Does it make sense to buy physical Euros?

6 posts / 0 new
Last post
tribbsj's picture
tribbsj
Status: Member (Offline)
Joined: Feb 9 2009
Posts: 4
Does it make sense to buy physical Euros?

It would have made sense at the beginning of the year to buy Euros. As a hedge against inflation for a small-time person like me with no money and no option to buy stocks or use Forex or even buy gold, does it make sense to buy physical Euros?

I was thinking of going down to the bank and buying a few and continuing to buy more, sort of like a savings account -- I also get the added advantage of NOT being able to spend them without having to convert them back.

I'm not sure if this makes sense, though? In a hyperinflative environment, it seems like Euros might be a good thing to have... would another currency be better?

vtcm's picture
vtcm
Status: Member (Offline)
Joined: Apr 22 2009
Posts: 1
Re: Does it make sense to buy physical Euros?

 

No it makes no sense to buy Euro at this point. Stick to the USD.

anton95's picture
anton95
Status: Member (Offline)
Joined: Sep 29 2008
Posts: 22
Re: Does it make sense to buy physical Euros?

No, because of transaction charges.

If you are literally buying a few thousand dollars worth of Euros, then you will lose 5% on the conversion because of the rip-off exchange rates the banks use, and at some point in the future when you want to finally spend them, you will lose another 5% converting them back.  That is not counting what you also pay as fees or commissions.

You would have to believe that the dollar was going to fall more than 10% just to break even.

 

AinSophAur's picture
AinSophAur
Status: Member (Offline)
Joined: Sep 25 2009
Posts: 18
Re: Does it make sense to buy physical Euros?

Dollar will collapse as a global currency. But still, Euro will follow its route soon.

Instead of money accumulation I advice you to grown your own food and stuff like this.

Greetings from Slovenia/Europe

Z

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1443
Re: Does it make sense to buy physical Euros?

I exchanged dollars for Yen, Yuan and the Swiss Franc back in Oct. 08' and put them in a safe place.  My bank exchanged at the FOREX rate at the time and with ZERO fees.  I don't know if that's the case any longer as banks have started charging strange fees all over the place but at that time, there were no fees.  Go to BofA's website and check out their foreign currency exchange.  

As for "is it smart".....I personally feel a heck of a lot better knowing that I have a small stash of foreign currency.  It's not the blanket that I feel from having PM's but it still keeps me warm at night.  Being prepared for as much as possible is always smart.

dchrys's picture
dchrys
Status: Member (Offline)
Joined: Jan 6 2009
Posts: 20
Re: Does it make sense to buy physical Euros?
tribbsj wrote:

It would have made sense at the beginning of the year to buy Euros. As a hedge against inflation for a small-time person like me with no money and no option to buy stocks or use Forex or even buy gold, does it make sense to buy physical Euros?

I was thinking of going down to the bank and buying a few and continuing to buy more, sort of like a savings account -- I also get the added advantage of NOT being able to spend them without having to convert them back.

I'm not sure if this makes sense, though? In a hyperinflative environment, it seems like Euros might be a good thing to have... would another currency be better?

 

As a citizen of the eurozone, I can confirm that the real purchasing power of the (physical) Euro for basic goods and services has dropped around 70% since its introduction as circulating currency in 2002. This is as real inflation as it gets when you reach the groceries shop counter.

I seen no point in holding physical Euros, unless you are interested in numismatics ;-)

-=dchrys=-

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments