
     
    SpacePete, Aug 1, 2014
    #1
  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Silver.
     
    sammysilver, Aug 1, 2014
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  3. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Great, I've got it covered then :)
     
    SpacePete, Aug 1, 2014
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  4. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Gold.
     
    mmm....shiney!, Aug 1, 2014
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  5. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    My wife agrees with you. :)
     
    SpacePete, Aug 1, 2014
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  6. Lunarowl

    Lunarowl Active Member Silver Stacker

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    (Silent....)
     
    Lunarowl, Aug 1, 2014
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  7. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    <crickets...>

    But seriously, is platinum too volatile to be used as a hedge against currency movements?
     
    SpacePete, Aug 1, 2014
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  8. willrocks

    willrocks Well-Known Member Silver Stacker

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    willrocks, Aug 1, 2014
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  9. Ouch

    Ouch Active Member

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    US-denominated assets producing US-denominated income.
     
    Ouch, Aug 1, 2014
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  10. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Holdfast, Aug 1, 2014
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  11. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    I hate to point out the obvious but you could always buy USD
     
    Caput Lupinum, Aug 1, 2014
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  12. Pirocco

    Pirocco Well-Known Member

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    Not if you're handy with the scissors.
     
    Pirocco, Aug 1, 2014
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  13. Pirocco

    Pirocco Well-Known Member

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    So the discussion ends here. :)
     
    Pirocco, Aug 1, 2014
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  14. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    CFD's. There is no better way for a pure AUD/USD hedge.
    As Bullion Baron points out, metals are not a serious hedge between two currencies.
     
    wrcmad, Aug 1, 2014
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  15. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Whys is that? :)
     
    mmm....shiney!, Aug 1, 2014
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  16. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    To hedge the AUD/USD using metals does not take metal price changes into account..... therefore technically not a hedge between two currencies.
     
    wrcmad, Aug 1, 2014
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  17. Pirocco

    Pirocco Well-Known Member

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    A product A that serves as a hedge against another product B, requires an inverse price trend tendency between A and B.
    That's all there is to say about hedges. Regardless serious or humorous.
    About CFD's, it may be advisable to read this: https://en.wikipedia.org/wiki/Contract_for_difference#Exchange_traded_CFDs_in_Australia which explains some of the risks ('hedge' doesn't mean riskfree lol) and some Australia specific... ehm, things! :D
     
    Pirocco, Aug 1, 2014
    #17
  18. TeaPot&ChopSticks

    TeaPot&ChopSticks New Member

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    I often think about this and I would like to keep my "powder dry" and stay in cash.
    What would be the best foreign cash to buy?
    Norway? Singapore? Switzerland? US dollars, really?
    Anyone got any ideas.
    Especially the best places to buy?
     
    TeaPot&ChopSticks, Aug 31, 2014
    #18
  19. Yendor

    Yendor Member

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    It may not be as strong as it once was, but USD is still the global standard. I just travelled through Africa, and everything can be bought with USD. Some places wouldn't even accept the local currency, they insisted on USD.

    The Euro is big, but do you have faith in European economies?

    If you want a currency that may be volatile now, but should have long term gains, maybe consider the BRICS currencies?...

    I guess the drawback is inflation. Physical is going to get inflated away over time, so you may want to look at interest-earning deposits or stocks in foreign currencies.
     
    Yendor, Aug 31, 2014
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  20. TeaPot&ChopSticks

    TeaPot&ChopSticks New Member

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    That is why I was thinking about choosing a national currency with low inflation like Switzerland.
    But it is not likely that UBS will want a bank account with few hundreds or a couple of thousand and that is why I would rather buy some currency instead.
    Bank fees, Bank charges, etc always eating the monies. :(
     
    TeaPot&ChopSticks, Aug 31, 2014
    #20
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