European Union Forums

[M.Helen]

Hi, can anybody suggest me whether I should keep money in dollars or euros?

[Faw_Peter]

well it depends, if you, for example, wanna by a car from the USA you should deposit money in dollars, and vice-versa. You first should understand what are you going to spend the money on.

[euigorwithyou]

It's better to keep them in EURO. The reason: you always look for the strongestr currency and right now it is EURO.

[M.Helen]

It also depends how much money you wanna keep. I consider a better choice to have several deposits in different, more or less strong currency. It's the only way to be insured. A currency may fall swiftly in one day if an unexpected action took place in its country of origin.

[Benn]

Having several bank deposits - that's quite smart, Helen. But, this way you are exposed to lower risk. The point is that it is hardly possible that all the currencies could grow at the same time. But one of them will certainly go down.

[Terry]

Keep money in gold! That's a solution. Gold hardly depreciates in comparison with the dollar or euro.

[M.Helen]

but terry, you are wrong! Gold goes down. Read here:
http://www.commodityonline.com/futures- ... -6549.html

[Karl.in.eu]

Maybe because the dollar went up in the recent days, then it would be logical for the gold to go down.
Remember that the gold price went up in the previous years because of the dollar depreciation. The gold's reference currency is the US Dollar!

[Nicholas]

The price of gold represents the stability in the worldwide markets. When it goes up, this means there is a lot of uncertainty in the market and investors go and take a taste of gold, as it is the only commodity that can't depreciate to 0. And vice versa. When the stability is high, then investors are bothering with other markets tan gold, which are more profitable.

This comment even drove me to the idea that if the oil prices are going down and the gold's too, then we may have reached a point of stability in the global investment sentiment. What are your thoughts about this?

[Faw_Peter]

you are right Nicholas. However I don't really notice oil prices go down. Actually they did, over the past few months, but, how long will it last? This spring, when prices for oil reached (don't remember exactly) about 150$/barrel, it was a real hit for investors and world economy. This price was made up in few weeks. Nobody could even imagine it's possible. Still, it was. So, what I'm pointing to, is that we may wake up one morning, turn on the TV, and surprisingly hear the oil price is 150$ again.

[Karl.in.eu]

Yes the oil price had a surprising grow in the last 5-7 years. I remember looking back then on Euronews and seeing the barrel of 30$, and seeing it rising bit by bit. Back then all financial markets where shocked to see the price getting to 50$, and know 120$ is normal, and the psychological level moved to 150$.. Interesting how cheap we will consider the oil to be in 2008 in 5 years.

[Nicholas]

I would like to expand the details about the phenomenon that was noticed by Karl and the ones that I started earlier, and about the idea that stands behind them all. And this idea is inflation. The dollar is very weak and it can buy barely anything comparing it to other currencies. At the first look we see that the prices of oil are bigger than ever. When we look closer we’ll find that the prices back in the time of the oil crisis in 70s was higher than the one we have today.

[Hakan G]

Does this mean that the dollar is finished?

[Nicholas]

It should not be erased from the global arena that fast. But the US dollar is depreciating slowly but steadily for 30 years already, thus this rate should’ve not surprise anybody.

[Terry]

dollar's history is quite long. By the way, when was it launched officially?

[willyoumind]

I will go for Euros for sure, as the US dollars is even weaker than the Canadian dollars now! However, one thing that cannot be doubted here is the US dollars will still remain the major currency in the world...

[Steven]

I will go for Euros for sure, as the US dollars is even weaker than the Canadian dollars now! However, one thing that cannot be doubted here is the US dollars will still remain the major currency in the world...

Really? When was the last time you watched economic news? One euro now is equivalent to 1.42 dollars!!!! It fell down from the top of 1.56! Investors who hold euros lose now billions!

[Hakan G]

Short term depreciations are not a big deal comparable to the long term depreciation of the US dollar that we witness now.

[Terry]

Yeah, and what about GDP which is now $1.47, but a month ago was $1.36? UK is one of the countries mostly hit my the crisis. UK imports have registered essential growth due to depreciation of their currency.

[Benn]

Euro again depreciates = $1.28671
and GDP again down = $1.43559

[Martin]

It's better to keep them in EURO. The reason: you always look for the strongestr currency and right now it is EURO.

Yes but if tomorrow it will be dollar?
Euro is good but it is very changeable, but dollar is almost stable. I choose dollar