Trading Chile Peso
As relief efforts from agencies outside the country send a windfall of U.S. dollars their way, the Chilean peso is expected to experience a nice upward push in value against the dollar during that time.
In 2009 the Chilean peso grew in value against the U.S. dollar by close to 20 percent. It was dropping against the greenback in the first two months of 2010 based on new currency reserve requirements in the country concerning private pension funds.
This temporary situation could be a good play going forward for currency traders looking for some degree of predictability in their forex trading.
Trading Chile Peso
Showing posts with label Greenback. Show all posts
Showing posts with label Greenback. Show all posts
Monday, March 1, 2010
Monday, January 4, 2010
Gold Marc Faber's Favorite Currency
Gold Marc Faber's Favorite Currency
There is absolutely no reason to have any trust in the U.S. dollar, and as Marc Faber and others have noted, it's only the short-term growing bearish sentiment which offers any support for the greenback at all. That and the fact that other central banks haven't stopped the paper money printing presses either, keeps it from completely collapsing against its currency competitors.
Still, with the potential for that to continue over long term as the recession continues to linger on, Faber still favors gold as his favorite currency, and reminds those that aren't aware of its history that it has been used for exchange for over 6,000 years, while also stating he's not aware of any paper currency lasting longer than a few hundred years.
While Faber's doesn't consider himself a gold bug, he does acknowledge that many times gold will outperform all other financial assets like it has since 1999, but the opposite can happen with equities against gold as well.
Nonetheless, I don't see how gold as currency will be outperformed by any other paper currency in the years ahead, and anybody betting against gold's performance will probably lose over the long haul.
Gold Marc Faber's Favorite Currency
There is absolutely no reason to have any trust in the U.S. dollar, and as Marc Faber and others have noted, it's only the short-term growing bearish sentiment which offers any support for the greenback at all. That and the fact that other central banks haven't stopped the paper money printing presses either, keeps it from completely collapsing against its currency competitors.
Still, with the potential for that to continue over long term as the recession continues to linger on, Faber still favors gold as his favorite currency, and reminds those that aren't aware of its history that it has been used for exchange for over 6,000 years, while also stating he's not aware of any paper currency lasting longer than a few hundred years.
While Faber's doesn't consider himself a gold bug, he does acknowledge that many times gold will outperform all other financial assets like it has since 1999, but the opposite can happen with equities against gold as well.
Nonetheless, I don't see how gold as currency will be outperformed by any other paper currency in the years ahead, and anybody betting against gold's performance will probably lose over the long haul.
Gold Marc Faber's Favorite Currency
Investing ETF Gold Funds - 'SPDR Gold Shares'
Investing ETF Gold Funds - 'SPDR Gold Shares'
Gold will continue to be a force for some time ahead, no matter if it gets hit by a temporary surge in the value of the U.S. dollar or not. And even if it does, it won't matter, as the greenback won't be able to hold strong for a very long period of time if it happens at all, so gold will perform stongly for years into the future, even with temporary corrections in the midst of its continual upward price movement.
With that in mind, a great way to invest in gold can be through an ETF gold fund, and one of the fastest growing in the world - not with just ETF gold funds, but all ETF funds in existence - is 'SPDR Gold Shares.
An ETF gold index fund is listed on an exchange just like a stock, and so in easy to invest in, and relatively inexpensive as well, as they are not management intensive, and other than storage costs, fairly free of other fees.
Along with trading on an American exchange, SPDR Gold Shares also trades on the Tokyo Stock Exchange, Hong Kong Stock Exchange and the Singapore Stock Exchange. That exposes it to a variety of markets around the world.
At this time, the SPDR Gold Shares fund stores and underlying 1,133 metric tons of gold in the London vaults of HSBC Bank USA. That amounts to about 36,300,000 ounces with a value of close to $40.2 billion at today's gold market price.
With very few exceptions, SPDR Gold Shares of course primarily holds gold. There are few times when it holds cash as well, but that's very temporary until new buying opportunities arise.
Investing in an ETF gold index fund like SPDR Gold Shares is an easy way for investors to participate in the ongoing bull gold market, and with the ease of trading gold like a security, it eliminates many of the barriers many investors face when thinking of investing in the precious metal.
Investing ETF Gold Funds - 'SPDR Gold Shares'
Gold will continue to be a force for some time ahead, no matter if it gets hit by a temporary surge in the value of the U.S. dollar or not. And even if it does, it won't matter, as the greenback won't be able to hold strong for a very long period of time if it happens at all, so gold will perform stongly for years into the future, even with temporary corrections in the midst of its continual upward price movement.
With that in mind, a great way to invest in gold can be through an ETF gold fund, and one of the fastest growing in the world - not with just ETF gold funds, but all ETF funds in existence - is 'SPDR Gold Shares.
An ETF gold index fund is listed on an exchange just like a stock, and so in easy to invest in, and relatively inexpensive as well, as they are not management intensive, and other than storage costs, fairly free of other fees.
Along with trading on an American exchange, SPDR Gold Shares also trades on the Tokyo Stock Exchange, Hong Kong Stock Exchange and the Singapore Stock Exchange. That exposes it to a variety of markets around the world.
At this time, the SPDR Gold Shares fund stores and underlying 1,133 metric tons of gold in the London vaults of HSBC Bank USA. That amounts to about 36,300,000 ounces with a value of close to $40.2 billion at today's gold market price.
With very few exceptions, SPDR Gold Shares of course primarily holds gold. There are few times when it holds cash as well, but that's very temporary until new buying opportunities arise.
Investing in an ETF gold index fund like SPDR Gold Shares is an easy way for investors to participate in the ongoing bull gold market, and with the ease of trading gold like a security, it eliminates many of the barriers many investors face when thinking of investing in the precious metal.
Investing ETF Gold Funds - 'SPDR Gold Shares'
Friday, October 24, 2008
Commodities: Gold Fall Lowest in 21 Months
Gold continues to get hammered as institutional investors continue to sell their precious metal positions in order to raise cash to cover bad stock trades and other bad investments.
The reason they have to do this is because they leveraged themselves to make investments, and now lenders are calling their loans, forcing them to raise short-term cash. This is why the usual strength and safety of gold in times like these hasn't come about, as prices continue to be pressured downward.
On the other side of it, the U.S. dollar has been the beneficiary of this trend, as most commodities, including gold, is dollar-denominated, pushing the greenback up in circumstances which usually weaken it.
Since the underlying fundamentals remain the same, this will eventually correct itself, but because of the complexity of some of the financial instruments invested in, it's impossible to measure the amount of time it will take for all of this to unwind.
Once it does, things will start to react normally again, and the U.S. dollar will start to fall, while gold will again rise. Again though, the time frame is impossible to predict at this time.
Early today December delivery for gold dropped to $681 an ounce on the New York Mercantile Exchange, a $33.70 fall. That's the lowest since January 11, 2007. Later in the session gold rebounded to $708.70.
Gold could end Friday with the worst trading week in its history.
The reason they have to do this is because they leveraged themselves to make investments, and now lenders are calling their loans, forcing them to raise short-term cash. This is why the usual strength and safety of gold in times like these hasn't come about, as prices continue to be pressured downward.
On the other side of it, the U.S. dollar has been the beneficiary of this trend, as most commodities, including gold, is dollar-denominated, pushing the greenback up in circumstances which usually weaken it.
Since the underlying fundamentals remain the same, this will eventually correct itself, but because of the complexity of some of the financial instruments invested in, it's impossible to measure the amount of time it will take for all of this to unwind.
Once it does, things will start to react normally again, and the U.S. dollar will start to fall, while gold will again rise. Again though, the time frame is impossible to predict at this time.
Early today December delivery for gold dropped to $681 an ounce on the New York Mercantile Exchange, a $33.70 fall. That's the lowest since January 11, 2007. Later in the session gold rebounded to $708.70.
Gold could end Friday with the worst trading week in its history.
Friday, September 26, 2008
Commodity Prices Holding Back Canadian Dollar
The Canadian dollar has enjoyed a 4 percent gain against the greenback over the last couple weeks as U.S. financial conditions continue to falter.
Even so, the resultant decline in commodity prices has kept the loonie from making any more gains over the last couple days as it has remained flat against the U.S. dollar.
With politicians battling over the proposed bailout, pressure on the U.S. dollar will remain until it's resolved and the final package revealed.
With over half of all Canadian exports being commodities, things will remain flat until the decision is made concerning the possible bailout and the specifics of it.
The Canadian dollar seems to have settled at around C$1.03 to the U.S. dollar during this period of time.
Even so, the resultant decline in commodity prices has kept the loonie from making any more gains over the last couple days as it has remained flat against the U.S. dollar.
With politicians battling over the proposed bailout, pressure on the U.S. dollar will remain until it's resolved and the final package revealed.
With over half of all Canadian exports being commodities, things will remain flat until the decision is made concerning the possible bailout and the specifics of it.
The Canadian dollar seems to have settled at around C$1.03 to the U.S. dollar during this period of time.
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