Wanting to Invest in AUD currency

[REDBACK]

Hi all,i like to hear some thoughts about investing in AUD's
I have a pile of PM's which aren't doing that well as an investment so i was wondering about the best way to recycle them and use the fiat to Get into the AUD market?
Any strategies?
And no this is not a joke question,considering how well the Aussie has been doing i have toyed with the idea of abandoning PM's altogether.
What would be your trading and turn over strategy-Hyperthetically?


REDBACK

 

[Ernster]

Sell your silver
Cash In
Flush the cash down the toilet

Atleast you won't have to pay any fees.

(sorry I can't help myself)

 

[REDBACK]

Thats not very constructive Ernster.
Think of it this way.at the moment Cash is king.

 

[Ernster]

Thats not very constructive Ernster.
Think of it this way.at the moment Cash is king.

Patience my friend. Unless you buy real big on the dips, Silver can be a slow ride if you just hold. I haven't made a heck of a lot of profit in 3 years of stacking but I almost have my end target amount, so any increase is quite significant for me.

It's up to you what you do with your money.

Without knowing how much silver you have, what your average cost per Oz is, it's hard for me to say it's a good or bad decision.

I think Silver will be a quite a bit higher in 6-12 months. If you can hold on and maybe sell next year you may get a lot more AUD if thats what you want.

Anyway I'll leave it up to the more experienced members to comment.

 

[bordsilver]

Are you punking again? (No "still drunk from last night nursing my numerous auctions before cyber monday" excuse this time though.)

You live in Australia. Legal tender laws force you to receive your income in A$. Save it, don't spend it. Repeat. Done. You are now "investing" in AUD.

Alternatively, I'm currently selling AUD Investment Certificates. Each certificate is $10,000 with a Guarantee to receive AUD$10,000 on 30 June 2015. No fees. It takes all the future risk out of the equation for you and you obtain all the upside benefit. (For long term investors, I also have June 2020 contracts for sale.)

 

[bloomst]

Each certificate is $10,000 with a Guarantee to receive AUD$10,000 on 30 June 2015. No fees. It takes all the future risk out of the equation for you and you obtain all the upside benefit

What would be the benefit? wouldn't it be the same as hiding your money under that willow tree? Or you make all the money on us

PS: Not being a smart turtle, but just want to learn more

 

[REDBACK]

Are you punking again? (No "still drunk from last night nursing my numerous auctions before cyber monday" excuse this time though.)

You live in Australia. Legal tender laws force you to receive your income in A$. Save it, don't spend it. Repeat. Done. You are now "investing" in AUD.

Alternatively, I'm currently selling AUD Investment Certificates. Each certificate is $10,000 with a Guarantee to receive AUD$10,000 on 30 June 2015. No fees. It takes all the future risk out of the equation for you and you obtain all the upside benefit. (For long term investors, I also have June 2020 contracts for sale.)

See post#3

 

[bordsilver]

Each certificate is $10,000 with a Guarantee to receive AUD$10,000 on 30 June 2015. No fees. It takes all the future risk out of the equation for you and you obtain all the upside benefit

What would be the benefit? wouldn't it be the same as hiding your money under that willow tree?

Burying under willow trees come with risk of being eaten by wombats, potential associated environmental damages and liability, inheritance risk and risk of forgetting which tree you buried it under. Our firm strongly advises against such practices.

Potential upside is the increase in purchasing power you may receive. As we tell our clients "past performance is not a reliable indicator of future performance" so that means purchasing power must be almost certain to improve from here on.

 

[bordsilver]

See post#3

See line #2 in Post #5. I was being very constructive.

 

[REDBACK]

Each certificate is $10,000 with a Guarantee to receive AUD$10,000 on 30 June 2015. No fees. It takes all the future risk out of the equation for you and you obtain all the upside benefit

What would be the benefit? wouldn't it be the same as hiding your money under that willow tree? Or you make all the money on us

PS: Not being a smart turtle, but just want to learn more

Samo Samo #3

 

[REDBACK]

See post#3

See line #2 in Post #5. I was being very constructive.

Fair point i can't argue with that.
+10

 

[REDBACK]

See post#3

See line #2 in Post #5. I was being very constructive.

As to the investment certificates what type of interest returns would we fictitiously be receiving?

Scenario below purely fictitious

AUD takes upward spike on Further weakening confidence in the EURO &USD
Gold price is manipulated in near stasis price range
AUD gold purchases become extremely favourable for a short period of time.

This was put to me a while ago by someone and i could not counter the Argument effectively given the international confidence in the Australian dollar.
I played with the Gold price moving upward but in the short term his argument was totally fesible.
Sorry about the cloak and dagger but cold advice can sometimes open up new thought directions without the influence from all the minute details.

REDBACK

 

[Dogmatix]

Don't let any PM bears or Michael Pascoes see this thread, it could make lots of work for poor yippee

 

[bordsilver]

Actually, in regards to your "Cash is King" comment, it's always king - but in the current environment one real reason why you may want it is to trade for equity. For example, the local car wash business may have a healthy cash flow but due to another investment which goes sour (or similar) they need to rapidly raise cash to prevent insolvency. Your cash stash could be used to shore up the finances of the owner in return for, say, 20% ownership of the car wash. These sorts of deals happen regularly enough that they aren't uncommon but you rarely hear about them unless you 'move in the right circles'.



Edit:

As to the investment certificates what type of interest returns would we fictitiously be receiving?

None. $10,000 now for $10,000 in the future. Technically you can do it yourself via Bloomst's Willow Tree idea but I don't see how I would benefit if you did that.

 

[Dogmatix]

See post#3

See line #2 in Post #5. I was being very constructive.

As to the investment certificates what type of interest returns would we fictitiously be receiving?

Scenario below purely fictitious

AUD takes upward spike on Further weakening confidence in the EURO &USD
Gold price is manipulated in near stasis price range
AUD gold purchases become extremely favourable for a short period of time.

This was put to me a while ago by someone and i could not counter the Argument effectively given the international confidence in the Australian dollar.
I played with the Gold price moving upward but in the short term his argument was totally fesible.
Sorry about the cloak and dagger but cold advice can sometimes open up new thought directions without the influence from all the minute details.

REDBACK

Do you really want to play the currency markets? If the AUD is so good, leverage up and jump on the Forex markets instead!

Can the AUD go up forever? Is it appreciating, or are the other currencies depreciating? Can they depreciate forever?

Imagine what our economy would look like if the AUD was double the current exchange rate vs other currencies. Cheap imports and 50% unemployment FTW!

 

[REDBACK]

See line #2 in Post #5. I was being very constructive.

As to the investment certificates what type of interest returns would we fictitiously be receiving?

Scenario below purely fictitious

AUD takes upward spike on Further weakening confidence in the EURO &USD
Gold price is manipulated in near stasis price range
AUD gold purchases become extremely favourable for a short period of time.

This was put to me a while ago by someone and i could not counter the Argument effectively given the international confidence in the Australian dollar.
I played with the Gold price moving upward but in the short term his argument was totally fesible.
Sorry about the cloak and dagger but cold advice can sometimes open up new thought directions without the influence from all the minute details.

REDBACK

Do you really want to play the currency markets? I'd there AUD is so good, leverage up and jump on the Forex markets instead!

Can the AUD go up forever? Is it appreciating, or are the other currencies depreciating? Can they depreciate forever?

Imagine what our economy would look like if the AUD was double the current exchange rate vs other currencies. Cheap imports and 50% unemployment FTW!

Frankly i have only ever played the Share market,i know next to nothing about currency trading.Agree the AUD spiking would be disastrous for our bottom line,but as to being able to buy more imports(Addendum -purely looking at the 'argument' from an individual capitalistic make a quick profit point of view) and PM's his points had merit.

 

[REDBACK]

Actually, in regards to your "Cash is King" comment, it's always king - but in the current environment one real reason why you may want it is to trade for equity. For example, the local car wash business may have a healthy cash flow but due to another investment which goes sour (or similar) they need to rapidly raise cash to prevent insolvency. Your cash stash could be used to shore up the finances of the owner in return for, say, 20% ownership of the car wash. These sorts of deals happen regularly enough that they aren't uncommon but you rarely hear about them unless you 'move in the right circles'.



Edit:

As to the investment certificates what type of interest returns would we fictitiously be receiving?

None. $10,000 now for $10,000 in the future. Technically you can do it yourself via Bloomst's Willow Tree idea but I don't see how I would benefit if you did that.

I find your Cash is always king comment intriguing[And will be thinking about it for the rest of the day ]
In a high liquid finance market when cash(Or borrowing cash) is cheap would you concede the 'King' can be demoted to at least a 'Prince value',due to it not having the saviour qualities in the business example you gave(As its more readily available with lax lending criteria){Maybe we will never see that one again!}.I hear you loud and clearly though.

REDBACK

 

[GBN]

Hi mate, bordsilver has got it correct in post #5.
There are may other ways to increase exposure to the AUD, the simplest would be to short the US on margin.

There are a couple of on line trading platform that are very good.
I've personally used one of them (not sure if allowed to post links?) As usual I lost money, but that is a reflection on my trading skills

Good to hear somebody has faith in our economy. Best of luck.

 

[Dogmatix]

As to the investment certificates what type of interest returns would we fictitiously be receiving?

Scenario below purely fictitious

AUD takes upward spike on Further weakening confidence in the EURO &USD
Gold price is manipulated in near stasis price range
AUD gold purchases become extremely favourable for a short period of time.

This was put to me a while ago by someone and i could not counter the Argument effectively given the international confidence in the Australian dollar.
I played with the Gold price moving upward but in the short term his argument was totally fesible.
Sorry about the cloak and dagger but cold advice can sometimes open up new thought directions without the influence from all the minute details.

REDBACK

Do you really want to play the currency markets? I'd there AUD is so good, leverage up and jump on the Forex markets instead!

Can the AUD go up forever? Is it appreciating, or are the other currencies depreciating? Can they depreciate forever?

Imagine what our economy would look like if the AUD was double the current exchange rate vs other currencies. Cheap imports and 50% unemployment FTW!

Frankly i have only ever played the Share market,i know next to nothing about currency trading.Agree the AUD spiking would be disastrous for our bottom line,but as to being able to buy more imports(Addendum -purely looking at the 'argument' from an individual capitalistic make a quick profit point of view) and PM's his points had merit.

The points generally have merit, if PMs get smacked down as the AUD rises. Otherwise PMs should roughly rise with the AUD, as it is really just the USD depreciating against both.

Unless our economy is booming of course - in which case I wish someone (besides Swanny) would have told me.

The currency markets are fickle, just ask George Soros. PMs are a hedge against our currency tanking, and many here would agree it is long overdue. What fundamentals do we have left for a strong AUD? I'd say we have a speculative currency bubble. One sneeze and it's all over.

 

[JamesG]

hi

this year i changed $2000AUD into USD and got $2080USD , as i was planning a trip to the US, but that fell through.

today i went back to convert my USD into AUD and got $1980AUD , a lose of $20AUD



I think that sums it up pretty well


James